THE BOARD of Investments (BoI) has approved the application of the Ayala Group’s P1.7 billion Seda Lio Resort as the first inclusive business model (IB) project.
Constructed and operated by Econorth Resort Ventures, Inc. (ERVI), a subsidiary of the Ayala Land Hotel and Resorts Corp. (AHRC), the 153-guest-room resort is situated in the 325-hectare Lio Tourism Estate in El Nido, Palawan.
The estate is owned by AHRC’s parent company Ayala Land, Inc. and managed by Ten Knots Development Corp., also an ALI 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,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said in a Wednesday statement.
IB projects aim at sourcing members of the low-income community to the company’s operations, ensuring that their contributions make an impact on the company’s financial performance. This is achieved through directly employing them and sourcing their produced goods and services to integrate into the value chain.
A project approved as an IB model is exempted from paying income tax holiday for a total of five years.
The criteria for IB models call for at least 25% of total costs of services to derive from the micro and small enterprises (MSE) and at least 25 direct jobs to be generated for individuals from the marginalized sector. Of this allocated job portion, 30% must comprise of women.
Income for those employed should reach minimum wage or a baseline income plus 20% increase, whichever is higher.
IB firms are also obliged to provide technical assistance and capacity-building to MSEs, and/or facilitate access to finance.
The Econorth projects total costs of about P243.8 million a year, with services sourced from MSMEs to reach around P60 million by the third year of operations.
The company has also committed to support staff development by holding courses on managing local suppliers, tax and proper documentation, environmental and educational course, among others.
The company says the project is an opportunity for shared value creation between Seda Lio and the engaged communities by tapping the potential of the locals as a young and trainable work force in the thriving tourism industry of the province.
The resort is slated to begin operations within this quarter. It is part of ALI’s plan to spend around P11 billion through 2022 to develop the Lio tourism estate in several phases. — J.C. Lim
