MANILA, Philippines — The City of Puerto Princesa received P27.55 billion in investment pledges as it held its first investment forum, in line with its target of attracting more businesses into the city.
The investment pledges made are for various projects such as hotels, resorts, hospitals, agriculture farms, schools, residential developments, among others.
SM Prime Holdings Inc. and Green Asia Unlimited and Development Corp. made the largest investment pledges, both amounting to P10 billion each.
Green Asia’s investment involves a property development with a modern aqua farm and subdivision, while SM Prime said it would build a modern resort with 27-kilometer shoreline.
Puerto Princesa City Mayor Lucilo Bayron said the city is elated to see the interest and confidence from the business community.
“We look forward to receiving them,” Bayron said.
In line with the city’s target of attracting more investments, Bayron said they are implementing two city ordinances that would offer business incentives.
“We have passed two ordinances and these two ordinance specify the financial incentives that we are offering,” Bayron said.
Among these is City Ordinance 461 which offers incentives to tourism-related business, agri-fishery, renewable energy and information and communication investments in any part of the city.
Under the ordinance, investments ranging from P3 million to P99 million will be 100 percent free from taxes such as real property taxes and business taxes for the first year of their operations; 75 percent on the 2nd year; 50 percent on the 3rd year and 25 percent on the 4th year of their operations.
Investments above P100 million will be tax free for the first two years of operations; 75 percent free on the 3rd year; and 50 percent free on the 4th year.
Meanwhile, City Ordinance 919 targets tourism-related invests located in Puerto Princesa’s Tourism Mile, a 3.13 km stretch on Rizal Avenue.
Under the ordinance, businesses will be local tax free for the first six years of their operations, 75 percent free on the 7th year of operations and 50 percent free on the 8th year.
“...We’re pushing for investments in the tourism mile so that the area will have a night time economy,”Bayron said citing that there are no tourism activities at night in the city.
The mayor said tourism accounts for about 60 percent of the city’s economy, including indirect businesses and jobs it produces.
He emphasized that the city has been seeing a continued influx of tourists, with tourist arrivals reaching 1.2 million last year.