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To encourage investment and accelerate tourism development in identified Tourism Enterprise Zones (TEZs), the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), in line with the CREATE Law, offers a range of fiscal incentives for qualified business enterprises. These incentives vary depending on the location, nature of the business (domestic or export-oriented), and whether the project is new or an expansion.

Below is a summary of the proposed fiscal incentives for TEZ enterprises:

A. INCENTIVES FOR NEW BUSINESS ENTERPRISES

A.1 Domestic Market Enterprise

These are businesses whose primary market is within the Philippines.

A.1.a) Income Tax Holiday (ITH)

A temporary exemption from income tax, granted based on project location:

• Up to 4 years for projects located within the National Capital Region (NCR)
• Up to 5 years for projects in Metropolitan areas and adjacent zones to NCR
• Up to 6 years for projects in all other areas outside the above locations

Enterprises may be granted a second ITH period of the same duration if they undertake substantial expansion or facility upgrades before the initial term expires.

A.1.b) Enhanced Deductions (ED)

Eligible for up to 5 years, allowing enterprises to deduct additional costs beyond the usual expenses. These may include:

• Depreciation allowances
• Labor expense deductions
• Power, R&D, and training costs

A.1.c) Duty Exemption on Importation

Exemption from duties on the importation of capital equipment, raw materials, spare parts, or accessories needed for business operations – valid for up to 12 years.

A.2 Export Enterprise

These are enterprises that export at least 70% of their output.

A.2.a) Income Tax Holiday (ITH)

Same location-based incentive as above:

• Up to 4 years – NCR
• Up to 5 years – Metropolitan and adjacent areas
• Up to 6 years – Other areas

A.2.b) Special Corporate Income Tax (SCIT) or Enhanced Deductions (ED)

After the ITH period, enterprises can opt for either:

• SCIT: A reduced corporate income tax rate of 5% on gross income (in lieu of all national and local taxes), or
• ED: Enhanced Deductions for up to 10 years

A.2.c) VAT Exemption & Zero-Rating

• VAT exemption on importation
• VAT zero-rating on local purchases of goods and services that are directly and exclusively used in the registered activity

Valid for up to 17 years

A.2.d) Duty Exemption on Importation

Importation of equipment, raw materials, and parts is duty-exempt for up to 17 years.

B. INCENTIVES FOR EXPANDING BUSINESS ENTERPRISES

These are enterprises undertaking qualified expansion projects within TEZs.

B.1 Domestic Market Enterprise

B.1.a) Income Tax Holiday (ITH)

• Up to 3 years income tax exemption

B.1.b) Enhanced Deductions (ED)

• Available for up to 5 years post-ITH period

B.1.c) Duty Exemption on Importation

• Valid for up to 12 years on capital equipment and related imports

B.2 Export Enterprise

B.2.a) Income Tax Holiday (ITH)

• Up to 3 years, depending on the nature and scope of expansion

B.2.b) Special Corporate Income Tax (SCIT) or Enhanced Deductions (ED)

• Choose between SCIT or ED, valid for up to 10 years

B.2.c) VAT Exemption & Zero-Rating

• Up to 17 years of VAT exemption and zero-rating on qualified goods and services

B.2.d) Duty Exemption on Importation

• Up to 17 years for capital equipment and raw materials related to the expansion

Important Notes on Location-Based Incentives

The duration and availability of these incentives depend on the location of the registered project:

• Metropolitan Areas: Include Metro Cebu and Metro Davao, or any other areas later classified by the National Economic and Development Authority (NEDA) or by law.
• Contiguous and Adjacent Areas to NCR: Include selected cities in Bulacan, Cavite, Laguna, and Rizal, such as:
  • Bulacan: Meycauayan City, San Jose del Monte City
  • Cavite: Bacoor City, Dasmariñas City, Imus City
  • Laguna: Biñan City, Cabuyao, Calamba City, San Pedro City, Santa Rosa City
  • Rizal: Antipolo City, Cainta, Taytay

For Prospective Investors in San Vicente, Palawan

While the above incentives are proposed under the national framework, the specific application and availability of these fiscal incentives for San Vicente’s Flagship TEZ are subject to TIEZA’s approval and finalization.

📌 We strongly encourage interested investors to directly coordinate with TIEZA for the most up-to-date status and implementation guidelines concerning fiscal incentives for San Vicente, Palawan.

When the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) sought to create a comprehensive, sustainable master plan for San Vicente, Palawan, one name stood out: Palafox Associates. Renowned for its commitment to sustainable, inclusive, and visionary urban planning, Palafox Associates was entrusted to lead the conceptualization of a future-ready tourism framework-one that would protect the pristine beauty of San Vicente while enabling responsible economic growth.

But who exactly is Palafox Associates? And why are they regarded as the Philippines’ gold standard in urban planning?

Who is Palafox Associates?

Founded in 1989 by Arch. Felino “Jun” Palafox Jr., Palafox Associates is the Philippines’ premier multidisciplinary planning and design firm. The company has completed over 1,700 projects in 45 countries, earning international recognition for its innovative approach to architecture, urban planning, environmental design, and development consulting.

With a team of architects, urban planners, environmentalists, economists, and engineers, Palafox Associates focuses on projects that embody sustainable design, climate resilience, and inclusive growth. Their philosophy is rooted in the balance of people, planet, and profit, making them a trusted partner in projects that require long-term vision and community-centered impact.

The Firm’s Guiding Principles

Palafox Associates follows a planning framework grounded in the following principles:

• Sustainability – Designs must ensure the well-being of present and future generations
• Inclusivity – Plans must uplift local communities and protect cultural heritage
• Disaster Resilience – Urban design should reduce risk from natural calamities
• Walkability and Livability – Cities and towns should promote health, safety, and accessibility
• Environmental Stewardship – Development should enhance, not degrade, the natural environment

These values aligned perfectly with the vision for San Vicente as a model ecotourism destination.

TIEZA Taps Palafox for San Vicente

In collaboration with the Department of Tourism and the San Vicente LGU, TIEZA selected Palafox Associates to craft the Conceptual Tourism Master Plan (CTMP) for the 14,000-hectare Flagship Tourism Enterprise Zone (TEZ) in San Vicente.

Palafox’s role was to translate the town’s natural assets into a sustainable blueprint for tourism, ensuring that the plan would:

• Respect the local ecology and biodiversity
• Prevent over-tourism and uncontrolled development
• Distribute economic opportunities across barangays
• Integrate disaster risk reduction into land use planning
• Enable investment while protecting community rights

This assignment became one of the most ambitious and influential tourism development plans in the Philippines.

Key Features of the San Vicente Master Plan

The San Vicente Master Plan reflects Palafox Associates’ signature approach: a mix of vision, realism, and respect for nature. Major features include:

1. Four Tourism Clusters

The town was divided into four strategic clusters, each with its own development theme and zoning parameters:

• Cluster 1: Tourism Center (Long Beach)
• Cluster 2: Community and Services Hub (San Isidro)
• Cluster 3: Nature and Cultural Corridor (Alimanguan and Binga)
• Cluster 4: Agri-Ecotourism Zone (Kemdeng, Sto. Niño, and others)

This approach disperses development, avoiding the concentration of infrastructure and tourism pressure in a single area.

