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Stocks fall on extension of quarantine measures

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX ended lower on Tuesday as investors reacted to the extension of quarantine measures in Metro Manila and key areas until the end of October.

The bellwether Philippine Stock Exchange index (PSEi) trimmed 19.79 points or 0.33% to close at 5,841.60, while the broader all shares index slid 9.88 points or 0.28% to end at 3,521.10.

“The market has been on a downtrend since it failed to break the 6,000 psychological resistance, and it seems that the market will continue this performance amid the lack of a major positive catalyst,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said in a text message.

The PSEi has not entered the 6,000 level since mid-September, with the last time being on Sept. 15 when it hit 6,018.21. Foreign investors have also been net sellers for 13 straight days due to the lack of an impetus in the local scene.

“I think that the major concern here for investors is that the quarantine measures have not been lifted to a much eased restriction,” Mr. Tan said. “This signalled that the economic recovery will be prolonged versus the initial estimates.”

President Rodrigo R. Duterte decided to maintain the current quarantine protocols in the nation’s capital for another month, which means the number of industries allowed to reopen will remain limited for a longer period.

The number of local coronavirus cases likewise continues to grow by the thousands every day, with 3,073 new cases reported on Monday to bring the total tally to 307,288.

Aside from the extended quarantine, quarter-end window dressing affected the PSEi’s decline on Tuesday, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

“Shares closed weaker on low volume once again with investors getting ready for the quarter-end window dressing tomorrow (Wednesday),” Mr. Limlingan said in a mobile message. He noted others also chose to stay on the sidelines while awaiting a new fiscal stimulus in the United States.

Value turnover on Tuesday stood at P5.67 billion, up from the previous day’s P5.08 billion. Some 1.45 billion issues switched hands, against the last session’s 1.14 billion issues.

Sectoral indices were mixed. Financials grew 7.88 points or 0.69% to 1,150.16; mining and oil added 25.30 points or 0.43% to 5,870.49; and industrials climbed 31.23 points or 0.39% to 7,937.85

On the other hand, holding firms lost 58.31 points or 0.95% to 6,027.47; services shed 7.26 points or 0.49% to 1,447.55; and property slipped 11.10 points or 0.41% to 2,697.61 at the end of Tuesday’s session.

Decliners outnumbered advancers, 109 against 88. Some 52 names ended unchanged.

Net foreign selling declined to P551.77 million on Tuesday from P1.81 billion the previous day.

Peso inches higher on US stimulus, extension of lockdown measures

THE PESO inched up Tuesday as the government extended current quarantine measures in Metro Manila for another month and after the US government renewed talks on a stimulus package.

The local unit closed at P48.50 versus the dollar on Tuesday, up by one centavo from its P48.51 finish on Monday.

The peso opened Tuesday’s session at P48.45 against the greenback and reached an intraday high of P48.44. Meanwhile, its closing level was its intraday low.

Dollars traded rose to $536.21 million on Tuesday from Monday’s $490.35 million.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message that the peso inched up following the extension of current quarantine protocols in Metro Manila.

Meanwhile, a trader said the peso rose on improved sentiment amid progress in the latest stimulus package in the United States.

“The peso strengthened from market optimism amid news of continued discussions between US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the details of a possible second stimulus bill from the US Congress,” the trader said in an email.

For today, Mr. Ricafort expects the peso to move from P48.45 to P48.55 per dollar while the trader sees the local currency ranging from P48.40 to P48.60. — KKTJ

Palace accuses Facebook of censoring gov’t

THE PRESIDENTIAL palace on Tuesday accused Facebook of censoring the government after it took down several social media accounts associated with the Philippine military and police.

The Facebook accounts were part of the government’s “advocacies,” presidential spokesman Harry L. Roque said, adding that the takedown was a form of censorship because the accounts were never tagged as purveyors of fake news.

“The point here is when something is in favor of the government, it’s being taken down,” he told an online news briefing in Filipino. “When it favors the opposition, it remains.”

