BOI calls on hospitals anew to avail of incentives offered

CEBU, Philippines - The Board of Investments (BOI) is urging hospitals in the province to take advantage of the incentives being offered by the agency to help boost the medical tourism sector.

BOI governor Oliver Butalid bared that at present, there are still no takers of the incentives offered by BOI despite the announcement that hospitals who will avail of the offer will get tax holidays on revenues that are generated from foreign clients.

Aside from the hospitals’ incentive of a zero-tariff for purchase of any medical equipment from abroad, they can also make a separate calculation on the revenues from the foreign clients, and get a huge tax discount from the Bureau of Internal Revenue (BIR).

Butalid assured that with the inter-agency coordination in providing incentives to BOI registered companies, the processing of tax rebates will be faster and other bureaucratic problems in the past will be eradicated.

Under the Tourism Act of 2009, health and wellness facilities such as but not limited to spas, tertiary hospitals, and ambulatory clinics, are entitled to incentives, as stipulated in the General Policies and Specific Guidelines issued by the BOI.

On the other hand, medical tourism sellers and promoters in the Philippines, such as hospitals, tour operators, are inclined to attract the OFW (Overseas Filipino Workers) first, rather than the foreign clients.

Earlier, the Department of Health (DOH) head for special concerns Anthony Calibo said that the future of medical tourism in the Philippines is not dependent on the volume of foreign clients, although some hospitals in Cebu have already noted a surge of foreign clients seeking for medical services, including cosmetology, dental and other related services.

According Calibo, the Philippines’ medical tourism growth is largely dependent on the Filipinos working and residing abroad.

“Unlike other countries, the Philippines has its natural market. It is not relying on foreign patients, because the source of constant and sustainable growth for the industry is the OFWs, or the Filipinos residing and working abroad,” Calibo said.

Calibo underscored that even if foreigners coming to the Philippines will not seek medical help, the medical tourism industry here will still grow “because we have growing OFWs, who prefer to get medical attention in their home land.”

BOI on the other hand, will only give incentives to hospitals and clinics which can provide a proof of nationality and country of origin of their clients.

Department of Trade and Industry Cebu Provincial Office director Nelia F. Navarro said so far, vanity and dental services have emerged strong medical services here in Cebu being availed of by foreigners, and Filipino citizens residing or working abroad.

Navarro said there is still a lot of work to be done in order for Cebu’s medical tourism to fully take off and capture a sizeable portion of the world market’s US $13 billion medical tourism market. (THE FREEMAN)