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Tourism in the Philippines down amid COVID-19 fears
The Philippine tourism industry is experiencing significant losses due to the COVID-19 outbreak, with hotels and airlines facing substantial damages.
Tourist arrivals saw a 41% decrease in February, according to the Bureau of Immigration and the Department of Tourism.
Hotel and resort occupancy has also dropped significantly, with Boracay down by 40%, Cebu by 27%, and Bohol by 40%.
Industry stakeholders describe the situation as 'bleeding,' affecting both small companies and larger tour operators.
To mitigate further deterioration, airlines and hotels are offering discounted rates, with some flights and accommodations reduced by as much as 70%.
For example, a family of four can now spend P15,000 for roundtrip Boracay tickets instead of P28,000, and a two-night stay in Boracay is down to P6,000 from P12,000.
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The National Economic and Development Authority (NEDA) projects a loss of 1.42 million tourist arrivals and potential job losses of 30,000 to 60,000 in the tourism and manufacturing sectors if the COVID-19 situation persists until June.
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AirAsia Philippines is launching three new domestic destinations from Clark International Airport: Zamboanga, Dumaguete, and General Santos.
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The Asian Development Bank (ADB) estimates that the coronavirus outbreak could lead to the loss of up to 252,000 jobs and a decline in GDP ranging from $669 million to $1.939 billion in the Philippines.
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The COVID-19 outbreak is expected to impede the Philippine economy's growth potential in the first quarter due to a significant decline in tourist arrivals, particularly from China.
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The Department of Tourism (DOT) is allocating P6 billion to bolster the country's tourism industry, with a significant focus on domestic travel, in response to the economic impact of the COVID-19 threat.
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