Editorial: Feeling the economic impacts of Covid-19

THE economic effects of the coronavirus disease 2019 (Covid-19) pandemic are now more present as compared to a few months ago.

With the community quarantine, the impacts on the local economy were bound to happen, whether we like it or not.

Among the first to feel the pandemic's impacts are those in the tourism, events, and entertainment industries. Since mass gatherings are still discouraged by the government and the restriction of flights, businesses in these industries have either very little income or not income at all.

One of the most notable is Marco Polo Hotel Davao. After more than two decades, the hotel will indefinitely cease hotel operations by June 15, 2020. Aside from this hotel, other smaller accommodations have also shut their doors. One along Bacaca has already boarded its entrance. Some have temporarily ceased their operations until further notice.

Those working in the events industry are clearly struggling. With no events to hold, there is barely any income that is coming in.

"Bagsak talaga ang event industry ngayon to be honest (The event industry is really down right now). Everyone is in shock. We are still thinking how to deal with this problem but we are positive that we can get over this as long as the government will help us," Davao Events Alliance Reform Group (Dear) founder and Krishael's Events & Concepts owner Ish Montenegro said.

According to the Department of Trade and Industry, some 62,000 businesses have already been affected by the pandemic.

"Around 20,000 of them are still operating and most of these are producing, of course, essential products, like the food that we buy in the supermarkets, the retail outlets, food delivery services and we also consider of course 'yung mga bago, the new businesses which came about because of Covid-19 pandemic," Department of Trade and Industry (DTI)- Davao City director Jinky Remitio

Meanwhile, based on the record of the Department of Labor and Employment in Davao Region, 10,133 establishments that have partially and totally closed.

During the quarantine, businesses have to deal with financial pressure like rents, loans, and bills, among many others. Since most of them are micro, small, and medium enterprises (MSMEs), financial pressure is hard for some. This has resulted in retrenchment of employees and worse, the closure of the business.

Going around the city, it is quite visible seeing people shut down what they build due to the pandemic. Along Jacinto Extension a one-of-a-kind cafe has closed its doors. Along Tionko Ave., a popular bar and restaurant have also closed its jumps and held a garage sale to sell its items. On social media, we are also seeing business owners selling their items after deciding to close their shops.

What is happening is sad. Many of these businesses that are being closed are dreams of its founders. Many rely on their businesses to ensure that there is food on the table of their families. At the same time, their employees also rely on them.

Since most of these are MSMEs, they hire a majority of the population. The closing of businesses, whether partially or totally, means that more people are becoming unemployed. To date, Dole-Davao has not yet released information on the number of individuals who lost their jobs during the pandemic.

Beyond the health concerns, the effects of the pandemic are far-reaching. There is a need for the government to craft programs that would effectively help the MSMEs. The help that would truly get the MSMEs back on their feet. It can start by strictly enforcing policies that would ease the financial pressure on these businesses.

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