QuestionsQuestions (DENR ADMINISTRATIVE ORDER NO. 2004-28)
The policy is to promote, encourage, and develop tourism as a major national activity fostered by private initiative, while ensuring sustainable development and equitable access to forestlands/resources. The objectives include: developing forestlands into productive uses consistent with sustainability; providing economic opportunities to local communities and stakeholders; ensuring equitable government share; and optimizing forestlands through sustainable management so tourism benefits continue without impairing environmental and economic values.
Community-Based Ecotourism is encouraged, but use of forestlands for such purpose will be covered by separate guidelines. DAO 2004-28 generally applies to tourism use of forestlands under its stated framework.
FLAgT is a contract between DENR and a qualified natural or juridical person authorizing the latter to occupy, manage, and develop forestlands of the public domain for tourism purposes, subject to government share, for 25 years, renewable for the same period upon mutual agreement. It covers special forest landuses such as Bathing Establishment, Campsite, Ecotourism Destination, Hotel Site (with related resort facilities), and Other Tourism Purposes.
Maximum areas are: Bathing Establishment—24 has; Camp Site—5 has; Ecotourism—24 has; Hotel Site (including related resort facilities)—10 has; Other Tourism Purposes—10 has. If a project needs a larger area for required landscape features, approval by the Secretary is required.
The FLAgT has a maximum duration of 25 years and is renewable for the same period upon mutual agreement by both parties.
Qualified applicants are: (1) Filipino citizens of legal age; and (2) juridical persons such as an association, corporation, cooperative, or partnership where at least 60% of the capital is owned by Filipino citizens and who are financially capable to develop the applied area for tourism purposes.
Available areas for FLAgT are awarded through competitive bidding.
The applicant must submit: (1) documents proving qualification to hold a forestland tenurial instrument (e.g., birth certificate/naturalization for individuals; SEC registration and articles/resolutions for corporations/partnerships; registration for associations/partnerships/cooperatives); (2) an Indicative Development Plan describing tourism development and financing strategies; and (3) for areas subject to specific laws or co-management, clearances/authorization from the appropriate governing authority.
CENRO identifies suitable areas using DENR maps, LGU CLUPs, and relevant references, verifying no pending/existing instruments. Technical description and preliminary maps go to the RED, which organizes a composite team to validate biophysical suitability and socio-economic considerations, including the presence/absence of valid land claims and occupants, and to conduct community consultations. The team outputs final metes and bounds (geo-referenced to PRS 92 at scale 1:20,000), LGU sanggunian endorsements, and indorsement to the RED for approval.
If within one barangay: Sangguniang Barangay endorses. If across multiple barangays: endorsement by Sangguniang Bayan/Sangguniang Panglunsod or all affected barangays. If across more than one municipal/city: endorsement by Sangguniang Panlalawigan or all affected Sangguniang Bayan concerned.
Applicants are invited via public announcement in two newspapers of general circulation for two consecutive weeks and through DENR and DOT websites, with posting at relevant offices, and the notice includes location/technical description. Requirements are submitted in five copies at the DENR RED office by the specified deadline. The FLAgTC evaluates within 10 working days from the submission deadline based on completeness and the indicative plan plus proof of available capital/credit line and a certificate of undertaking. Prequalified bidders are required to submit bid proposals on the scheduled date/place.
The area is awarded to the bidder offering the highest entry fee, subject to the rules’ minimum entry fee and provisions for equal bids (another sealed bidding among equal bidders).
Minimum entry fee depends on area size: (a) 0.5 ha and below—PHP 25,000; (b) 0.51 ha to 0.99 ha—PHP 50,000; (c) 1.0 ha to 5.0 ha—PHP 100,000; (d) over 5.0 ha—PHP 150,000.
The award is nullified and the bidder’s bond is forfeited in favor of the government. The second highest complying bidder may be considered if the offer is at least 75% of the highest bidder offer but not lower than the minimum entry fee. The same rule applies sequentially to the third highest bidder if needed.
Within 6 months: delineate and mark boundaries/zones and preserve boundary monuments/landmarks. Within 3 months: submit Site Management Plan (SMP) for environmental protection/conservation, accompanied by a performance bond. Before conducting any activity: immediately secure the required ECC and other necessary permits.
Suspension grounds include: failure to settle administrative dues including government share after three consecutive notices; failure to provide necessary protection; occupying a larger/different area than covered; allowing unauthorized persons or using the area for purposes other than specified. Cancellation grounds include: privilege obtained through fraud/misrepresentation/omission of material facts; abandonment or failure to exercise privilege within 6 months without justifiable cause; failure to introduce improvements within the prescribed period; and repeated violations of suspension-type violations.
Government share is 5% of the most recent zonal value of the commercial zone within the barangay or nearest/adjacent barangay within the municipality; revaluation is every 5 years. It must be paid within 30 days upon issuance and annually thereafter within the same month of issuance. Late payment incurs surcharges of 8.33% monthly or 100% for one year.