2. Low-Density, Low-Impact Zoning

Palafox recommended strict building height limits, buffer zones, and green spaces, promoting a low-density model that complements the natural environment instead of overpowering it.

3. Walkability and Infrastructure Integration

The plan included pedestrian-friendly routes, access roads, drainage systems, and a layout that encourages walking and cycling-minimizing car dependence and reducing carbon emissions.

4. Community Participation

Local residents, landowners, and fisherfolk were consulted throughout the planning process. The plan reflects a bottom-up approach, with safeguards for indigenous and marginalized groups.

A Global Reputation Backed by Global Work

Palafox Associates is no stranger to global recognition. The firm has been ranked among the top architecture and planning firms in the world by World Architecture Magazine. Its projects span major cities in Asia, the Middle East, and North America.

Some of its most notable works include:

• The Subic Bay Master Plan
• The Dubai Healthcare City
• Redevelopment of Roxas Boulevard
• Urban plans for Boracay and Clark Green City

These projects are testaments to Palafox’s ability to balance urbanization with environmental and cultural preservation.

San Vicente: A Showcase of Vision and Execution

Thanks to Palafox Associates’ master plan, San Vicente has emerged as the Philippines’ first Flagship Tourism Enterprise Zone-and as a beacon of sustainable tourism development. The plan has guided the implementation of infrastructure projects, investment policies, zoning regulations, and community tourism initiatives.

In 2021, the town received international acclaim when the Royal Town Planning Institute (RTPI) named San Vicente one of the Top 8 Best Planned Projects in the World, citing the master plan’s climate sensitivity, environmental focus, and inclusive design.

Recognitions

Over the years, Palafox Associates receives various recognition/awards from both local and international institutions. it received, among others, the following awards:

• 89th, World’s Top 100 Architectural Firms, BD World Architecture Magazine, London
• Top 10 Architects in the Philippines, BCI Asia Top Ten Awards
• Model of Excellence Award (Community and Society Field of Urban Renewal) for “Rockwell Center”, Philippine Real Estate Festival
• Model of Excellence Award (Design Aesthetics) for “The Shrine of Jesus: the Truth, the Way and the Life”, Philippine Real Estate Festival
• Model of Excellence Award (Effective Project Management) for “Novartis Headquarters Redevelopment”, Philippine Real Estate Festival
• Model of Excellence Award (Technical and Structural, Design and Aesthetics, Environmental Management and Conservation) for “Proposed Landmark Tower”, Philippine Real Estate Festival

International Landmark Projects of Palafox Associates include:

• Al Khobar Center, KSA
• Askabad and Turkmenbachy Waterfront Developments, Turkmenistan
• Philippine Embassy and Chancery, Brunei Darussalam
• Phu Quoo Island Master Plan, Vietnam
• Pinnacles, USA
• Saigon Golf and Country Club, Vietnam
• Sharjah Healthcare City, UAE
• SM China, China
• Special Needs Children’s Hospital, UAE
• Sudan Bonyan City, Khartoum
• Tala Marina Club, KSA
• Turkmenbashy Hotel, Turkmenistan
• Tzu Chi Schools, Iran
• Urban Planning of Dubai, UAE
• Vien Dong Meridian Tower, Danang, Vietnam

Landmark Projects of Palafox Associates in Metro Manila, Philippines include:

• Alaminos City Conceptual Development Plan, Pangasinan
• Asian Eye Institute, Makati City
• City of Manila Comprehensive Land Use Plan and Zoning, Manila
• Development Bank of the Philippines Executive Office Building, Fort BGC, Taguig
• Forbes Tower, Makati City
• La Mesa Ecopark, Quezon City
• Makati Streetscapes, Makati City
• Manila Polo Club Redevelopment, Makati
• Marikina Riverfront Conceptual Master Plan, Marikina City
• MIA Master Development Plan, Pasay
• Navotas City Conceptual Plan and Master Plan of the Bayfront Business Park, Navotas
• Novartis Corporate Headquarters Redevelopment, Quezon City
• Ortigas Streetscapes, Mandaluyong, Pasig, Quezon City
• Pasig River Rehabilitation Master Plan, Metro Manila
• Public Safety Mutual Benefit Fund, San Juan City
• Qatar Embassy, Paranaque
• Quezon Memorial Circle Redevelopment, Quezon City
• Rockwell Center, Makati City
• Shrine of Jesus: The Way, The Truth, and the Life, Pasay City
• Supreme Court Centennial Building, Manila
• Taguig City Aestropolis, Taguig City

Other Landmark Projects in the Philippines by Palafox Associates:

• AMA University Town, Cavite
• Camp Netanya, Batangas
• Divine Mercy Healing Shrine, Misamis Oriental
• First Industrial Park, Batangas
• Global Gateway Logistics City, Pampanga
• Iloilo City Comprehensive Land Use Plan and Zoning Ordinance, Iloilo
• Lyceum of the Philippines, Laguna
• Malayan Colleges, Laguna
• Manila Southwoods, Cavite
• MRT7 Intermodal Transit-Oriented Development, Bulacan
• Paseo del Rio, CDO
• Puerto Princesa Streetscapes, Palawan
• Robinson Malls (San Fernando City, Pampanga, Province of Rizal, Pasig City, EDSA, Mandaluyong)
• Saint Arnold Jansen Church, Rizal
• San Vicente Palawan Conceptual Tourism Master Plan, Palawan
• Santa Elena Golf Course Community, Bulacan
• SM Malls (Las Pinas City, Quezon City, Pampanga, Iloilo)
• Splendido Taal, Batangas
• Sultan Hassanal Bolkiah Masjid, Province of Maguindanao
• Summit Ridge, Tagaytay City
• The Country Club, Laguna

Insights

Palafox Associates is not just a planning firm-it’s a movement for responsible development. Its work in San Vicente reflects what is possible when visionary planning meets political will and community cooperation.

As San Vicente grows into its role as a world-class ecotourism destination, the foundation laid by Palafox Associates will continue to shape its trajectory. For any town, city, or nation hoping to grow without losing its soul, Palafox shows the way forward.

In 2018, San Vicente in northern Palawan made history when it was officially designated as the Philippines’ first Flagship Tourism Enterprise Zone (TEZ) by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). This recognition placed the town at the forefront of the country’s sustainable tourism development strategy-and signaled a paradigm shift from mass tourism to master-planned, environmentally sound destination development.

Today, San Vicente is not just a beautiful beach town. It is the benchmark of what sustainable, inclusive, and investment-ready tourism can look like.

What is a Flagship TEZ?

A Flagship TEZ is the highest category of tourism enterprise zone under the supervision of TIEZA. While regular TEZs are usually led by private developers, Flagship TEZs are government-initiated, master-planned, and strategically significant areas aimed at demonstrating best practices in tourism development.

To be granted Flagship TEZ status, a destination must:

• Possess exceptional tourism potential and national significance
• Follow a detailed conceptual master plan
• Demonstrate environmental and cultural sensitivity
• Show socio-economic inclusiveness
• Be aligned with national and regional development priorities

San Vicente met-and in many ways exceeded-all these requirements.

Why San Vicente?

