Tourism Act of 2009By: Oscar P. Palabyab

UndersecretaryDepartment of Tourism

R.A. 9594TOURISM ACT OF 2009

R.A. 9593 was approved by the President on May 12, 2009 and was published in the Official Gazette on July 13,2009. Approved by Congress as SENATE BILL 2213/HOUSE BILL 5229, entitled:

“AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT AND STRENGTHENING THE DOT, ITS ATTACHED AGENCIES, TO EFFECTIVELY IMPLEMENT THAT POLICY…”

R.A. 9594TOURISM ACT OF 2009

DECLARED POLICY: Tourism is an indispensable element of the national economy and an industry of national interest and importance; harnessed as an engine of socio-economic growth/cultural affirmation, to generate investment, foreign exchange, employment and to mold national pride

DEPARTMENT OF TOURISM

Primary planning, programming, coordinating and implementing/regulatory agency in the development and promotion of the tourism industry

ATTACHED AGENCIES

PTA and PCVC are abolished. PTA is reorganized into TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY (TIEZA) while the PCVC is now the TOURISM PROMOTIONS BOARD

• Duty Free Philippines Corporation• Intramuros Administration• National Parks Development Committee• Philippine Retirement Authority• Philippine Commission on Sports Scuba Diving

TOURISM PROMOTIONS BOARD

TOURISM PROMOTIONS BOARD – To replace the PCVC. To formulate and implement an integrated domestic and international promotions and marketing program, market the Philippines as a major convention destination, ensure regular advertisement abroad

COMPOSITION OF THE T.P.B.

BOARD OF DIRECTORS:• DOT Secretary – Chairperson• TPB COO, Vice chair• TIEZA COO• DFA Secretary• DTI Secretary• DOTC Secretary

COMPOSITION OF THE T.P.B.

Five representative directors appointed by the President, upon recommendation of the Tourism Congress from the following sectors:

• Accommodation• Travel services• Land/air/sea transport services• Conventions and exhibitions services• Others

FUNDS FOR THE T.P.B.

• Earnings from promotions trust fund• National government appropriation (annual) not

less than P500 M for at least five (5) years• 70% of the 50% income of the DFPC• At least 25% of the 50% share of the NG in PAGCOR

remittance• At least 25% of the NG share in the remittances from

airports/seaports• Special contingency fund- 10% of the allocation for

promotions shall be set aside for emergencies

FUNDS FOR THE T.P.B.

Promotions and marketing shall have not less than 50% of the Fund and not more than 10% shall be used for administrative and operating expenses. The unallocated portion shall be used for:• TEZ development• DOT programs for development planning, heritage

preservation, infrastructure development, manpower training

TOURISM INFRASTRUCTURE AND ENTERPRIZE ZONE AUTHORITY

To replace the PTA, a body corporate, to regulate and supervise TEZs as well as develop, manage and supervise tourism infrastructure projects in the country.

• BOARD OF DIRECTORS• DOT Secretary - Chair• TIEZA COO, - Vice Chair• TPBA COO• DPWH Secretary• DENR Secretary• DILG Secretary

TOURISM INFRASTRUCTURE AND ENTERPRIZE ZONE AUTHORITY

Five representatives to be appointed by the President upon recommendation of the Tourism Congress from the following groups:• Tourism estate development and management services• Accommodation enterprises• Air, sea and land transportation services• Travel and tour enterprises• Others

FUNDING FOR TIEZA

• Authorized capital =P250,000,000 fully subscribed by the government

• Funding:• 50% of the proceeds of travel taxes• Reasonable share from the collections of the Office of

Resource Generation• Income from TIEZA projects• Subsidies or grants• At least 5% from the travel tax collection in the TIEZA share

shall be earmarked for historic, cultural, religious and heritage sites and prime tourist destination

INCENTIVES

TIEZA shall have sole and exclusive jurisdiction to grant incentives to TEZ locators

FISCAL INCENTIVES• Income tax holiday for 6 years• Gross Income Taxation of 5%• Capital Investment and equipment, 100% of all taxes and customs

duties• Importation of transportation and spare parts for new and

expanding registered enterprises• Importation of goods actually consumed• Tax deduction not more than 50% of the cost of environmental

protection or cultural heritage preservation activities

INCENTIVES

NON-FISCAL INCENTIVES• Employment of foreign nationals• special Investor’s Resident Visa• Foreign currency transactions• No requisition of investment• Long term lease

DUTY FREE PHILS. CORP.

