Vol. XXII, No. 129 [ BusinessWorld Online ]
Monday, February 2, 2009 | MANILA, PHILIPPINES
MACTAN, CEBU — The declaration of a P4.5-billion Korean waterpark and resort as the first tourism economic zone in Cebu is expected to boost sales of the resort’s condominium units despite the global economic turmoil this year.
Foreign buyers of the condominium units at the Imperial Palace Waterpark Resort & Spa will be exempted from the 12% value-added tax (VAT), said Bruce Chiongbian, vice-president of Philippine BXT Corp., developer of the resort.
"That’s an investment advantage that foreign buyers will enjoy. This declaration benefits not only the developer but also the buyers," Mr. Chiongbian said.
He noted that as of Friday, almost half of the 425 condominium units had been committed, mostly to Koreans. The project has been accredited with the Tourism department’s "Live Your Dreams" campaign, which encourages foreign investors to buy second homes here.
The resort has also been accredited as a deluxe hotel in a triple A resort and will have 557 rooms spread in six mid-rise buildings and 24 pool villas that are being built on an eight-hectare property in Maribago, Lapu-Lapu City on Mactan island. About 90% of the resort has been completed and it is scheduled to open in summer. It will employ about 1,500 workers when it opens in March or April. Recruitment is ongoing, Mr. Chiongbian added.
Last week, the Cordova municipal government gave Phil BXT the go-signal to proceed with the development of a P1-billion, 18-hole championship golf course and retirement village that will complement the resort. Mr. Chiongbian said they had bought a 36-hectare property in Cordova, also in Mactan and about 15 minutes away from the resort, for the golf course. The municipal government has invited them to expand towards its planned reclamation area.
They expect to complete the golf academy and a three-hectare retirement village by the first quarter of next year.
Also on Friday, the Tourism department and the Philippine Economic Zone Authority (PEZA) signed a deal identifying the activities and capital equipment in a tourism economic zone that are eligible for fiscal incentives.
Facilities covered by the incentives are deluxe or first-class hotels, condominiums and serviced residences/apartments; triple A class resorts; theme parks; museums and art galleries; health and wellness facilities; sports and recreational centers; international convention centers; and airport, seaport and marina. A list of equipment that are eligible for tax and duty-free importation was also included.
Tourism Secretary Joseph H. Durano said the venture is the biggest Korean investment so far in the local tourism industry, adding that it would boost Cebu’s capacity to accommodate foreign tourists and encourage more Korean investments.
Cebu has about 7,000 rooms. Direct international arrivals have been increasing, thus the need for more accommodation facilities. Korea is its top market, making up 40% of total international arrivals last year. Korean Air, Cebu Pacific and Asiana Airline fly to Cebu daily from Incheon. — Marites S. Villamor
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