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INVESTOURISM

INVESTOURISM. Presented by: Evelyn B. Pantig Undersecretary of Tourism. Worldwide Visitor Arrivals and Receipts, 1994 - 2003. Source: World Tourism Organization. INTERNATIONAL TOURISM ARRIVALS, 2001 - 2003. Top Tourist Destinations Worldwide, 1994 - 2003 (In Million).

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INVESTOURISM

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  1. INVESTOURISM Presented by: Evelyn B. Pantig Undersecretary of Tourism

  2. Worldwide Visitor Arrivals and Receipts, 1994 - 2003 Source: World Tourism Organization

  3. INTERNATIONAL TOURISM ARRIVALS, 2001 - 2003

  4. Top Tourist Destinations Worldwide, 1994 - 2003(In Million) Source: World Tourism Organization

  5. Top Tourist Earners Worldwide 1994 - 2003(In US$ Billion) Source: World Tourism Organization

  6. Tourist Arrivals to the Asia - Pacific Region, 1994 - 2003(In Million) Source: NTOs Reports, World Tourism Organization

  7. Tourist Receipts of Selected Destinations in the Asia - Pacific Region, 1994 - 2003(In US$ Billion) Source: NTOs Reports, World Tourism Organization

  8. Visitor Arrivals and Receipts to the Philippines, 1994 - 2004 Source: World Tourism Organization *Estimated

  9. VISITOR ARRIVALS TO THE PHILIPPINES, January – July 2004

  10. PHILIPPINE TOURISM INVESTMENT LAWS AND POLICIES

  11. TOURISM INVESTMENT PRIORITIES PLAN OMNIBUS INVESTMENTS CODE OF 1987 (EO 226) TOURISM PRIORITY ACTIVITIES (2004 Investment Priorities Plan) • Tourism Estates (P/NP) • Accommodation Facilities (P/NP) (Hotels, Tourist Inns, Apartment Hotels, Pension Houses, Resorts) • Historico-Cultural Heritage Projects • Ecotourism and Agri-tourism Facilities • Health/Medical Tourism P = Pioneer NP = Non-Pioneer

  12. TOURISM INVESTMENT PRIORITIES PLAN OMNIBUS INVESTMENTS CODE OF 1987 (EO 226) PIONEER STATUS CRITERIA • For Hotels (De Luxe & First Class only) • OUTSIDE METRO MANILA - US $100,000 / room • IN LESS DEVELOPED AREAS - US $50,000 / room but not less than US $5 million per project • For Resorts (Class “AAA” only) • OUTSIDE METRO MANILA - US $ 10 million per project • IN LESS DEVELOPED AREAS - US $ 5 million per project

  13. TOURISM INVESTMENT PRIORITIES PLAN OMNIBUS INVESTMENTS CODE OF 1987 (EO 226) INCENTIVES TO TOURISM PRIORITY PROJECTS • Income Tax Holiday • Tax- and Duty-Free importation of capital equipment • Employment of foreign nationals

  14. TOURISM INVESTMENT PRIORITIES PLAN IMPORTATION OF CAPITAL EQUIPMENT (pursuant to EO No. 313) • 0-1% duty on equipment • Granted to enterprises registered with BOI on after June 6, 2004 • Can be availed until June 6, 2006.

  15. TOURISM INVESTMENT PRIORITIES PLAN INCOME TAX HOLIDAY UNDER EO 226 • New Projects (Pioneer) - 6 years • New Projects (Non-Pioneer) - 4 years • Expansion Projects - 3 years • Projects in Less Developed - 6 years Areas (regardless of status) • Modernization Projects - 3 years

  16. SPECIAL INVESTOR’S RESIDENT VISA (SIRV) UNDER E. O. NO. 63 RATIONALE • Development of international tourism through infusion of capital by foreign investors • Disposition of government tourist-related assets for management of the private sector • Grant of benefits and incentives to attract foreign investments in tourism

  17. INCENTIVES GRANTED UNDER E. O. NO. 63 • Special Investor’s Resident Visa (SIRV) to investor, wife and unmarried minor children • Remittance of Earnings • Repatriation of Capital • Right of succession

  18. QUALIFICATIONS OF APPLICANT • He has not been convicted of a crime involving moral turpitude • He is not afflicted with AIDS or any loathsome, dangerous or contagious disease • He has not been institutionalized for any mental disorder or disability • He is willing and able to invest at least US $50,000 in a tourism related project

  19. QUALIFICATIONS OF APPLICANT • In the case of foreign corporation which is willing to invest the amount of at least US$50,000.00 in a tourist-related project, the SIRV may be issued to the corporation’s Chief Executive Officer.