“The President is clear about this: We need to discuss this and he does not condone censorship of pro-government advocacies,” he added.

The social media giant last week said several social media accounts belonging to two networks — one based in China and another with links to people associated with the Philippine military and police — violated its policies.

The company said it had removed pages, accounts, groups and Instagram profiles of the two unnamed networks, which were allegedly targeting the Philippines for “coordinated inauthentic behavior” or manipulation campaigns.

Fifty-seven Facebook accounts, 31 pages and 20 Instagram accounts, which constituted one network operating in the Philippines, were taken down, Nathaniel Gleicher, Facebook’s head of Security Policy, said at an online news briefing from California.

The people behind the activities had tried to hide their identities, but a Facebook investigation found links to the Philippine military and police, Facebook said in a separate statement.

“In each case, the people behind this activity coordinated with one another and used fake accounts as a central part of their operations to mislead people about who they are and what they are doing, and that was the basis for our action,” Facebook said in a statement on Sept. 22.

“When we investigate and remove these operations, we focus on behavior rather than content, no matter who’s behind them, what they post, or whether they’re foreign or domestic,” it added.

Facebook said it started the investigation after it was brought to its attention by Philippine civil society and news website Rappler.

The Philippine network had about 276,000 followers. About 5,500 people followed the related Instagram accounts.

The operation appeared to have accelerated between 2019 and 2020. The account owners posted in English and Filipino about local news and events including domestic politics, military activities against terrorism, a pending anti-terrorism bill, criticism of communism, youth activists and opposition, the Communist Party of the Philippines (CPP) and its military wing the New People’s Army (NPA), and the National Democratic Front of the Philippines (NDFP), Facebook said.

Mr. Roque said the fact checkers tapped by Facebook, media outlets Rappler and Vera Files, are against the administration.

President Rodrigo R. Duterte on Monday night said he and Facebook have to talk because the social media network was interfering with state advocacies.

“You cannot lay down a policy for my government. I allow you to operate here. You cannot bar or prevent me from espousing the objectives of government,” he said.

“Nothing further to add to the Facebook newsroom announcement posted on Sept. 22,” Michelle Fojas, communications manager at Facebook Philippines, said in an e-mailed reply to questions.

“For Duterte, Facebook is only there to spread the vandalisms, outrage and fake news of Mocha and their trolls,” Senator Leila M. de Lima said in a statement in Filipino posted on the Senate website, referring to Duterte supporter Mocha Uson.

Facebook has taken down at least 100 networks globally to keep the platform safe from what it described as inauthentic and manipulative behaviors, fake accounts and other threats to its user base.

It has also banned several Philippine-based groups for spamming and misrepresentation amid criticisms that the social networking company had not done enough to stop online hate.

“We are making progress rooting out this abuse, but as we’ve said before, it’s an ongoing effort. We’re committed to continually improving to stay ahead,” the company said last week. — Gillian M. Cortez

Chinese companies favored in lopsided contracts — senator

A SENATOR on Tuesday accused the Department of Budget and Management (DBM) of favoring Chinese companies in the purchase of P9.2 billion in mostly overpriced personal protective equipment amid a coronavirus pandemic.

In a statement, Senator Risa N. Hontiveros-Baraquel noted that of the 11 contracts, seven were awarded to five Chinese contractors worth P5.2 billion. Two of the Chinese companies were awarded two contracts each.

“We have so many questions for the DBM, and again, we do need answers to better inform our budget deliberations in the Senate,” she said.

“Our office operates with utmost transparency and we have cooperated for any request of inquiry,” the Budget department’s Procurement Service said in an e-mailed statement. “We are distressed as this issue of PPE procurement has become political in nature. Our interest is transparency and not politics.”

The office said it had asked Ms. Baraquel to give it a copy of the basis of her overpricing findings. “This is so we can validate her allegations. We have yet to receive a reply.”

Four local companies were awarded contracts worth P4 billion, according to a table provided by the lawmaker posted on the Senate website.

