DOT points to VAT refund for foreign tourists as factor for growth this year

By pointing to the VAT refund for foreign tourists (click here and here), the Department of Tourism (DOT) is looking forward to growth in tourism revenue this year, according to a BusinessWorld news report.

To put things in perspective, posted below is an excerpt from the report of the BusinessWorld news report. Some parts in boldface…

THE Department of Tourism (DoT) said tourism revenue is expected to rise this year, aided by the new tax refund for tourists.

“2024 was a banner year for Philippine tourism, with international spending reaching around P760 billion, a 126% recovery rate (from pre-pandemic levels). Our goal was always to exceed that, which we achieved the previous year,” Tourism Secretary Ma. Esperanza Christina G. Frasco said on Monday.

She said that the value-added tax (VAT) refund for foreign tourists and DoT’s collaboration with the Department of Trade and Industry (DTI) will encourage more visitor spending.

She added such measures will allow the country “to exceed its international visitor receipts as well as domestic tourism receipts from the year before.”

On Monday, the DTI and DoT signed a memorandum of agreement (MoA) to strengthen coordination in promoting tourism-related industries, participate in joint trade and tourism missions, develop sustainable tourism-related enterprises, and encourage the growth of micro, small and medium enterprises (MSMEs).

“Through this MoA, we will give our tourism MSMEs the platform to avail of the programs of the DTI, especially in supporting the expansion of their livelihood and businesses,” Ms. Frasco said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the VAT refund for tourists will actually result in an increase of tourism revenue in the Philippines this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

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