Vol. XXII, No. 13 [ BusinessWorld Online ]
Wednesday, August 13, 2008 | MANILA, PHILIPPINES
A NEW ECONOMIC ZONE in Pasay City that is scheduled to start operating next year hopes to lure as much as P8 billion in investments.
The project, dubbed Newport City Cyber Tourism Zone, sits on 24.5 hectares in Villamor Airbase in Pasay City.
A joint venture between the Bases Conversion and Development Authority and Megaworld Corp., which is developing the project, Newport City was designed to ride on the expected increase in tourist traffic in the area from Ninoy Aquino International Airport Terminal III.
The new international airport terminal started full commercial operations last July 31.
Major contributor
"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 H. Durano said in a statement.
Mr. Durano said the project, which is scheduled to be completed next year, is expected to generate 12,000 new jobs.
Complex
The new economic zone will include commercial and residential facilities like a deluxe airport hotel, convention center, service apartments as well as sports and entertainment facilities.
President Gloria M. Arroyo declared the Newport City as the country’s newest "tourism economic zone with information technology component" through Proclamation No. 1557 last July 15.
There are currently six tourism economic zones in the country, namely: San Lazaro Leisure Park; Pamalican Island Tourism Ecozone; Misibis Resort Estate & Spa Tourism Ecozone; Island Cove Resort & Leisure Park; Boracay Eco-Cultural Village Resort; and Fort Ilocandia Tourism Ecozone.
All proposed tourism economic zones require endorsement from the Tourism department prior to approval by the Philippine Economic Zone Authority.
Locators in these economic zones are eligible for incentives such as a four-year income tax holiday and tax and duty-free importation of capital equipment.
Tourism is one of the country’s key growth sectors. Tourist arrivals in the Philippines rose 6.9% year-on-year to 1.63 million in the first half.
The industry is targeting an 8% growth in visitor arrivals by yearend. — BSSD
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