DOT suspends another contract with ad agency

MANILA, Philippines — The Department of Tourism (DOT) has suspended another contract with advertising agency DDB Philippines over the botched tourism video for its tourism campaign “Love the Philippines,” according to Secretary Christina Frasco.

At yesterday’s budget deliberation of the House committee on appropriations, OFW party-list Rep. Marissa Magsino asked the DOT about the status of a P124.45-million contract with DDB Philippines for counseling service for the promotion of Philippine islands, destinations and products. The contract is supposed to end on Aug. 31, 2023.

Magsino added that the DOT-attached Tourism Promotions Board also has with DDB a P12.99-million contract for consulting services for conceptualizing meetings, incentives, travels and exhibitions.

“This was awarded Dec. 29, 2022. The question is, what is the status of these contracts and does the department intend to pursue them?” the lawmaker asked.

Frasco replied that the contract had already been suspended, as she reiterated that “not a single peso has been expended under the branding contract in payment to DDB” concerning the campaign.

“That being said, as a result of the termination of the contract for the branding campaign, the security bond paid by DDB has been forfeited,” Frasco added.

DOT Undersecretary for Legal and Special Concerns Mae Elaine Bathan added that they already issued and executed an order of termination to cancel the contract.

Asked by ACT Teachers party-list Rep. France Castro if DOT had already filed a case against DDB, Bathan underscored that “as of the moment, the priority of the department was to immediately cancel and terminate the contract.”

“One of the serious considerations also is other courses of legal action, including the filing of action in the proper courts should the same be warranted,” she added.

“But as we said, there was already a forfeiture of the performance bond as part of the penalty, aside from the termination and cancellation and the non-payment of any relative expenses that have been incurred relative to the project,” Bathan maintained.

During the hearing, several lawmakers expressed concern over cuts in the proposed budget of DOT for 2024. The agency will get some P2.6 billion, lower compared to the P3.4-billion allocation under the 2023 General Appropriations Act (GAA).

Bagong Henerasyon party-list Rep. Bernadette Herrera said the budget cut is “unwarranted” since the DOT is trying to recover the pre-pandemic levels in terms of tourism revenue.

No more vax certificates

Vaccine certificates are no longer mandated for inbound foreign travelers as all arrivals will now be accepted regardless of vaccination status, the Department of Health (DOH) announced in their Circular 2023-06 effective Aug. 12 that covers all airports and seaports nationwide.

This circular also followed the Transportation Department’s earlier announcement of the scrapping of face masks for public transportation.

Local air carriers Philippine Airlines, Cebu Pacific and AirAsia Philippines welcomed this development, as they anticipate further growth in international travel.

We welcome this development that further eases travel to the Philippines and helps boost inbound tourist traffic. We look forward to serving more tourist and business travelers in both our international and domestic travel sectors,” PAL spokesperson Cielo Villaluna said.

“With this development making travel more seamless as we still encourage passengers to continue practicing minimum health standards such as washing hands, disinfecting and physical distancing when necessary,” Cebu Pacific spokesperson Carmina Romero said.

“The lifting of this travel requirement is a major step towards making travel more seamless and will definitely encourage travelers, regardless of vaccination status, to experience the Philippines,” AirAsia Philippines head for communications and public affairs and First Officer Steve Dailisan added.

“I am sure this development will boost existing efforts of the MIAA and the tourism sector to promote the Philippines as a preferred destination,” Manila International Airport Authority officer-in-charge Bryan Co said.