TIEZA expects more ecozone applications for 2019

MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is expecting to receive more tourism enterprise zone (TEZ) applications by the second quarter, driven by the support of the government to extend the grant of incentives.

“Now there’s proof already that there’s support from government. The people who were saying let’s see what happens are now saying, can we start to apply?” TIEZA chief operating officer Pocholo Paragas told The Star.

“Now in the second quarter, that’s when we will see the applications coming in,” he said.

Finance Secretary Carlos Dominguez earlier said the DOF is not keen on extending the sunset period for the grant of incentives for TEZ.

In recent developments, however, the Senate and Congress approved the bill seeking to extend TIEZA’s power to grant incentives for another 10 years.

Under Republic Act 9593 or the Tourism Act of 2009, TIEZA would have only up to August of this year to grant incentives to TEZs.

This is despite the six-year delay in the implementation of the law.

In 2017, the Bureau of Internal Revenue (BIR) clarified that the incentives for TEZ under Republic Act 9593 may be enjoyed by investors even beyond 2019 until these incentives are fully realized.

“The Senate and the House just approved the extension of incentives.We’re waiting for the finality coming from the President,” Paragas said.

Paragas is expecting more TEZ applications to come in this year as a lot of applicants were awaiting if the granting of TEZ incentives would be extended.

“Last year, there were about 50 pending applications awaiting the status of what’s going to happen,” Paragas said.

“Actually Solaire already submitted their application, not really Solaire, Sureste because of the cruise port,” Paragas said.

In May last year, TIEZA reported that it had forwarded the proposal of Bloomberry Resort Corp.’s Sureste Properties Inc.(SPI) for the development of the Solaire Cruise Center (SCC) to the Office of the President.

The proposal includes marine and terminal facilities, homeport and port-of-call operations, an expanded harbor offering dining, shopping, entertainment and maritime recreation, and walkable esplanades and plazas.

At present, there are five flagship TEZs across the country. These are the 883.11-hectare Long Beach area of San Vicente, Palawan; the Rizal Park Complex in Manila; Mt. Samat Shrine in Bataan; Panglao Bay Premiere in Bohol; and Bucas Grande in Surigao del Norte.

TIEZA also has a total of six registered tourism enterprises (RTEs) namely, Philippine Arena; Kingdome Stadium inside Kingdom Global City; Magikland inside Aton Land and Leisure Zone; Signature Suites in Boracay, Aklan; Kabote Beach Resort and Lazuli, both of which are located inside the flagship TEZ in San Vicente, Palawan.