Ms. Baraquel also said the protective equipment had been overpriced.

“We need to start the audit of COVID-19 funds, not just the questionable personal protective equipment here but government spending as well,” she said in Filipino.

Ms. Baraquel said a local contractor had managed to procure 30,000 units at P1,700 each, lower than the P1,900 per unit charged by the other contracts. 

She cited circulars issued by the Health department that froze prices between March 23 and April 13, which meant these items should have cost only P945.

Three of the 11 contracts were signed during the Department of Health’s (DoH) price freeze period, she added.

“DBM opted to transact with Chinese firms,” Ms. Baraquel said, adding that P1 billion in overpricing was “highly conservative.”

Also on Tuesday, DoH reported 2,025 coronavirus infections, bringing the total to 309,303.

The death toll rose by 68 to 5,448, while recoveries increased by 290 to 252,930, it said in a bulletin.

There were 50,925 active cases, 86.5% of which were mild, 8.8% did not show symptoms, 1.4% were severe and 3.3% were critical.

Of the new cases, 628 came from Metro Manila, 279 from Cavite, 218 from Negros Occidental, 108 from Laguna and 102 from Bulacan.

Metro Manila had the highest number of deaths with 26, followed by Western Visayas with 13, the Calabarzon region with seven, Central Luzon with six, and the Bicol region and Zamboanga Peninsula with three each.

Central Visayas, Northern Mindanao, Soccsksargen, and Mimaropa reported two deaths each while the Davao region and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) reported one death each.

More than 3.46 million individuals have been tested for the disease, the agency said. — Charmaine A. Tadalan and Vann Marlo M. Villegas

House urged to look at fair criteria in infra fund appropriations

INFRASTRUCTURE funds under the proposed P4.5-trillion national budget for next year should be distributed fairly to congressional districts, a lawmaker said on Monday night.

During House debates the 2021 budget, Albay Rep. Edcel C. Lagman said the “inequitable allocation of funding in infrastructure projects” should be corrected. The needs of districts must be assessed based on fair standards, he added.

“At this stage of the proceedings, that is opportune for the leadership and membership of the House to establish and enforce standards,” Mr. Lagman said.

Jose Maria Clemente S. Salceda, vice chairman of the House of Representatives appropriations committee, said districts should get budgets based on growth potential, population density and land area, among other criteria.

“There must be cohesion between the needs in order to make this determination of priorities,” he added.

Negros Oriental Rep. Arnolfo Teves, Jr. earlier raised concerns about the inequitable distribution of infrastructure funds among districts.

Mr. Teves questioned the P8 billion and P11.8 billion worth of infrastructure funds allotted to Taguig City and Camariñes Sur, respectively.

Mr. Teves is a known ally of Marinduque Rep. Lord Allan Jay Velasco, a contender for the House speakership.

Mr. Cayetano and his wife Lani represent the two legislative districts of Taguig City, while House Deputy Speaker Luis Raymund F. Villafuerte represents the second district of Camariñes Sur, a province ruled by the Villafuerte clan.

Mr. Villafuerte earlier said Mr. Cayetano should remain as House Speaker. — Kyle Aristophere T. Atienza

Congressman questions ‘savings’ under 2021 budget

A MINORITY leader on Tuesday flagged that the questionable definition of savings under the 2021 budget submitted by the Budget department to Congress, which he said could be used for electioneering.

“It can be weaponized for political purposes,” House Minority Deputy Speaker Carlos Izagani T. Zarate told BusinessWorld in a Viber call, referring to next year’s appropriations as an “election budget.”

The party-list lawmaker said in theory, President Rodrigo R. Duterte can declare the entire P4.5-trillion budget for 2021 as “savings,” and realign it to whatever program he wants.

“Theoretically, on January 1, the President can already realign the budget through the use of a new definition of savings,” he said.

Under the budget bill submitted by the agency, abandonment of a program or project, the allotment for which remained unobligated, may be declared by the President as savings in case of a declaration of a national calamity.

