Wednesday, August 13, 2008 [ philstar.com ]
Property developer Megaworld Corp.’s P7.641-billion investment in Pasay City will be given tax breaks as the government declared part of the 24.5-hectare project a tourism economic zone.
“The creation of more tourism economic zones only reflects the stability and the great interest of investors in the Philippines. Tourism is a major contributor to the economy as it creates job opportunities to Filipinos,” Tourism Secretary Joseph “Ace” Durano said.
According to Durano, Megaworld’s multi-billion investment in the Newport City Cyber Tourism Zone in Villamor Airbase Pasay City is a good sign that businesses continue to support the country’s tourism industry.
Megaworld will be eligible for tax incentives such as a five percent tax on gross income earned, in lieu of all national and local taxes, except real property taxes on land owned by developers.
Meanwhile, companies which will locate inside the new tourism ecozone will be awarded with incentives such as a four-year income tax holiday and tax and duty-free importation of capital equipment.
The entire project will include a deluxe airport hotel, a convention center and a service apartment. It will also contain sports and entertainment facilities while some portions of the zone will be used for residential and commercial purposes. Megaworld has partnered with Marriott Hotel International B.V. for the seven-hectare hotel resort. The firm earlier disclosed that the hotel will have 356 guest rooms and will cost $3 billion.
The hotel and the other developments are expected to be completed by 2009.
Durano estimated that the new tourism economic zone will create employment opportunities for 12,000 workers.
For her part, Ma. Victoria Jasmin, head of the Department of Tourism’s Tourism Investments Promotions Group and the concurrent director of the Office of Tourism Standards said the decision of the President to declare the development as an economic zone gives positive signals to prospective investors in the tourism industry.
“The business community is confident of the great potential in the domestic tourism industry. The Philippine government is committed in helping business community,” Jasmin noted.
There are currently seven tourism economic zones in the country.
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