Tourism zones offer perks to investors
CEBU CITY – The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is calling on big business to invest in the country’s tourism enterprise zones (TEZ).
TIEZA Evaluation and Registration Division Manager Donald Maldonado said today is the best time to invest in the tourism industry which is one of the fastest growth drivers of the economy.
“Local tourism destinations are developing faster than ever, many local government units nationwide make tourism their priority agenda in local development,” Maldonado said in his presentation during Thursday’s TEZ Investment Forum here.
TIEZA is holding roadshows to promote TEZs and other tourism enterprises in Central Visayas.
Maldonado described a TEZ as land where an integrated tourism complex is established.
The property must have historical and cultural significance, with existing or potential integrated leisure facilities, in a strategic location with easy access to transportation and other utilities, he said.
A TEZ can be started by a corporation, local government or a joint venture corporation with a minimum of a 5-hectare area an initial investment of $5 million.
It could also be a flagship government enterprise, involving the Department of Tourism or TIEZA, or a joint venture entity of DOT, TIEZA and stakeholders in a 50-hectare area, Maldonado said.
There are 14 TEZs that have been designated and registered with TIEZA. Five are flagship TEZs, seven are private TEZs and two, Magikland and Kingdom Stadium, are registered Tourism Enterprises.
In Cebu, the Queens Castle in Medellin has been proclaimed as a TEZ.
Designated TEZs and registered tourism enterprises, are entitled to incentives, including a six-year income tax holiday, five percent gross income taxation, tax- and duty-free importation of goods and services, capital investment and equipment, Maldonado said.
“Incentives also include lease of land to foreign nationals and their employment, foreign currency transactions among other things are available to tourism enterprises as provided under RA 9593,” he added.