Subic Freeport reports 40% jump in 2014 income to P1.56B

MANILA, Philippines–Subic Bay Freeport has posted a record income of P1.56 billion last year, largely due to significant increases in port and tourism revenues.

Last year’s net income reflected a 40-percent increase from the P1.11 billion income reported in 2013, the Subic Bay Metropolitan Authority (SBMA) said in a statement.

According to SBMA Chair and Administrator Roberto V. Garcia, revenues from port operations, tourism and industrial/ commercial leases grew by 21 percent to P2.442 billion.

“With the port congestion in Manila, many importers shifted to Subic, boosting port revenues which hit P909 million or an increase of 45 percent (from year-ago level). Significantly, containerized volumes jumped to 77,000 TEUs (20-foot equivalent units) or a (year-on-year) increase of 105 percent. Locator export volumes likewise increased to $2.3 billion or a 59- percent increase from the level in the previous year,” Garcia said.

“Tourism registered substantial revenue gains with a 61-percent jump driven by a 12- percent hike in tourist traffic. MICE (Meetings, Incentives, Conventions and Exhibitions) events registered an increase of 150 percent while sports events rose by 75 percent, making Subic Bay the number one tourist destination in Central Luzon, based on Department of Tourism records,” he added.

Industrial and commercial leases also rose by 13 percent to P1.05 billion as more businesses flocked to the Subic Freeport, the SBMA said.

Cash collections improved by 27 percent to P1.8 billion for the Bureau of Internal Revenue and by 36 percent to P15.29 billion for the Bureau of Customs, it added.

In the meantime, the 5 percent tax collected from locators in the Freeport rose to P497 million, equivalent to a 35-percent increase from year-ago level. SBMA had remitted this amount, of which P199 million went to the eight local government units surrounding the Freeport, while the remaining P298 million was remitted to the national Treasury.–Amy R. Remo