(Bloomberg) -- The Philippines, home to among the world’s largest malls, will hold a monthlong shopping sale next month, a move that could reinvigorate the retail sector hurt by the virus scare.
Mall operators like SM Prime Holdings Inc. and Ayala Land Inc. to more upscale retailers like SSI Group Inc. will participate in the sale, which was announced a year ago and is part of the government’s six-year tourism roadmap.
The Philippines’ promotion comes as retail sales across Asia are weighed down by a coronavirus scare that curbed tourism and kept shoppers inside their home. Sales in SM Prime’s Philippine malls fell as much as 20% in the first few weeks of the virus while sales in its 7 malls in China were cut by half, ABS-CBN News Channel said on Feb. 14.
The government is also banking on domestic tourism to help offset what appears to be a sharp decline in international travelers, based on data from the Manila International Airport Authority. Private consumption accounts for about 74% of the economy, while tourism makes up about 12%.
Travelers Grounded
Flights to and from Manila’s airport fell 22% after the Southeast Asian nation imposed a travel ban on places hit by the virus.
International travelers saw a 16.7% year-on-year drop to 1.35 million in the Jan. 25 to Feb. 17 period, according to data. Domestic travelers declined 3.4% to 1.4 million.
“It’s a lost opportunity but at the end of the day, there is time to recover,” Manila airport chief Eddie Monreal said in a press briefing on Wednesday. “Hopefully, we’ll be able to recover soon.”
To contact the reporters on this story: Siegfrid Alegado in Manila at aalegado1@bloomberg.net;Claire Jiao in Manila at cjiao5@bloomberg.net
To contact the editors responsible for this story: Cecilia Yap at cyap19@bloomberg.net, Clarissa Batino
©2020 Bloomberg L.P.
Advertisement