Tourism Act of 2009

By: Oscar P. Palabyab

Undersecretary
Department of Tourism
 R.A. 9594
TOURISM 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. 9594
TOURISM 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 Investors 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 LGUs 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 LGUs

adopting tourism development plans

LGUs 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

LGUs 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 gfis shall provide micro finance schemes for tourism
smes
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
THANK YOU!

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