NEDA cites mixed impact of holidays on economy

The long holidays in the Philippines have a mixed impact on the economy, National Economic and Development Authority Secretary Arsenio Balisacan said on Friday.

This after Malacañang released the list of regular holidays and special non-working days for 2024 on Friday.

President Ferdinand Marcos Jr. earlier this week signed Proclamation 368, showing at least five long weekends next year, including a five-day weekend at the end of December.

In a Palace briefing, Balisacan said long holidays can disrupt businesses, reduce worker productivity, while boosting domestic tourism.

"When the business sector and the government plan, we already considered these holidays. Of course, there are effects. Now that our economy is fully open, and mobility is no longer restricted, these long holidays should be good for local tourism. So it's okay, but again, the suspension of work during those times is already considered," Balisacan said.

However, Balisacan noted that the Philippines has more holidays than many other countries, which can make it less attractive to foreign investors.

"I think there's a broader perspective to this because if you compare our number of working days with other countries, it's seen by the business community that we have more holidays," Balisacan said.

"We are one of many potential places for investors to consider. So we cannot afford to be too generous with our holidays when it affects profitability compared to other places," he added.

Balisacan said long holidays can negatively affect those workers who are not paid during holidays and those under the "no work, no pay" arrangement.

"If they can't report to work, they suffer, especially in the private sector. It's not that simple. If we are permanent employees on a monthly basis, we are okay. So I think we have to consider that many people really want to work because they need it to make ends meet," he said.

"A long holiday is not what many of them want; they want to work. For those of us who are more financially stable, we like these holidays because they allow us to travel and have extended vacations. I have to look at these issues in a broader context," Balisacan added.

Asked if 31 October and 3 November should be declared holidays, Balisacan said it is important to consider the impact on workers and employers.

He said there would be only two working days from 28 October to 5 November if the government declared 31 October and 3 November holidays.

"This could be difficult for some businesses, especially those that rely on daily operations. However, it is also important to consider the needs of the workers, many of whom do not receive pay during holidays. Ultimately, the decision of whether or not to declare these days as holidays is up to the President," Balisacan said.

Meanwhile, the Edsa People Power anniversary, celebrated on 25 February, will not be a holiday next year. This change was indicated in Proclamation 368, which outlined the official national holidays, non-working days, and special non-working days for the coming year.