Travel agencies appeal for govt relief amid mounting overhead, zero income

TRAVEL agencies are asking government for economic relief to remain afloat amid the Luzonwide enhanced community quarantine (ECQ ) to contain the spread of the novel coronavirus disease (Covid-19).

In a letter to Tourism Secretary Bernadette Romulo Puyat dated March 30, Philippine Travel Agencies Association (PTAA) President Jose Ma. Renard Gregory B. Tuaño said, “Travel Agents belong to the micro, small and mediumscale enterprises and amid this Covid-19 outbreak, liquidity is our number one problem. At this juncture, we are anxious and greatly concerned for the near and immediate term on how to keep our business afloat with the continuing overhead expenses, but with little to zero sales coming in.”

In the short term, for the travel agencies to survive, the PTAA requested for subsidies for staff salaries “for us to maintain our employees and our businesses…until December 2020.” In Singapore, PTAA said, the government announced subsidies of staff salaries between 50 to 75 percent in the tourism sector.

The PTAA also asked for that employees and employer’s contribution to SSS, PAG-IBIG and Philhealth be waived, “without prejudice to the benefits of the employees for the remainder for 2020.” The group, likewise, requested government to waive to give discounts on office rentals “for a period of at least six months from the lifting of the ECQ, or up to December 2020.”

For another, PTAA urged a discount of 20 percent to 30 percent on utility bills (telecommunications, data, electricity and water) and that payment on these be deferred in 2021. “Outstanding balance to be paid in six monthly installments without interest.”

For the travel agencies to survive, the PTAA urged government banks extend soft loans “at a special low interest rate,” with a minimum of two years to pay; a moratorium outstanding bank loan and credit card billings until end of “December 2020 with balance to paid in installment in 2021 with zero additional interest rate or finance charges” as well was national and local corporate tax relief.

On the national level, the PTA A asked that the payment of corporate income tax due in 2019 be deferred to April 2021, while a “tax holiday” be extended for corporate income tax due this year. It also asked for tax holidays on value-added tax payments and withholding taxes from salaries and professional fees.

On the local level, the travel agencies group asked that payment on business permits be waived, while those paid up for “2020 be credited to 2021.”Also, it asked for the waiver of the municipal tax based on gross sales, with payment made for 2020 credited to 2021 as well.

The PTAA urged that airline penalty fees to all issued tickets for travel up to December 2020 be waived, regardless of point of origin and destination. “Government, through the Department of Trade and Industry, Department of Finance, and Civil Aeronautics Board to write to IATA [International Air Transport Association] and get a guarantee that they will be responsible for all monies for refund. As such all monies due for refund payments are to be kept in the country to ensure funding and immediate payment.”

The PTAA, which boasts of 500 members, also recommended to the DOT secretary ways to promote the recovery of their sector. For one, the DOT can “promote and stimulate domestic tourism using the travel agents and tour operators on a country-wide caravan. This serves as an educational/familiarization trip for local travel agents and at the same time as a market stimulating activity encouraging local tourist to go domestic.”

It also suggested that DOT and its marketing arm, the Tourism Promotions Board subsidize the cost of PTA A’s travel tour expos for 2021 and 2022, and that they “encourage all vincial tourism offices to participate” in the expos.

It asked the DOT “to make representation to [Department of Finance] for tax yield incentives to all Dot-accredited tourism enterprises such as, but not limited to hotels, resorts, transportation companies, restaurants, travel agents, tour operators and etc., so savings can be passed to the end-users.”

PTAA’S other recommendations to the DOT for the long-term recovery of the sector include:

Asking IATA to temporarily revert the payment cycle from the current weekly to monthly from now until end of 2021;

Urge airlines to reinstate standard agents commission to 9 percent of gross fare and to protect its accredited or authorized sales agents;

Ask credit card companies to partner with travel agents, instead of competing with them, “with their discriminatory promos that excludes travel agents as a sales channel;”

Appeal to various foreign embassies to renew unused visas due to travel cancellation in relation to the Covid-19 outbreak, without the need to pay another visa fee and submission of another set of documentary requirements, among others.

Aside from declining inbound tourists, many Filipinos have also decided to postpone their travels and vacations abroad due to Covid-19, resulting in the expiry of their short-term travel visas.