Travel group backs restriction on foreign ownership of land
The Philippine Travel Agencies Association wants the constitutional prohibition on land ownership by foreign nationals to remain as its removal might cause local players in the tourism industry go under.
The group made public its position on the issue amid proposals that seek to allow foreigners to own land in the country.
PTAA president Aileen Clemente said it would be better for the government to just provide more incentives to local tourism industry players, to allow them to become more competitive against regional tourism powerhouses.
“We do not need to follow the examples of our neighbors in the region. Allowing foreigners to own properties and have a majority stake will lead to uncontrolled development in the country’s tourism industry,” Ms. Clemente said in a statement issued Monday.
“Giving the proper incentives to Filipinos and domestic companies would be a step in the right direction. Philippine companies have the same capabilities as their foreign counterparts and they have a better understanding of what needs to be done,” Clemente added.
Bohol governor and tourism advocate Edgar Chatto said foreign nationals were actually getting away with owning properties used for resort developments by marrying Filipinas and placing the land titles under their wives’ names.
While these also contributed to the development of the local tourism industry, Chatto said the government should still strike a balance between wanting the industry to grow and ensuring that local firms would not be placed at a disadvantage.
Allowing foreigners to own land, he said, could lead to “resource allocation issues.”
“Congress must tread the 60-40 ownership stipulation in the Constitution carefully. There must be a win-win situation on both sides,” Chatto said.
The Joint Foreign Chambers, the organization of various foreign business chambers operating in the country, is pushing for the lifting of the restriction on foreign ownership of real property, saying this would help bring more foreign direct investments into the country.
In an earlier interview, Trade Undersecretary and Board of Investments managing head Cristino Panlilio expressed reservations over the possibility of letting foreign nationals own land.
“The Philippines is a small country. If we open ownership of land to foreigners, it will really drive up real estate prices, to the detriment of our citizens. Most agricultural lands may end up with foreign businesses, especially those from the Middle East and China, who are so concerned about their food security. We don’t want that,” Panlilio said.