  20. TOURISM RELATED INVESTMENT LAWS OWNERSHIP OF PRIVATE LANDS General Rule • Nationality Requirement under the Philippine Constitution • up to 40% foreign equity

  21. TOURISM RELATEDINVESTMENT LAWS LEASING OF PRIVATE LANDS • General Rule per PD 471 • 25 years - original • 25 years - renewable • Exception per RA 7652 or Investor’s Lease Act • Minimum investment of US $5 million for tourism projects • 50 years - original • 25 years - renewable

  22. TOURISM RELATED INVESTMENT LAWS FOREIGN INVESTMENTS ACT OF 1991 (RA 7042 AS AMENDED BY RA 8179) • Domestic market is open to foreign investors as long as the activity is not restricted in the Foreign Investment Negative List • Ownership of private lands (up to 40% foreign equity) • Tourist Transport Operation (up to 40% foreign equity)

  23. TOURISM RELATED INVESTMENT LAWS • Minimum paid-in equity capital of US $200,000.00 for domestic market enterprises with more than 40% foreign equity participation. (not applicable if applying for fiscal incentives with BOI whereby pioneer status criteria under EO 226 must be complied with)

  24. TOURISM RELATED INVESTMENT LAWS R. A. 6957, AS AMENDED BY R. A. 7718 (BOT LAW) • Authorizes the financing, construction, operation and maintenance of infrastructure projects by the private sector.

  25. TOURISM RELATED INVESTMENT LAWS INCENTIVES UNDER THE BOT LAW • Financial assistance from direct government appropriation and/or from Official Development Assistance (ODA) of foreign governments or institutions not exceeding 50% of the project cost • Minimum government regulations and procedures • Special government undertakings in support of private sector

  26. TOURISM RELATED INVESTMENT LAWS RETAIL TRADE LIBERALIZATION ACT OF 2000 (R. A. 8762) • Extent of foreign equity in Restaurants • Below US $ 2.5M capital - no foreign equity • US $ 2.5M capital or more - up to 100% foreign equity

  27. TOURISM ECOZONES (TEZs) SPECIAL ECONOMIC ZONE ACT (R.A. 7916) • MOA between DOT and PEZA • Signed October 7, 2002 • Guidelines for Registration of TEZs • Effective November 12, 2002

  28. Develop Tourism Infrastructure TOURISM ECO ZONES (TEZ) Components of a zone • Adequate access, accommodations, and attractions to meet tourist needs • One-stop-shop for investors to facilitate investments in hotels and critical attractions • Secure, orderly, clean and tourist friendly area • Environmentally friendly practices • Duty-free importation Definition of a Zone • Large tracts of land that have tourism potential, and where investment will be focused • Could be: • Contiguous or a group of islands • Entirely new or a re-development of an existing area

  29. DESIGNATION AS A TOURISM ECOZONE (TEZ) • Job creation • Fast-tracked economic development • Unity • Sustainable tourism • Human resource and community development • Development of viable action plan that can attract support by investors and donors • Fast-track infrastructure development through prioritization of government projects, private sector incentives and/or negotiation with multi-laterals • Revitalize existing tourist destinations through grant of incentives • Strategy and support for investor marketing (e.g., one-stop shop, incentives) and destination marketing • Institutionalized public and private sector commitment to ensure alignment and continuity • Enforcement of standards and programs to ensure preservation of environment and cultural heritage • Investment in education to develop a culture of tourism

  30. TOURISM ECOZONES (TEZs) SPECIAL ECONOMIC ZONE ACT (R.A. 7916) Registrable Activities • Tourism Ecozone Developers/Operators • Tourism Ecozone Locators • Sports and Recreational Centers • Accommodation • Convention & Cultural Facilities • Theme Parks • Special Interest Attraction/Activities/Establishments

  31. TOURISM ECOZONES (TEZs) SPECIAL ECONOMIC ZONE ACT (R.A. 7916) Registrable Activities • Enterprises establishing and operating airports, seaports/marinas

