President Ferdinand Marcos Jr. has approved the Private Sector Advisory Council’s (PSAC) recommendations on boosting the tourism industry following the enactment of the VAT Refund for Non-Resident Tourists Law.

In a meeting at Malacañang, Marcos described the PSAC tourism sector’s recommendations as “significant initiatives” to attract more visitors to the Philippines.

Among the proposals is the nationwide “Shopping Festival Philippines,” which will coincide with New Year’s Eve celebrations.

With this initiative, the government aims to incentivize international tourists to increase their spending, thereby boosting tourism revenues.

“We’ve talked about this shopping festival. Again, I think it’s properly categorized as an easy win. So, we’ll do that,” Marcos said.

Meanwhile, the newly signed VAT Refund Law, or Republic Act 12079, allows tourists to claim a refund on the value-added tax (VAT) for goods purchased at accredited retail outlets within 60 days, provided they meet a minimum transaction requirement of P3,000.

Under this measure, tourist spending is projected to increase by 30 percent, benefiting both large-scale industries and micro, small, and medium enterprises (MSMEs).

Further study

In addition, Marcos approved a recommendation to ease visa access for AJACS (American, Japanese, Australian, Canadian, Schengen) and AJACSUK (American, Japanese, Australian, Canadian, Schengen, Singapore, or UK) visa holders.

He said this initiative is “the first thing” on his agenda.

“I think we should stop messing around with this system. It’s so clear already. And again, it’s something that we don’t have to pilot because it has been done for us in many, many airports,” he said.

However, Marcos emphasized that the recommendation must be carefully studied, particularly in terms of its security implications. Richbon Quevedo