Tourism Act Of 2009 - Creba.ph

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Tourism Act of 2009By: Oscar P. PalabyabUndersecretaryDepartment of Tourism

R.A. 9594TOURISM ACT OF 2009 R.A. 9593 was approved by the President on May12, 2009 and was published in the Official Gazetteon July 13,2009. Approved by Congress as SENATEBILL 2213/HOUSE BILL 5229, entitled: “AN ACT DECLARING A NATIONAL POLICY FORTOURISM AS AN ENGINE OF INVESTMENT,EMPLOYMENT, GROWTH AND NATIONALDEVELOPMENT AND STRENGTHENING THE DOT, ITSATTACHED AGENCIES, TO EFFECTIVELY IMPLEMENTTHAT POLICY ”

R.A. 9594TOURISM ACT OF 2009 DECLARED POLICY: Tourism is an indispensableelement of the national economy and an industryof national interest and importance; harnessed asan engine of socio-economic growth/culturalaffirmation, to generate investment, foreignexchange, employment and to mold national pride

DEPARTMENT OF TOURISM Primary planning, programming,coordinating and implementing/regulatoryagency in the development and promotionof the tourism industry

ATTACHED AGENCIESPTA and PCVC are abolished. PTA is reorganized intoTOURISM INFRASTRUCTURE AND ENTERPRISE ZONEAUTHORITY (TIEZA) while the PCVC is now theTOURISM PROMOTIONS BOARD Duty Free Philippines Corporation Intramuros Administration National Parks Development Committee Philippine Retirement Authority Philippine Commission on Sports Scuba Diving

TOURISM PROMOTIONS BOARD TOURISM PROMOTIONS BOARD – To replacethe PCVC. To formulate and implement anintegrated domestic and internationalpromotions and marketing program, marketthe Philippines as a major conventiondestination, ensure regular advertisementabroad

COMPOSITION OF THE T.P.B. BOARD OF DIRECTORS: DOT Secretary – ChairpersonTPB COO, Vice chairTIEZA COODFA SecretaryDTI SecretaryDOTC Secretary

COMPOSITION OF THE T.P.B. Five representative directors appointedby the President, upon recommendationof the Tourism Congress from the followingsectors: Accommodation Travel services Land/air/sea transport services Conventions and exhibitions services Others

FUNDS FOR THE T.P.B. Earnings from promotions trust fund National government appropriation (annual) notless 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 PAGCORremittance At least 25% of the NG share in the remittances fromairports/seaports Special contingency fund- 10% of the allocation forpromotions shall be set aside for emergencies

FUNDS FOR THE T.P.B. Promotions and marketing shall have not less than50% of the Fund and not more than 10% shall beused for administrative and operating expenses. Theunallocated portion shall be used for: TEZ development DOT programs for development planning, heritagepreservation, infrastructure development, manpowertraining

TOURISM INFRASTRUCTURE AND ENTERPRIZEZONE AUTHORITY To replace the PTA, a body corporate, to regulate and supervise TEZsas well as develop, manage and supervise tourism infrastructureprojects in the country. BOARD OF DIRECTORS DOT Secretary - Chair TIEZA COO, - Vice Chair TPBA COO DPWH Secretary DENR Secretary DILG Secretary

TOURISM INFRASTRUCTURE AND ENTERPRIZEZONE AUTHORITY Five representatives to be appointed by thePresident upon recommendation of the TourismCongress from the following groups: Tourism estate development and management servicesAccommodation enterprisesAir, sea and land transportation servicesTravel and tour enterprisesOthers

FUNDING FOR TIEZA Authorized capital P250,000,000 fully subscribed by thegovernment Funding: 50% of the proceeds of travel taxes Reasonable share from the collections of the Office ofResource Generation Income from TIEZA projects Subsidies or grants At least 5% from the travel tax collection in the TIEZA shareshall be earmarked for historic, cultural, religious and heritagesites and prime tourist destination

INCENTIVESTIEZA shall have sole and exclusive jurisdiction to grant incentives to TEZlocators FISCAL INCENTIVES Income tax holiday for 6 years Gross Income Taxation of 5% Capital Investment and equipment, 100% of all taxes and customsduties Importation of transportation and spare parts for new andexpanding registered enterprises Importation of goods actually consumed Tax deduction not more than 50% of the cost of environmentalprotection or cultural heritage preservation activities

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

DUTY FREE PHILS. CORP. A corporate body to operate duty free merchandising in thePhilippines 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 uponrecommendation of the Tourism Congress Authorized Capital is P500 Million Exempt from duties and taxes including excise taxes and VAT, localtaxes and fees imposed by LGUs, corporate income tax

AREAS WITH OVERLAPPING JURISDICTION All existing tourism areas under generalor special laws shall be organized intoTourism Enterprise Zones (TEZ), control maybe delegated to LGU/any other agencyunder DOT supervision

OTHER FEATURES Increase tourist access. Development of intermodalinternational and domestic, land, sea and air accesssystem The DOT Secretary shall be: Ex Officio Vice Chair person of the CAB Ex Officio Vice Chairperson of all boards of internationalairports May appoint a representative to the board of seaportauthorities Secretary shall be a member of the CAAP

TOURISM INFRASTRUCTURE AND DEVELOPMENTPROGRAM DOT shall coordinate with the DPWH and DOTC in the establishment ofa tourism infrastructure program which will enjoy priority funding DOT, DILG and LGU’s shall integrate, coordinate local and nationaltourism plans and choose priority areas for assistance and promotion DOT, TPB, TIEZA to prioritize promotion and assistance to LGU’sadopting tourism development plans LGU’s shall prepare local tourism development plans, land use,infrastructure development & national standards for tourismenterprises

MANDATORY ACCREDITATION DOT shall prescribe and regulate standards for theoperation of tourism business. Primary tourismenterprises shall be required to periodically obtainaccreditation Accreditation for Secondary tourism Enterprises shallbe voluntary

LOCAL TOURISM DEVELOPMENT PLANS/TOURISM OFFICERS LGU’s shall prepare local tourism developmentplans, land use, infrastructure development andstandards for tourism enterprises Every province, city or municipality which has asignificant tourism industry shall have a permanentposition for a tourism officer and must also establisha tourist information and assistance center

OTHER FEATURES TOURISM COORDINATING COUNCIL – to prepare a five yearstrategic plan to develop and enhance the culture of tourism,approve an annual infrastructure development plan to promoteaccess to airports and seaports, TEZs and destinations. This is aninter-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 recognizedI.P. Regional Tourism Councils shall classify/evaluate tourismdestinations/sites/activities, as guide fordevelopment/implementation of programs

OTHER FEATURESPNP to create a Tourism Security Force within areas of high tourismtraffic MICRO FINANCE FACILITIES – government owned and controlledbanks and gfi’s shall provide micro finance schemes for tourismsme’sJOINT CONGRESSIONAL OVERSIGHT COMMITTEE – for aperiod of ten yearsThe Secretary is required to submit monthly reports on statistics anda quarterly report on the implementation of the act

OTHER FEATURES TOURISM CONGRESS – Within 30 days from thepromulgation of the I.R.R., the Secretary shall convene aTourism Congress of representatives of all accreditedtourism enterprises and former government officialsinvolved in the industry, as a consultative body RULES AND REGULATIONS – Within 90 days from effectivityof the law, the Secretary, upon consultation withstakeholders, promulgate the implementing rules andregulations of the Act

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PTA and PCVC are abolished. PTA is reorganized into TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY . a tourism infrastructure program which will enjoy priority funding . PNP, BI, NHI, NCCC, PAGCOR, LGU Leagues, representative from the Tourism Congress, Acc