DOT steps up efforts to boost investments in tourism
The Department of Tourism and its attached agencies, the Tourism Infrastructure and Enterprise Zone Authority (Tieza) and Tourism Promotions Board (TPB), are formulating strategies to boost investments in the tourism sector.
“Investments in tourism via TEZs (tourism enterprise zones) are a win-win for the industry, with developers rewarded for responsible development initiatives. We have, therefore, made Tieza incentives as attractive as possible,” Tourism Secretary Alberto Aldaba Lim said.
Tieza draws its mandate to designate and oversee TEZs from the Tourism Act of 2009 (RA 9593), specifically from Section 64. It is governed by a board chaired by the tourism secretary.
Tieza’s incentive package compares favorably to those offered by other investment promotion agencies such as the Board of Investments and Philippine Economic Zone Authority (Peza). For instance, Tieza offers an income tax holiday for investors of six years, extendable for another six years, compared to BOI’s three to six years and Peza’s four years. Some incentives, like tax reduction for social responsibility initiatives conducted by a TEZ, are available only under Tieza.
A company needs to invest a minimum of $5 million, exclusive of the cost of land acquisition, to qualify for incentives. In “extremely meritorious cases,” Tieza may accept a lesser amount if deemed sufficient for the requirement of the project.
Tieza is currently preparing to accept applications for the designation of TEZs following its approval of the new implementing rules and regulations for RA 9593. The same law also assigns the DOT and the Department of Trade and Industry (DTI) to promulgate the rules governing the relationship between TEZs and the economic zones under Peza.
A TEZ is defined by the Act as a contiguous territory of significance for tourism that meets the Tieza’s area and access requirements.
Section 45 of the Act provides for the creation of the Philippine Tourism Promotions Board to formulate and implement an integrated domestic and international promotions and marketing program. The focus is to sell the country as a preferred tourism destination and investment haven.
Tieza will undertake an information campaign to encourage local governments and private firms to submit applications for TEZ designation.
