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:
- Cluster 1 (Tourism Center): Long Beach and adjacent barangays as the prime tourism zone
- Cluster 2 (Support Community): Commercial, institutional, and residential core in San Isidro
- Cluster 3 (Nature and Culture): Alimanguan and Binga as eco-cultural tourism corridors
- 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.