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Business

DOT expresses concern over budget cut

Mary Grace Padin - The Philippine Star

MANILA, Philippines - A tourism official has expressed concern over the reduction in the Department of Tourism’s budget for 2017 despite the agency’s target to boost the number of tourists to the country.

Tourism Undersecretary for Advocacy and Public Affairs Katherine De Castro told The STAR the proposed P2.5 billion budget may not be sufficient to achieve the growth targets of the industry.

“For 2017, our target for (international) tourist arrivals is about six million to seven million. I don’t think the budget will be enough. Just for advertising, marketing our country, less than P3 billion isn’t enough,” De Castro said over the phone.

According to the Department of Budget and Management (DBM), the proposed P2.5 billion budget for the tourism department and its attached agencies in 2017 is 32.1 percent lower than this year’s P3.6 billion.

The budget cut was due to lower allocations for maintenance, as well as other operating expenses and capital outlay.

De Castro said lawmakers who were present during the budget hearing for the DOT on Wednesday also expressed the same concern over the reduced budget.

“The congressmen were surprised. They said only one percent of the entire 2017 budget went to the DOT, yet  (tourism) contributes so much in terms of GDP and employment,” De Castro said.

“A lot of them also brought up concerns on how to support the tourism industry in their respective districts,” she added.

De Castro said that with the support from representatives, especially those who are part of the Tourism committee, there was a possibility that the DOT’s 2017 budget could still be increased.

 “There’s a possibility. We are going to have an executive committee meeting to discuss how we can go about it,” De Castro said.

“But whatever budget we have in 2017, we will come up with ways and means so that the tourism industry will not suffer,” she added.

Of the proposed P2.5 billion budget, P2.23 billion will go to the DOT while P218.79 million and P42.37 million will go to the Intramuros Administration and National Parks Development Committee, respectively.

Also included in the special provisions of the budget is the P4.58 million Tourism Development Fund, which will be used for the development, promotion and marketing of the country.

About P150 million coming from the net profit of the Duty Free Philippines will also be allotted for tourism-related projects and activities.

The same report also stated that the tourism department aims to increase international tourist arrivals by 10 percent to 6.5 million and domestic arrivals by four percent to 73.3 million.

 

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