PH tourism to benefit from VAT refund bill – Gatchalian

Manila: Senator Win Gatchalian on Friday said he is optimistic that the Philippines will generate more tourist arrivals ahead of the seasonal peak during Christmas and New Year festivities as the enactment of Value-Added Tax (VAT) refund for tourism draws nearer. 'I am hopeful that the measure will be enacted into law in time for the year-end holidays when many tourists come to the country to experience our Christmas and New Year festivities,' he said in a news release. On Sept. 23, the Senate approved Senate Bill (SB) 2415 or An Act Creating a VAT Refund Mechanism for Non-Resident Tourists. The bill will allow foreign visitors to claim VAT refunds for buying PHP3,000 worth of local goods. Gatchalian said the enactment of SB 2415 is expected to improve the country's tourism competitiveness among its Asian peers and is likely to revitalize the local tourism industry, as many of the Philippines' Asian neighbors have long implemented a similar measure. 'Tiwala tayo at umaasa na ang panukalang ito, kapag nai sabatas, ay lalong magpapalakas sa turismo ng bansa na siya namang makakatulong para magkaroon ng trabaho ang marami sa ating mga kababayan at magpapalakas pa ng ating ekonomiya (We trust and hope that this proposal, once enacted, will further boost the country's tourism which in turn will help people get jobs and further strengthen our economy),' he said. Based on data from the Department of Tourism (DOT), international visitor arrivals for the first half of the year reached over 3 million, reflecting about a 7 percent increase from a year earlier. The DOT reported that South Korea remains the top source market with 824,798 South Korean visitors entering the Philippines, accounting for 26 percent of the total number. South Korea is followed by the United States with 522,667 or 16.7 percent; China with 199,939 or 6.3 percent; Japan with 188,805 tourists or 5.9 percent; and Australia with 137,391 or 4.3 percent. Source: Philippines News Agency