Pimentel warns of tourism crisis due to COVID-19

Deputy Speaker Johnny Pimentel expressed a grim outlook for the Philippine tourism industry in 2020, largely due to the COVID-19 outbreak.

Pimentel estimates a loss of up to 1.2 million Chinese visitors, warning that even if the virus is contained by the second quarter, the damage to tourism may already be irreversible.

He anticipates that China might discourage its citizens from international travel, preferring they spend within the mainland to boost their own economy.

To mitigate the impact, Pimentel urged the Department of Tourism and Department of Labor and Employment to create an emergency plan for skills retraining and job placement for affected tourism workers.

He also suggested the Social Security System prepare to provide unemployment insurance to those who will be involuntarily separated from their jobs.

Chinese tourists are significant contributors to the Philippine economy, with each spending an average of $1,000 to $1,200 for a week-long stay.

In 2019, the Philippines welcomed over 1.7 million Chinese visitors, a number that could potentially drop to 500,000 or even lower in 2020.

The Department of Tourism also forecasts a general decline of at least 10 percent in arrivals from other foreign countries due to the ongoing health crisis.