INVESTOURISM

Presented by:

Evelyn B. Pantig
Undersecretary of Tourism
 Worldwide Visitor Arrivals and
Receipts, 1994 - 2003
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Visitor
Arrivals 550 550 595 613 664 652 687 684 703 694
(In Millions)
Visitor
Receipts 353 401 434 443 441 457 477 464 474 514
(In US$
Billion)

Source: World Tourism Organization

 INTERNATIONAL TOURISM
ARRIVALS, 2001 - 2003
Region 2000 2001 2002 2003
Europe 403 390.8 399.8 401.5
Americas 129 120.0 114.9 112.4
Asia and 118 121.1 131.3 119.1
the Pacific
Africa 28 28.3 29.1 30.5
Middle East 21 23.6 27.6 30.4
Total 699 684.1 702.6 694.0
Growth (.47%) 2.70% (1.22%)
Rate
 Top Tourist Destinations Worldwide,
1994 - 2003
(In Million)
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
France 61 60 62 67 70 73 77 75 77 75

Spain 39 39 41 62 68 72 74 76 52 53

United 45 43 46 48 46 48 51 45 42 40
States
Italy 27 56 57 58 58 59 62 60 40 39
United 20 23 25 26 26 25 25 22 24 25
Kingdom
Germany 14 14 15 16 17 17 19 18 18 18
Greece 10 10 9 10 11 12 13 14 14 n/a

Source: World Tourism Organization

 Top Tourist Earners Worldwide
1994 - 2003
(In US$ Billion)
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
United n/a 61.1 69.9 75.0 71.3 74.9 82.0 72.3 65.5 65.1
States
Spain 21.4 25.7 27.4 26.6 29.7 32.5 31.5 32.9 33.6 41.7

France 24.7 27.5 28.3 28.3 29.9 31.5 30.8 30.0 32.3 36.6

Italy 23.7 27.7 28.7 30.0 29.9 28.4 27.5 25.8 26.9 31.2
Germany 13.9 17.0 16.4 16.4 16.4 16.7 18.5 17.2 19.1 23.0

United 15.0 18.6 19.2 20.6 21.0 20.2 19.50 16.3 17.6 19.4
Kingdom
Greece 3.9 1.4 3.7 3.8 6.2 8.8 9.2 n/a n/a n/a

Source: World Tourism Organization

 Tourist Arrivals to the Asia - Pacific
Region, 1994 - 2003
(In Million)
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

China 21.0 20.0 22.8 23.8 25.0 27.0 31.2 33.1 36.8 33.0

Hongkong 9.3 10.2 13.0 11.2 10.1 11.3 13.0 13.7 16.6 15.5

Malaysia 7.1 7.5 7.1 12.6 10.9 13.9 17.2 23.0 13.2 10.6

Thailand 6.1 7.0 7.2 7.5 8.2 9.1 10.0 10.8 10.9 10.0

Singapore 6.9 7.1 7.2 7.1 6.2 7.0 7.7 7.5 7.6 6.1

Vietnam 1.0 1.3 1.6 1.7 1.5 1.8 2.1 2.3 2.6 2.4

Source: NTOs Reports, World Tourism Organization

 Tourist Receipts of Selected
Destinations in the Asia - Pacific
Region, 1994 - 2003
(In US$ Billion)
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

China 7.3 8.7 10.2 12.0 12.6 14.0 16.2 17.8 20.3 17.4

Hongkong 8.2 9.6 10.8 9.2 7.1 7.2 7.9 8.2 10.1 n/a

Thailand 5.8 7.7 8.7 7.0 5.9 6.7 7.1 6.7 7.5 n/a

Malaysia 3.3 3.5 2.6 2.8 2.2 3.2 4.6 6.3 6.8 n/a

Singapore 7.0 8.3 7.9 6.8 5.1 n/a 6.0 5.3 5.1 n/a

Vietnam 85 86 87 n/a n/a n/a n/a 1.3 1.6 n/a

Source: NTOs Reports, World Tourism Organization

 Visitor Arrivals and Receipts to the
Philippines, 1994 - 2004
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004*

Visitor
Arrivals 1.57 1.76 2.04 2.22 2.14 2.17 1.99 1.80 1.93 1.90 2.50
(In Million)

Visitor
Receipts 2.28 2.45 2.70 2.83 2.41 2.55 2.13 1.77 1.74 1.52 2.25
(In US$
Billion)

Source: World Tourism Organization

*Estimated
 VISITOR ARRIVALS TO THE
PHILIPPINES, January – July 2004
Country Jan – July 2004 Jan – July Growth Rate
2003
USA 292,777 216,557 35.2%
Japan 217,986 176,131 23.8%
Korea 210,219 157,230 33.7%
Hongkong 96,745 72,531 33.4%
Taiwan 69,456 47,906 45.0%
Australia 48,688 35,890 35.7%
Canada 36,139 27,220 32.8%
Singapore 34,448 26,905 28.0%
U.K. 33,165 26,907 23.3%
Germany 25,604 21,186 20.9%
China 22,911 17,264 32.7%
Guam 21,124 16,564 27.5%
 PHILIPPINE
TOURISM
INVESTMENT LAWS
AND POLICIES
 TOURISM
TOURISM INVESTMENT
INVESTMENT
PRIORITIES
PRIORITIES PLAN
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
 TOURISM
TOURISM INVESTMENT
INVESTMENT
PRIORITIES
PRIORITIES PLAN
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
 TOURISM
TOURISM INVESTMENT
INVESTMENT
PRIORITIES
PRIORITIES PLAN
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
 TOURISM
TOURISM INVESTMENT
INVESTMENT
PRIORITIES
PRIORITIES PLAN
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.
 TOURISM
TOURISM INVESTMENT
INVESTMENT
PRIORITIES
PRIORITIES PLAN
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
 SPECIAL
SPECIAL INVESTOR’S
INVESTOR’S RESIDENT
RESIDENT
VISA
VISA (SIRV)
(SIRV) UNDER
UNDER E.
E. O.
O. NO.
NO. 63
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
 INCENTIVES
INCENTIVES GRANTED
GRANTED
UNDER
UNDER E.
E. O.
O. NO.
NO. 63
63