San Vicente’s selection was not accidental. TIEZA, in partnership with planning firm Palafox Associates and the Department of Tourism (DOT), identified the town as a rare gem with all the ingredients of a world-class ecotourism destination:

• A 14.7-kilometer stretch of white sand beach-the longest in the Philippines
• Pristine forests, mangroves, rivers, and coral reefs
• Low population density and vast tracts of undeveloped land
• Proximity to established tourist destinations like El Nido and Puerto Princesa
• A new domestic airport with expansion potential
• Strong support from the local government unit (LGU) and the community

This combination of natural beauty and logistical readiness made San Vicente an ideal pilot site.

A Master Plan That Puts Sustainability First

The San Vicente Tourism Master Plan, crafted by Palafox Associates, divides the municipality into four development clusters:

1. Cluster 1 (Tourism Center): Long Beach and adjacent barangays as the prime tourism zone
2. Cluster 2 (Support Community): Commercial, institutional, and residential core in San Isidro
3. Cluster 3 (Nature and Culture): Alimanguan and Binga as eco-cultural tourism corridors
4. Cluster 4 (Agri-Ecotourism): Inland barangays like Kemdeng and Sto. Niño as rural experience zones

Each cluster supports the others, ensuring balanced growth while maintaining ecological integrity and cultural heritage.

Incentives Under the Flagship TEZ Designation

Investors in San Vicente benefit from generous TIEZA incentives, including:

• Income tax holidays (up to 6 years)
• Tax- and duty-free importation of capital goods
• Exemption from local and national taxes (except real estate taxes)
• Simplified visa processing for foreign investors and workers
• Infrastructure support from the national government
• Streamlined permitting and regulatory support via the TEZ administrator

These perks are designed to attract responsible, long-term investments that align with the ecotown vision.

The Role of the San Vicente LGU

The success of the Flagship TEZ is also due to the proactive involvement of the San Vicente municipal government, which:

• Passed land use plans and zoning ordinances that align with the CTMP
• Created incentive programs for local entrepreneurs and developers
• Invested in infrastructure like roads, drainage, water systems, and waste management
• Facilitated community education and stakeholder consultations
• Collaborated with TIEZA, DOT, and environmental agencies

The LGU continues to lead by example, proving that local governance is critical to sustainable tourism.

Inclusive Growth for the Community

Unlike typical resort towns that prioritize foreign investors, San Vicente’s Flagship TEZ model ensures that locals benefit directly:

• Landowners are engaged as development partners, not displaced
• Local workers and suppliers are prioritized in job creation
• Indigenous peoples and fishing communities are consulted and included
• Micro, small, and medium enterprises (MSMEs) receive technical and financial support
• Community-based tourism enterprises (CBTEs) are promoted

This approach ensures that tourism growth leads to poverty alleviation and cultural preservation-not marginalization.

Progress So Far

Since its designation as a Flagship TEZ, San Vicente has seen:

• Opening of the San Vicente Airport, with direct flights from Manila
• Development of Paragua Coastown, a mixed-use master-planned township by Megaworld
• Entry of boutique resorts, hostels, and agri-tourism ventures
• Upgrades to road networks, bridges, and public utilities
• Growing interest from domestic and foreign investors

Yet, the municipality has remained vigilant in preserving its low-density, low-impact model-avoiding the pitfalls of over-tourism.

A Model for the Philippines and Beyond

San Vicente’s Flagship TEZ isn’t just a local achievement-it’s a national model. It demonstrates how a small town can:

• Protect its environment
• Empower its people
• Attract responsible investors
• Coordinate with national agencies
• And still become a world-class tourism destination

It is no wonder that the Royal Town Planning Institute (RTPI) in London recognized San Vicente as one of the Top 8 Best Planned Projects in the World.

Insights

San Vicente is proof that when tourism is planned-not just promoted-it can become a powerful force for good.

As the Philippines’ first and only Flagship TEZ, it showcases a bold, holistic model of development that puts nature, culture, and community first. With continued commitment, San Vicente is poised to inspire not only other municipalities in the Philippines, but emerging ecotourism destinations around the globe.

San Vicente is not just a destination-it’s a vision brought to life.

San Vicente, Palawan, is not merely riding the wave of tourism growth in the Philippines-it is redefining how tourism should be planned. At the core of this transformation is the San Vicente Conceptual Tourism Master Plan (CTMP), a visionary blueprint developed by Palafox Associates under the guidance of TIEZA and the San Vicente LGU. This master plan does more than identify tourist attractions-it builds a strategic framework for responsible development, environmental preservation, and inclusive economic growth.

Recognized by the Royal Town Planning Institute (RTPI) as one of the Top 8 Best Planned Projects in the World, the San Vicente Master Plan is now an international model for integrating sustainable tourism with long-term land use, infrastructure, and socio-economic development.

The Vision Behind the Master Plan

The San Vicente Master Plan envisions a sustainable tourism destination that:

• Respects ecological balance
• Provides inclusive economic opportunities
• Preserves cultural identity
• Develops tourism without displacing communities
• Creates a liveable environment for both residents and visitors

This is anchored in the concept of a Flagship Tourism Enterprise Zone (TEZ)-a carefully designated area that exemplifies the best practices in planning, governance, and investment-readiness.

Guiding Principles of the Master Plan

The plan is grounded in seven core principles:

1. Sustainability: Development that meets today’s needs without compromising future generations.
2. Resilience: Climate-responsive planning and infrastructure for long-term viability.
3. Inclusiveness: Empowering local communities and small businesses to benefit from tourism.
4. Connectivity: Linking clusters with efficient roads, ports, and communications.
5. Balanced Growth: Preventing overdevelopment in favor of long-term ecological and economic equilibrium.
6. Zoning Discipline: Clear separation of tourism, residential, environmental, and commercial zones.
7. Cultural Integrity: Preserving Palawan’s unique local traditions and heritage.

Strategic Components of the San Vicente Master Plan

The CTMP encompasses several interconnected elements that work together to guide San Vicente’s transformation:

1. Cluster-Based Development

The 14-kilometer Long Beach is divided into four development clusters:

• Cluster 1 (Poblacion-New Agutaya): Civic and institutional heart of San Vicente.
• Cluster 2 (San Isidro-Alimanguan): Resort and tourism services zone.
• Cluster 3 (Binga-Alimanguan): Environmental tourism and protected landscapes.
• Cluster 4 (Binga-Port Barton): High-end tourism and eco-resort enclave.

This approach prevents overconcentration of development in a single area, preserving the pristine beauty of the coastline while distributing benefits across communities.

2. Comprehensive Land Use and Zoning

The master plan introduces an updated Zoning Map and Land Use Plan that harmonize:

• Urban expansion and housing
• Protected environmental areas
• Coastal and marine resource management
• Tourism investment zones
• Infrastructure corridors

This ensures a holistic and enforceable spatial strategy that guides all future developments.

3. Infrastructure and Connectivity

To support tourism without harming ecosystems, the plan identifies critical investments in:

• Road widening and new road networks
• Water supply and sewage treatment systems
• Renewable energy and electrification
• Waste management infrastructure
• Port enhancements (San Vicente and Port Barton)
• Airport expansion and flight network development

Connectivity not only helps tourists but also improves quality of life for residents and the transport of goods and services.

