Objectives
- Development and implementation of a national tourism action plan.
- Promotion of tourism awareness, cultural preservation, and instilling tourism culture among the youth.
- Preference to Filipino nationals in tourism-related employment.
- Government assistance through investment incentives and financing for tourism investments.
- Protection against profiteering, exploitation, and promotion of ethical tourism.
- Encouragement of competition and consumer choice in the tourism industry.
- Enhanced data collection and analysis for tourism impact measurement.
- Environmental protection and sustainable tourism development involving local communities and indigenous peoples.
- Strengthening tourism councils and inter-agency coordination.
- Promotion of civil aviation and transportation standards aligned with bilateral agreements.
- Promotion of global convention capabilities.
- Balanced urban and rural tourism development to reduce regional disparities.
- Capacity building of local government units (LGUs) in tourism management.
- Maintenance of international quality standards in services and facilities, and promotion of safety.
- Encouragement of local and foreign partnerships for tourism projects.
- Support for tourism enterprise zones (TEZs) to coordinate public-private efforts.
- Establishment of sustainable funding mechanisms.
Definition of Terms
- Establishes definitions for key entities such as Department of Tourism, Tourism Infrastructure and Enterprise Zone Authority (TIEZA), Tourism Promotions Board (TPB), Duty Free Philippines Corporation (DFPC), and various tourism enterprises.
- Defines terms like primary and secondary tourism enterprises, TEZs (Greenfield and Brownfield), foreign visitors, sustainable tourism development.
Department of Tourism (DOT) Structure and Functions
- DOT is the primary government agency for tourism development and promotion.
- It formulates and supervises tourism policies, coordinates inter-agency efforts, and represents the government in international tourism forums.
- Organizes its offices into Department Proper and regional and foreign offices.
- Office of Secretary includes Undersecretaries for Tourism Development, Regulation, Coordination, Resource Generation, and Special Concerns.
- Specialized offices include Product Development, Tourism Development Planning, Research and Information Management, Industry Manpower Development, Standards and Regulations, Coordination, Resource Generation, and others.
- Regional offices implement laws, coordinate tourism efforts, conduct studies, and provide tourism information centers.
- Foreign offices represent DOT abroad.
- Manages tourism development funds and ensures sustainable funding.
Attached Agencies and Rationalization
- Philippine Tourism Authority (PTA) reorganized as TIEZA.
- Philippine Conventions and Visitors Corporation (PCVC) reorganized as TPB.
- Duties and responsibilities consolidated to avoid redundancies.
- Other agencies attached for policy coordination include Intramuros Administration, National Parks Development Committee, Nayong Pilipino Foundation, Philippine Retirement Authority, Philippine Commission on Sports Scuba Diving.
Tourism Enterprise Zones (TEZs)
- TEZs are designated geographic areas with historical, cultural, environmental, or strategic significance for tourism.
- Designation requires an approved development plan and LGU resolution.
- TEZ operators administer zones; ownership rights are governed by law but do not vest exclusively to operators.
- LGUs retain autonomy.
- TEZs receive incentives and support developed infrastructure.
Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
- TIEZA is a body corporate under DOT supervision, responsible for designating, regulating, and supervising TEZs and tourism infrastructure projects.
- It has corporate powers including contracting, receiving grants, exercising eminent domain, and regulating TEZ operations.
- Funded through travel tax proceeds and income from projects.
- Exempt from corporate income tax.
- Includes a Board of Directors with government and private sector representatives.
Tourism Promotions Board (TPB)
- A corporate body under the Secretary of Tourism for marketing and promoting the Philippines as a global tourism destination.
- Focuses on large-scale events, conventions, and international advertisement.
- Governed by a Board of Directors including the DOT Secretary and representatives of tourism sectors.
- Authorized capital of Php 250 million.
- Responsible for comprehensive marketing plans and implementation.
- Funded by Tourism Promotions Fund and Tourism Promotions Trust.
- Exempt from corporate income tax.
Duty Free Philippines Corporation (DFPC)
- Successor to Duty Free Philippines, operating duty- and tax-free merchandising systems for tourists.
- Operates in international airports, seaports, TEZs, and points of entry.
- Generates foreign exchange, showcases Philippine culture, and competes globally.
- Managed by a Board of Directors including government and private representatives.
- Authorized capitalization of Php 500 million.
- Exempt from duties, local taxes, and corporate income tax.
Tourism Enterprise Incentives
- TEZ operators and registered tourism enterprises may receive:
- Income Tax Holiday up to 6 years, extendable in case of substantial expansion.
- Gross income tax of 5% in lieu of other taxes.
- Exemptions from duties and taxes on capital investments, equipment, and transportation.
- Tax credits on locally sourced goods and services.
- Tax deductions for social responsibility activities.
- Non-fiscal incentives include the employment of foreign nationals, investor visas, foreign currency transactions, repatriation rights, protection from requisition (except in emergencies), and land lease provisions.
- Tourism enterprises outside TEZs may avail incentives under existing investment laws upon compliance.
Tourism Governance and Coordination
- Establishes a Tourism Coordinating Council composed of key government agency heads and private sector representatives to coordinate national tourism development.
- Emphasizes cooperative planning between national and local governments.
- LGUs encouraged to prepare and implement local tourism plans integrating environmental and cultural considerations.
- Accreditation system for tourism enterprises to ensure quality and international competitiveness.
- Tourism officers are designated in LGUs with significant tourism activity.
- Tourism information and assistance centers to be established in provinces, cities, and municipalities.
Legal and Administrative Provisions
- No injunctions shall be issued against TIEZA except by the Supreme Court.
- Establishment of Joint Congressional Oversight Committee on Tourism for monitoring implementation.
- Creation of the Tourism Congress as a consultative body representing private tourism sectors.
- Personnel of TIEZA, TPB, and DFPC exempt from Salary Standardization Law; board members receive per diems but no salaries.
- Budget submissions and oversight mechanisms specified.
- Enactment, repeal, separability, and transitory provisions detailed.
Increased Tourist Access and Peace and Order
- Development of inter-modal international and domestic travel systems coordinated by DOT.
- Secretary of Tourism holds ex officio positions in civil aviation and port authorities.
- Streamlined and efficient visa issuance to encourage tourist arrivals and prolonged stays.
- Establishment of Tourism Security Force and tourist police assistance desks to maintain peace and order.
Education and Culture of Tourism
- Partnership with Department of Education and Commission on Higher Education to integrate tourism culture in education.
- Training programs for tourism entrepreneurs and industry manpower development.
Funding and Financial Provisions
- Creation of Tourism Development Fund and Tourism Promotions Fund for infrastructure, promotion, and development.
- Funding through travel tax collections, proceeds from asset sales, government appropriations, and shares of government-owned enterprises.
- Special contingency fund set aside for emergency marketing needs.
This comprehensive framework ensures the strategic development, promotion, and regulation of Philippine tourism in alignment with national economic goals, environmental sustainability, cultural preservation, and community welfare.