eTurboNews) “With the liberalization of Philippine laws on foreign investments, the Department of Tourism (DOT) anticipates the infusion of more foreign capital into the country’s tourism industry.
Tourism Secretary Joseph Ace Durano says the Philippine government has always recognized the pivotal role the private sector plays in the country’s economic development.
“Private sector investments fill in capital gaps and help generate employment, leading to greater production and increased national income,” says Durano, adding that the government has committed itself to maintaining a healthy business environment to encourage continued business interest in the country.
In 2004, tourism investment activities endorsed by the DOT reached over P937 million, the bulk of which going to new projects in land and water transport, as well as resort and hotel development, Durano says, noting that this figure could easily double if proposals not coursed through the DOT were included.
He adds that with the sustained upsurge in tourist arrivals, there will be an increased demand for local tourism superstructures, facilities, and services, especially in the regions; and the need for greater accessibility to certain areas would necessitate financing for air, water, and land transport operations.
Durano noted, too, that the global trend toward integrated tourism development has created a need for tourism estates, historico-cultural heritage districts, and ecotourism and agri-tourism projects.
Under the liberalized rules and regulations on investments, up to 100% foreign equity may be allowed in all areas of business and economic activities, except those expressly reserved for Filipinos by the Philippine Constitution.
Moreover, the government grants both fiscal and non-fiscal incentives to foreigners wishing to channel funds to Philippine tourism projects. These include the issuance of a Special Investor’s Resident Visa (SIRV) for foreigners investing in tourism projects of not less than $50,000 or its equivalent; an income tax holiday for four and six years for non-pioneer and pioneer projects, respectively; zero to 1 percent duty-free importation of equipment if the tourism project is registered before June 6, 2006; and the employment of foreign nationals.
A list of Philippine properties available for tourism development is prepared regularly by the DOT Investment Promotion Unit.
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