Makati City Bakuna

BoI okays P1.7-billion Seda Lio Resort with tax incentives

The Board of Investments approved the application of the P1.7-billion Seda Lio Resort as the first inclusive business model project under the Investment Priorities Plan.

Project proponent Ayala Land Hotel and Resorts Corp. said the project in El Nido, Palawan was the first ecologically sustainable tourism estate of Ayala Land Inc., which will be managed by Ten Knots Development Corp., also an ALI subsidiary.  

Located within the sprawling 325-hectare Lio Tourism Estate in El Nido, Seda Lio was constructed and is being operated by Econorth Resort Ventures Inc., an AHRC subsidiary. 

“This development is a boost to Palawan not only as one of the country’s top tourist destinations but also as being at the forefront of promoting a healthier environment and having an inclusive business model wherein the community is engaged in a sustainable manner,” said Trade Undersecretary and BoI managing head Ceferino Rodolfo.

Rodolfo said the Seda Lio Resort project would create an inclusive impact by integrating the low-income community in the company’s value chain through employment and sourcing of goods and services.

Under the IPP, inclusive business projects may qualify for pioneer status with up to five years of income tax holiday subject to certain conditions. The IPP criteria for IB models call for at least 25 percent of total costs of services to be sourced from micro and small enterprises and at least 25 direct jobs to be generated for individuals from the marginalized sector with at least 30 percent of the said jobs allotted for women.   

IB firms are also obliged to provide technical assistance and capacity-building to MSEs, and/or facilitate access to finance. 

Econorth expects total costs of about P243.8 million a year, with services sourced from MSEs of around P60 million by the third year of operation.

The company also committed to support staff development, allowing more opportunities for employees to grow in the service industry. Employees will undergo courses on managing local suppliers, tax, and proper documentation, seminars on hazard and the environment and other educational courses.   

Seda Lio is a 153-guestroom resort on a 3.9-hectare land within the Lio Tourism Estate, rising up to 3 floors only within eye level to coconut trees which are abundant in the island. 

The resort will start operations within the third quarter of 2018 and is key to ALI’s plan to spend around P11 billion through 2022 to develop the Lio tourism estate in several phases. 

Topics: Board of Investments , Seda Lio Resort , Investment Priorities Plan , Ayala Land Hotel and Resorts Corp.
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