Gordon calls for jobs in tourism

MANILA, Philippines - As the country commemorates Labor Day, former senator Richard Gordon has appealed to President Aquino to immediately implement the Tourism Act of 2009, which was envisioned to generate jobs and livelihood for millions of Filipinos.

Gordon, principal author of the law and a senatorial candidate of the United Nationalist Alliance, said there is no better time to implement the legislation.

“Mr. President, you supported the Senate bill and signed the committee report for this law in 2008 when we were together in the Senate. Please direct your people to allow its implementation. There are efforts to derail and delay the implementation of this law and these actions deprive our people of jobs and livelihood,” Gordon said.

“The administration has touted tourism as an engine of growth. The President himself has pointed out the need to increase our hotel capacity. The administration must live up to its commitment to tourism development. This could be the centerpiece of the administration,” he added.

Tourism is acknowledged as a leading industry in the world and has the capability to create one new job for every new foreign tourist arrival, besides the foreign exchange it brings into the country.

The Tourism Act of 2009, approved during the 14th Congress, provides for the creation of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), which is empowered to designate Tourism Economic Zones (TEZs) for which investment and development incentives are accorded for a limited time.

Gordon cites the country’s archipelagic geographical conditions as the primary reason for the designation of these zones.

“Instead of being hindered by the way our country is built, we should find ways to best utilize our natural endowments. We have 7,106 islands, and hundreds of them can be developed into tourism destinations,” Gordon said.

He noted that Palawan alone has 1,780 islands and many of these are undeveloped.

There are also areas that can be developed like Caramoan in Camarines Sur, Sipalay in Negros Occidental, Lake Sebu in South Cotabato, Lake Lanao in Lanao del Sur, Hundred Islands in Pangasinan, and even the vast open fields of Bulacan, so close to Metro Manila and so accessible by airports in Manila, Clark, and Subic.

“Imagine an island like Cagbalete in Quezon, with pristine white sand beaches, but which has no roads, electricity, or access to potable water. It’s beautiful, and I’m sure if developed properly, foreign tourists would flock there like they do in Boracay, but who can develop the island?” Gordon pointed out.

“It will be very expensive to build not only resort facilities but also things like the utilities connections and airstrips. Developers will also have to import desalination treatment equipment, sanitation equipment, and other resort amenities. So we need to ‘incentivize’ investment so that developers will come in,” he explained.

“Once there is development, people can have jobs – from the construction workers who will build the facilities, to the watersports professionals, hotel managers, chefs, and interpreters who will work there. There will also be vast opportunities for our farmers and fishermen, who can sell their produce and catch to the resorts,” he added.

He also said that despite support from the Department of Tourism and Executive Secretary Paquito Ochoa Jr., who issued a memorandum directing various agencies to issue rules and guidelines to implement the law, the final implementation has been delayed by roadblocks from the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), who have concerns over revenue leakage.

This despite clear and explicit provisions in the law that give TIEZA full jurisdiction over the grant and administration of incentives to TEZs, with BIR and BOC only having coordinating functions.

The Department of Finance and BIR have been historically opposed to the granting of fiscal incentives, citing a loss in revenue for the country. But Gordon said that no revenue is lost because nothing is being taxed for these areas at present.