04 Aug 2025

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The Department of Tourism (DoT) is advocating for increased budget allocations to develop tourism infrastructure nationwide and urges the government to implement supportive policies to further elevate the industry. Tourism Secretary Christina Frasco emphasized the need for greater funding and specific measures to stimulate growth during an interview on Tuesday, held beside the Post-State of the Nation Address (SoNA) forum focusing on Food Security and Economic Development in San Juan City.

"For the DoT, we are pushing the 20th Congress to allocate more funds for tourism infrastructure. We are also requesting the Department of Finance to implement the Value-Added Tax (VAT) Refund for Tourists, which will enhance shopping tourism in the country," Frasco stated.

Highlighting competitiveness concerns, Frasco pointed out that the Philippines trails its ASEAN counterparts due to stringent visa policies. She stressed the importance of balancing national security with facilitating easier entry for international visitors.

"We must ensure the Philippines improves its standing in ease of tourist entry. Tourism infrastructure is crucial—according to the World Economic Forum, the Philippines ranks 69th out of 117 economies globally in this regard. Investing in infrastructure is imperative to maintain competitiveness," she explained.

In response to the recent typhoons and the forecast of 12 additional storms within the year, DoT is also urging Congress to approve legislation establishing a Tourism Quick Response (QR) Fund. This fund aims to provide immediate assistance to tourism workers displaced by emergencies and support tourists affected by destination disruptions.

"The QR Fund guarantees access to financial aid during crises, ensuring that tourism industry workers who lose their jobs receive timely support," Frasco said.

The proposed fund would additionally extend aid to both domestic and international travelers impacted by adverse events affecting tourism centers.

On the investment front, Frasco revealed that tourism-related investments have surpassed PHP 500 billion, thanks to the combined efforts of public and private sectors. Despite this momentum, she noted a significant gap of over 135,000 hotel rooms across the country, according to the Philippine Hotel Owners Association.

"New investment inflows are critical to meeting growing demand and stabilizing accommodation rates," she remarked.

Frasco also credited the recently enacted CREATE More Law with boosting investor confidence by empowering the Tourism Infrastructure and Enterprise Zone Authority as an investment promotion agency. This shift enables tourism projects nationwide to access fiscal incentives, strengthening the Philippines as a top investment destination.

Looking ahead, the DoT targets increased domestic and foreign investments in key sectors such as hotels, marine transport, amusement parks, and other tourism-related infrastructure. Collaborations with countries including Japan, Thailand, and the UAE are deemed essential to attract further capital.

"Our international partnerships play a pivotal role in encouraging substantial tourism investments," Frasco concluded.