DoT seeks bigger budget, visa reforms

The Department of Tourism (DoT) is seeking more funds to build more tourism infrastructure in the country, and has asked the government to implement measures that would further support the tourism industry.

“For the DoT, what we are advocating for from the 20th Congress is more funding for tourism infrastructure. And for the Department of Finance to implement the VAT Refund for Tourists that will boost shopping tourism in the Philippines,” Tourism Secretary Christina Frasco said in an interview on the sidelines of the Post-State of the Nation Address (SoNA) Discussion on Food Security and Economic Development on Tuesday in San Juan City.

Frasco said the DoT is also pushing for a more liberal visa policy, noting that the Philippines lags behind its ASEAN neighbors by continuing to impose strict visa requirements on foreign visitors.

“Aside from national security, we have to make sure the Philippines is competitive in terms of ease of entry of international tourists. Also, we need to have a tourism infrastructure fund, as the World Economic Forum said the Philippines is currently at number 69 out of 117 economies in the world in terms of tourism infrastructure. That is why we need to further invest in infrastructure to make our destinations more competitive,” Frasco said.

Quick response fund

Following the battering by the latest typhoons and southwest monsoon, and the looming entry of 12 typhoons this half of the year, Frasco said they are also urging the 20th Congress to pass a bill that would establish the Tourism Quick Response Fund to ensure support for displaced tourism workers and stranded travelers during emergencies and crises.

“The QR fund will ensure that during times when our fellow Filipinos in the tourism industry lose their jobs, we have a fund we can access right away to assist them,” Frasco said.

The proposed fund would also cover assistance to domestic and international tourists affected by disruptions in destinations across the country.

Tourism investments soaring

Meanwhile, Frasco disclosed that tourism investments have exceeded half a trillion pesos through sustained public and private sector efforts.

Amid the improving tourism investments, however, she revealed the persistent shortage of over 135,000 hotel rooms nationwide.

“New investments will help us meet the rising demand and make our accommodation pricing more competitive,” Frasco said, citing data from the Philippine Hotel Owners Association.

She noted that the recently passed Create More Law has significantly boosted investor confidence by designating the Tourism Infrastructure and Enterprise Zone Authority an investment promotion agency.

This paved the way for tourism-related projects across the country to receive fiscal incentives, enhancing the Philippines’ appeal as a prime investment destination, she said.

The DoT secretary said they are targeting both domestic and international investments in key areas such as hotels, marine transport, amusement parks, and other tourism-related facilities.

“Our partnerships and bilateral relations with countries like Japan, Thailand, and the UAE are vital in encouraging more investments in the sector,” she added.