Tourism investments may get tax holiday after all<\/p>\n
JAKARTA (JP): The government is considering extending a system
\nof tax-incentives designed to attract new investment to include
\nprojects related to tourism, an official from the Ministry of
\nTourism, Arts and Culture said on Tuesday.<\/p>\n
Director General of Tourism I Gde Ardhika said the ministry
\nviewed income tax relief as a crucial way to encourage new
\ninvestment in the beleaguered tourist industry.<\/p>\n
\"We will provide tax holidays for new investments in large
\nhotels and resorts in areas outside Java and Bali,\" Ardhika told
\nreporters on the sidelines of a seminar on tourism here.<\/p>\n
He said the ministry had proposed the tax incentive scheme to
\nthe State Minister of Investment, Hamzah Haz, and was planning to
\ndiscuss the matter further in the near future, he said.<\/p>\n
Last week, the Investment Coordinating Board, which is also
\nchaired by Hamzah, announced that investments in 22 \"pioneering
\nindustries\" would be entitled to tax holidays. Tourism was not on
\nthe list.<\/p>\n
The tax holiday facility is based on a decree signed by
\nPresident B.J. Habibie last month.<\/p>\n
Ardhika said the proposal for tax incentives followed up on
\nthe recommendations made by a meeting of tourism officials from
\nthe Association of Southeast Asian Nations (ASEAN) in Singapore
\nlast week.<\/p>\n
Delegates at the meeting of the ASEAN Tourism Association
\n(ASEANTA) urged member countries to allow full foreign ownership
\nof businesses related to tourism and to expedite the licensing of
\nventures in the sector.<\/p>\n
Ardhika said the tourism ministry planned to ask the National
\nLand Agency to permit foreign investors to obtain land-use
\nconcessions for projects related to tourism.<\/p>\n
\"We are also studying whether there needs to be a limitation
\non the area of land used for resorts and hotels, for example,\" he
\nsaid.<\/p>\n
During the ASEAN Tourism Forum which ended on Sunday, ASEANTA
\nmembers also agreed to introduce a special air pass entitling
\npassengers to buy coupons priced at US$90 for travel to any
\nsingle destination in the ASEAN area.<\/p>\n
Key participants in the air pass scheme are Garuda Indonesia,
\nSingapore Airlines, Malaysia Airlines, Thai Airways, Philippine
\nAirlines and Royal Brunei. (das)<\/p>",
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"sponsor": "Okusi Associates",
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