Dispersion of tourism ecozones backed

MANILA, Philippines - The Italian Chamber of Commerce in the Philippines (ICCP) supports the move of the Philippine Economic Zone Authority (PEZA)  to scrap incentives given to tourism economic zone (TEZ) developers and locator enterprises in Metro Manila, Cebu and Boracay  to encourage more development in other areas.

“It is the right move...If you put these (TEZs) in the provinces, you give more jobs there,” ICCP president Alessandro Abbate said in a chance interview with reporters.

In its Resolution 12-610 published last week, the PEZA said it will no longer give five percent gross income tax incentive to developers of TEZs in Metro Manila, Cebu City, Mactan Island and Boracay Island.

The PEZA also said it is removing the income tax holiday and five percent gross income tax incentives given to locator enterprises of the TEZs in the four areas.

Establishment of new TEZs in the four areas, will likewise  no longer  be allowed.

“This policy shall not have retroactive effect, however, TEZ developers or operators and locator enterprises in the above-mentioned areas that have not signed their registration agreements with PEZA shall be covered by this new policy,” the PEZA said.

Existing and future TEZ developers and locator enterprises outside of the four areas, it also said, will continue to enjoy the incentives granted by the agency.

TEZ developers or operators outside of the four areas shall be qualified for five percent gross income tax incentive, while TEZ locator enterprises can avail of income tax holidays, five percent gross income tax incentive, tax and duty-free importation as well as zero value added tax rating on local purchase of capital equipment.

Abbate said that while he supports the PEZA’s move to remove incentives for TEZ developers and locators in the four areas to promote development in other places, he said the government will have to invest in infrastructure to promote tourism outside the four areas.

He said airports and roads will need to be built in the provinces.

Data from the Department of Tourism  (DoT) showed tourist arrivals to the country reached 3.15 million in the January to September period, 9.08 percent higher than in the same period a year ago.

The government which launched “It’s More Fun in the Philippines” campaign earlier this year to promote the country as a tourist destination, aims to attract 10 million visitors by 2016.