More foreign, local firms investing in tourism projects – TIEZA

More foreign and domestic companies are interested to invest in tourism- related projects now that the government has a proper framework for the grant of incentives to tourism enterprises, the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) said yesterday.

TIEZA chief operating officer Guiller Asido told The

STAR, local parties, as well as Chinese delegates, recently expressed their interest to invest in the country after the Bureau of Internal Revenue (BIR) issued the guidelines on the grant of fiscal incentives to businesses and operators inside tourism enterprise zones (TEZs).

“After the BIR released the revenue regulation, there were two foreign delegations that already visited the country...from two large Chinese companies,” Asido said over the phone.

“They were looking for areas where they can invest in,” he said, adding these companies are eyeing areas where they can put up mixeduse developments.

Aside from these foreign firms, Asido said an increased number of domestic investors have also approached the TIEZA to explore investment opportunities.

“Many are already inquiring. They’re reviewing the IRR (implementing rules and regulations) of the revenue regulation,” Asido said.

Investors and enterprises within TEZs can apply for incentives under the new regulation. TIEZA may also decide to provide incentives to businesses and establishments outside of TEZs.

They can choose among a six- year tax holiday, or a five percent preferential tax on gross income in lieu of national taxes ( except for real property tax and fees of TIEZA) or a net operating loss carry over scheme.

They can also be granted import tax exemptions for capital goods and equipment, and for transport equipment and spare parts for TIEZAregistered activities, among others.

Non- fiscal incentives or those not covered by the revenue regulation can also be given to the registered enterprises, including the employment of foreign nationals, importation of professional instruments and household effect, special investor’s resident visa, foreign currency transaction, requisition of investment and lease or ownership of land.

TIEZA is confident the provision of incentives would enable a competitive environment among industry players and encourage them to offer lower rates for their products and services, thereby attracting more tourists to come to the country.

Asido said the agency has yet to identify new areas in the country that can be designated as TEZs.

To date, TIEZA has already designated five flagship TEZs and seven ordinary TEZs, the latest of which is Kingdom Global City in Davao City.

Asido said the agency is currently focusing its efforts on formulating its tourism investment promotion framework to attract more firms to consider tourism- related projects.