4. Environmental and Disaster Risk Management

The Master Plan prioritizes the following safeguards:

• Watershed protection and reforestation
• Strict setbacks and buffer zones from coasts and rivers
• Environmental Impact Assessments (EIAs) for major projects
• DRR-sensitive infrastructure (e.g., flood-resistant roads)
• Marine biodiversity protection through MPAs (Marine Protected Areas)

San Vicente’s natural capital is its greatest asset, and the plan treats it as non-negotiable.

5. Community Participation and Livelihood Development

Recognizing that locals are not mere bystanders but partners, the Master Plan emphasizes:

• Skills training and capacity building
• Support for cooperatives and microenterprises
• Promotion of cultural tourism and heritage crafts
• Inclusion of marginalized sectors in project planning

The result is a community that is not displaced by tourism but enriched and empowered by it.

Legal and Institutional Framework

The San Vicente Master Plan is not just a concept-it is backed by:

• The Municipal Ordinances aligned with the CTMP
• The Comprehensive Land Use Plan (CLUP)
• The Tourism Code of San Vicente
• TIEZA’s TEZ Guidelines
• Coordination with DENR, PCSD, and DOT

This layered legal and institutional support ensures that the master plan is enforceable, transparent, and integrated across agencies.

TEZ Designation: Enhancing Plan Execution

San Vicente’s designation as a Flagship Tourism Enterprise Zone boosts the Master Plan by:

• Attracting investors through tax and non-tax incentives
• Ensuring faster permitting processes
• Providing access to TIEZA-funded infrastructure
• Encouraging responsible and accredited tourism operations

This designation acts as a catalyst for the master plan’s goals, bringing them to fruition through public-private synergy.

Recognition and Global Relevance

The CTMP’s acknowledgment by the Royal Town Planning Institute (RTPI) as one of the Top 8 Best Planned Projects in the World is a testament to its:

• Strategic coherence
• Environmental foresight
• Community inclusiveness
• Replicability in other island and coastal destinations

San Vicente is proving that sustainable tourism can be done right-and can earn international acclaim for it.

Roadmap to 2040: A Long-Term Vision

The San Vicente Master Plan lays out a timeline from present day to 2040, with clear phases:

• Short-term (0-5 years): Infrastructure buildout, zoning enforcement, policy alignment
• Mid-term (5-10 years): Business ecosystem maturation, eco-resort growth, increased flights and port capacity
• Long-term (10-15 years): Full TEZ potential realized, diversified economic activity, globally competitive tourism destination

This phased development ensures measurable progress, resilience to shocks, and built-in sustainability.

Final Thoughts

The San Vicente Master Plan is more than a roadmap-it’s a promise to future generations. A promise that development can coexist with nature, that growth can include everyone, and that tourism can enrich rather than exploit.

As San Vicente emerges as the Philippines’ next iconic destination, the Master Plan will remain its compass, conscience, and commitment-proof that paradise can be planned, preserved, and shared responsibly with the world.

San Vicente, Palawan, is not just a rising star in Philippine tourism-it’s also a model for collaborative, well-coordinated development. As the municipality transitions into a full-fledged Flagship Tourism Enterprise Zone (TEZ) under the supervision of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Local Government Unit (LGU) of San Vicente plays a crucial role in ensuring that the Conceptual Tourism Master Plan (CTMP) is implemented effectively, equitably, and sustainably.

This article explores how the San Vicente LGU works in tandem with national agencies, private developers, and local communities to bring the Master Plan to life-turning vision into reality, one policy and project at a time.

A Shared Vision: TEZ Implementation through Local Governance

At the heart of the CTMP is the belief that tourism development must be inclusive and grounded in local leadership. While TIEZA leads the planning and designation of the TEZ, the LGU of San Vicente remains the primary implementer on the ground.

Their responsibilities span governance, infrastructure, social services, zoning, and community engagement. This local stewardship ensures that development is not only aligned with national priorities but also rooted in the realities and aspirations of the San Vicenteños.

Key Roles of the San Vicente LGU

1. Policy Making and Local Legislation

The LGU enacts ordinances and resolutions that align with the CTMP. These laws regulate:

• Zoning and land use
• Environmental safeguards
• Tourism business operations
• Construction and architectural standards
• Waste management and utility regulations

By localizing the guidelines set by TIEZA and national agencies, the LGU ensures that development remains controlled, sustainable, and consistent with the master plan.

2. Land Use and Zoning Implementation

Through its Comprehensive Land Use Plan (CLUP) and Zoning Ordinance, the San Vicente LGU allocates land for specific uses such as:

• Tourism facilities
• Residential areas
• Commercial hubs
• Protected forest zones
• Marine sanctuaries

This zoning approach is critical in protecting environmentally sensitive areas while promoting economically productive zones, as envisioned in the CTMP.

3. Infrastructure Development and Maintenance

While TIEZA prioritizes large-scale tourism infrastructure, the LGU is responsible for:

• Local roads and drainage
• Water supply and sanitation
• Barangay-level utilities
• Rural health and school facilities

These investments are crucial in maintaining quality of life for residents while supporting the needs of tourists and investors.

4. Business Permitting and Investment Facilitation

The San Vicente LGU manages the local business permit process and plays a key role in:

• Ensuring all tourism businesses are compliant with both local and national requirements
• Fast-tracking permits for TIEZA-registered tourism enterprises
• Coordinating with the Municipal Tourism Office to evaluate proposals aligned with the CTMP
• Promoting ease of doing business through a streamlined and investor-friendly local system

This function is especially important in a Flagship TEZ, where investment momentum must be matched by efficient governance.

5. Environmental Protection and Disaster Risk Reduction

As a municipality rich in coastal ecosystems, rainforests, and biodiversity, San Vicente’s LGU ensures that tourism development does not compromise its natural wealth. This includes:

• Enforcing Environmental Compliance Certificates (ECCs)
• Overseeing coastal clean-up and solid waste management
• Implementing climate adaptation measures
• Enforcing protected area regulations in coordination with the DENR and PCSD

Sustainability is central to the Master Plan, and the LGU is its first line of defense.

6. Community Participation and Livelihood Programs

The LGU champions inclusive tourism by:

• Involving barangay councils in development discussions
• Supporting livelihood training programs in hospitality, food production, handicrafts, and guiding services
• Allocating funds for capacity building and tourism awareness campaigns
• Establishing cooperatives and micro-enterprises that enable local ownership of tourism benefits

In San Vicente, development is not imposed-it is co-created with the people.

7. Monitoring and Compliance

The LGU, in partnership with TIEZA, regularly monitors tourism projects to ensure:

• Compliance with zoning and design guidelines
• Environmental mitigation measures are implemented
• Construction and operations adhere to health, safety, and labor standards

This ground-level accountability reinforces investor confidence and builds public trust.

Collaborative Governance in Action: San Vicente’s TEZ Implementation Committee

To ensure seamless coordination between stakeholders, the San Vicente LGU established a TEZ Implementation Committee comprising:

• Local chief executive (Mayor)
• Municipal Planning and Development Office (MPDO)
• Municipal Tourism Office
• Sangguniang Bayan (Municipal Council)
• TIEZA representatives
• Relevant national agency representatives (DOT, DENR, PCSD)
• Civil society and private sector stakeholders

This multi-sectoral approach enables responsive decision-making, real-time problem solving, and transparent execution of the Master Plan.

