The Board of Investments (BOI) is considering the removal of geographical limitations on incentives availment for hotel development to address the rising demand in tourism accommodation.
This may possibly be reflected in the 2017 to 2019 Investments Priorities Plan (IPP), which is currently undergoing review at the BOI.
The IPP lists the preferred activity that the government deems needs more investment and offers juicy perks in exchange.
In the current IPP, accommodations that are in Metro Manila, Cebu City, Mactan and Boracay are not entitled to income-tax holiday (ITH), due to the already congested development in these areas.
The ITH extended to hotels in these areas are limited to the revenue generated directly from the hotel operations, such as in room accommodation and food-and- beverage concessions within the hotel.
But BOI Governor Lucita P. Reyes said that, with the dearth in accommodations and rising tourism numbers, they are considering removing the restrictions in these places, except in Boracay.
The agency will be consulting with the Department of Tourism and the Philippine Hotel Association on the proposal.
As this developed, real-estate consultancy Santos Knight Frank, formerly CBRE, sees tourism to drive real-estate requirements in the country.
Tourism can possibly be the third pillar of growth for the real-estate industry next to office and residential, the consultancy said.