 Special Investor’s Resident Visa

(SIRV) to investor, wife and
unmarried minor children
 Remittance of Earnings
 Repatriation of Capital
 Right of succession
 QUALIFICATIONS
QUALIFICATIONS OF
OF
APPLICANT
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
 QUALIFICATIONS
QUALIFICATIONS OF
OF
APPLICANT
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.
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
LAWS

OWNERSHIP OF PRIVATE LANDS

General Rule
 Nationality Requirement under
the Philippine Constitution
 up to 40% foreign equity
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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)
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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)
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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.
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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
 TOURISM
TOURISM RELATED
RELATED
INVESTMENT
INVESTMENT LAWS
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
 TOURISM
TOURISM ECOZONES
ECOZONES (TEZs)
(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
 Develop Tourism Infrastructure

TOURISM ECO ZONES (TEZ)

Definition of a Components of a
Zone zone
 Large tracts of  Adequate access,
land that have accommodations,
tourism potential, and attractions to
and where meet tourist needs
investment will be  One-stop-shop for
focused investors to
facilitate
 Could be: investments in
hotels and critical
- Contiguous or
attractions
a group of
islands  Secure, orderly,
clean and tourist
- Entirely new or
friendly area
a re-
development of  Environmentally
an existing friendly practices
area  Duty-free
importation
 DESIGNATION AS A TOURISM
ECOZONE (TEZ)
 Development of viable action plan that can attract  Job creation
support by investors and donors
 Fast-track infrastructure development through
prioritization of government projects, private sector  Fast-tracked
incentives and/or negotiation with multi-laterals economic
 Revitalize existing tourist destinations through grant development
of incentives
 Strategy and support for investor marketing (e.g.,
one-stop shop, incentives) and destination
 Unity
marketing
 Sustainable
tourism
 Institutionalized public and private sector
commitment to ensure alignment and
continuity
 Enforcement of standards and programs to  Human resource
ensure preservation of environment and and community
cultural heritage development
 Investment in education to develop a culture
of tourism
 TOURISM
TOURISM ECOZONES
ECOZONES (TEZs)
(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
TOURISM
TOURISM ECOZONES
ECOZONES (TEZs)
(TEZs)

SPECIAL ECONOMIC ZONE ACT

(R.A. 7916)

Registrable Activities

 Enterprises establishing and

operating airports, seaports/marinas
 TOURISM
TOURISM ECOZONES
ECOZONES (TEZs)
(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
 DOT COMMITMENT TO TEZ
INVESTORS
• Prioritize and direct infrastructure to ensure easy
Infrastructure
access to and within zones and high quality attractions
development
and facilities
• Facilitate private investment by streamlining processes
Funding and granting incentives to mitigate risk
• Fast-track legal resolution of issues

Investor • Coordinate among various stakeholders to ensure

marketing long-term institutional commitment to master plan
(e.g. tour operators, LGU)
• Develop standards and programs to create an optimal
Stakeholder tourist environment, stabilize peace and order, and
coordination ensure consistent delivery of tourist services

• Mobilize funding at destination and national level to

Destination market zone
marketing
• Coordinate tour operators and travel agents to develop
attractive packages
 TOURISM
TOURISM ECOZONES
ECOZONES (TEZs)
(TEZs)
ENDORSED ECOZONES TO PEZA

PROJECT NAME PROJECT COST STATUS

(in P Million)
Panglao Island 210.00 Change of name
Tourism Economic to Blue Sky
Zone (Jimbart Land Resort Corp
Ventures)
Boracay Eco- 381.56 Awaiting
Cultural Village approval from
Resort PEZA
Fort Ilocandia 565.00 Proclaimed
Tourism Ecozone
TOTAL 1,156.00
Priority Areas
Laiya Aplaya, Batangas
 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.
Pagudpud-Bangui
 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.
Palawan
 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.
Boracay Island
 Boracay Island
Development Directions

• upgrading of current facilities and

infrastructure (Kalibo Airport, ferry
landing, public beach restrooms,
standard tourist reception systems,
environmental protection mechanisms)
Panglao Island
 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.
Samal Islands
 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
 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.
 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
 Investment Promotion
Services
• Investment Communications
 Tourism Investment Updates
bulletin
 Primers
 Website
(www.wowphilippines.com.ph)
 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
 For additional information,
please contact

Office of Tourism Coordination

Tel. No. (632) 526-76-54; (632) 536-03-26
(fax) e-mail:
otc@tourism.gov.ph
Or
Office of Tourism Standards
Tel No. (632) 525-32-57; (632) 524-98-24);
e-mail: mvjasmin@tourism.gov. ph