Tourism-related micro, small, and medium enterprises (MSMEs) in the Philippines will soon have greater access to financing, following a new agreement between the Department of Tourism (DOT) and the Department of Trade and Industry (DTI).
Under the memorandum of agreement, the DTI’s Small Business Corporation (SB Corp) will extend loan programs to help tourism enterprises scale operations and improve services. The partnership also aims to promote tourism investments, develop sustainable businesses, and integrate local products into tourism offerings.
Tourism Secretary Christina Garcia Frasco and Trade Secretary Cristina Aldeguer-Roque led the signing ceremony at the DOT office in Makati City, with officials from both agencies in attendance.
“This collaboration is a bridge for our MSMEs to access the tools and resources they need to compete in local and global markets,” Frasco said. “By nurturing local businesses, we elevate the Filipino brand and showcase our culture and talents to the world.”
Frasco noted that while MSMEs account for about 63 percent of national employment and contribute roughly 40 percent to GDP, they often face barriers to growth.
Roque described the agreement as a “whole-of-government approach” to empower local industries and promote inclusive growth. She said the loan terms include a one-year deferment on principal and interest payments, with amounts starting at PHP 10,000.
Under the agreement, the DOT will identify key tourism destinations and collaborate on marketing campaigns, while the DTI will promote local products through its One Town, One Product (OTOP) initiative and integrate these into the DOT’s Tourist Rest Areas.
The DOT will also provide tourism-related training and work with the DTI to boost MSME participation in trade missions and tourism events. Both agencies will establish a technical working group to oversee the agreement’s implementation.
