Objectives of the National Tourism Policy
- Formulation and implementation of a national tourism action plan.
- Promotion of tourism awareness and cultural preservation.
- Preferential employment for Filipinos in tourism-related enterprises.
- Provision of government assistance and investment incentives.
- Monitoring against profiteering and exploitation in tourism.
- Promotion of competition, consumer choice, and data-driven planning.
- Environmental and cultural conservation and community involvement.
- Enhancement of transportation policies and international business relations.
- Creation and funding of Tourism Enterprise Zones (TEZs).
Definition of Key Terms
- Definitions cover organizational entities such as the Department of Tourism, attached agencies like TIEZA, TEZ operators, tourism enterprises, and others.
- Terms define distinctions between primary and secondary tourism enterprises, Greenfield and Brownfield Tourism Zones, and sustainable tourism development.
Department of Tourism Mandate and Structure
- The Department of Tourism is the primary government agency for tourism policy formulation, implementation, and regulation.
- It has powers including supervision of tourism policies, coordination with government agencies, representation in international fora, and enforcement of standards.
- The Department includes offices for product development, planning, manpower development, standards and regulations, coordination, and resource generation.
- Regional and foreign offices assist in implementation and tourism promotion.
Attached Agencies and Rationalization
- Agencies such as TIEZA, TPB, DFPC, IA, NPDC, NPF, PRA, and PCSSD are attached to the Department for policy coordination.
- Reorganization merges functions from previous bodies to enhance efficiency.
- Personnel reassignment and optional retirement provisions are included in reorganizational transitions.
Control and Supervision of Overlapping Jurisdictions
- Tourism areas under other laws should be organized into TEZs.
- Transfer of control to other agencies or LGUs may occur after approved development plans.
- The Department maintains supervisory powers and may rescind control upon failures.
- Coordination with DENR on ecotourism and cultural heritage areas including NIPAS.
- Integration with infrastructure development by relevant government agencies.
Shared Responsibilities Between National and Local Governments
- Coordination between the Department, DILG, and LGUs for integrated tourism planning and implementation.
- LGUs encouraged to prepare tourism development plans aligned with national policies.
- LGUs report on tourism resources and monitor tourism enterprises.
- Accreditation of primary tourism enterprises is mandatory; secondary enterprises are voluntary.
- The Department and LGUs enforce compliance and manage accreditation.
- Tourism officers and assistance centers to be established in areas with significant tourism.
Tourism Promotions Board (TPB)
- A corporate body attached to the Department to market the Philippines domestically and internationally.
- Responsible for promoting tourism products and destinations, including convention marketing.
- Governed by a Board of Directors comprising government officials and industry representatives.
- Powers include planning, contracting, fundraising, and cooperation with private and international bodies.
- Funded through a Tourism Promotions Trust and specifically earmarked government contributions.
Tourism Enterprise Zones (TEZs) and Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
- TEZs are designated tourism areas with strategic development potential, managed by TEZ operators.
- TEZ designation requires comprehensive development plans focusing on sustainability.
- TIEZA is the supervisory body managing TEZs and tourism infrastructure projects.
- TIEZA has powers to grant incentives, regulate TEZ operators, coordinate with various agencies, and undertake infrastructure projects.
- Funding for TIEZA includes travel tax proceeds and income from projects.
- TIEZA and its Board have powers of a corporation, with specific functions related to tourism development.
Incentives for TEZ Operators and Registered Tourism Enterprises
- Fiscal incentives include income tax holidays (up to 6 years, extendable), gross income taxation at 5%, tax and duty exemptions on capital investments and goods, and social responsibility deductions.
- Non-fiscal incentives include employment of foreign nationals in key positions, special investor visas, rights to repatriate investments and earnings, no requisition of property except in emergencies, and lease rights on land.
- Tourism enterprises outside TEZs may avail incentives under existing laws, with certain provisions for expansions and upgrades.
Duty-Free Philippines Corporation (DFPC)
- Reorganized from Duty Free Philippines and attached to the Department.
- Operates the tax- and duty-free merchandising system to support tourism and generate revenue.
- Exclusive authority to operate duty-free stores in airports, seaports, TEZs, and authorized locations.
- Exempt from local taxes, duties, and corporate income tax.
- Governed by a Board of Directors including government officials and industry representatives.
Tourist Access and Visa Policies
- Development of inter-modal systems to enhance domestic and international tourist access.
- Secretary of Tourism holds ex officio positions in aviation and port governance to facilitate tourism.
- Coordination among the Department of Tourism, DFA, and DOJ to develop visa systems encouraging tourist arrivals and longer stays.
Creating a Culture of Tourism
- Establishment of a Tourism Coordinating Council with multiple government agencies and private sector representation.
- Development of education programs integrating tourism concepts in formal and non-formal settings.
- Establishment of a Tourism Security Force under the Philippine National Police to maintain order in tourist areas.
- Promotion of microfinance schemes through government banks to support grassroots tourism enterprises.
Legal and Administrative Provisions
- Provisions for no injunctions against TIEZA except by the Supreme Court.
- Creation of a Joint Congressional Oversight Committee to monitor implementation.
- Formation of a Tourism Congress as a consultative private sector body.
- Personnel exemptions from Salary Standardization Law, budgetary approval processes, and transitional provisions for agency reorganizations.
- Repealing of inconsistent laws and provision for separability and effectivity.
This comprehensive act articulates a detailed national framework for tourism development, governance, promotion, enterprise zones, incentives, and cultural advancement to boost the Philippines as a premier tourism destination while ensuring sustainability and inclusive growth.