Sydney, Australia — The Philippines government invited Australian investors to explore investment opportunities in the country’s growing tourism industry during the Philippine Tourism Investment Forum held on 1 October 2024, at the Radisson Blu Hotel in Sydney. Organised by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the event showcased the Philippines’ potential as a prime location for tourism development.
In her opening remarks, Consul General Charmaine Rowena C. Aviquil welcomed attendees, setting the tone for discussions on the country’s plans to boost tourism infrastructure. The forum attracted Australian business leaders, investors, and tourism professionals interested in learning about opportunities in the Philippines.
Investment Opportunities in Philippine Tourism
Mr. Donald R. Maldonado from TIEZA outlined key investment projects in the Philippines, including opportunities in popular tourist destinations such as Corregidor Island, Boracay, and Palawan. These locations, known for their natural beauty and historical significance, offer potential for development in areas like hotels, resorts, wellness centres, and renewable energy.
Maldonado also discussed the Tourism Enterprise Zones (TEZs), where investors can benefit from incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. These incentives include income tax holidays, zero customs duties, and VAT exemptions, making it easier for investors to set up tourism-related businesses in the country.
Davao City as a Business Hub
Mr. Christian Camdayao from the Davao City government highlighted the city’s potential as a business and tourism hub in the southern Philippines. He emphasised ongoing infrastructure projects such as the Davao City Coastal Bypass Road, which will improve accessibility and create more opportunities for business and tourism. Camdayao encouraged investors to consider Davao as a strategic location for expanding into ASEAN markets.
Opportunities in the Retirement Industry
Mr. Noel Bautista from the Philippine Retirement Authority (PRA) spoke about the growing retirement industry in the Philippines. He noted that over 79,000 retirees from various countries have already enrolled in the PRA’s program. Bautista encouraged investors to explore the development of retirement villages and assisted-living facilities, particularly in areas like Cebu and Antipolo, where demand is increasing.
Philippines-Japan Partnership as a Model
The event also highlighted the successful Philippines-Japan partnership, which generated $2.7 billion in foreign direct investments from Japan between 2018 and August 2023. This partnership serves as a model for similar collaborations with Australian investors, particularly in developing the Philippines’ tourism sector.
Interactive Q&A Session
The forum included a Q&A session led by Ms. Janeth Christine Ocampo from TIEZA, allowing participants to ask detailed questions about the investment process and opportunities. The session provided investors with valuable information on how to get involved in the Philippines’ tourism projects.
Closing Remarks and the Path Forward
In her closing remarks, Atty. Karen Mae G. Sarinas-Baydo from TIEZA emphasised the Philippines’ commitment to promoting tourism investments through TIEZA’s various programs and incentives. She reiterated that the government is ready to support international investors in tapping the country’s growing tourism market.
How to Invest in the Philippines
At the forum, TIEZA representatives shared information on how international investors can tap into the booming Philippine tourism market. The Philippines offers a favourable environment for foreign investments, especially in the tourism sector.
Who Can Invest?
Anyone, regardless of nationality, is welcome to invest in the Philippines. Thanks to the liberalisation of foreign investment laws, foreign investors can now own 100% equity in most sectors, except those reserved for Filipinos by the Philippine Constitution and other laws.
Land Lease for Foreigners
Foreign investors are now allowed to lease private lands in the Philippines for up to 75 years. Under the Investor’s Lease Act (R.A. No. 7652), foreign investors can enter into land lease agreements with Filipino landowners for a period of 50 years, renewable once for an additional 25 years. For tourism-related projects, the investment must be at least $5 million, with 70% of the funds infused within three years of signing the lease.
TIEZA Registration and Incentives
Tourism businesses looking to invest in the Philippines can register with TIEZA to enjoy various fiscal and non-fiscal incentives. These include income tax holidays, zero customs duties, VAT exemptions, and special investor residency visas.
(With contribution from Jade Cadeliña. Photos by Jade Cadeliña)