This would allow the President to augment deficient programs in some departments or special purpose funds that are needed to address the calamity.

Mr. Zarate said minority congressmen would reject the new definition of savings, which would allow the Executive branch to get away with the original intent of a project that has yet to be committed for payment.

This would bar the President from weaponizing public funds for the 2022 national and local elections, he added.

Mr. Zarate said such a move “castrates” the congressional power of the purse.

“Under the Constitution, the House should have the control on the budget, but at this point, it will further constrict that power,” he added.

During Monday’s floor debates, House appropriations committee vice chairman Jose Maria Clemente S. Salceda agreed with the minority that the new definition of savings was questionable.

The Development Budget Coordination Committee was working to remove the “discontinuance” clause in the definition of budget savings, Mr. Salceda said by telephone. “We will strike it down.” — Kyle Aristophere T. Atienza

Nationwide round-up

Jeepney drivers ask High Court to void transport suspension policies

A GROUP of jeepney drivers asked the Supreme Court to nullify several transport policies that suspended their operations during the lockdown due to the coronavirus pandemic. In its 65-page petition, members and officials of the National Confederation of Transport Workers Union questioned before the Supreme Court the issuances of the Land Transportation Franchise and Regulatory Board (LTFRB), Department of Transportation, and the inter-agency task force (IATF) handling the pandemic response. They asked the court to conduct oral arguments on the lawsuit. The respondents are Health Secretary and IATF chairperson Francisco T. Duque III, Cabinet Secretary and IATF co-chair Karlo Alexei B. Nograles, LTFRB Chairperson Martin B. Delgra; and Transport Secretary Arthur P. Tugade. The union said the government officials “arbitrarily and unreasonably confiscated” their right to work, and failed to establish the connection between the prohibition and mitigation of the effects of the outbreak. They also questioned the agencies’ authority to issue the questioned policies. The lockdown, which suspended all public transport operations, was imposed mid-March. Modernized public utility jeepneys were allowed to resume operations on June 22 while traditional jeepneys on June 28. “Clearly, this is a form of discrimination against traditional jeepneys without establishing sufficient distinction among the other PUVs (public utility vehicles) mentioned,” the petitioners said. — Vann Marlo M. Villegas

Duterte asks telecom firms to ‘do a better job’

PRESIDENT RODRIGO R. Duterte called on telecommunication companies to “do a better job” in delivering internet services given the higher demand for digital connectivity amid the coronavirus crisis. “May I just appeal to these telecommunications, can you do a better job?” He said in his Monday night address. Mr. Duterte previously lashed out at telecommunication firms for the country’s poor connection, which is among the slowest and most expensive in the world. Companies, on the other hand, pointed to government red tape for the slow expansion of infrastructure such as setting up cell towers. The President has since softened his tone and recently ordered local government units to improve the ease of doing business. “Let the telcos do their job, allow them to build the structures, towers if you may, so they can allow this,” he said. — Gillian M. Cortez

BuCor told to explain delay in medicine procurement for inmates

JUSTICE SECRETARY Menardo I. Guevarra is awaiting the Bureau of Corrections’ (BuCor) explanation on the delay of medicine procurement for prisoners in 2019 that was flagged by state auditors. “I will certainly look into this,” Mr. Guevarra told reporters in a Viber message. “I’ll wait for the BuCor explanation.” The Commission on Audit (CoA) reported that BuCor’s procurement process exceeded the maximum allowable time of three months. CoA said prisoners “were deprived of the much needed medical care due to long procurement processing of drugs and medicines requirement” of the New Bilibid Prison Hospital, Correctional Institute for Women, and Reception and Diagnostic Center. “It should be noted that medical care for PDLs (persons deprived of liberty) as part of the mandate of the Bureau requires the effective and efficient safekeeping of the inmates,” CoA said. BuCor cited the “GCTA (Good Conduct Time Allowance) fiasco” as the reason why medicine projects were not prioritized, according to CoA. The GCTA controversy in 2019 was prompted by news on the early release of convicted rapist and murderer Antonio Sanchez due supposedly to good conduct.  In the same year, the prison chief was sacked over the illegal release of heinous crimes convicts and was replaced by Gerald Q. Bantag. — Vann Marlo M. Villegas

