Highlights of the 2009 Tourism Act: Roles and Functions of DOT Pursuant to RA 9593

1. Highlights of the 2009 Tourism Act: Roles and Functions of DOT Pursuant to RA 9593

2. R.A. 9593TOURISM 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…” • The IRR was signed on November 10, 2009 and published on November 12, 2009

3. R.A. 9593TOURISM 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

4. DEPARTMENT OF TOURISM • Primary planning, programming, coordinating and implementing/regulatory agency in the development and promotion of the tourism industry

5. DOT STRUCTURE Department Proper – Secretary, Undersecretaries (3) and Assistant 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)

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

7. ATTACHED AGENCIES 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

8. TOURISM PROMOTIONS BOARD • 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

9. COMPOSITION OF THE T.P.B. • BOARD OF DIRECTORS: • DOT Secretary – Chairperson • TPB COO, Vice chair • TIEZA COO • DFA Secretary • DTI Secretary • DOTC Secretary

10. 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

11. 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

12. 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

13. TOURISM INFRASTRUCTURE AND ENTERPRIZE ZONE AUTHORITY • TIEZA - a corporate body, 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

14. 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

15. 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

16. 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

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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. Relevant Functions of Regional Offices under the Tourism Act of 2009 “Sec 6, Powers and Functions – x x x Monitor conditions of any community in the Philippines and, in consultation with the LGU’s and law enforcers, issue timely advisories on the safety or viability of travel to particular places within the Philippines and on patronage of entities engaged in tourism-related activities and of tourism products; (l) Formulate and promulgate, in consultation with the LGU’s, the private sector industries and other tourism stakeholders, rules and regulations governing the operation and activities of all tourism enterprises including but not limited to, a national standard for

27. Relevant Functions of Regional Offices under the Tourism Act of 2009 “Sec 6, Powers and Functions – x x x licensing, accreditation and classification of tourism enterprises, prescribing therein minimum levels of operating quality and efficiency for their operation in accordance with recognized international standards, impose reasonable penalties for violation of accreditation policies and recommend to the LGU’s concerned the suspension or prohibition of operation of a tourism enterprise; (m) Monitor the LGU’s compliance to national standards in the licensing of tourism enterprises, receive and investigate complaints concerning these enterprises, and act on such complaints to properly implement the provisions of this Act;

28. Relevant Functions of Regional Offices under the Tourism Act of 2009 “Sec 6, Powers and Functions – x x x (n) Ensure proper coordination, integration, prioritization and implementation of local tourism development plans with that of the national government; (o)Provide technical assistance to LGU’s in destination development, standard setting and regulatory enforcement; (q)Delegate to regional offices, in coordination with LGU’s specific powers and functions in the implementation of tourism policies, plans and projects;

29. Relevant Functions of Regional Offices under the Tourism Act of 2009 “Sec 6, Powers and Functions – x x x (r)Collect necessary fees and charges for the proper implementation of tourism policies, plans and projects; (s)Other powers

30. Relevant Functions of Regional Offices under the Tourism Act of 2009 “Sec 17, Powers and Functions – x x x (1.) Implement laws, policies, plans, programs, rules & regulations (2.) Coordinate with other line agencies (3.) Research & data gathering on local tourism trends (4.) Establish tourist information assistance centers with LGU’s (5.) Trainings, information campaign and assist TPB in domestic promotions (6.) Recommend to Secretary

31. THANK YOU!