INVESTOURISM

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 INVESTORS 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 Investors 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
  US50,000.00 in a tourist-related project, the
  SIRV may be issued to the corporations 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 Investors
• 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)

• 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

• Job creation
• Fast-tracked economic development
• Unity
• Sustainable tourism
• Human resource and community development

• 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/Establishme
  nts

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
TOURISM ECOZONES (TEZs)

• ENDORSED ECOZONES TO PEZA

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 estates 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 governments 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 Resorts
  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)
51
EXPO 2005 WORLD EXPOSITION

• Participation in the investment seminar (end of
  May or early June)
• Local proponents (private sector and local
  government units) encouraged to join to meet
  potential investors
• To cover Tokyo-Osaka-Nagoya
• Collaterals/AV presentations should be bi-lingual

52
For additional information, please contact
Office of Tourism Coordination

Tel. No. [phone] (632)
536-03-26 (fax)
e-mail
otc_at_tourism.gov.ph
Or Office of Tourism Standards Tel No. (632)
525-32-57 [phone]) e-mail
mvjasmin_at_tourism.gov. ph