s . No. 2213 H. No 522 Q 2l\Bpuhlic: of f1p~ 1~U!tltppines QI.an~Jr.£5$ D f flp~ ~tlippin£g (p1Rrfm J ll R a n ill! Begun and held in Metr o Manila, on Monday, the twenty-eighth day of Ju ly, two th ou sand ei gh t. -~ [ REPUBLIC AC T No. 9593 ) AN ACT DECLARING A NATIONAL POLlCY FOR TOUruSM AS AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT, AND ST RENGHIENING THE DEPARTMENT OF TOURISM AND ITS ATTACHED AGEl\lCIE S TO EFfECTI VELY AND EFFICIENTLY lNlPLEM£NT TH AT PO UC Y, A ND A PPR OPF JATIN G FUNDS THEREFOR Be if enacted by the Senate and House oj Representatives of [he Philippines in Congress assembled: CHAPTER I GENERAL PROVISIONS SECTION 1. Short Title. ~ This Act shall be known as "The Tourism. Act of 2009".
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SEC. 2. Declaration of Policy. - The State declarestourism as an indispensable element of the national economyand an industry of national interest and importance, whichmust be harnessed as an engine of socioeconomic growth andcultural affirmation to generate investment, foreign exchangeand employment, and to continue to mold an enhanced senseof national pride for all Filipinos.
Towards this end, the State shall seek to:
(a) Ensure the development of Philippine tourism that
is for and by the Filipino people, conserve and promote theirheritage. national identity and sense of unity;
(b) Recognize sustainable tourism development as integralto the national socioeconomic development efforts to improvethe quality of life of the Filipino people, providing theappropriate attention and support for the growth of thisindustry;
(c) Promot.e a tourism industry that is ecologicaJlysustainable, responsible. participative. culturally sensitive,economically viable, and ethically and socially equitable forlocal communities;
(d) Create a favorable image of the Philippines withinthe international comrn unity, thereby strengthening thecountry's attraction as a tourism destination and eventuallypaving the way for other benefits that may result from apositive global view of the country;
(e) Develop the country as a prime tourist. hub InAsia,as well as a center of world congresses and conventions, bypromoting sustainable tourism anchored principally on thecountry's history. culture and natural endowments, and.ensuring the protection, preservation and promotion of theseresources; and
(f) Encourage private sector participation and agri-tourism for countryside development and preservation of rurallife.
SEC. 3. Objectives. - - Pursuant to the above dedarat
the State shall adopt the following objectives:
(a) Develop a national tourism action plan and worits adoption and implementation by national and
governments;
(b) Encourage activities and programs which protourism awareness, preserve the country's diverse culturesheritage, and instill a sense of history and a culture of tou
among the youth and the populace;
(c) All things being equal, grant preferential treatmto the employment of Filipino nationals in tourism-rela
enterprises;
(d) Provi.de full government assistance by wacompetitive investment incentives, long-term developmentand other financing schemes extended to tourism-rela
investments;
(e) Ensure that tourism development protects
promotes the general well-being of the Fi lip ino peparticularly in the area of investment, to includemonitoring and prevention of any act of profiteeringspeculation to the detriment of local residents. as well aexploitation of women and children m tnu r rsm ;
(f) Encourage competition in the tourism industrymaximize consumer choice by enhancing the contin
viability of the retail travel industry and independent
operation industry;
(g) Enhance the collection, analysis a~d dissemina~id.ata which accurately measure the econormc and sOClallil
of tourism in the country to facilitate planning in the p
and private sectors;
(h) Ensure the right of the people to a bal~ncedhealthful ecology through the promotion of activities gtowards environmental protection, conservation and restor
(b) Formulate po licie s and programs for globalcompetitiveness and national tourism development, and approvelocal government tourism development plans;
SEC. 13. Office of indus-try Manpower DevelopmenThe Office of Industry Manpower Development shall havefollowing functions:
(c) Monitor and evaluate the implementation of policies,plans and programs of the Department; (a) Conduct seminars on Philippine history, cul
environment and related subjects, in coordinationappropriate government agencies and the private sespecifically educational institutions;
(d) Formulate an integrated marketing and promotionsplan, identifying strategic market areas and niches;
(e) Formulate, in coordination with the TIEZA, othergovernment agencies and LGUs exercising political jurisdiction
over the area, development plans for TEZs and integratingsuch plans with other sector plans for the area;
