TEZ coverage expansion seen to draw investments

CEBU, Philippines - The decision of the Philippine Economic Zone Authority (PEZA) to expand the coverage of Tourism Economic Zone (TEZ) accreditation is seen to boost development of more big ticket investments, especially condotel projects.

PEZA recently allowed condominium-hotel (condotel) projects to apply for tourism economic zone classification, and enjoy fiscal and other incentives from the government.

Department of Tourism (DOT) secretary Joseph Ace Durano said this move would encourage property owners and developers to raise funds and build new condotel projects, to take advantage of the tax holidays, duty-free importation of equipment, among others.

Originally, PEZA implemented very strict rules in proclaiming TEZ, which has hampered tourism related facilities from availing of this incentive.

With the expansion for accreditation, four other companies in Cebu, five in Manila, and three in Boracay have already applied for the TEZ endorsements from DOT.

According to Durano, the Robinson's Land condotel project on Mactan Island called Amisa, is currently applying as TEZ and other expansion projects like that of Shangri-La Mactan Island Resort and Spa.

DOT and PEZA have identified the list of registrable activities for availment of incentives that will be locating inside the proclaimed TEZ, these are; Deluxe or First Class Hotel, condominium hotels and serviced residences/apartments; AAA class resort; theme park; museum/art galleries; health and wellness facility, sports and recreational center; international convention/trade center and airport, seaport.

Durano said more accredited tourism ecozones will help fast track DOT's "Live Your Dream" campaign that encourages repeat tourists to invest in condotel units in the country especially when coming here for long vacations.

Maximizing the Philippines' edge in tourism, DOT recently stepped up its marketing approach not just to invite foreign tourists to the country, but lure foreign travelers to invest in the Philippines, which is known as Asia's "tropical paradise."

Through the DOT's "Live Your Dream" campaign, the agency is partnering with prestigious and giant developers in the country to push "investment tourism", inviting foreigners to buy a vacation house or condominium in the Philippines, instead of staying in a hotel or resort.

Because of this, Durano said it is ripe time to encourage "investment tourism" attracting foreign nationals to purchase condominium properties here, thereby further fueling tourism receipts generation, and encourage longer-staying tourists.

This campaign will not only put tourism industry in the Philippines, to its optimum level of success and rake a record-breaking tourism receipt revenue generation, but this particular program is seen to re-open a strong "real estate boom" in the Philippines.

"Condominium units are now in demand especially for foreigners. May it be in a resort, mountain or urban settings," he said. — Ehda M. Dagooc