ASEAN mulls tax incentives to attract foreign tourists
ASEAN mulls tax incentives to attract foreign tourists
SINGAPORE (Agencies): In a bid to attract more tourism to the
region, Southeast Asian nations are considering offering tax
incentives to new tourism projects and liberalizing foreign
equity ownership within the industry, officials said Thursday.
The proposals emerged from a meeting of tourism officials from
the Association of Southeast Asian Nations, held in Singapore.
The officials said the proposed corporate tax exemptions would
be granted to new tourism projects such as hotels, resorts, and
golf courses, and foreigners would be allowed to own up to 100
percent in tourism and travel-related industries.
Other proposed measures included duty free status for imported
capital goods and liberalization of foreign direct investment
policy for land use in the tourism industry.
The officials also discussed ways to accelerate the free flow
of certified tourism professionals.
The officials also agreed to pursue liberalization of air
services to promote travel within Southeast Asia.
Among measures adopted at the meeting were the launch of the
Visit Asean Millennium Year 2002, the introduction of eco-tourism
programs, and the study of cruise tourism development.
Southeast Asian tourism ministers and travel executives met
here Thursday to work out strategies against a slump which cost
their economies an estimated two million jobs and US$7.5 billion
in 1998.
Singapore Trade and Industry Minister Lee Yock Suan, citing
figures from the World Travel and Tourism Council, told the ASEAN
Tourism Conference the next two years would remain tough globally
and regionally.
"In the face of intense competition from other regions for the
tourism dollar, ASEAN countries must get their acts together,
both individually and collectively, to attract a larger share of
the global tourism revenue," he said.
The Association of Southeast Asian Nations (ASEAN) groups
Brunei, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand and Vietnam. Cambodia is awaiting formal
admission.
Intra-regional tourism among ASEAN members slumped following
sharp currency falls since mid-1997. Problems such as haze from
regional forest fires and violence in Indonesia have also scared
off tourists.
Lee cited estimates that the total gross domestic product
(GDP) generated from tourism last year in the region dropped by
$7.5 billion or 11 percent from the original estimate of $77
billion.
Globally, tourism-generated GDP fell by an estimated three
percent or $120 billion to $3.5 trillion.
"Estimated employment in the regional tourism industry has
fallen by about two million jobs to 20 million jobs," he said.
Lee said that with the devaluation of ASEAN currencies and
with increased competition, the region had become most cost-
competitive and attractive to tourists from outside and within
ASEAN.
"The currency factor is, however, eroded by the practice of
some countries and establishments to charge in U.S. dollars," he
warned.
He said that if ASEAN members combined their attractions into
packages, they could better entice long-haul tourists in the same
way Asian travelers squeeze in as many stops as possible in
Europe and the United States.
"ASEAN needs to work in partnership to turn our tourism
industries around. Travelers tend to view the ASEAN region as a
whole," he said, calling for "new ideas and products" to "combat
the negative fallout from the regional crisis."
Kenny Goh, president of the ASEAN Tourism Association
(ASEANTA), which groups government agencies and travel-related
industries, said one of the main constraints of attracting
tourists to the region was the prospect of political unrest,
which he called a "complex problem."
"At the end of the day, issues are beyond us, especially
politics," he told AFP, adding that ASEAN should perform better
in terms of tourism earnings in 1999 because of the lower
comparative base in 1998.