MANILA—Senator Win Gatchalian expressed optimism on Friday about a significant increase in tourist arrivals in the Philippines, particularly during the upcoming holiday season, spurred by the anticipated enactment of a bill allowing value-added tax (VAT) refunds for tourists.
According to Philippines News Agency, the legislative measure, known as Senate Bill 2415 or “An Act Creating a VAT Refund Mechanism for Non-Resident Tourists,” was approved by the Senate on September 23. This bill aims to enable foreign visitors to claim VAT refunds on purchases of at least PHP 3,000 worth of local goods. Gatchalian believes that the implementation of such a measure will enhance the Philippines’ competitive standing in tourism among Asian nations and rejuvenate the local tourism sector. Many of the country’s Asian counterparts have long had similar VAT refund schemes in place.
“I am hopeful that the measure will be enacted into law in time for the year-end holidays when many tourists come to the country to experience our Christmas and New Year festivities,” Gatchalian stated in a news release. He further emphasized the potential economic benefits, saying, “We trust and hope that this proposal, once enacted, will further boost the country’s tourism, which in turn will help people get jobs and further strengthen our economy.”
The proposed VAT refund initiative arrives at a time when the Philippines is witnessing a steady recovery in its tourism sector. Data from the Department of Tourism (DOT) indicates that international visitor arrivals for the first half of the year exceeded 3 million, marking a 7 percent increase compared to the same period last year.
South Korea continues to be the top source of tourists, with 824,798 South Korean visitors representing 26 percent of the total arrivals. It is followed by the United States with 522,667 visitors or 16.7 percent, China with 199,939 or 6.3 percent, Japan with 188,805 or 5.9 percent, and Australia with 137,391 or 4.3 percent.
The positive trends in tourism and the potential for further growth with the VAT refund bill highlight the sector’s vital role in the Philippine economy, particularly in generating employment and enhancing economic resilience.