UP-OCTA Research team cautions vs industries’ return to 100% capacity operations

THE UNIVERSITY of the Philippines (UP)-OCTA Research team cautioned against allowing industries to return to operations at 100% capacity, saying the country’s coronavirus outbreak is not yet under a manageable level. “The curve is only beginning to flatten… but still not in the ideal to release restrictions,” UP-OCTA researcher Butch Ong said in a Malacañang briefing Tuesday. He explained that while the curve — determined by the hospital utilization rate versus the number of positive cases — is improving, there is still a high probability for a sudden increase. “Now that we see that the hospital utilization rate is going down already, our curve in a way is flattened… but it can still increase at any time,” Mr. Ong said. He added that the only way the curve can be controlled is maintaining a reproduction rate of around 0.5. The country’s reproduction rate is at 0.7. Mr. Ong said the suggestion of Trade Secretary Ramon M. Lopez to allow some industries to operate at 100% capacity should be accompanied by strict health protocols. “If the minimal health standards cannot be guaranteed, then we should not be at 100%,” he said. — Gillian M. Cortez 

Duterte is not resigning, his spokesperson says

PRESIDENT RODRIGO R. Duterte will carry on with his term until 2022, according to his spokesperson, despite the country’s leader saying he has offered to resign after expressing frustration over corruption. “I offered to resign as President… kasi nagsasawa na ako (because I am sick of it),” Mr. Duterte said in a Monday night televised talk. On Tuesday, Palace Spokesperson Harry L. Roque said during his daily briefing, “Mukhang hindi naman dahil gagamitin nga niya iyong natitira niyang dalawang taon para linisin ang gobyerno (It looks like he will not because  he will use the remaining two years to clean the government).” Mr. Duterte also said on Monday that he will ask Congress to help fight corruption. He previously called on lawmakers to create oversight committees to help address anomalies in government. — Gillian M. Cortez

Slower recovery expected for countries faltering on COVID-19

ECONOMIC recovery in the Asia Pacific will take divergent paths, with countries failing to contain their outbreaks such as India and the Philippines expected to take longer to revive, S&P Global Ratings said.

S&P Global said the result might be a so-called “K-shaped recovery” with the charts of some economies tracking downward while the rest show gains.

“Emerging markets in the region, including India and the Philippines, continue to struggle to contain the outbreak and its economic impact,” it said in a note Tuesday.

Even economies that had contained the virus earlier are also facing setbacks with case counts rising again in the absence of a vaccine, S&P Global said.

“The longer economies operate at a subnormal levels, the sharper the pain and credit impact across corporates, households, and governments,” it said.

Last week, S&P said it expects Philippine gross domestic product to contract by 9.5% this year, downgrading from the minus 3% estimate it issued in June and the minus 4.5% to minus 6.6% range provided by the government. S&P expects the Asia-Pacific economy to contract by 2% in 2020 as the pandemic lingers on.

“Another obstacle for a stronger economic recovery is households’ repayment capacity, which is also weakening. The blow to employment and household incomes could take longer to… restore in many markets,” it said.

In the Philippines, the jobless rate was 10% in July, narrowing from the record 17.7% in April but still much higher than the year-earlier 5.4%, according to the Philippine Statistics Authority. The July rate is equivalent to around 4.571 million jobless workers.

More than 195,000 overseas Filipino workers have also been repatriated as of Sept. 27.

“We expect employment to return to pre-COVID trends only by 2022, at the earliest, in most cases. This will put a lid on wages, drag on consumer spending, and keep inflation low across the region, S&P Global said.

