SEDA Lio Resort in Palawan can now avail itself of five years of income tax holiday (ITH), after receiving approval to become the first inclusive business model project under the government’s rolling priority plan.
In a news release on Wednesday, the Board of Investments (BOI) reported it authorized Seda Lio’s application to adopt an inclusive business model for its operations. The P1.7-billion resort in El Nido, Palawan, was constructed and is managed by Econorth Resort Ventures Inc., a subsidiary of Ayala Land Hotel and Resorts Corp.
With the approval, Seda Lio is now qualified for pioneer status with up to half a decade of ITH subject to certain conditions as indicated under the current Investment Priorities Plan. The IPP criteria for inclusive business models require at least 25 percent of total costs of services to be sourced from micro and small enterprises (MSEs).
The project should also generate at least 25 direct jobs intended for the marginalized sector, with at least 30 percent of it allotted to women. Target income must be the minimum wage or baseline income plus a 20-percent increase, whichever is higher.
Econorth projects amount to about P243.8 million annually, with services acquired from MSEs valued at P60 million by the third year of its operation.
The firm also committed to support staff development to allow more opportunities for workers to obtain new skills in the service industry. Its employees will also take courses on managing local suppliers, tax and proper documentation, seminars on hazard and the environment, among others.
“This development is a boost to Palawan not only as one of the country’s top tourist destinations, but also as being at the forefront of promoting a healthier environment and having an inclusive business model, wherein the community is engaged in a sustainable manner,” Trade Undersecretary Ceferino S. Rodolfo Jr. said.
Seda Lio, he added, integrates the low-income community in its value chain through employment and sourcing of goods and services; thus, creating an inclusive impact within El Nido.
Seda Lio is situated within the 325-hectare Lio Tourism Estate in El Nido, which is Ayala Land Inc.’s (ALI) first ecologically sustainable tourism estate. The estate is administered by Ten Knots Development Corp. that combines business with long-term environmental conservation.
The resort is penciled to start operations by the third quarter of this year.
Seda Lio is part of ALI’s plan to spend about P11 billion until 2022 to develop Lio Tourism Estate.