A corporate body to operate duty free merchandising in the Philippines and shall have all the general powers of a corporation.

• BOARD OF DIRECTORS• DOT Secretary – Chair• COO of the DFPC, Vice-Chair• DOF Secretary• DTI Secretary• 3 representative directors to be appointed by the President upon

recommendation of the Tourism Congress• Authorized Capital is P500 Million• Exempt from duties and taxes including excise taxes and VAT, local

taxes and fees imposed by LGUs, corporate income tax

AREAS WITH OVERLAPPING JURISDICTION

All existing tourism areas under general or special laws shall be organized into Tourism Enterprise Zones (TEZ), control may be delegated to LGU/any other agency under DOT supervision

OTHER FEATURES

• Increase tourist access. Development of intermodal international and domestic, land, sea and air access system

• The DOT Secretary shall be:• Ex Officio Vice Chair person of the CAB• Ex Officio Vice Chairperson of all boards of international

airports• May appoint a representative to the board of seaport

authorities• Secretary shall be a member of the CAAP

TOURISM INFRASTRUCTURE AND DEVELOPMENT PROGRAM

• DOT shall coordinate with the DPWH and DOTC in the establishment of a tourism infrastructure program which will enjoy priority funding

• DOT, DILG and LGU’s shall integrate, coordinate local and national tourism plans and choose priority areas for assistance and promotion

• DOT, TPB, TIEZA to prioritize promotion and assistance to LGU’s adopting tourism development plans

• LGU’s shall prepare local tourism development plans, land use, infrastructure development & national standards for tourism enterprises

MANDATORY ACCREDITATION

• DOT shall prescribe and regulate standards for the operation of tourism business. Primary tourism enterprises shall be required to periodically obtain accreditation

• Accreditation for Secondary tourism Enterprises shall be voluntary

LOCAL TOURISM DEVELOPMENT PLANS/TOURISM OFFICERS

LGU’s shall prepare local tourism development plans, land use, infrastructure development and standards for tourism enterprises

Every province, city or municipality which has a significant tourism industry shall have a permanent position for a tourism officer and must also establish a tourist information and assistance center

OTHER FEATURES

TOURISM COORDINATING COUNCIL – to prepare a five year strategic plan to develop and enhance the culture of tourism, approve an annual infrastructure development plan to promote access to airports and seaports, TEZs and destinations. This is an inter-agency council consisting of DOT family, DPWH, DOTC, DFA, DENR, DILG, DOLE, DEPED, PNP, BI, NHI, NCCC, PAGCOR, LGU Leagues, representative from the Tourism Congress, Accredited NGO or P.O. engaged in eco-tourism and recognized I.P.

Regional Tourism Councils shall classify/evaluate tourism destinations/sites/activities, as guide for development/implementation of programs

OTHER FEATURES

PNP to create a Tourism Security Force within areas of high tourism traffic

• MICRO FINANCE FACILITIES – government owned and controlled banks and gfi’s shall provide micro finance schemes for tourism sme’s

• JOINT CONGRESSIONAL OVERSIGHT COMMITTEE – for a period of ten years

• The Secretary is required to submit monthly reports on statistics and a quarterly report on the implementation of the act

OTHER FEATURES

TOURISM CONGRESS – Within 30 days from the promulgation of the I.R.R., the Secretary shall convene a Tourism Congress of representatives of all accredited tourism enterprises and former government officials involved in the industry, as a consultative body

RULES AND REGULATIONS – Within 90 days from effectivity of the law, the Secretary, upon consultation with stakeholders, promulgate the implementing rules and regulations of the Act

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THANK YOU!