Even with no end to the pandemic in sight, relief measures like temporary tax cuts, wage subsidies, and loan moratoriums have been tapering off and will mean banks, businesses, and households will need to “make hard decisions,” S&P Global said.

On the monetary side, S&P expects central banks have no choice but to “keep policy exceptionally easy” as credit becomes harder to come by.

“For some emerging markets, the challenge will be to maintain sufficient support and policy credibility at the same time,” it said.

The Bangko Sentral ng Pilipinas has reduced benchmark policy rates by 175 bps, reducing the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75%, respectively.

According to a BusinessWorld poll last week, 14 out of 15 economists expect the Monetary Board to keep rates steady Thursday to leave some ammunition in reserve in case the recovery lags, while also allowing prior easing moves to cycle through the financial system.

In terms of ratings, S&P Global said negative rating actions “have tapered for the region in the past quarter with no defaults by rated issuers.”

“However, the net negative outlook bias worsened to nearly one-fifth of ratings. Consequently, the likelihood of downgrades and defaults persists,” it said.

S&P affirmed its BBB+ long-term credit rating with a stable outlook for the Philippines in May, projecting a recovery next year. — Luz Wendy T. Noble

Power sector ordered to offer more grace periods after Bayanihan II passage

THE Department of Energy (DoE) has ordered the extension of grace periods and staggered payment schemes for power after the government maintained its declaration of a state of calamity due to the global coronavirus pandemic.

Republic Act No. 11494, or the Bayanihan to Recover as One Act (Bayanihan II), requires the entire electricity value chain — from generation companies to power utilities — to offer at least a 30-day grace period and allow installment payments of electricity bills falling within the period of a community quarantine.

The advisory dated Sept. 23 covers fuel and resource suppliers, generation companies, independent power producers, the state-owned Power Sector Assets and Liabilities Management Corp., the National Grid Corp. of the Philippines, the Independent Electricity Market Operator of the Philippines, and retail electricity suppliers.

Energy Secretary Alfonso G. Cusi urged consumers “who are able to pay” to settle their bills within the original due dates.

“(T)o lessen the impact and help manage the cash flow in the energy supply chain, we reiterate our earlier call for the immediate and proportionate remittance of payments received to the respective creditors and suppliers,” he said.

The DoE appealed to local government units to provide the same extensions in the payments of applicable taxes, fees, and dues by owners of energy facilities.

The Energy Regulatory Commission has yet to issue a similar advisory to distribution utilities for their customers.

The first Bayanihan law also required the industry to offer grace periods and staggered payment schemes. Currently, electric utilities are still implementing the installment set-up for arrears incurred during the lockdown period until the end of the year. — Adam J. Ang

National ID rollout to focus on areas with few active COVID-19 cases

THE GOVERNMENT will focus on 32 provinces and cities with low active case counts for the coronavirus when pre-registration for the National ID system starts next week, economic planners said.

In an online briefing Tuesday, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the government has narrowed down the priority provinces to minimize the risk of further spreading coronavirus disease 2019 (COVID-19).

“With respect to the 32 priority provinces, we are looking at those with low number of active cases of COVID-19 kasi (because) we want this initiative to be safe for both the public and then also for the PSA (Philippine Statistics Authority) personnel,” she said.

At the same briefing, Interior and Local Government Undersecretary Jonathan E. Malaya said the 32 areas are: Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Batangas, Cavite, Laguna, Quezon province, Rizal, Albay, Camarines Sur, Masbate, Antique, Capiz, Iloilo City, Negros Occidental, Bohol, Cebu City, Negros Oriental, Leyte, Compostella Valley, Davao del Sur, Davao del Norte, Davao Occidental and Tawi-Tawi.

“We will proceed with the rollout of pre-registration this first week of October, tuloy tuloy na po ito (we will proceed until) we are able to initially register 5 million pre-registrants and 5 million registrants before the end of the year and the rest of the country will be done next year,” Mr. Malaya added.

Ms. Edillon said in a text message after the briefing that full registration, which includes biometrics, will still depend on the status of the pandemic.

