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Tourism Act Report
Tourism Act Report
Tourism Act Report
9593
“The Tourism Act of 2009”
By:
Grandeureign Ortizo
Roca S. Regala
THE TOURISM ACT OF 2009
Tourism is considered as one of the indispensable elements of the national
economy and an industry of national interest and importance. Republic Act No. 9593,
also known as “The Tourism Act of 2009,” was enacted on May 12, 2009 and took effect
on June 11, 2009. The enactment of the said law aims to generate investment, foreign
exchange and employment, and to continue to mold an enhanced sense of national
pride for all Filipinos.
Parts of the objectives of the Tourism Act related to our topic are: a) to provide
full government assistance by way of competitive investment incentives, long-term
development fund and other financing schemes extended to tourism related
investments; and b) support the establishment of Tourism Enterprise Zones (TEZs),
which will provide necessary vehicle to coordinate actions of the public and private
sectors to address development barriers, attract and focus investment on specific
geographic areas and upgrade product and service quality.
Upon Application
Prior to designation
The Flagship TEZ Program is a joint initiative of the Department of Tourism and
TIEZA to proactively develop strategically important TEZs by way of master planning
the area, granting of incentives, or providing the necessary infrastructure support.
a) The property must at least be fifty (50) hectares, with the owner/s having
clean title or right to develop the property;
b) It must be accessible through or near a gateway i.e. airport, seaport, or
interprovincial or national road;
c) It has or may have basic utilities such as water, power, and information and
communication technology;
d) Strong institutional support by way of a comprehensive land use plan or local
tourism development plan is desired;
e) The property in itself must offer tourism resources; and
f) The property owner/s must be willing to enter into a partnership with TIEZA
and commit to the implementation of the master plan if the site/s were to be
identified or designated as a Flagship TEZ.
2. Rizal Park
58 hectares
3. Mt. Samat Shrine or Dambana ng Kagitingan in Bataan
72 hectares from the foot up to the cross
2. Bravo Golf Resort and Residences (BGRR) in Dumaguete City. The facility,
formerly known as the Dumaguete Golf and Country Club, was one of the
earliest golf courses to be built in the country.
3. Hijo plantation, Inc. (HPI) is an abaca plantation in the 1940s. The 760-hectare
property has about 4.5 kilometers of beach line, two rivers lined with mangroves,
a 60-hectare second growth forest, home to wild pigs, monkeys, birds and other
animals, atmosphere of a former banana and coconut plantation, and other
features suited to tourism development. Currently there is a beach resort, Banana
Beach, open to the public; a boutique hotel resort called Lanikai; a fishing village
named The Spot and other features for tourism. However, only the 325-hectare of
its property is registered as a Mixed Use Tourism Zone.
5. Resorts World Manila (“RWM”, or the “Project”), strategically located across the
Ninoy Aquino International Airport‐Terminal 3 (“NAIA‐3”) and adjacent to the
Villamor Golf Course in Pasay City, Manila, is a 24‐hour world‐class leisure and
entertainment facility within Newport City, a mixed‐use community of
integrated residential condominiums, hotels, restaurants, shops and offices
developed by Megaworld Corporation, an AGI subsidiary.
7. Aton Land & Leisure Zone in Barangay Guinhalaran, Silay City is a 13-hectare
Tourism Enterprise Zone composed of a Theme Park, a Lifestyle Complex, and a
Commercial Complex.
8. Kingdom Global City TEZ in Davao City. It is under the classification of general
leisure TEZ. It has a total development cost of P7.9 billion and was master-
planned as an integrated tourism complex comprising of the Kingdome Stadium,
King’s Palace Hotel, Queen’s Palace Hotel, Aviation Complex and an amusement
park.
What are the classifications of TEZs based on existing developments?
a. Cultural landscapes;
b. Historic sites, areas and precincts;
c. Ruins, archaeological and maritime sites;
d. Sites associated with industrial, scientific and agricultural heritage;
e. Collections that house or collectively promote objects of heritage
significance;
f. Historic places and areas, including villages, small towns, cities and parts
of larger urban areas with significant cultural and heritage assets; and
g. Museums, Art Galleries, Cultural Centers, Arts & Crafts Shops, and
Antique Shops, and Cultural Sites.
B. Health and Wellness Tourism Zone
These are areas that will allow visitors to avail of quality but affordable
mainstream, traditional, or alternative healthcare services for treatment of
illnesses and health problems in order to maintain one’s health and well-being.
The area may include, but will not be limited to enterprises that are, or offer:
a. Golf Parks/Resorts;
b. Theme Parks and Amusement Centers;
c. Convention and Meeting Centers;
d. Sports Complexes/Resorts;
e. Event Centers/Resorts;
f. Department Stores/Restaurants/Shops; and;
g. Zoos
E. Mixed Use Tourism Zone
These are areas that will allow a combination of some or all of the features
of the aforementioned zones within one area. Retirement communities and
facilities duly accredited by the Philippine Retirement Authority may be located
in General Leisure Tourism Zones, Health and Wellness Tourism Zones and
Mixed-used Tourism Zones.