Flagship TEZ Advantages Enhanced by LGU Support

San Vicente’s designation as a Flagship TEZ would mean little without active LGU commitment. Fortunately, the municipality has demonstrated:

• Strong political will to implement the CTMP
• A pro-investment stance balanced with sustainability
• Institutional readiness to manage growth and change

As a result, the San Vicente LGU is widely seen as a model for tourism governance in emerging destinations across the Philippines.

Key LGU Initiatives Supporting the Master Plan

Some ongoing and planned LGU-led initiatives include:

• Establishment of a San Vicente Investment and Promotions Office (SVIPO)
• Barangay Tourism Development Plans aligned with the CTMP
• Public-private partnerships for rural electrification and digital connectivity
• Annual tourism summits and stakeholder consultations
• Tourism Code amendments to adapt to Flagship TEZ requirements

Each initiative contributes to the institutional foundation that makes San Vicente a viable, long-term destination.

Insights

The success of the San Vicente Master Plan doesn’t rely on big developers or distant agencies alone-it thrives on local leadership, community engagement, and a responsive LGU that treats tourism as a catalyst for inclusive growth.

With clear zoning, efficient permitting, proactive legislation, and participatory governance, the San Vicente LGU ensures that tourism serves not only visitors, but also the people who call this paradise home.

In the world of tourism development, incentives can make or break a destination’s ability to attract the right kind of investment. Recognizing this, the Philippines-through the Tourism Act of 2009 (RA 9593)-established Tourism Enterprise Zones (TEZs) as investment-friendly areas where tourism is prioritized, incentivized, and master-planned for sustainability.

For investors, developers, and stakeholders eyeing opportunities in places like San Vicente, Palawan, understanding the proposed incentives for TEZs is essential. These incentives are designed not just to lower the cost of doing business, but to encourage long-term, responsible, and inclusive growth.

This article outlines the fiscal and non-fiscal incentives available for TEZ developers and operators, and why San Vicente-especially as a Flagship TEZ-offers one of the most attractive investment climates in the Philippine tourism sector.

The Legal Foundation: Tourism Act of 2009 (RA 9593)

Republic Act No. 9593, or the Tourism Act of 2009, empowers the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to register and oversee TEZs. One of TIEZA’s core mandates is to grant incentives to tourism enterprises within these zones, helping them thrive while contributing to national economic growth.

The law aims to transform the Philippines into a premier tourism destination by encouraging private investment in sustainable, world-class tourism developments.

Who Qualifies for TEZ Incentives?

The following entities may apply for incentives:

• Registered Tourism Enterprises (RTEs) operating within a TIEZA-approved TEZ
• TEZ Developers and Operators responsible for managing and implementing the zone’s master plan

Eligibility depends on:

• Compliance with the TEZ master plan
• Alignment with national tourism goals
• Investment thresholds (based on TEZ classification)
• Endorsements from the Department of Tourism (DOT)

Fiscal Incentives for TEZs

1. Income Tax Holiday (ITH)

Eligible businesses may enjoy an income tax holiday of up to 6 years. This incentive helps businesses stabilize financially during their formative years, boosting long-term viability.

2. Gross Income Taxation (Post-ITH)

After the ITH expires, enterprises may be taxed at 5% of gross income in lieu of all national and local taxes. This simplifies tax compliance and lowers the effective tax burden.

3. Exemption from Customs Duties and National Taxes

TEZ-based enterprises may import capital goods, equipment, transportation vehicles, and construction materials duty-free and tax-exempt, provided these are directly related to the tourism operation.

4. Tax Credit for Taxes Paid

When goods are sourced locally (instead of being imported), the equivalent local taxes paid may be credited against future tax obligations, encouraging support for domestic suppliers.

5. Accelerated Depreciation

Capital assets may be depreciated at twice the normal rate, which provides faster returns and reduces taxable income during the early years of operations.

Non-Fiscal Incentives for TEZs

1. Visa Assistance and Immigration Support

Enterprises employing foreign nationals or catering to international markets may benefit from:

• Multiple-entry visas for investors and foreign staff
• Special work permits and visa processing assistance
• Extended stay for expatriates and retirees

2. Special Investor’s Resident Visa (SIRV)

Qualifying investors may apply for an SIRV, which allows them to reside in the Philippines indefinitely, provided they maintain their investments within the TEZ.

3. Streamlined Business Registration and Licensing

TIEZA facilitates faster approvals by coordinating with relevant government agencies. TEZ locators often benefit from one-stop-shop processing, especially in Flagship TEZs like San Vicente.

4. Infrastructure Prioritization

Public infrastructure-such as roads, ports, and utilities-are prioritized for TEZs. Flagship TEZs receive direct government support to implement critical infrastructure outlined in the master plan.

5. Access to Technical Assistance and Investment Promotion

TIEZA promotes TEZs both locally and internationally, helping investors find joint ventures, market opportunities, and expert partners for feasibility studies, architecture, and operations.

San Vicente’s Edge: Flagship TEZ Incentive Advantage

As a Flagship TEZ, San Vicente is not only eligible for all standard incentives but also enjoys several strategic advantages:

• TIEZA-led planning ensures quicker approval of Registered Tourism Enterprises
• Master-planned infrastructure, like zoned resorts, commercial districts, and eco-tourism corridors
• Government-backed investment promotion in global forums and expos
• Early investor access to prime parcels of land in areas like Long Beach, Port Barton, and the Mercato Shophouse District
• Environmental and cultural safeguards that support ESG compliance for international investors

Types of Projects That May Qualify for Incentives

Projects eligible for TEZ incentives include, but are not limited to:

• Resorts and hotels
• Adventure and ecotourism parks
• Medical wellness tourism
• Agri-tourism farms
• Marinas and dive centers
• Heritage and cultural tourism complexes
• Retail, dining, and mixed-use commercial centers

The key criterion is that the project must be aligned with the TEZ’s Master Plan and zoning-in San Vicente’s case, the Conceptual Tourism Master Plan (CTMP) developed by TIEZA and Palafox Associates.

Requirements for Registration

To apply for TEZ incentives, developers or businesses must submit:

• A detailed Feasibility Study
• Business and investment plans
• Proof of capitalization
• Environmental Compliance Certificate (ECC)
• Location and project permits
• Certification of alignment with the TEZ Master Plan

TIEZA evaluates applications based on economic viability, sustainability, community inclusion, and environmental impact.

Why Now Is the Best Time to Invest in San Vicente

As the San Vicente Flagship TEZ enters its implementation phase, first-mover investors have the opportunity to:

• Secure premium beachfront and tourism-zoned land
• Benefit from government infrastructure rollouts
• Tap into a high-growth ecotourism destination
• Enjoy a complete package of incentives with minimal bureaucratic delay

With San Vicente being awarded as the 8th Best Planned Tourism Project in the World by the Royal Town Planning Institute (RTPI), its future as a global destination is not just a vision-it’s a strategic reality in motion.

Insights

Incentives are more than tax breaks-they are signals of opportunity. The Philippine government, through TIEZA, is inviting responsible, visionary investors to take part in shaping the country’s next world-class destination. San Vicente is ready-with land, plans, infrastructure, and people-waiting for partners who believe in sustainable, inclusive tourism.

Invest early. Build wisely. And be part of San Vicente’s transformation.

