Trade department studying ways to help DoT attract more foreign visitors
ACTING Trade Secretary Ma. Cristina Aldeguer-Roque said her department is in talks with the Department of Tourism (DoT) to attract more foreign visitors.
On the sidelines of the World Travel Awards Asia & Oceania Gala Ceremony 2024 on Tuesday, Ms. Aldeguer-Roque told BusinessWorld that she sees possible synergies with the DoT.
“We were talking about how we can (work together) every time we have trade shows abroad,” she said.
“We want tourism and trade to be together because I really feel they’re interconnected,” she added.
Increasing tourist arrivals in the country is important for the Department of Trade and Industry (DTI), as more arrivals tend to benefit businesses.
“Aside from seeing the beauty of the Philippines, they will also be able to see what other businesses they can get into or what other trade opportunities there are for foreign trade and foreign investment,” she said.
“Even in countries like Thailand, the strength is really tourism and trade. So, they really go hand in hand,” she added.
Steve D. Benitez, founder and chief executive officer of Bo’s Coffee, said that tourism is the low-hanging fruit for food and beverage industry players.
“One thing I’ve been monitoring is tourism. If tourism goes up, you’ll see that retail will go up. Right now, we’re one of the lowest in terms of tourism. But our retail is still thriving,” Mr. Benitez told reporters on Monday.
“So if you just compare us to Thailand, for example, whose economy is 40% to 60% driven by tourism, they have so many brands and their retail is thriving,” he added.
He said that the same will happen to the Philippines if tourism improves, as it will benefit many industries.
“If we are able to open up the (visitor market), I think the ripple effect will be big. But it will be challenging, so it’s not happening soon. It is still on our wish list,” he added.
VAT-REFUND SCHEME
Asked about the proposed value-added tax (VAT) refund scheme for international visitors, Ms. Aldeguer-Roque said the DTI supports it.
“That will encourage a lot of buying in our country. I feel that we should not be charging tourists VAT, which is (not practiced in) Thailand and Europe,” she said.
Mr. Benitez said the measure will not only help those that can provide the VAT refunds but also other industries such as food and beverage.
“The goal of making the Philippines a shopping destination is for more tourists to come and shop. And when they shop, they eat. Right? So (the benefits will spread) across all industries,” he said.
The measure on tax incentives for tourists is now in the Senate. The House approved its version of the bill last year.
Senate Bill No. 2415 aims to provide non-resident tourists with VAT refunds on purchases worth at least P3,000 to encourage more visitor spending.
Chris Lim, chairman of the Philippine Franchise Association (PFA), said that the VAT refunds for tourists bundled with the improvements in the gateways will help spur arrivals.
“We need to make it easier for them to get VAT refunds and everything… There’s no one silver bullet, so a lot of these small things will help us,” he said.
“I think we have a lot of catching up to do because some of our neighbors, like Thailand, are way ahead of us,” he added. — Justine Irish D. Tabile