(b) Develop training modules and conduct seminarscontinuing education programs for the industry manpowe
coordination with appropriate government agencies and touenterprises and associations, thereby upgrading their quacompetence and excellence in tourism services;
(f) Conduct researches and studies, disseminate allrelevant data on tourism, monitor and analyze thesocioeconomic impact of tounsm upon affected localcommunities and the nation to maximize the benefits oftourism throughout affected local communities and to avoid-ormitigate possible negative impacts of the industry;
(c) Encourage the development of training coursesapprenticeship programs for tourist guides and other sim
workers jointly with concerned tourism enterprises, appropgovernmerit agencies and the private sector; and
(g) Provide technical assistance to the LG Us and theTIEZA in the preparation of local tourism development plansto ensure adherence to national policies and programs;
(d) Enlist the participation of experts for the provisiotechnical assistance, tra ining and education programs to L
tourism enterprises and other entities to improve the qu
of tourism services and issue certifications to the effectthese recipients of assistance, training and educationpassed the standards set by the said experts, in accordawith this Act,
(h) Coordinate with government agencies, LGUs, NGOsand other private entities for th e development andimplementation of the national tourism plans and policies andother relevant concerns; SEC. 14_ Office of Tourism Standards and Regulctio
Recognizing the need for internationally competitstandards of facilities and services, the Office of TouStandards and Regulations shall have the following functi
(i) Source grants or loans from local and foreign fundingiristitutions to implement tourism policies, plans and projects;
G ) Create and supervise management information systemsfor the entire Department;
(a) Formulate and enforce standards for the operaand mamtenance of tourism enterprises, prescribing minimand progressive levels of operating quality and efficieconsistent with local and international standards;I< ) Formulate and coordinate the implementation of the
Department's information system strategic plan; and(b) Coordinate with relevant tourism enterpri
associations, including adventure sports associations, lD
formulation of rules and regulations, accreditationenforcement;
(1) Pursue the Department's interests in multilateral,international and regional tourism cooperation, agreements andtreaties
under existing laws governing the civil service or other laws
and issuances, whichever may be beneficial to the employee
concerned.
SUBCHAPTER ll-C. ATTACHED AGENCIES AND CORPORATIONS
SEC. 31. Philippine Commission on Sports Scuba D- The Philippine Commission on Sports Scuba DIVmg
likewise be attached to the Department and placed under
supervision of the Secretary, who shall be the ex oChairperson of its Board of Trustees. It shall undert
measures to provide the standard basic dive rules to
levels or kinds of divers, regulate scuba sports
technical diving in the country and ensure the s
of the sport through the formulation of policies pursu
thereto in coordination with the Office of Tounsm Stand
and Regulations, including the regulation of the accred
scuba sports and technical diving establishments.
SEC. 28. Attached Agencies and Corporations. - The
TPB, the TIEZA and the DFPC shall be attached to the
Department and shall he under the supervision of the Secretary
for program and policy coordination. Furthermore, the
following agencies and corporations shall be attached to the
Department under the supervision of the Secretary for program
and policy coordination: the LA ; the National ParksDevelopment Committee (NPDC), created under Executive
Order No. 30 (1963); the Nayong Pilipino Foundation (NPF),
created under Presidential Decree No. 37 (1972), as amended;
the PRA; and the Philippine Commission on Sports Scuba
Diving (PCSSD). Except as hereinafter provided, each of the
attached agencies and corporations shall continue to operate
under their respective charters.
SUBCHAPTER II-D. CONTROL AND SUPERVISION OF
AREAS \vITI·j OVERLAPPING JURISDICTIONS
SEC. 29. Intramuros Adrninistration, National ParksDeuelopment Committee and Nayong Filipino Foundation. -The Intramuros Administration, the National Parks
Development Committee and the Nayong Pilipino Foundation
shall continue to be attached to the Department and operate
under their respective charters. They may be authorized to
operate TEZs, under the supervision of the TIEZA, as provided
under Chapters IV and V of this Act, within their respective
jurisdictions: Provided, That any restoration activity
undertaken by the IA, the NPDC or the NPF may be entitledto a tax deduction equivalent to the fuJl cost of the restoration
activity directly incurred in accordance with the provisions of
the National Internal Revenue Code, as amended.
