Tourism-related micro, small, and medium enterprises (MSMEs) across the country may soon gain better access to financing programs through the Department of Trade and Industry’s (DTI) Small Business Corporation (SB Corp), allowing them to scale up their operations and enhance their services for travelers.
This is among the key provisions of the newly signed Memorandum of Agreement (MOA) between the Department of Tourism (DOT) and the DTI, which aims to strengthen the convergence between the two agencies in support of tourism-linked industries and the development of MSMEs.
Tourism Secretary Christina Garcia Frasco and Trade Secretary Cristina Aldeguer-Roque led the ceremonial signing of the agreement at the DOT Office in Makati City on Monday (Apr. 7), with DOT Undersecretary Shahlimar Hofer Tamano and DTI Chief-of-staff Englebert Chua serving as witnesses.
In addition to access to financing programs for tourism sector enterprises through the DTI’s financing arm, the Small Business (SB) Corporation, the agreement also covers joint trade and tourism missions, development of sustainable tourism-related enterprises and MSMEs, and promotion of tourism investments on both domestic and global platforms. It also seeks to boost the production of local talents and products in tourism-related facilities, attractions, and destinations, among others.
Delivering her remarks at the auspicious occasion, Secretary Frasco stressed on the role of the agreement in reviving the symbiotic relationship of tourism and trade and, noting the interdependence between the two sectors which exists several years back, with DOT having been part of the Department of Trade and Industry before being created a separate office in 1973.
“In many ways, tourism is the gateway that introduces the world to the diverse array of products, culture, and talent that our nation has to offer. Trade, on the other hand, ensures that these products and experiences not only reach international markets, but also provide the foundation for a robust economic uplift at the local level. When aligned strategically, tourism and trade become twin engines for growth, empowering communities, elevating industries, and enriching the lives of every Filipino,” Secretary Frasco said.
Secretary Roque referred to the undertaking as a signal of a “whole-of-government” approach, noting that the move will strengthen tourism promotion and enterprise development.
“This convergence aims to foster inclusive growth, empower local industries, and unlock opportunities that reach beyond far beyond our urban centers, and into the hearts of our communities. At the Department of Trade and Industry, we remain steadfast in our commitment to ensuring that our MSMEs–the lifeblood of our economy–not only participates in the tourism value chain but thrive within it,” Secretary Roque said.
In her message, Secretary Frasco noted that while MSMEs provide around 63% of national employment and contribute approximately 40% to the country’s Gross Domestic Product (GDP), these enterprises are often faced with challenges in accessing resources, markets, and opportunities for growth which the MOA seeks to address.
“We are so grateful that the Department of Trade and Industry brings its expertise to our tourism MSMEs. Through the MOA, we are building a bridge for our MSMEs to receive the tools and resources that they need, as well as access and exposure to compete in both local and global markets. By nurturing local businesses, we elevate the Filipino brand, showcasing our cultural heritage, creative talents, and unique products to the world,” Secretary Frasco said.
Secretary Frasco highlighted that tourism MSMEs stand to benefit from the timely agreement with DTI, which is set to be fully rolled out within the year, alongside other important policy reforms that were launched such as Republic Act (RA) 12079 or the Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists signed approved by the President.
“The beneficiaries of all of these convergences will be no other than those that contribute greatly to the coffers of our economy, our tourism stakeholders, and frontliners. While this partnership is a significant step for both the DOT and the DTI, the true beneficiaries are Filipino people. By empowering our MSMEs, we are fostering economic stability, generating sustainable employment opportunities, and strengthening the fabric of our communities. When tourism and trade flourish, so do the livelihood of our fellow Filipinos, creating a ripple effect of prosperity and growth that will be felt across the nation,” Secretary Frasco said.
I would like to commend Secretary Christina Roque for your visionary leadership of the Department of Trade and Industry that puts the welfare of our small and medium enterprises at the very forefront of the national development agenda. It is indeed high time that we provide opportunities for them to be highlighted, as well as opportunities for them to gain even more from the efforts of the Marcos administration to truly be inclusive as our economy grows,” she added, noting that the partnership is timely as it is essential with recent shift in global tourism landscape that show travelers’ growing preference for local, sustainable, and purpose-driven experiences.
“Together, we are building a platform where our nation’s rich culture, heritage, and creativity can shine both in the domestic and in the international stage. To Secretary Frasco and to the entire team at DOT, thank you for the dedication to promote the Philippines as a world-class destination,” DTI Secretary Roque said.
In an interview with the press, Secretary Roque highlighted the SB Corp’s terms, which include offering a one-year deferment on principal and interest payments, with loan amounts starting from PHP 10,000, she expressed hope that the partnership between the DTI and DOT would assist tourism MSMEs in their growth.
Under the MOA, the DOT will focus on identifying key tourism destinations and potential markets for collaboration, spearheading tourism marketing campaigns, and partnering with the DTI on tourism product development projects designed to enhance the country’s creative industries.
This partnership is also expected to boost tourism MSMEs by integrating local products under the DTI’s One Town, One Product (OTOP) initiative into the DOT’s Tourist Rest Areas (TRAs) and by providing additional spaces where OTOP offerings can be displayed and purchased.
The DOT will play a pivotal role in promoting the Philippine tourism industry by organizing marketing and promotional activities both locally and internationally, in addition to participating in DTI’s trade missions in countries with high tourism potential.
Moreover, the DOT is committed to delivering tourism-related capacity-building programs, such as the Filipino Brand of Service Excellence (FBSE), to DTI’s stakeholders.
The agreement also outlines the DTI’s participation in DOT’s tourism events to boost investment opportunities, promote local products and services, and drive tourism initiatives in Go Lokal and OTOP stores. It supports the integration of OTOP into itineraries of the Philippine Experience Program: Heritage, Culture, and Arts Caravans launched by the DOT in 12 regions so far, as well as other cultural tourism offerings.
Additionally, the DTI is set to collaborate with the DOT on tourism product development projects that bolster the creative industries and support the overall tourism ecosystem, while championing the development and branding of local products and services.
To ensure the effective implementation and monitoring of this agreement, the DOT and DTI will establish a Technical Working Group (TWG).
