TIEZA’s contribution to the Mindanao agenda

MANILA, Philippines - From the perspective of inclusive growth, the Tourism Infrastructure Enterprise Zone (TIEZA) has established policies to ensure that Mindanao gets an equitable share from its annual tourism infrastructure budget. Since 2011, the TIEZA has earmarked 40 percent of its infrastructure funds for Mindanao, 10 percent higher than that of Luzon (30 percent) and of the Visayas (30 percent). This is a game-changing policy, since Mindanao from 2007 to 2010 enjoyed only about 8 percent of the annual infrastructure budget of the authority.

Part of the credit goes to the chair of the Mindanao Development Authority (MinDA), Secretary Luwalhati R. Antonino, who championed the adoption of the policy by the TIEZA Board of Directors, chaired by Department of Tourism (DOT) Secretary Ramon R. Jimenez Jr. As Chief Operating Officer (COO), I implement the policy of the board.

On the average, our annual budget for tourism infrastructure is P1 billion. Forty percent or P400 million goes to the tourism infrastructure projects for Mindanao. This is for TIEZA alone. The funding for road projects leading to tourist destinations in Mindanao, under the convergence program of the DOT and the Department of Public Works and Highways (DPWH) amounted to P1.5 billion in 2012 (21 percent of the total P8 billion) and P3.8 billion in 2013 (31 percent of the total P12 billion).

All this funding is part of the national government’s strategy to develop growth corridors and drive the growth of tourism and other forms of businesses that generate jobs and foster inclusive growth.  The development of growth corridors also includes the following strategies:

· Creation of food baskets and agri-business centers;

· Linking of production areas to growth centers;

· Developing high standard highways linking key growth centers;

· Improving international ports/airports and the RoRo system;

· Improving/developing hydropower complexes and other sources of renewal energy;

· Protecting the major river basins and watersheds; and

· Harnessing irrigation development potentials and improving the flood control systems.

Mindanao’s development efforts also include the Brunei, Indonesia, Malaysia, and Philippines (BIMP) – East Asian Growth Area (EAGA).

The BIMP-EAGA initiative is aimed at facilitating the free movement of people and services; making the best use of common infrastructure and natural resources; and taking the fullest advantage of economic complementation.

One of the key issues in the BIMP-EAGA framework is the collection of travel tax. As a general policy, all Filipino residents leaving for other countries, including those in the ASEAN countries pay travel in the amount of P1,62O. During the Ramos administration, the collection of travel tax for Filipino leaving from Mindanao  for Brunei, Indonesia, and Malaysia was suspended. The order for exemption expired in 2008. Recently, the Office of the President has requested the TIEZA’s position on House Resolution 109, dated June 11, 2014 which urges the president to reinstate the travel tax exemption policy for travelers from Mindanao and Palawan bound for Brunei, Indonesia, and Malaysia.

In my reply to the Office of President wrote in part:

“Our study on the impact of said Resolution on the share of the TIEZA from travel tax show that, based on the January-December 2013, and January-June 2014 data, the possible decrease would range between 2.41% and 2.78%.

Considering, however, our commitment to strengthen the BIMP-EAGA sub-regional cooperation, we interpose no objection to the resolution…”

I would like to assure the people of Mindanao that I am with them as they continue their march toward progress, peace, and prosperity. The TIEZA is committed to fund tourism infrastructure projects as part of our contribution to the development of Mindanao.

A public service announcement paid for by TIEZA.