  32. TOURISM ECOZONES (TEZs) SPECIAL ECONOMIC ZONE ACT (R.A. 7916) Incentives to Tourism Ecozone Developers & Locators • Tax and duty free importation of Capital Equipment • Income Tax Holiday • Employment of foreign nationals • Exemption from national and local taxes, in lieu thereof, 5% Gross Income Tax Rate • SIRV under E.O. 63 • Incentives under BOT Law

  33. DOT COMMITMENT TO TEZ INVESTORS Infrastructure development • Prioritize and direct infrastructure to ensure easy access to and within zones and high quality attractions and facilities • Facilitate private investment by streamlining processes and granting incentives to mitigate risk • Fast-track legal resolution of issues Funding Investor marketing • Coordinate among various stakeholders to ensure long-term institutional commitment to master plan (e.g. tour operators, LGU) Stakeholder coordination • Develop standards and programs to create an optimal tourist environment, stabilize peace and order, and ensure consistent delivery of tourist services • Mobilize funding at destination and national level to market zone • Coordinate tour operators and travel agents to develop attractive packages Destination marketing

  34. ENDORSED ECOZONES TO PEZA TOURISM ECOZONES (TEZs)

  35. Priority Areas

  36. Laiya Aplaya, Batangas

  37. Laiya Aplaya, Batangas Development Directions • Forestry reserve and trekking destination with beach front recreation. • Phase I development will cover 151 hectares to be done by private group called Aplaya Laiya Corporation – one or more hotels with 750 room capacity, beach front facilities with 675 rooms, retirement village with 200 units ranch and camp site, convention center, commercial center and sports facilities. Additional Development • Hotel-villas on west and east side of beach • Golf and country club on the hilly and rolling terrain.

  38. Pagudpud-Bangui

  39. Pagudpud-Bangui Development Directions • Coastal development to house a number of international grade hotels, and residential and recreational facilities for sailing, diving, sports and social recreation.

  40. Palawan

  41. Palawan Development Directions • Establishment of tourism estates in Busuanga and El Nido such as hotels and resorts, theme parks and gardens, sports facilities, shopping and business centers. • Development of an integrated transport system (air, land and water) to provide linkages between the different tourism centers and to serve not only the tourism sector but the local communities as well. • Development of destinations, products and tourism circuits in the south.

  42. Boracay Island

  43. Boracay Island Development Directions • upgrading of current facilities and infrastructure (Kalibo Airport, ferry landing, public beach restrooms, standard tourist reception systems, environmental protection mechanisms)

  44. Panglao Island

  45. Panglao Island Development Directions • Tourism estate development – resort hotels and residential villas with high, medium and low density clusters which can accommodate a total of 7,000 tourists at a time • 18-hole golf course • Retirement village • Marina and other facilities for sailing, diving, fishing, boating, and a variety of water sports • About 30% of estate’s land area will be for support facilities – green wedges, plazas, roads, boulevards and reforestation areas.

  46. Samal Islands

  47. Samal Islands Development Directions • A total of 20 development sites covering 6,000 hectares. • From these will rise 3,000 resort units of various configurations – from hotel rooms and apartments to villas and beachfront bungalows. • Various projects are still open for investors. • The Philippine government’s major contribution to the development of Samal is in the form of vital public infrastructure: • 18.7 kilometers of roads and bridges • a water supply system • solid and liquid waste disposal • berthing facilities; • a jetty. • Power supply provisions

  48. Samal Islands Development Directions • In 1998, Ekran Berhad of Malaysia, the primary developer of Samal, opened the first 300 rooms out of the 1,720 it has committed to build, just in time for the start of Samal Casino Resort’s full operation. • The DOT, LGUs, business sector and community are committed to provide the attractive climate for new businesses and for sustaining the existing ones.

  49. Investment Promotion Services • Databanking and opportunities generation surveys • Preparation of Area Investment Folders • Preparation of Investment Brochures • Organization of/participation in investment promotion missions • Holding of investment fora and business matching sessions • Assistance to potential investors • Inbound missions • Inquiries • Assistance to local proponents

  50. Investment Promotion Services • Investment Communications • Tourism Investment Updates bulletin • Primers • Website (www.wowphilippines.com.ph)

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