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!
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