Philippine Hotel Federation
The Philippine Hotel Federation Inc. asked the Board of Investments (BOI) to relax the requirements to qualify for longer tax holidays under the proposed 2012 Investment Priorities Plan (IPP). In a position paper, the group asked the BOI to cut by half the minimum investment requirement per room for hotel projects to enjoy pioneer status and qualify for six years of income tax holiday to attract investments in accommodation facilities.
Under the present IPP, new investments in hotels, apartment hotels, serviced apartments and condotels with a minimum investment of US$100,000 per room in the deluxe and first-class category are qualified for six-years of income tax holidays
The group asked to lower the required investments for pioneer status for modernisation (expansion) projects from US$10,000 per room to US$5,000 per room for deluxe and first class and, to US$2,000 per room for the standard and economy hotel class projects under this category are entitled to four years of ITH.
“There is a big market now for standard and economy hotels, especially in the upper C and lower B income brackets, both from domestic and foreign business travellers and tourists,” said group treasurer Ricardo Gutierrez. Standard rooms enjoy only four years of income tax holiday. “Two years is a big deal for hotel investors. (Longer) incentives should not be limited to deluxe,” he added.