“The target is to start it next week. Actually, for the pre-registration, the target is to cover up to 9 million heads of household; of course, it will have to be recalibrated depending on the COVID situation in the area,” she said.

She said the plan is to have heads of household pre-register without requiring them to give biometrics such as fingerprints and iris scans out of safety considerations.

Pre-registration, however, will yield more data on socio-demographics ahead of full registration, she said.

She said the data to be gathered could include bank accounts, to make distribution of government aid and other cash transfers easier.

The National ID program, formally known as the Philippine Identification System, has been given a P4.1-billion budget for next year, according to the Budget department.

The government wants to register 40 million heads of household next year and another 40 million in 2022, to cover “most” Filipinos before the administration’s six-year term ends.

The program was authorized under Republic Act No. 11055 passed in August 2018. — Beatrice M. Laforga

Accommodation industry restarts Oct. 1 with ‘safe staycation’ campaign targeted at locals

By Zsarlene B. Chua, Senior Reporter

HOTELS AND RESORTS in many areas will be allowed to accept guests again starting Oct. 1, with the Department of Tourism (DoT) hoping to restart operations geared towards domestic holidaymakers with a “safe staycation” campaign.

“We welcome the approval of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) to permit ‘staycations’ or a minimum of an overnight stay for leisure purposes in GCQ (general community quarantine) areas. This decision adds to the DoT’s drive to slowly but safely resume tourism in the country and finally bring back jobs to our workers in the industry,” Tourism Secretary Bernadette Romulo-Puyat said in a statement.

The IATF-EID approved staycations in September for cities and destinations under GCQ, a looser form of lockdown, starting next month. Ms. Puyat then signed an administrative order allowing staycations “for persons of all ages, except those with underlying medical conditions,” on Sept. 29.

Metro Manila and Cebu City are among the locations under GCQ.

The DoT guidelines require each staycation guest to present a negative result from a rapid antigen test “conducted on the same day of check-in,” and that the accommodations must secure a certificate of authority to operate for staycations from the tourism department prior to accepting guests.

A rapid antigen test, according to the World Health Organization, is a type of rapid diagnostic test that detects the presence of viral proteins (antigens) expressed by the COVID-19 (coronavirus disease 2019) virus via a sample from a person’s respiratory tract. It takes about 30 minutes for the test results to appear and such tests are said to be best used to identify acute or early infection.

The tourism establishments are also required to follow guidelines on guest handling including the maximum number of guests per room, as well as health and safety standards for ancillary establishments.

The tourism department may also allow guests to use ancillary facilities such as gyms, swimming pools, restaurants, and other food and beverage outlets, except for bars which remain prohibited in GCQ areas.   

“As safety remains the DoT’s top priority, establishments that will offer staycation services will be strictly monitored. They will be required to keep a record of occupancy and submit it every 10th of the month to the relevant DoT regional office and local government unit tourism office for data analysis purposes,” Ms. Puyat said.

Staycation packages must also be “appropriate for the present market demands and conditions,” and must “strictly adhere to the existing health and safety guidelines” of the tourism department, the Department of Trade and Industry, and the Department of Health and rules and regulations imposed by the local government where the establishment is located.

Transactions must be contactless and cashless to promote minimal physical contact among staff and guests.

It should be noted that prior to the administrative order, Ms. Puyat said that hotels and accommodations which serve as quarantine facilities for returning overseas Filipinos (ROFs) and overseas Filipino workers (OFWs) cannot offer staycations though they can apply to shift from being a quarantine facility into a staycation one.

Accommodation establishments are also limited to 50% occupancy.

According to the Bureau of Quarantine website, there are 312 establishments which are currently in use as quarantine facilities.

While quarantine establishments are allowed to apply to offer staycations, some such as Golden Phoenix Hotel Manila, opted to remain a quarantine hotel.

