DOT to cash in on stronger dollar

The Department of Tourism (DOT) hopes to rake in additional visitor receipts this year, driven by the higher purchasing power of tourists due to the stronger US dollar.

Tourism Undersecretary and spokesperson Benito Bengzon Jr. told The STAR the tourism sector has already seen significant growth in visitor receipts in the first four months of the year.

“For the past four months, we have recorded a 53.93 percent increase in tourism revenues and with this being said, we are hoping the current value of the peso against the US dollar will bring in additional tourism receipts as a result of the stronger purchasing power that this will give our visitors,” Bengzon said.

Visitor receipts from January to April this year amounted to P140.5 billion compared to P91.3 billion in the same period last year.

The peso closed at a 12-year low of 53.42 against the dollar.

While the DOT recognizes the impact of the country’s economic status on tourism, Bengzon emphasized that tourism is a very resilient sector.

“Admittedly, the economic status of a country plays an important role in enticing visitors to come, but the DOT, under my stewardship, will continue its aggressive promotions and marketing efforts to ensure that we hit out targets and sustain the momentum,” Bengzon said.

“We support Malacañang’s pronouncement that while our inflation rate may be higher than usual, it is within the historical amount and that this is not a cause for alarm,” he added.

Colliers International Philippines research manager Joey Roi Bondoc earlier said a strong US dollar may allow tourists to stay longer in the country.

“An American tourist’s dollar, for instance, can buy more pesos so this should translate to purchase of more souvenirs and longer stay,” Bondoc told The STAR.

He added that households receiving remittances would also benefit, as well as returning OFWs, which should drive the staycation market.

“This aside from the fact that average daily rates of foreign branded hotels in Manila are relatively cheaper compared to other major cities in Asia,” Bondoc said.

Bondoc said a weaker peso would make the tourism sector more price-competitive, which would help the sector achieve its target of 7.4 million international tourists this year.

“More important than simply looking at the foreign currency and peso exchange is to make sure we continuously improve our tourism product and services and make them more attractive to visitor,” Bengzon said.