President Ferdinand Marcos Jr. has approved recommendations from the Private Sector Advisory Council (PSAC) aimed at boosting the tourism industry, following the recent enactment of the VAT Refund Law for Non-Resident Tourists.

In a meeting in Malacañang on Wednesday, Marcos Jr. highligted the importance of the PSAC’s proposals in attracting more visitors to the Philippines.

One key recommendation is the launch of a nationwide “Shopping Festival Philippines” to coincide with the New Year’s celebrations. The event aims to incentivize international tourists, encourage higher spending, and increase tourism revenue. 

“We’ve talked about this shopping festival. Again, I think it’s properly categorized as an easy win. So, we’ll do that,” the President said.

The new VAT Refund Law (Republic Act No. 12079) allows tourists to claim a refund on the Value Added Tax for goods purchased at accredited retail outlets, provided the total transaction meets a minimum of P3,000 and the purchase is made within 60 days.

The law is expected to boost tourist spending by 30%, benefiting both large-scale industries and micro, small, and medium enterprises.

Marcos Jr. also expressed support for the recommendation to ease visa access for holders of AJACS (American, Japanese, Australian, Canadian, Schengen) and AJACSUK (American, Japanese, Australian, Canadian, Schengen, Singapore, or UK) visas. 

The initiative, according to him, is already high on his agenda. 

“I think we should stop messing around with this system. It’s so clear already. And again, it’s something that we don’t have to pilot because it has been done for us in many, many airports,” he said.

The Chief Executive, however, pointed out that the recommendation must be carefully studied, particularly in terms of security.

Marcos Jr. also called for a review on PSAC’s recommendation to improve the immigration experience through a digital identification system using biometric data (e.g., facial recognition or fingerprints) to ensure faster, secure travel processing.

“It’s just a question really of putting the systems in and getting the hardware, and then slowly educating everybody how to use that hardware. For me, it’s just a question of adopting the technology and learning how to use it. As I said, everybody else in the world is doing it already,” he said.IMT