DOT to digitalize tour transactions with Grab

MANILA, Philippines — The Department of Tourism (DOT) has tapped the mobile transport service application Grab in its plan to modernize transactions, including digitalizing tour bookings.

Tourism Secretary Christina Garcia-Frasco said that tourism enterprises, especially small ones, would not be left behind in the modernization plan.

At a recent meeting with tour organizations, Frasco’s chief of staff Undersecretary Mae Elaine Bathan revealed the DOT’s partnership with mobile transport service application Grab.

The partnership resulted in the creation of the Grab Tours project, which aims to bring the tourism value chain by providing access to an all-in-one technology platform.

The platform provides everyday services such as mobility, food deliveries and financial services – and sooner, tour packages.

Grab users can book tours through the Grab Tours project.

“We hope to bring into the fold of digital transformation our micro, small and medium enterprises (MSMEs), which make up a majority of our tourism value chain,” Frasco said.

Digitalizing the process of tour booking will empower our country’s tour guiding industry, which is the core strength of our tourism,” she said.

Kurt Cendaña of Grab said the project aims to collaborate with the travel and tourism industry by offering technology, branding and marketing as a new business model for them to digitalize.

Grab drivers will undergo training under the DOT’s Filipino Brand of Service Excellence program.

They may also form a cooperative for them to be accredited by the DOT as tourism transport providers.

Tourism organizations like the Tourism Congress of the Philippines, Philippine Tour Operators Association and the Philippine Hotel Owners Association have expressed support for the project between DOT and Grab.

VAT exemption for foreigners

The Senate ways and means committee has deliberated on a proposed measure seeking to exempt foreign tourists from paying value-added tax (VAT) to boost tourism and help local merchants.

Gatchalian, who chairs the committee, said he filed the bill giving tax rebates to foreign tourists for a single transaction of P3,000 in goods within 60 days of purchase.

He said his proposal seeks to amend the National Internal Revenue Code and put up a VAT refund mechanism for a foreign passport holder as long as the latter is a non-resident and not engaged in trade or business here.

Products such as luxury items and indigenous handicrafts are covered in the refund system, which excludes food items.

Gatchalian said he would like the small enterprises to be covered by the tax refund to encourage more local merchants to issue receipts.

During the hearing, officials from the Department of Finance (DOF) and the National Economic and Development Authority expressed support to the proposal, which they said would improve spending and help recover the losses in revenue estimated to be between P2.9 billion and P4.1 billion. – Marc Jayson Cayabyab