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Thursday, March 17, 2005
Incentives available for tourism investors
The Department of Tourism (DOT) has drafted an executive order that will give incentives to establishments that upgrade their facilities.
During last Thursday’s Philippines Investment Conference at Shangri-la’s Mactan Island Resort, Tourism Undersecretary Evelyn Pantig said this was done in response to the clamor from the private sector to upgrade the hotel facilities in the country.
Waterfront Philippines Inc. president Patrick Gregorio invited potential investors to invest in hotel facilities in Cebu, saying: “Gross operating profits (before tax and depreciation) are as high as 50 percent for hotels in Cebu.”
He said Cebu needs “10,000 to 15,000 rooms right away,” or a more than doubling of the province’s current capacity because local hotels are now hitting 80-85 percent occupancy.
According to the DOT 7, Cebu had 5,485 rooms as of January, while the entire Central Visayas had 6,979 rooms.
Central Visayas comprises Cebu, Bohol, Siquijor and Negros Oriental.
For years, Cebu tourism players have been complaining about a lack of rooms, which has forced them to turn away foreign tourists, especially during the peak tourist seasons.
Peza
Pantig said incentives are also available from the Board of Investments and the Philippine Economic Zone Authority (Peza).
Bohol Vice Gov. Julius Caesar Herrera gave the example of Panglao Island Tourism Estate, which is registered with the Peza.
According to Water-front’s Gregorio, more rooms are also immediately needed in Panglao island.
To encourage investment, Vice Gov. Herrera said the Bohol Investment Code provides a seven-year tax holiday on real property taxes.
In addition, 10 percent of the cost of tourism infrastructure is also not subjected to local taxes, he said.
DOT Undersecretary Pantig said there is a need for tourism development not only in terms of hotels, but also in terms of transportation facilities, restoration of cultural heritage projects, and the development or upgrading of seaports, airports and roads.
Earlier, DOT Secretary Ace Durano said the Philippine Government would spend $3 billion in tourism infrastructure in the next six years, to include the building and upgrading of airports, roads and seaports.
Airports
There are plans to make international airports in Palawan, Panglao in Bohol, Iloilo and Bacolod City, he said.
Gregorio, who is also chairman of the Cebu Visitors and Convention Bureau, told the international and local delegates at the conference that Cebu Gov. Gwen Garcia is planning to build a major highway to the south of the province.
It will be funded by the Provincial Government and the local government units because the National Government does not have the money, he said.
Herrera said that in Bohol, work on a circumferential road is ongoing.
Ecotourism
To make sure that its efforts to increase tourism will not result in the destruction of the tourist spots as more and more tourists descend on them, Pantig said the Philippines is also promoting ecotourism.
The masterplan for northern Palawan, a popular tourism destination, is for the control of the influx of the population into the area.
In Boracay, she said, political will may be needed to allow people to work in Boracay, but not to live there.
She said the Philippine Tourism Authority, the DOT’s implementing arm for physical infrastructure, has already embarked on solid waste, sewerage and water systems projects to address the concerns of environmentalists. (CTL)
(March 17, 2005 issue)
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