937 firms to close down, cut workers

The Department of Labor and Employment (DOLE) has warned that a total 937 commercial establishments may soon close shop or reduce their workforce, which could affect some 22,073 workers nationwide.

Labor Secretary Patricia Sto. Tomas said the firms have cited economic difficulties in filing their notices of closure and retrenchment this year.

"The financial crisis has been taking its toll on more companies as shown by our latest figures," Sto. Tomas said.

The January to April notices were 6.5 percent higher than those filed during the same period last year. Of the 937, 758 firms filed notices for a reduction of workers while the rest claimed they may have to close down in the coming months.

Data showed that 58.9 percent of the affected firms are located in Metro Manila. The others are based in Central Luzon, Southern Tagalog, Central Visayas and Mindanao.

Despite the looming closures, Sto. Tomas remains hopeful that the 11 percent unemployment rate would not worsen.

She said DOLE has already reactivated quick reaction teams to assist workers who may be affected by closures.

Tourist arrivals drop 8.4 percent

Meanwhile, the Department of Tourism (DOT) said the number of foreign tourists visiting the country dropped by 8.46 percent in the first five months of the year compared to same period in year 2000.

However, Tourism Secretary Richard Gordon insisted that rate of tourist arrivals was actually showing "signs of improvement" despite the current problems besetting the country.

From January to May, the DOT recorded a total of 826,879 international arrivals, or 76,373 fewer than the 903,253 foreign tourists who visited the country a year ago.

Decline in tourist arrivals was attributed to the ongoing peace and order problem in Mindanao and travel advisories issued by foreign countries, including the US, against the Philippines.

Based on DOT records, eight of the country’s top 10 foreign markets registered a significant drop in tourist arrivals in the first five months of the year.

Only Taiwan and South Korea recorded a growth in international arrivals with the number of visitors coming from the US, Japan, Hong Kong, United Kingdom, Australia, Canada, Germany and Singapore sinking significantly.