Vol. XXII, No. 131 [ BusinessWorld Online ]
Wednesday, February 4, 2009 | MANILA, PHILIPPINES
THE DEPARTMENT of Tourism (DoT) and the Philippine Economic Zone Authority (PEZA) have clarified provisions on the duty-free entry of equipment imported by firms operating inside tourism development zones.
The move is said to prepare for the expected influx of investments in the tourism sector, Tourism Secretary Joseph H. Durano said in a statement yesterday.
Earlier, Export Development Council officials had tagged tourism, along with business process outsourcing, as among the bright spots in service exports this year.
In the memorandum of agreement between DoT and PEZA, signed last Jan. 30, eligible businesses inside tourism zones can bring in the following equipment without paying duties: communication systems; pollution control and solid waste disposal equipment; fire prevention and specialized maintenance tools; security and medical technology; tourist transportation; as well as materials for business centers and recreation rooms.
The agreement supplements Republic Act 7916, which grants the economic zone benefits such as lower corporate taxes and duty-free importation to firms in DoT-endorsed tourism zones.
The new agreement also identifies what types of firms may locate in tourism zones, namely: de luxe/first class hotel, condominium hotel and serviced residence/apartment, resort, theme park, museum/art gallery, health and wellness facility (spa), sports and recreational center, international convention/trade center, airport, seaport and marina. — JADH
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