QuestionsQuestions (Republic Act No. 1084)
The Act is known as the “Tourism Act of 2009.” It declares tourism as an indispensable element of the national economy and an industry of national interest that should be harnessed as an engine of socioeconomic growth and cultural affirmation, generating investment, foreign exchange, employment, and national pride.
The objectives include: adopting and implementing a national tourism action plan; promoting tourism awareness and heritage; giving preferential treatment to Filipino employment; providing government assistance/incentives and financing schemes; preventing profiteering/speculation harmful to locals and exploitation of women and children; enhancing competitiveness and consumer choice; improving data collection on tourism’s economic/social impact; ensuring ecological balance; ensuring community participatory and culturally sensitive sustainable tourism; strengthening tourism councils/NGOs/POs/private sector participation; promoting transport and convention-handling capability; balancing urban-rural tourism benefits and poverty alleviation; building LGU capability; maintaining international standards and safety for tourists; enabling partnerships with foreign/local investors; and ensuring sustainable funding for tourism policies and projects.
The DOT is the primary planning, programming, coordinating, implementing and regulatory government agency for both domestic and international tourism development and promotion, coordinating with attached agencies and other government instrumentalities.
Among others, the DOT: formulates tourism policies/plans/projects; supervises and coordinates implementation; communicates impacts of government actions to tourism; represents the government in conferences and international agreements on tourism; facilitates visas/travel regulations (coordination with agencies); supports protection/preservation of heritage (historical, cultural, natural); issues timely travel safety advisories; evaluates tourism projects for permits/incentives; formulates and promulgates rules/standards for licensing, accreditation and classification of tourism enterprises; monitors LGU compliance; ensures coordination and integration of local tourism plans with national priorities; provides technical assistance to LGUs; undertakes research and maintains a tourism databank; delegates certain powers to regional offices; collects fees and charges; and performs other necessary powers for implementation.
The Department has the Department Proper, offices/services/units, and regional/foreign offices. The Secretary is assisted by at least three Undersecretaries: (1) Undersecretary for Tourism Development (product development, tourism planning/research/information management, and industry manpower development); (2) Undersecretary for Tourism Regulation, Coordination and Resource Generation (tourism standards/regulations, coordination, resource generation, and regional/foreign offices); and (3) Undersecretary for Special Concerns and Administration (special concerns, financial/management, administrative affairs, legal affairs, internal audit, and legislative liaison).
It formulates/enforces standards for tourism enterprises; coordinates with industry associations on rules/accreditation/enforcement; establishes a mandatory accreditation system for primary tourism enterprises and a voluntary system for secondary tourism enterprises; sets up a registration/information linkage among accredited enterprises; evaluates tourism projects for incentives; and provides technical assistance to incentive-giving institutions.
Primary tourism enterprises include travel and tour services; transport services exclusively for tourist use (land/sea/air); accommodation establishments; convention/exhibition organizers; tourism estate management services; and other enterprises identified by the Secretary after consultation. Secondary tourism enterprises are all other tourism enterprises not covered by the primary category.
Primary enterprises must be periodically required to obtain accreditation from the Department as to quality/facility and services (mandatory). Secondary enterprises accreditation is voluntary. Only accredited enterprises generally become beneficiaries of DOT/attached agencies’ promotional and training programs, and the DOT may impose sanctions (fines, downgrade, suspend, or revoke) after notice and hearing.
After notice and hearing, the DOT may impose fines, downgrade, suspend, or revoke accreditation, and issue a tourism advisory. If the enterprise is registered with TIEZA and availed of incentives, it may also be ordered to pay back taxes equivalent to the difference between taxes it should have paid without incentives and the actual taxes paid under that incentive scheme, computed up to three years preceding the decision/order finding violation.
The Act creates a special fund called the Tourism Development Fund, administered by the DOT. It is sourced from fees and charges collected by the DOT for implementation of tourism policies/plans/programs/projects. Disbursement is subject to usual accounting and budgeting rules; a special account is established in the National Treasury.
Under supervision of the DOT Secretary and attached for program/policy coordination, TPB is a body corporate tasked to formulate and implement an integrated domestic and international promotions/marketing program to increase tourist arrivals and tourism investment, including marketing the Philippines as a major convention destination in Asia, and regularly advertising the country as a major tourism destination.
TPB has a Board of Directors that includes: the DOT Secretary (Chairperson), TPB Chief Operating Officer (Vice Chairperson), TIEZA Chief Operating Officer, DFA Secretary, DTI Secretary, DOTC Secretary, and five representative directors appointed by the President upon recommendation from the Tourism Congress. The Chairperson has voting rights in case of a tie.
Within 120 days from effectivity, COA audits PTA assets/liabilities. After audit, TIEZA and DOT (in coordination with the Privatization Council) determine assets for sale or lease, with LGUs having right of first refusal. Certain PTA heritage/cultural treasure assets are not disposed of and remain with TIEZA. Proceeds from sale or lease are used to establish the Tourism Promotions Trust, managed by a government-owned bank/financial institution selected by TPB.
It comes from: investment earnings of the Trust; annual national government appropriation (not less than P500M annually for at least five years after constitution); portions of DFPC net income; PAGCOR remittances to national treasury (at least 25% of national share remitted); and at least 25% of remittances from international airports and seaports. Promotions/marketing cannot be less than 50% of annual fund utilization; not more than 10% may be used for TPB administrative/operating expenses. Unallocated portion is earmarked for TEZ development, DOT programs (planning, heritage preservation, infrastructure, manpower training/scholarships), or other tourism development purposes.
A TEZ is a geographic area that is contiguous, has historical/cultural significance or environmental beauty or integrated leisure facilities, has strategic access and utilities, is sufficient in size for new tourism investments, and is located to catalyze neighboring community socioeconomic development. The application must include a development plan identifying tourism focal points/resources; features meeting TEZ requisites; infrastructure/investment/preservation areas and types of allowed development; medium/long-term market trends and strategies; economic impact studies; environmental/cultural/social carrying capacity studies; and structural design/sustainability principles. No TEZ designation without an approved development plan by TIEZA and LGU resolution.
Designation of a TEZ does not vest ownership of resources within it upon the TEZ operator. The operator may exercise rights allowed by existing laws in a manner consistent with the approved development plan if it has rights to land/resources. If rights are vested in private third parties, the operator should encourage their participation through tourism enterprise registration when appropriate and through incentives/services administration.