Senator Sherwin Gatchalian is optimistic that the Philippines will attract more tourists with the anticipated approval of the Value-Added Tax (VAT) refund for tourists, especially as the Christmas and New Year holidays approach.
Gatchalian hopes the proposed VAT refund law will be enacted by the end of the year, a period when the country traditionally sees a surge in tourist arrivals for the holiday season.
The Senate recently passed the measure on its third and final reading.
According to Gatchalian, the law is expected to enhance the Philippines’ tourism competitiveness across Asia and stimulate the local tourism industry, noting that many neighboring countries have long implemented similar policies.
Data from the Department of Tourism (DOT) shows that international visitor arrivals reached over 3 million in the first half of the year, a 7% increase from the previous year.
South Korea remains the top source of visitors, with 824,798 arrivals, accounting for 26% of the total. The United States follows with 522,667 visitors (16.7%), while China, Japan, and Australia round out the top five.