Republic Act 9593 The National Tourism Act of 2009 Sen. Richard Gordon

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:

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

Its Mission TOURISM AS AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT, AND STRENGTHENING THE DEPARTMENT OF TOURISM AND ITS ATTACHED AGENCIES TO EFFECTIVELY AND EFFICIENTLY IMPLEMENT THAT POLICY, AND APPROPRIATING FUNDS THEREFOR

Aims of Tourism as a National Policy For and by the Filipino people, heritage, national identity and sense of unity Sustainable tourism development Favorable image of the Philippines in international community As a prime tourist hub in Asia, center of world congresses and conventions Private sector participation and agri-tourism

Objectives Develop national tourism action plan and work for its adoption and implementation by national and LGUs Encourage activities and programs that promote tourism awareness, preserve diverse cultures and heritage Grant preferential treatment to Filipino nationals in tourism-related enterprises

Provide competitive investment incentives, development funds and other financing schemes Promotion of the welfare of the Filipino people vs. profiteering, exploitation of women and children Encourage competition and maximize consumer choice (retail trade and independent tour operation ) Collection , analysis and dissemination of data to facilitate planning

Ensure right of people to balanced and healthy ecology thru environmental protection, conservation and restoration Develop responsible tourism thru community participation, esp. Indigenous peoples in conserving bio-physical and cultural diversity (determination of ecotourism sites) Strengthen the role of tourism councils, NGOs in initiating tourism development programs Enhance capability-building of LGUs in management of local tourism projects esp. in areas with strong competitive advantage

Maintain international standards of excellence in all tourism facilities and services Encourage joint partnerships, joint ventures and other cooperative undertakings involving local and foreign investments Support the establishment of tourism enterprise zones (TEZs) to attract investment in specific geographic areas Ensure a sustainable funding mechanism for the implementation of tourism policies, plans and projects

DOT STRUCTURE Department proper – Secretary, Undersecretaries (3) and Assistance Secretaries Office of Product Development Office of Tourism Development, Planning, Research and Information Management Office of Industry Manpower Development Office of Tourism Standards and Regulations Office of Tourism Coordination Office of Tourism Revenue Resource Generation (new) Regional Offices

DOT STRUCTURE Foreign Offices Office of Special Concerns Financial and Management Service Administrative Affairs Service Legal Affairs Services Internal Audit Service Legislative Liaison Unit

Powers and Functions of DOT Formulate tourism policies, plans and projects Formulate an integrated Marketing Development Program Monitoring of conditions in any community and timely issuance of travel advisories Evaluate tourism development projects for the issuance of permits and grant of incentives by appropriate govt agencies

Formulate rules and regulations governing the operation of all tourism enterprises incl national standard for licensing, accreditation and classification of tourism enterprises, impose reasonable penalties and recommend to LGUs the suspension or prohibition of operation of tourism enterprise Monitor LGU compliance to national standards in the licensing of tourism enterprises, receive and investigate complaints

Provide technical assistance to LGUs in destination development, standard setting and regulatory enforcement Undertake continuing research and survey , and to compile and integrate a databank on the tourism industry Collect necessary fees and charges for the proper implementation of tourism policies, plans and projects

Shared Responsibilities national and LGUs DOT, DILG and LGUs to coordinate and integrate local and national plans. DOT may provide financial and technical assistance, training and other capacity-building measures LGU to ensure implementation of tourism development plan, enforcement of standards and collection of statistical data for tourism purposes DOT shall prescribe and regulate standards for the operation of the tourism industry. Primary tourism enterprises shall be periodically required to obtain accreditation from the Department. Accreditation shall be voluntary for secondary tourism enterprises

DOT shall act on complaints against accredited tourism enterprises, and may impose fines or downgrade, suspend or revoke accreditation, for violations. The Department shall have the power and duty to issue tourism advisories pertaining to TEs found to have violated the terms of their accreditation LGU to act on TEs that failed to obtain accreditation or loses accreditation from the Department The Department may delegate the enforcement of the system of accreditation to LGUs Incentives for accreditation. Only accredited shall be beneficiaries of promotional, training and other programs of the Department

Every province, city or municipality in which tourism is a significant industry shall have a permanent position for a tourism officer. Qualifications: relevant bachelor’s degree and at least 5 years involvement in tourism. Establishment of tourist information and assistance center Tourism Councils shall meet on regular basis, classify and evaluate tourism destinations, sites and activities to be used as guide by DOT and LGUs

ATTACHED AGENCIES Phil Tourism Authority now Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Phil Convention & Visitors Corp now Tourism Promotions Board (TPB) Duty Free Philippines Corporation Intramuros Administration National Parks Development Committee Philippine Retirement Authority Philippine Commission on Sports Scuba Diving

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

COMPOSITION OF THE TPB 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 TPB 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

FUNDS FOR THE TPB 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 ENTERPRISE ZONE AUTHORITY 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: 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

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

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.

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 IRR, 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.

Regional Offices Implement laws, policies, plans, programs, rules and regulations of the Department, and to the accreditation of tourism enterprises Coordinate with regional offices of other departments, bureaus, and agencies, LGUs, NGOs in the implementation of such laws, policies, plans programs and rules and regulations Undertake research and data gathering on local tourism trends and other relevant tourism information

Together with LGUs, establish such tourist information and assistance centers at strategic locations as are necessary to disseminate relevant information Conduct trainings and information campaigns, and assist the TPB in domestic promotions in the pertinent region on subject matters such as this Act, the functions of the Department, tourism traffic and new tourism sites, among others Make recommendations to the Secretary on all matters relating to tourism in the region.

Accreditation

Tourism Enterprises Travel and tour services, tourist transport (land, air, sea), tour guides, adventure sports, convention organizers, accommodation (hotels, resorts, apartelles, tourist inns, motels, pension houses and homestay operators, tourism estate management, restaurants, shops, sports and recreational centers, spas, museums and galleries, theme parks, convention centers and zoos

Primary Tourism Enterprises Travel and Tour Services Tourist Transport (land, air sea) Accommodation Establishments Convention and Exhibition Organizers Tourism Estate Management Services Other enterprises as may be identified by the Secretary

Secondary Tourism Enterprises Refers to all other tourism enterprises not covered by the preceding subsection

Thank you!