Tourism is more than just travelers and destinations-it’s also about strategic frameworks that guide sustainable development, attract investors, and uplift local communities. In the Philippines, two such frameworks stand out: the Tourism Enterprise Zone (TEZ) and the Flagship Tourism Enterprise Zone (Flagship TEZ). While they may sound similar, the difference between a TEZ and a Flagship TEZ is significant and impactful, especially in the context of ambitious developments like San Vicente, Palawan.

If you’re an investor, stakeholder, or simply interested in how the Philippines is building world-class tourism destinations, it’s crucial to understand how these two categories operate-and why San Vicente’s Flagship TEZ status puts it on an entirely different level.

What Is a TEZ?

A Tourism Enterprise Zone (TEZ) is a designated area that is developed into a tourism hub, offering a wide range of accommodations, leisure activities, cultural experiences, and eco-friendly attractions. It is recognized and registered under the Tourism Act of 2009 (RA 9593) and managed by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

TEZs are typically proposed and initiated by private developers or local government units (LGUs). Once approved by TIEZA, they become eligible for fiscal and non-fiscal incentives to encourage investment and ensure sustainable tourism development.

What Is a Flagship TEZ?

A Flagship TEZ is a TIEZA-initiated, TIEZA-led development zone. These areas are not proposed by private entities but are strategically selected by TIEZA and the Department of Tourism (DOT) based on their high potential to become globally competitive tourism destinations.

Unlike regular TEZs that rely on the initiative and capacity of a developer, Flagship TEZs are master-planned and administered directly by TIEZA-until such time a joint venture, subsidiary, or public-private partnership is created to manage the zone.

TEZ vs Flagship TEZ: A Side-by-Side Comparison

Aspect	TEZ	Flagship TEZ
Initiator	Private developer or LGU	TIEZA and DOT
Approval Process	Developer submits application and master plan	TIEZA identifies, plans, and leads development
Size Requirement	Minimum 5 hectares (depending on category)	Minimum 50 hectares
Project Complexity	May be a single resort or mixed-use project	Large-scale, integrated tourism development
Land Ownership	Usually controlled by the initiating party	Requires consent from multiple landowners
Zoning	Follows local planning guidelines	Guided by a comprehensive master plan by TIEZA or partners like Palafox
Incentives	Available upon approval	Same incentives + faster implementation due to government management
Examples	Hamilo Coast, Bravo Golf Resort, etc.	San Vicente, Mt. Samat, Panglao Bay Premier, Clark

Why Flagship TEZ Status Matters

When TIEZA designates an area as a Flagship TEZ, it signals national priority. These areas receive top-tier focus for infrastructure development, environmental management, investor facilitation, and tourism planning.

Here’s why that distinction is powerful:

1. Faster Development

Because TIEZA leads the project, everything from feasibility studies to permit processing is expedited. There is less bureaucratic friction and more strategic coordination across national and local agencies.

2. Comprehensive Planning

Flagship TEZs are master-planned by top-tier urban and environmental planners like Palafox Associates. These plans ensure sustainability, balance between built and natural environments, and long-term viability.

3. Investor Confidence

Private investors prefer stability and structure. A TIEZA-led project assures them that:

• Land use is pre-zoned.
• Infrastructure is prioritized.
• Government support is continuous.

This attracts larger, long-term investments from both local and international stakeholders.

4. Community-Inclusive Growth

Flagship TEZs are designed not just for tourists but for the people who live there. San Vicente, for example, involves local participation in planning, prioritizes local employment, and respects indigenous culture and livelihoods.

San Vicente: A Flagship TEZ with National Significance

San Vicente’s designation as a Flagship TEZ is a turning point for tourism development in Palawan-and the country. The area was selected not only for its iconic Long Beach, the longest white sand beach in the Philippines, but also for its:

• Untapped ecotourism potential
• Sustainable inland resources
• Accessible topography for investment
• Strategic location between El Nido and Puerto Princesa

TIEZA, together with Palafox Associates, is currently implementing the Conceptual Tourism Master Plan (CTMP) and a Zoning Plan for San Vicente that aims to guide growth for decades to come. Unlike other coastal destinations that grew organically (and often unsustainably), San Vicente is being built with intention, structure, and long-term vision.

What This Means for Investors and Stakeholders

If you’re considering investing or supporting tourism development in the Philippines, a Flagship TEZ like San Vicente offers distinct advantages:

• Pre-zoned land use for resorts, commercial areas, and mixed-use developments
• Priority infrastructure support from the government
• Strong public-private partnership models
• Eligibility for fiscal and non-fiscal incentives
• Environmental safeguards that protect your investment

Insight

Understanding the distinction between a TEZ and a Flagship TEZ is crucial to grasping the trajectory of tourism development in the Philippines. While both frameworks support sustainable tourism, the Flagship TEZ carries strategic weight, national support, and transformational potential.

San Vicente’s status as a Flagship TEZ puts it in a league of its own-a blank canvas for investors, a model for sustainable growth, and a future icon of Philippine tourism.

In the heart of Palawan lies San Vicente, a quiet coastal town now transforming into one of the Philippines’ most ambitious tourism frontiers. Thanks to its designation as a Flagship Tourism Enterprise Zone (Flagship TEZ) by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA)-the development arm of the Department of Tourism (DOT)-San Vicente is now poised to become a world-class travel destination offering sustainable tourism, investment opportunities, and unparalleled natural beauty.

What Is a Flagship TEZ?

A Flagship TEZ is more than just a label. It is TIEZA’s way of actively managing and fast-tracking the development of areas with extraordinary tourism potential. Unlike regular Tourism Enterprise Zones (TEZs) that are usually initiated by private developers or local governments, Flagship TEZs are directly selected and administered by TIEZA, making them the crown jewels of the country’s tourism development strategy.

In this special designation, TIEZA doesn’t just approve the project-they lead it. The agency oversees strategic planning, infrastructure development, investor coordination, and environmental sustainability. The goal? To create an integrated tourism hub that attracts both local and international investors while preserving the destination’s ecological and cultural assets.

San Vicente: The Chosen Flagship

San Vicente was not chosen by chance. Its natural features-14.7 kilometers of white sandy shores known as Long Beach, rich biodiversity, crystal-clear waters, and vibrant local culture-make it one of the most promising tourism sites in the Philippines. But more importantly, it represents a strategic opportunity to decentralize tourism from congested destinations like Boracay or El Nido and expand it sustainably across Palawan.

Though the entire municipality of San Vicente is covered under the Flagship TEZ designation, initial development is focused on the Long Beach area, which spans four key barangays:

• Poblacion
• New Agutaya
• San Isidro
• Alimanguan

This stretch of beach is not only the longest in the country but also the most pristine, with clear zoning potential and investor-friendly topography. Inland from the coast, as far as 800 meters to 1 kilometer, lies land that has already drawn the interest of major investors-particularly the rice field zones that are now being land banked in anticipation of the planned road network and supporting infrastructure.

TIEZA’s Vision for San Vicente

The transformation of San Vicente into a Flagship TEZ is a comprehensive endeavor guided by three key pillars:

1. Sustainable Infrastructure

TIEZA, in partnership with Palafox Associates, has developed a Conceptual Tourism Master Plan (CTMP) and an Integrated Tourism Master Plan for the Long Beach area. These plans include zoning, land use planning, environmental conservation strategies, and building guidelines that ensure sustainable growth while protecting natural resources.

