City sees P7.4-B loss in tourism

By Joseph B.A. Marzan

 

Iloilo City Mayor Jerry Treñas on Friday revealed that the city’s tourism industry may have lost an estimated P7.4 billion pesos in tourism receipts from March 15 to June 15, 2020.

Treñas revealed the city’s economic losses and plans during the annual membership meeting of the Iloilo Local Economic Development (ILED) Foundation on Friday, August 28, 2020.

Hotels and other accommodation establishments suffered P678.3 million in losses from March 15 to June 15, based on the hotel occupancy rate of the same period last year.

The city also lost P28 million due to canceled events for the same period.

The mayor said that part of the city’s economic recovery programs will be to work with the local tourism industry as the pandemic’s effects will be felt even after it dies down.

“We will work with our local tourism [industry] to help the hospitality industry since the effects of this pandemic are perceived to be felt even a few years from now. By strengthening our local tourism industry, we can encourage people to spend and provide jobs for those in the hospitality industry,” the mayor said.

 

 

TAX GAINS, PROJECTED LOSSES

There was a small ray of light in the economic gains of the city due to the slight increase of 1.8 percent in business tax collections in the first half of 2020 compared to the same period in 2019.

The city government’s Local Economic Investment and Protection Office (LEIPO), however, sees a significant decrease in tax payments by 2021, mainly due to the possibility that declines in sales and revenue will force businesses to close or streamline their operations.

The city’s Business Permits and Licensing Office (BPLO) also reported as of July 2020 that around 435 businesses in the city, mostly food and related services, had already retired or closed.

Treñas said that the city government’s programmers are starting the process of making their services available online, beginning with an in-house program for the automation of the Building and Occupancy Permits process.

The program is expected to be up and running by the 4th quarter of 2020 and will include a tracking and recording system, easier report generation, and permits locator.

The city government is also looking into online applications starting next year.

Treñas said that his campaign promise of transforming Iloilo City into a “Smart City” was essential to its economic recovery from the pandemic.

“Our aim of becoming a smart city is very essential in helping our local economy to recover. For our economy to be back on track, it begins with encouraging business owners to renew their businesses by helping start-ups to establish their niche. No matter how long it will take for Iloilo City’s economy to recover, the business and investment landscape will look different,” he added.

 

Treñas said that the pandemic opened the city to realizations that it needed to improve its economic capabilities.

“The pandemic opened the realization that businesses in Iloilo City need to enhance its capacities on assessing business vulnerabilities and risks. These include business continuity management and linkage to forward and backward industries. Technology and digital platforms will be indispensable tools to connect suppliers, customers, and financiers. Buoying up consumer confidence entails very strong partnerships of government, businesses, and communities,” he added.

Treñas said that he remains hopeful for local economic development despite the setbacks placed by the COVID-19 pandemic.

“The pandemic may have depleted our resources, destroyed our morale, shattered our dreams, and delayed our plans, but my beloved Ilonggos, let us not be discouraged, let us not waver in our faith, instead have hope. With all our might, let us rebuild this society. We will draw strength from each other to accumulate our lost resources, to uplift our morale, to keep on dreaming, and to proceed with our plans for our beloved dakbanwa. This is just a setback, and in no time, we can together bounce back, bringing Iloilo City to the next level,” the mayor said as he ended his presentation.