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Investment Areas  

La Union-Baguio-Banaue

Location/Positioning

La Union
As the site of "City of the Seven Hills", is located in the southwestern part of Region I and stretches over a length of 102 kilometers from north to south. It is bounded on the north by Ilocos Sur, on the south by Pangasinan, on the east by Benguet and on the west by the China Sea. It is positioned as a sea and mountain holiday destination and entry point to Baguio.

Baguio City
Baguio is located in Benguet of the Cordillera Ranges, its cool climate due to its altitude makes it the most frequented destination in North Luzon for domestic and foreign tourists alike. It is positioned as the Summer Capital of the Philippines and flower city destination.

Banaue
Banaue is located in Ifugao which is bounded by the mountain Province on north, Benguet on the west, Nueva Vizcaya on the south and Isabela on the east. It is host to part of the Ifugao Rice Terraces, considered as the "Eight Wonder of the World" and an UNESCO inscribed World Heritage Site. It is positioned as an ecotourism and historico-culture destination.


Getting to And Around

La Union

By Air. La Union has an airport classified as a secondary or alternate domestic airport with a runway of 1,320 m long, 6m. wide. It can accommodate the following aircraft; Fokker 7, YS 11, Dafh-07 and Yak 40.

By Sea. Long been emerged as the transportation hub in the North, La Union houses the most important seaport consisting of Pier1, Pier 2, Philex Mines Conveyor Pier, Holeim Philippines Industries Pier and two Timber Trestle/Pier located at the Poro Point. The sea port can accommodate landing craft transport or 4 vessels at a time may they be cruise ships, foreign or domestic inter-island vessels(27,000 gross registered tonnage).

By Land. It can be reached by land transport from Manila through regular bus trips. Jeepneys and tricycles are the major mode of transport within the area.

Baguio City

By Air. It can be reached by air from Manila through Asian Spirit.

By Land. The Place can be accessible by regular buses that ply from Manila and other major points. Taxis and jeepneys are the main modes or transport within the city.


Banaue

By Air. An access point by air is through the Bagabag Airport in Nueva Vizcaya. From there it takes one hour and 30 minutes by land to Banaue.

By Land. Ifugao is 45 kilometers away from Metro Manila and 265 kilometers away from Baguio City. From Manila, Ifugao can be reached passing through the Maharlika Highwayand Nueva Vizcaya Road, One route is from Baguio via San Jose-Santa Fe Road in Nueva Ecija to Ifugao. Other routes are through halsema Highway passing through Bontoc, Mountain Province and through the Baguio-Aritao Road traversing the Ambuclao Dam.


Tourism Development Directions

Banaue

  • Promotion of native Ifugao architecture for houses
  • Cable cars in tourist village
  • Rehabilitation of Banaue airstrip, including access road from the poblacion
  • Home-hosting accommodation/cottages
  • Improvement/development of Banaue viewing decks
  • Development of a health care facility
  • Public pay toilets
  • Poblacion renewal program
  • Promotion of historic, scientific, and cultural tours
  • Establishment of rice terraces Museum
  • Trade facilities
  • Signases improvement

La Union

  • Promotion of La Union as an aqua sport/adventure destination
  • Re-development of San Fernando Airport into a regional facility that could service medium complex
  • Upgrade existing accommodation facilities/services in the province
  • Establishment of an improved solid and liquid waste disposal system in the province

Baguio

  • Development of Marcos Park in the Pugo/Tuba area as a Trade & Tourism Center of CAR (pending negotiation of land ownership)
  • Improvement of Burnham Park as a recreation area
  • Development of Cabinet Hill facilities for tourist accommodation
  • Full development of Teacher's Camp as an education area
  • Improvement of water supply system for Baguio/BLIST
  • Addressing the vehicular traffic congestion
  • Improvement of Loakan Airport
  • Development of alternative modes of transport


Required Infrastructure

La Union

  • Poro Point Estate; development of a 5 star hotel and a high-end tourism complex
  • PNR Mainland North Railway construction/ rehabilitation
  • San Fernando By-Pass road extension
  • San Fernando Seaport improvement into a world class port of entry
  • San Fernando Airport Improvement

Baguio

  • Road improvement of Mt. Tomas Road - Tuba side
  • Kennon Road improvement
  • San Fernando Airport (San Fernando, La Union) at present being used as an alternate airport to Baguio City
  • Road improvement of Baguio-Balatoc Road

Banaue

  • Road improvement of Baguio-Aritao Road
  • Road improvement of the Banaue-Mayoya-Aguinaldo-Ramon-Santiago Road
  • Bagabag Airport (Bagabag, Nueva Vizcaya), to provide air transport access into Ifugao and the mountain province
  • Cauayan Airport (Cauayan, Isabela) to service Ifugao, western Mountain Province, and Kalinga
  • Road improvement of Mt. Data-Bontoc-Banaue

