TIEZA designates 4 tourism enterprise projects

MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) has signed four partnership agreements for the development and operation of various tourism enterprise projects.

TIEZA COO Pocholo Paragas signed agreements with its private sector partners for the designation of Amorita Resort in Bohol and Aton Land & Leisure Zone and Magikland Cultural Zone in Silay, Negros Occidental as Tourism Enterprise Zones (TEZs).

A TEZ is a master planned piece of land to be developed into an integrated tourism complex to host tourism enterprise facilities and services within the property; and designated as such as by the TIEZA Board under Republic Act 9593 or the Tourism Act of 2009.

Amorita Resort is a project of Hacienda Primera Development Corp. in Panglao, Bohol. The hotel is currently expanding its current 38 rooms to a total of 97 rooms and villas, adding another pool and restaurant.

The 13-hectare Aton Land & Leisure Zone in Barangay Guinhalaran, Silay City is composed of a theme park, a lifestyle complex and a commercial complex. The project houses the Magikland Cultural Zone, which showcases the Silay heritage sites of the past agricultural revolution.

Meanwhile, Paragas also signed the designation of Bucas Grande in Siargao as a Flagship Tourism Enterprise Zone (FTEZ).

A Flagship TEZ is a joint initiative of the Department of Tourism (DOT) and TIEZA to seek out and develop areas in the Philippines with viable tourism potential.

The 167.7 hectare Bucas Grande FTEZ houses some of the best tourism attractions in the country such as the Sohoton Bay with distinct islands and coves, the stingless jellyfish sanctuary, giant mangroves, Puyang Beach and Tiktikan Lake.

Moreover, TIEZA also designated ACQ-Solomonic Builders Development Corp.’s Kingdome Stadium as a registered tourism enterprise (RTE). The project located within the Kingdom Global City TEZ in Davao City is set to be the biggest dome in Asia.

RTEs refer to facilities, services and attractions primarily engaged in whole or in part in tourism and for the purpose of attracting visitors to and within the Philippines.

Last year, the Bureau of Internal Revenue (BIR) clarified the incentives for TEZs under R.A. 9593 or the Tourism Act of 2009 may be enjoyed by investors even beyond 2019 until these incentives are fully realized.

Under the law, TEZ developers and tourism enterprises are entitled to a six-year income tax holiday that may be extended for another six years, a five percent preferential tax on gross income in lieu of national taxes except for real property tax and fees of TIEZA, a net operating loss carry over scheme, import tax exemptions for capital goods and equipment needed for TIEZA-registered activities, and import tax exemptions for transport equipment and spare parts needed for TIEZA-registered activities.

They are also exempted from value-added tax and excise tax goods imported by TIEZA-registered activities, tax credit equivalent to taxes paid on locally sourced goods, and tax deduction of up to 50 percent of cost of environmental protection and cultural heritage preservation activities as well as of sustainable livelihood programs of the registered tourism enterprises.

With the designation of the new Tourism Enterprise projects, Paragas said total investments now committed or to be realized by the agency is roughly P60 billion.