A. Any entity duly incorporated under the Corporation Code and other
relevant laws, or
These are tourism enterprises located within a TEZ that is duly-registered with
the TIEZA.
I. FISCAL INCENTIVES
A. Income Tax Holiday
BTZ GTZ
New Enterprises exempt from tax on income for a exempt from tax on income
period of six (6) years from start of for a period of six (6) years
business operation from start of business
operation
may be extended if the enterprise
undertakes a substantial may be extended if the
expansion or upgrade of its enterprise undertakes a
facilities prior to the expiration of substantial expansion or
the first six years upgrade of its facilities
prior to the expiration of
the first six years
Non-Fiscal Incentives
C. Lease of Land
Lands and buildings in each TEZ may be leased to foreign investors for a period
not exceeding fifty (50) years, renewable once for a period of not more than
twenty-five (25) years. The leasehold right acquired under long-term contracts
may be sold, transferred or assigned.
1. Repatriation of investments
2. Remittance of foreign exchange
3. Foreign loans and contracts
E. No Requisition of Investment
There shall be no requisition of the property of the TEZ Operator or the RTE,
except in the event of war or national emergency and only for the duration
thereof.
What law will govern if the Tourism Enterprise is within Special Economic Zones?
Tourism enterprises located in special economic zones created under the Special
Economic Zone Act or by special charter shall continue to be governed by the same.
What are the rules on incentives if the RTE is also within an economic zone?
Who may qualify to apply for registration as a Tourism Enterprise outside the TEZ?
Only an existing accommodation establishment not located within a TEZ that
shall undertake a substantial expansion or upgrade of its facilities shall be entitled to
register and claim incentives under TIEZA. The cost of expansion or upgrade of its
physical assets should be at least 50% of the original investment.
A. Economic Incentives
Under the Omnibus Investment Code, Foreign Investment Act, Special
Economic Zone Act, Bases Conversion and Development Act, and other
special laws.
When may a Tourism Enterprise avail incentives under the Omnibus Investment
Code?
Requisition of Investments / / X
The DOT and the DTI shall promulgate rules and regulations to govern the
relationship between TEZs and economic zones created under the Bases Conversion
and Development Act of 1992 and the Special Economic Zone Act of 1995, provided,
that such rules and regulations shall consider the special nature and requirements of
tourism in relation to other industries, establishments and operations in economic
zones.
What are the differences between Tourism Ecozone under PEZA and TEZ under the
Tourism Act of 2009?
What are the similarities of Tourism Ecozone under PEZA and TEZ under the
Tourism Act of 2009?
- Both Tourism Ecozone and TEZ are identified in the DOT’s Tourism Master
Plans.
- Similar in some fiscal and non-fiscal incentives.
II. DUTY AND TAX-FREE MERCHANDISING SYSTEM FOR
TOURISM PURPOSES
It has the exclusive authority to operate or franchise out stores and shops that
would sell, among others, duty-and tax-free merchandise, goods and articles, in
international airports and seaports, and in TEZs and ports of entry throughout the
country.
The first duty free outlet is located at the Arrival area of NAIA while a month
later the second outlet was opened at the Departure area of NAIA.
In other to compete in the international tax and duty free market and generate
foreign exchange and revenue for the government.
Are DFPC stores located in TEZs entitled to incentives provided for RTEs?
Yes, provided it is registered with the TIEZA. It shall be entitled to all incentives
available to RTEs in the TEZs. The enjoyment of incentives shall be without prejudice to
other incentives provided to DFPC under the Act. The importation and resale of goods
in direct competition with DFPC by registered enterprises within a TEZ shall be
prohibited.
Who are entitled to purchase tax and duty-free goods, articles and merchandise in
DFPC stores?
a. Incoming passengers within 48 hours upon arrival from a foreign country for
regular travelers;
b. Incoming balikbayans and OFWs, as defined in existing laws, within 15 days
upon arrival from a foreign country and 30 days upon arrival beginning
November 15 to January 15;
c. Departing passengers with confirmed bookings destined to foreign countries
before boarding their flights or vessel at an international airport or seaport;
d. Diplomatic personnel as well as personnel of other governments and offices of
international organizations, institutions, associations and agencies entitled to tax
and/or duty exemptions pursuant to Philippine law or agreements to which the
government of the Republic of the Philippines is a signatory as endorsed by the
Department of Foreign Affairs (DFA);
e. The persons enumerated in Section 108 item (b)(2) of this Rules.
i. Family members of qualified Overseas OFWs that are entitled to the
absentee buying program as permitted by RA 9174;
ii. Departing foreign tourists who shall purchase items at such store location
and pick-up said item upon their departure from the Philippines, wherein
the item shall be picked up at the departure section of an international
airport or seaport;
iii. Upon the development of a “sealed bag” system in cooperation with the
Bureau of Customs (BOC), departing foreign tourists who shall purchase
items at such store location and present the item in a sealed bag at the
departure area of an international airport or seaport. The items, including
the corresponding transaction receipt, must be presented no later than one
month from the date of purchase and all items must remain sealed in its
bag. Failure to do so will result in the payment by DFPC of the proper
taxes and duties due on the entire transaction.