Local Incentives

La Union

Qualified enterprises shall have a period of exemption based on the paid p capital or actual capital contributions for new enterprises of the expansion or diversification made by an existing enterprise computed from the date of approval by the La Union Investment Board;

  • Qualified enterprise shall be 100% exempt from the first three (3) years from the date of approval of the registration with the Board from provincial taxes, fees and other charges imposed under Provincial Revenue Code of 1996 after which exemption shall be 50% on the 4th, 5th, and 6th years;
  • Shall be exempt within two years from the start of operation from Mayor's permit fees, building permit fees, other fees including annual inspection fess, other fees and charges and the tax and business imposed under Municipal Revenue Code of 1994;
  • Deduction of the following from the taxable gross sales/receipts realized during the preceding calendar year for a period of three years starting the third of its commercial operation:
    • A non-cumulative net operating loss carry-over equivalent to 50% of the losses given year as indicated in the audited financial statements;
    • Fifty percent (50%) of the approved research and Development expenditures
    • Twenty percent (20%) of the annual wages actually paid to newly-hired employees who are bonafide residents of the municipality;
    • Fifty percent (50%) of the approved expenditures on public infrastructures such as roads, bridges, drainage, etc. which are accessible to and used by the public;
    • Expenditures on approved new skills training but not exceed One Hundred Twenty Five Thousand Pesos(P125,000.00):

Baguio

As an economic zone, developers are granted incentives under the PEZA Law as follows;

  • Income Tax Holiday (ITH) or Exemption from Corporate Tax for four (4) years, extendable for a maximum of eight(8) years;
  • After the ITH period a special 5 percent (5%) Gross Income Tax, in lieu of all national and local taxes;
  • Incentives under the Build-Operate Transfer law which include government support for accessing Official Development Assistance and other sources of financing;
  • Exemption from duties and taxes on imported capital equipment, spare part, supplies, raw materials;
  • Provision of vital of-site infrastructure facilities;
  • The equivalent tax credits on breeding stocks and or generic materials when these are sourced locally;
  • Permanent resident status for foreign investors and immediate family members;
  • Employment of foreign nationals;
  • Assistance in the promotion of economic zones to local and foreign locator enterprises;
  • Domestic sales allowance equivalent to thirty percent (30%) of total sales;
  • Exemption from export taxes, wharfage dues imposts and fees;
  • Simplified import and export procedures;
  • Other incentives under E.O 226 or the omnibus Investment Code of 1987, as may be determined by the PEZA Board.

Tourist Attractions

La Union

  • Bauang Beach
  • San Juan Beach
  • Agoo-Damortiz National Seashore Park
  • Shrine of Our Lady of Namacpacan
  • Agoo Apparition Site
  • Marcos Park
  • La Union Botanical and Zoological Garden

Baguio/Suburbs

  • Philippine Military Academy
  • Asin Hot Spring
  • Mt. Sto Tomas
  • Burnham Park
  • Baguio Country Club
  • Camp John Hay
  • La Trinidad Strawberry Fields
  • Balatoc Mines Tourism Village

Banaue

  • Guihob natural Swimming Pool
  • Bangaan Village
  • Ducligan River and waterfalls
  • Banaue Rice Terraces
  • Batad Rice Terraces
  • Mt. Amuyao

Tourist Statistics

Visitor Arrivals

La Union 2001
2002
2003
2004
2005
Domestic
70,911
71,928
72,739
45,502
33,412
Foreign
14,603
7,680
3,625
3,957
3,559
Total
85,541
79,608
76,364
49,459
36,971


Baguio
2001
2002
2003
2004
2005
Domestic
1,042,169
1,054,136
767,713
626,297
608,867
Foreign
28,773
34,261
41,504
17,634
26,635
Overseas
6,438
5,048
2,832
1,780
1,796
Total
1,077,380
1,093,445
812,049
645,711
637,298


Banaue
2001
2002
2003
2004
2005
Domestic
45,062
25,837
32,993
57,293
53,989
Foreign
8,006
5,773
7,065
27,266
32,713
Overseas
209
206
227
486
4,172
Total
53,277
31,816
40,285
85,045
90,874


Occupancy Rates (%)

 
2001
2002
2003
2004
2005
La Union
32.30
32.22
37.38
34.56
25.89
Baguio
39.47
44.08
35.90
29.27
31.90
Banaue/Ifugao  
12.95
27.80
69.16
30.89


Present Capacities, 2004
 
Rooms
Transport Seats
La Union
330
526
Baguio
3,774
7,889
Banaue/Ifugao
281
420

 

 

 
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