President Marcos approved a value-added tax (VAT) refund program for foreign tourists, which will begin in 2024, in hopes that it will attract more tourists to the country. The government presently collects a 12% VAT on goods consumed within the country. Under the program, foreigners will be allowed to obtain a VAT refund on items they will be taking out of the Philippines. Additionally, President Marcos approved the roll-out of online visas for Chinese, Indian, South Korean, and Japanese nationals. However, the Department of Information and Communications Technology (DICT) highlighted that it would take at least half a year to develop the capabilities to execute the e-visa platform.
These approvals were in response to the recommendations made by the Private Sector Advisory Council (PSAC) aimed at further boosting the country’s tourism industry, improving airport infrastructure and operations, and managing the national brand image. Last year, the Philippines welcomed 2.65 million international visitors, surpassing its target of 1.7 million, bringing in USD 3.68 billion in revenue. To continue its success, the government hopes to increase the number of tourists this year to 4.8 million, which could generate PHP 2.58 trillion (~ USD 4.67 billion) in revenue. Around PHP 6.39 billion (~ USD 116 million) of the national budget will be allocated to improve the country’s tourism sector. The Department of Tourism (DOT) is committed to establishing better airports and seaports, developing tourist rest areas, establishing tourism assistance call centers, and implementing fiscal and non-fiscal incentives to tourists.