2. Public-Private Partnerships

The master plan encourages strong collaboration between the public sector and private investors. By streamlining the investment process and offering incentives (to be discussed in a future article), San Vicente is expected to draw significant attention from hotel chains, eco-resort developers, and lifestyle estate builders.

3. Inclusive Local Development

While world-class tourism infrastructure is on the horizon, the plan also integrates community involvement. Local residents will be part of the supply chain-as workforce, service providers, and cultural stewards. Local governance led by the Municipal Mayor and Vice Mayor is closely working with TIEZA to ensure community-inclusive growth.

Flagship TEZ vs. Regular TEZ: Why It Matters

The designation of San Vicente as a Flagship TEZ gives it a distinct advantage over ordinary TEZs. Here’s how:

• Initiation: Regular TEZs are initiated by applications from developers or LGUs. Flagship TEZs like San Vicente are handpicked by TIEZA and DOT based on national tourism priorities.
• Criteria: Flagship TEZs must meet more stringent criteria. For example, they must span at least 50 hectares and involve a partnership with willing landowners.
• Management: Unlike ordinary TEZs where private developers manage operations, Flagship TEZs are directly administered by TIEZA until a joint venture or dedicated body is established.

This level of government oversight means faster approvals, integrated planning, and better resource allocation-a clear edge for investors and developers.

Economic Ripple Effects for San Vicente

The benefits of being a Flagship TEZ extend beyond the tourism industry:

• Job Creation: Construction, hospitality, transport, food services, and environmental protection efforts will open doors for employment.
• Real Estate Growth: Land values have already surged in the Long Beach hinterlands due to investor confidence and proposed road developments.
• SME Opportunities: Local entrepreneurs can benefit from tourism-related services like guiding, catering, souvenir-making, and transportation.

Why San Vicente Matters for the Philippines

San Vicente isn’t just about building another beach town. It is a model of responsible and visionary tourism-designed from the ground up to serve both economic and ecological goals.

Its designation as a Flagship TEZ shows the Philippines’ commitment to:

• Balanced development (environment + economy)
• Dispersed tourism growth
• Investment innovation
• Community empowerment

Other Flagship TEZs in the country include Mt. Samat, Panglao Bay Premier, Rizal Park, Corregidor, and Clark-but San Vicente stands out due to its unmatched natural assets and potential as the “next big thing” in Philippine tourism.

Final Thoughts

The road ahead for San Vicente is paved with both challenges and promises. With the active involvement of TIEZA, the visionary planning of Palafox Associates, and the committed leadership of its LGU, San Vicente is on track to redefine what sustainable tourism in the Philippines can look like.

As development begins in the Long Beach area and spreads to surrounding barangays, investors and travelers alike should keep their eyes on San Vicente-the rising star of Palawan and a true Flagship TEZ in every sense.

San Vicente, Palawan-a town globally recognized for its visionary tourism master plan-continues to lead the Philippines in pioneering eco-friendly infrastructure. As part of its sustainable development framework, San Vicente’s Proposed Walk Line and Bike Lane Network represents a bold and necessary shift toward non-motorized, climate-smart transport.

Designed to align with the Conceptual Tourism Master Plan (CTMP) and the principles of a Flagship Tourism Enterprise Zone (TEZ), the network will provide residents and tourists with a safer, more scenic, and healthier way to move between the town’s emerging clusters, tourism destinations, and community centers.

This initiative is more than a green alternative-it is an integral part of San Vicente’s identity as an eco-town.

What Is the Proposed Walk Line and Bike Lane Network?

The Proposed Walk Line/Bike Lane Network is a dedicated, non-motorized transport (NMT) system envisioned to run alongside or near key roads in San Vicente. It will connect tourism clusters, barangay centers, residential areas, commercial nodes, and natural attractions such as Long Beach and forest parks.

Key components of the network include:

• Dedicated bike lanes separated from motorized traffic
• Tree-lined pedestrian pathways
• Scenic and recreational walking trails
• Safe intersections with visible markings and signage
• Lighting and street furniture in urbanized areas

The network is being strategically integrated into both existing roads and proposed infrastructure (such as the Bypass Road and Access Roads), with provisions for future expansion.

Why It Matters: Purpose and Vision

1. Promoting Sustainable Tourism

San Vicente’s status as an emerging global ecotourism hub depends on reducing its environmental footprint. By promoting biking and walking as primary mobility options, the town reduces:

• Greenhouse gas emissions
• Noise pollution
• Traffic congestion in tourism-heavy zones

2. Improving Local Livability

For residents, especially those in barangays like New Agutaya, Alimanguan, and Binga, the network enhances daily mobility-allowing safer and faster access to schools, markets, places of worship, and public services without reliance on motorized vehicles.

3. Encouraging Healthier Lifestyles

With growing interest in wellness tourism, the bike lane and walk line network will support walking tours, nature exploration, cycling holidays, and other low-impact recreation activities-benefiting both tourists and locals.

Strategic Alignment with the Cluster-Based Development Plan

San Vicente’s cluster strategy divides the town into zones based on environmental features, economic uses, and tourism potential. The walk line and bike lane network is designed to link and activate these clusters, ensuring smooth, green connectivity.

• Cultural and Heritage Clusters: Promote walking tours in areas rich with local traditions and heritage.
• Eco-Lodging and Forest Retreat Clusters: Attract tourists who prioritize low-carbon, immersive experiences.
• Agro-Tourism and Farm-to-Table Zones: Enable direct farm access for residents and visitors on bikes or foot.

In essence, the network is a unifying thread that ties together the diverse experiences offered in San Vicente.

Design Features and Infrastructure Integration

The walk line and bike lane system is more than just a painted line on the road-it is an engineered facility designed for safety, aesthetics, and comfort.

• Separated Lanes: Physically buffered bike lanes protect cyclists from cars.
• Green Belts: Tree-shaded walkways promote comfort and support urban cooling.
• Permeable Pavements: Allow stormwater absorption and reduce runoff.
• Wayfinding Signage: Guides pedestrians and cyclists through key routes and attractions.
• Integrated Rest Stops: Benches, water fountains, and bike racks placed at regular intervals.

The proposed routes will also link up with major roads, including the Existing Main Road and the Proposed Bypass and Access Roads, ensuring that non-motorized and motorized systems coexist in harmony.

Community, Tourism, and Economic Benefits

1. Empowering Barangays

With pedestrian and bike access, barangays gain greater social and economic inclusion. Farmers can bring produce to markets, students can walk safely to school, and tourists can reach inland attractions without needing a private vehicle.

2. Creating New Tourism Products

Bike tours, walking trails, heritage strolls, and eco-treks become viable tourism offerings. The network can be marketed as part of San Vicente’s identity as an active, wellness-oriented, nature-based destination.

3. Boosting Micro-Enterprises

Walking and biking routes often increase foot traffic in local communities, spurring the growth of small businesses such as sari-sari stores, souvenir stalls, bike rental kiosks, and food vendors.

Environmental and Resilience Considerations

As part of a climate-adaptive infrastructure plan, the walk line and bike lane network:

• Reduces vehicle emissions by incentivizing modal shift
• Protects fragile ecosystems by guiding human traffic away from sensitive zones
• Supports disaster preparedness by providing alternative evacuation paths
• Preserves green corridors through landscaping and biodiversity buffers

It also supports urban cooling, flood mitigation, and public health improvements-all essential components of a resilient tourism town.

