Published on : Friday, March 17, 2017
With an approximate P1 trillion required in the next five years for achieving its goal of 12 million tourist arrivals and P4 trillion in revenues by 2022, the Philippine government, together with the private sector, is depending a lot on its tourism enterprise zones (TEZs), among others.
Ten areas have been identified in the National Tourism Development Plan of 2017 to 2022 as TEZs that would show how the country’s tourism efforts would promote inclusive growth through employment generation and economic development. The popular island of Boracay isn’t included in the list, since it’s already over-invested. Each of the 10 TEZs would have its own individual masterplan that would indicate areas where investors would be willing to participate.
Fiscal incentives could be regarded as attractive, which include income tax holidays, a five percent gross income taxation rate, tax and duty free importation of capital investment and equipment, transportation equipment and spare parts, goods and services, special responsibility incentives, and net loss carry over. Non-fiscal incentives include allowing the employment of foreign nationals and grant of special investors resident visa to them, permission for foreign currency transactions, exemption from requisition of investment, and allowed lease and ownership of land.
Of the 10 TEZs, five are considered flagship and the remaining five are private.