The tourism industry has been largely hit by the pandemic and countries are counting losses. Moreover, the closure of borders, hotels, and airports as a precaution has led to high levels of unemployment. According to the World Tourism Organization, about 100 to 120 million jobs are at risk.
In the Philippines, the unemployment rate has grown by 10 % since the start of the pandemic. The Department of Tourism has even stated its revenue has declined to PHP 85bn. This, in turn, has forced the government to invoke the Bayanihan Act.
What is the Bayanihan Act? This is the question that comes in your mind. Well, in this article we are going to discuss the bill in depth.
The Bayanihan to Heal as One Act or Bayanihan Act is a law that was enacted in March 2020. The clause provides the president with extra powers to combat COVID-19 in the country. This means the state can come up with urgent measures to help in mitigating the effects of the pandemic to its citizens.
The bill has provided a stimulus package which was given to Tourism Industry to cushion them.
The House of Representatives and the Senate saw it wise to allocate PHP 10 billion to the Department of Tourism. These funds are expected to cover the whole industry which includes the employees and small businesses that depend on tourism. In this section, we are going to discuss more the bill. Here you’ll understand who stands to benefit from the funds and by how much.
What is the Bayanihan Bill?
The Department of Tourism (DOT) on August 25th received PHP 10- billion as a stimulus package to cushion them. This was done under the Bayanihan To Recover As One Bill. In a statement released by the DOT, stated the stimulus package is a sign the House of Representatives and the Senate believe in them. They further stated the Act will ensure the survival of micro, small and medium enterprises found in this sector of the economy.
The Bill came at the right time and the DOT hopes the industry will be able to mitigate the effects of the pandemic. Furthermore, with the Bayanihan 2 bill, they’ll can undertake the plans under the Tourism Response and Recovery Plan (TRRP). This, in turn, speeds up the process since it shall be done quickly and smoothly.
Yes, its true the tourism industry is one of the sectors which has been hit hardly by the pandemic. Millions have lost their jobs and others are expected to follow suit since firms are struggling to remain afloat. The Tourism Congress of the Philippine stated further, the travel restriction imposed by the government has led many small-scale tourism firms to bankruptcy.
Moreover, according to the research done by DOT, it showed the tourism receipts during the first quarter of 2020 plummeted 72 % to PHP 81 billion. This is compared to the same period in 2019 when the tourism sector was doing well.
For this reason, the government is fighting to cushion the impact of the pandemic on the tourism sector. Hence, PHP 6 billion of online loans in the Philippines were provided to tourism MSMEs through the Small Business Guarantee and Finance Corporation of the Department of Trade and Industry. The 6 billion is from the PHP 10 billion provided. The allocation of the funds shall be coordinated by the Department of Tourism (DOT).
Nonetheless, the Bayanihan bill has not left out the tourism workers who have been left unemployed after the industry closed its door. Through the bill PHP3 billion has been allocated to the workers as a stimulus package to cushion them. The funds are to be distributed by the Department of Labor and Employment.
Out of the 10 billion the remaining 1 billion has been channeled to the tourism road infrastructure programs. These programs are headed by the Department of Public Works and Highways.
Though the cash has been distributed equitably, different small tourism businesses are going to still benefit from the funds. According to DOT, 99.9 % of the 144,640 establishments in the accommodation and foodservice industry are classified as MSMEs.
Additionally, 95.8 % of the 921,292 employees who work in the industry are also considered under the MSMEs. The bill has extensively covered the tourism industry to ensure its recovery’s fully Post-COVID.
What other solutions are there?
Though Bill has provided for the allocation of PHP10 billion, we must agree this is a drop in the ocean. Not everyone will access the funds to cushion themselves during this pandemic, but it is a start. Some Philippine citizens will have to resort to credit at this difficult time. Unfortunately, banks are now reluctant to issue loans and have tightened the requirements for borrowers. So people are looking for more suitable options to borrow money in the Philippines.
Among the many credit companies it is difficult to choose the right one for you. This is why Robocash.ph is here for you. The online platform, gives you access to short term loans at a lower interest rate.
Additionally, the loan tenure is flexible to ensure you have ample time to clear your debt. If you are worried about the firm, legibility, there is no need to. The online lender has been registered with the Security and Exchange Commission (SEC).
Robocash offers fast loans to Philippine citizens for 7 to 30 days. You can borrow from 1000 to 25000 pesos. Now Robocash has a profitable promotion for its new clients – the first loan at 0%. You can take a loan of up to 10,000 pesos and return it without overpayment, which is very important in the financial crisis.
What will happen next?
No one knows the kind of curve it will take for the economy to recover. Some countries have even started to experience economic recession. The experts are even uncertain if the economic recovery would be V, L, U, or W shaped curve. This has led states to adopt various measures to help in cushioning their citizens.
In the Philippines, the Bayanihan to Heal as One Act has come at the right time when the tourism sector was sinking. The stimulus package of PHP 10 billion will help the economic sector to get back on its feet. However, the funds won’t be enough to cater to each business or employee.
For this reason, Robocash online loan can help you. Here you can find urgent financial assistance for the Filipinos. However, take the only amount that you can return. Do not waste time and start applying for financial aid.