“For the meantime, (Golden Phoenix will remain) a quarantine hotel but if (Metro Manila) will transition to MGCQ (modified general community quarantine, the loosest form of quarantine in the Philippines) I will suggest to management that we separate the area or floors for quarantine and for staycations. If (DoT) will allow that,” Christine Urbanozo-Ibarreta, director of sales and marketing of Golden Phoenix Hotel Manila, said in a virtual interview Monday.

Ms. Urbanozo-Ibarreta said that they have a lot of returning overseas Filipinos and overseas Filipino workers quarantining in their hotel, located near SM Mall of Asia in Pasay City, and “we are okay for the meantime [with that market].”

“OFWs and the ROFs are more sustainable income providers than staycations. With staycations, you take a calculated risk,” Margie Munsayac, VP for sales and marketing at Bluewater Resorts, said in an interview.

Both Ms. Munsayac and Ms. Urbanozo-Ibarreta noted that guests undergoing quarantine stay longer than those having staycations. Current guidelines, they say, allow quarantine guests to stay for three days and two nights while they wait for the results of their COVID-19 tests.

As one of the industries which suffered the most under the pandemic, hotels, according to Ms. Munsayac and Ms. Urbanozo-Ibarreta, expect a recovery by the second half of 2021, largely sustained by the domestic market.

The Hotel Sales and Marketing Association — which Ms. Munsayac chairmans while Ms. Urbanozo-Ibarreta serves as president — recently held a September SOS sale featuring deals at more than 120 hotels and resorts. The vouchers, on sale until Sept. 30, are valid until September 2021. This sale, they said, was to jumpstart the recovery of the embattled sector and encourage travelers to plan ahead and travel when they think it’s safe to do so.

The sale was successful and might be an annual event, according to Ms. Urbanozo-Ibarreta.

Senate panel debates red-tape curtailment powers beyond emergency period

A SENATE committee on Tuesday weighed the President’s legal authority to expedite the issuance of permits and sanction officials who fail to do so in deliberations over a bill seeking to endow the Anti-Red Tape Authority (ARTA) with the power to issue subpoenas or find respondents in contempt.

The Committee on Civil Service, Government Reorganization and Professional Regulation was discussing Senate Bill No. 1844, and how ARTA’s powers stem from Presidential authority.

The bill states that the President has sufficient power to suspend and dismiss government officials for unjustifiably blocking the progress of applications, but minority senators sought to clarify whether such powers apply only to states of emergency.

“This bill is a recognition of that executive power, except we have given him the power to suspend licenses, which may be pursuant to certain laws, just to suspend temporarily during the period of emergency,” Minority Leader Franklin M. Drilon said.

The bill also allows the President to suspend or waive requirements in securing documents at times of emergency.

In its position paper, ARTA proposed the grant of subpoena and contempt powers already exercised by other constitutional bodies.

The ARTA needs to “make the bureaucracy effective. It’s not a law and order problem, it’s not a matter of making ARTA a quasi-judicial body, power to issue subpoena, cite contempt, employ underground agents, assets,” Mr. Drilon said.

“Sa akin, ang ARTA ay dapat tumulong sa bureaucracy (In my view, ARTA is there to help make the bureaucracy more effective),” he aid.

Senator Sherwin T. Gatchalian expressed support for the grant of powers to ARTA.

“The creation of ARTA is a good step in fighting red tape… without giving him the right power and tools, it will be inutile,” he said during the hearing.

“That’s why, I’ve read the position paper of ARTA and I agree on their recommendations especially giving them subpoena and contempt powers.”

The measure was filed after President Rodrigo R. Duterte last week consulted Congressional leaders on amendments to the Ease of Doing Business Law.

The American Chamber of Commerce of the Philippines (AmCham) said it recommends a sunset clause to ensure policy continuity should the state of emergency be lifted.

“We’re concerned about the sunset because hopefully, the state of emergency will end sooner or later, but what is the accomplishment of having suspended something during the state of emergency that doesn’t continue,” AmCham Senior Advisor John D. Forbes said in the hearing. — Charmaine A. Tadalan

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