President Ferdinand "Bongbong" Marcos Jr. has approved the recommendation to implement the Value-Added Tax (VAT) Refund Program for foreign tourists by 2024 to boost tourist arrivals in the country.
Communications Secretary Cheloy Garafil said this after Marcos met with the Private Sector Advisory Council (PSAC) Tourism Sector Group, which presented its "Quick Wins" recommendations to the Chief Executive on Jan. 26.
In a statement, Garafil said President Marcos would issue an executive order to implement the tax refund program, which is also being carried out in other countries.
The Quick Wins proposals aim to boost the country's tourism industry by improving airport infrastructure and operations, managing the national brand and image, and promoting tourism investments.
Aside from the VAT Refund Program for foreign tourists, other PSAC Quick Wins recommendations approved by the President include the rollout of e-visa by 2023, prioritizing China and India; and the removal of One Health Pass (OHP) or requirement of one form only for health, immigration, and customs.
The PSAC comprises business leaders and industry experts providing technical advice to the President in achieving the government's economic objectives in six key sectors — agriculture, digital infrastructure, healthcare, infrastructure, jobs generation, and tourism.
Sabin Aboitiz, President/CEO at Aboitiz Equity Ventures, Inc., serves as the PSAC lead convener.
The Philippines recorded 2.65 million visitors from February to December 2022, over 2 million of which were foreign tourists.
This figure is higher than the 2021 tourist arrivals of 163,879 but still significantly lower than the pre-pandemic level of 8.26 million.
This year, the Department of Tourism (DOT) targets to welcome 4.8 million visitors, which could generate P2.58 trillion in revenue.