Policy and Planning Framework

The development of the walk and bike lane network is backed by national and global urban planning standards:

• DPWH Guidelines for Green Transport
• DOT’s Tourism Infrastructure Program
• UN Sustainable Development Goals (SDG 11) – Sustainable Cities and Communities
• Integrated Transport Planning principles used by Palafox Associates in the CTMP

By aligning local infrastructure with global best practices, San Vicente demonstrates its readiness for both tourism growth and climate challenges.

A Model for Green Tourism Mobility

Few municipalities in the Philippines have integrated a walk and bike lane network as part of their core tourism strategy. San Vicente’s plan represents a shift from car-centric development toward human-scale mobility, showcasing how even a small town can think globally and act sustainably.

As this system develops, San Vicente could become a model for other TEZs and eco-towns across the country and Southeast Asia.

Insight: Building a Town You Can Walk and Bike Through

In San Vicente, the road to the future isn’t just paved-it’s walkable and bikeable. The Proposed Walk Line and Bike Lane Network reflects the town’s belief that infrastructure should serve both people and the planet.

By making walking and biking safe, convenient, and enjoyable, San Vicente opens new paths-not only across its beautiful terrain, but toward a more inclusive, connected, and sustainable way of life.

San Vicente, Palawan, widely recognized for its award-winning Conceptual Tourism Master Plan, is taking bold steps to ensure that its transformation into a premier ecotourism destination is built on sound, inclusive, and future-ready infrastructure. At the heart of this vision are the Proposed Access Roads-a critical set of transport links designed to connect upland and inland barangays, agricultural zones, residential estates, and eco-tourism developments to the central Long Beach area and the main road network.

These access roads aren’t just local interventions-they are a pivotal part of a comprehensive mobility system that supports the town’s growth as a Flagship Tourism Enterprise Zone (TEZ). They reflect San Vicente’s commitment to balanced development, community inclusion, and environmental sustainability.

What Are the Proposed Access Roads?

The Proposed Access Roads are newly planned roadways that link the Proposed Bypass Road and Existing Main Road to key inland locations throughout San Vicente’s 10 barangays. They are designed to reach areas that are currently underserved by the existing road network-especially upland communities, planned residential developments, and agricultural zones.

Key characteristics of these proposed roads include:

• Two-lane design suitable for local and light commercial traffic
• Direct connections from interior barangay roads to the coast or central commercial areas
• Alignment with the clustered development strategy of San Vicente, ensuring each cluster (e.g., cultural, agro-tourism, forest eco-zone) has the needed infrastructure to grow

Purpose and Strategic Role

These access roads serve a wide range of developmental, social, and economic purposes:

1. Linking Communities to Opportunities

Inland barangays and remote communities often face isolation due to rugged terrain and poor road conditions. The proposed access roads connect these areas to economic centers, government services, healthcare, schools, and tourism jobs.

2. Distributing Tourism Benefits

By bringing tourists deeper inland-into farms, heritage sites, forest parks, and cultural villages-these roads help distribute tourism revenue more equitably, empowering local enterprises.

3. Supporting the TEZ Growth Framework

Access roads are essential in making investment areas more viable, especially those located outside the Long Beach corridor. They serve as the foundation for mixed-use zones, eco-villages, and hospitality developments envisioned in the Flagship TEZ.

Design and Integration with Other Infrastructure

The Proposed Access Roads are integrated into San Vicente’s overall transportation framework, which includes:

• The Existing Main Road: Serving as the original coastal spine for tourism and municipal activity
• The Proposed Bypass Road: Providing a high-capacity, inland alternative for through traffic and logistics
• The Proposed Walk Line/Bike Lane Network: Supporting pedestrian and bicycle mobility within and between clusters

Each access road is planned with logical junctions to these major corridors, enabling smooth traffic flow and multi-modal transport options. This integration is particularly important in a tourism-oriented town, where the movement of people and goods must be both efficient and visually unobtrusive.

Economic and Social Impact

1. Stimulating Inland Development

Access roads make it possible to unlock land value in areas previously deemed too remote or inaccessible. This supports:

• Agricultural estates and agro-tourism farms
• Eco-resorts, forest lodges, and cultural retreats
• Residential subdivisions and community housing

2. Boosting Investment Confidence

For developers and investors, road access is often the deciding factor. With access roads, previously speculative areas become shovel-ready zones, aligning with the TEZ’s incentives for sustainable and inclusive development.

3. Enhancing Public Service Delivery

Road access accelerates the delivery of essential services such as:

• Emergency response and disaster management
• Education and outreach programs
• Health services and vaccine distribution

This infrastructure improves overall quality of life, especially in upland barangays like Kemdeng, Binga, and Alimanguan.

Environmental and Planning Considerations

San Vicente’s master plan emphasizes green infrastructure and low-impact construction techniques. The Proposed Access Roads will be developed with:

• Environmental impact assessments (EIA)
• Soil stabilization and proper drainage systems
• Slope protection to prevent landslides in mountainous areas
• Vegetation buffers to reduce ecological fragmentation

Furthermore, local communities will be engaged in right-of-way negotiations, promoting participatory planning and ensuring social equity in the development process.

Role in Cluster-Based Development

San Vicente’s cluster-based approach groups areas according to tourism themes and environmental characteristics. The access roads are essential for the success of each cluster:

• Agro-Tourism and Forest Clusters (e.g., in Binga and Kemdeng) benefit from improved access for both visitors and local producers
• Cultural Heritage Clusters (e.g., in New Agutaya and Alimanguan) gain greater exposure and foot traffic
• Eco-Residential Clusters (e.g., inland New Agutaya) attract investors and future residents due to increased connectivity

Each proposed access road is therefore not merely a path-it is a development catalyst tailored to the needs of specific geographic and economic clusters.

Enhancing Disaster Resilience and Redundancy

In a coastal town like San Vicente, climate resilience is critical. Access roads act as alternative evacuation and relief routes, especially when coastal roads are flooded or damaged. Their inland alignment provides:

• Redundant emergency routes
• Access for humanitarian response teams
• Safer, inland storage and logistics bases for supplies

This redundancy enhances San Vicente’s ability to bounce back from typhoons, earthquakes, or other natural events.

A Roadmap for Equitable Growth

At its core, the network of Proposed Access Roads is about unlocking opportunity, not just land. By improving access, San Vicente:

• Makes room for inclusive growth
• Encourages low-density, eco-sensitive development
• Ensures that no barangay is left behind in its journey toward becoming a globally admired ecotourism municipality

Access roads bring mobility, equity, and sustainability into harmony, reinforcing San Vicente’s status as the Philippines’ most forward-thinking tourism destination.

Insight: Building Roads, Bridging Futures

San Vicente’s Proposed Access Roads are more than engineering projects-they are instruments of transformation. Designed with foresight, built with care, and integrated into a larger sustainable vision, these roads will bridge communities, fuel investment, and ensure that the promise of ecotourism uplifts all.

By enabling smarter movement and more inclusive development, San Vicente continues to show that it isn’t just building infrastructure-it’s building a future where growth and green values walk hand in hand.