The Local Enterprise Authority (LEA) has reported a sharp decline in business turnover across the North West District, with tourism and agriculture showing the weakest performance in the first quarter of the 2025/26 financial year.
According to the recent District Development Committee (DDC) report presented to the Full Council, the total turnover for LEA-supported enterprises fell dramatically from P86 million in the previous quarter to P24.6 million in the current quarter.
The report attributes this steep decline primarily to the collapse of the tourism sector, which saw turnover plunge from P37.5 million to P3.9 million.
“Due to financial limitations LEA was not able to support its tourism clients to attend international exhibitions,” the report states.
Tourism, once one of the strongest contributors to the district’s small business economy, has struggled to regain footing following limited exposure to international markets. Many small tourism operators depend on such exhibitions to attract investors, partners, and clientele.
At the same time, agriculture continues to lag behind despite its potential to drive food security and rural employment. The report revealed that agriculture recorded the lowest contribution to LEA’s overall turnover.
“A total of 25 SMMEs in Agriculture and Manufacturing contribute to the reduction of the import bill. Their value of import substitution amounts to P6,085,237.56 against P11,311,026.08 from last quarter”.
This decline suggests reduced productivity and slower growth in small-scale farming ventures. Analysts have long warned that underinvestment in agricultural innovation and market access could undermine the country’s goal of achieving self-sufficiency in food production.
Meanwhile, the services and manufacturing sectors are proving to be the economy’s backbone, cushioning the impact of weaker industries. According to the Local Enterprise Authority (LEA), these sectors together accounted for 82.12% of total turnover in the first quarter of the 2025/2026 financial year, totaling P24.56 million.
The Services sector led the way, contributing nearly 63% (P15.46 million), while Manufacturing followed with just over 19% (P4.73 million). Key manufacturing players—including detergent makers, block producers, and small-scale fabricators—continue to supply essential goods, support import substitution, and sustain local employment.
Meanwhile, services ranging from retail and logistics to professional offerings are absorbing labor displaced from struggling industries. Experts say the sectors’ ability to innovate and diversify has been central to their resilience, keeping the economy stable even as other areas face headwinds.
However, the broader picture is concerning. The DDC report underscores that the decline in overall turnover could have ripple effects on the district’s economy, limiting job creation, reducing local tax revenue, and weakening small business confidence.
The North West’s dependency on a few strong-performing sectors makes it vulnerable to shocks. Without stronger support for agriculture and tourism, both key employers in the district, the local economy risks stagnation.