SEC. 32. Rotionalizaiion of Tourism Areas, ZonesSpots. - Any other area specifically defined as a tourism
zone or spot under any special or general law, decre
presidential issuance shall, as far as practicable, be organ
into a TEZ under the provisions of this Act. WIth respec
tourism zones, areas or spots not organized into TEZs,
Department, through appropriate arrangements, may tran
control over the same or portions thereof, to another ag
or office of the government, or to a LGU. This shall on
effected upon the submission by the latter, within a reason
time, of comprehensive development plans for the
preservation and promotion of these zones, areas, or spots
upon the approval thereof by the Department. Such tran
shall not have the effect of diminishing the ]urisdiction o
Department over these zones, areas or spots.
SEC. 30. Philippine Retirement Authority, - For purposes
of policy and program coordination, the Philippine Retirement
Authority is hereby attached to the Department and placed
under the supervision of the Secretary. The Secretary shall
be the ex officio Chairperson of its Board of Trustees:
Provided; That this provision shall apply after the expiration
of the term of office of the incumbent Chairperson.
The Department shall exercise supervisory powers
such agency, office or LGU in accordance with the term
the transfer or the development plan of the zone, area or
Where a government agency or office or a LGU fail
implement the comprehensive plan approved by
Department, the Department may rescind the arrangem
transferring control over the tourism zone, area or spot
SEC. 33. National Integrated Protected Areas System(NIPAS) a.nd the National Ecotourism Policy. - The
Department, in coordination with the Department of
Environment and Natural Resources (DENR), shall identify
areas covered by the NIPAS with ecotourism potentials and
cultural heritage value, and prepare policies, plans and
programs for their development, preservation, operation or
conversion into TEZs. The designation of these areas as TEZs
shall be subject to the provisions of Subchapter IV-A of this
Act.
monitoring of their tourism development plans, gathering
statistical data, and enforcement of tourism laws
regulations, giving due priority to areas that have b
identified as strategic in the implementation of the natio
tourism development plan. LGUs shall ensure
implementation of such plans. The Department, the TPB
the TrEZA shall prioritize promotion and developmen
assistance for LGUs which successfully adopt and implem
their tourism development plans.
SEC. 36. National Tourism Development Planning. -Department, in coordination wit.h its attached agencies, L
and the private sector, shall continuously update the exisnational tourism development plan in view of evolving ne
and capabilities of LGUs and the domestic and global tour
market.
The ecotourism sites in the National Ecotourism Strategypursuant to Executive Order No. 111 (1999) may also be
developed into TEZs with the National Ecotourism Steering
Committee responsible for finding the appropriate TEZ operator
for the sites.
SEC. 34. Tourism Infrastructure Program. - The
Department, in accordance with the National To urism
Development Plan and local government initiatives, shall
coordinate with the Department of Public Works and Highways
(DPWH) and the Department of Transportation and
Communications (DOTe) in the establishment of a tourism
infrastructure program in the respective work programs of
said agencies, identifying therein vital access roads, airports,
seaports and other infrastructure requirement in Identified
tourism areas. The said agencies and the Department of
Budget and Management (DBM) shall. accord priority status
to the funding of this tourism infrastructure program.
SEC. 37. Local Tourism Deuelopment Planning. - LG
in consultation with stakeholders, are encouraged to uti
their powers under Republic Act No. 7160, otherwise kn
as the Local Government Code of 1991, to ensure
preparation and implementation of a tourism development p
the enforcement of standards and the collection of statist
data for tourism purposes. They shall, insofar as practicab
prepare local tourism development plans that integrate zon
land use, infrastructure development, the national system
standards for tourism enterprises, heritage and environmen
protection imp e r at.i ve s in a manner that encourage
sustainable tourism development.
SUBCHAPTER II-E. SH AR ED R ESP ON SIB ILITIES O F N AT IO NA L
A ND L OC AL G OV ER NM EN TS
SEC. 38. Reports. - In order to monitor the resour
of the Department and to ascertain the economic and s
impact of tourism, all LGUs shall provide an inventory o
the resources available to the Department for use in
implementation of this Act. They shan likewise periodica
report to the Department on the status of tourism plans
programs, tourist arrivals and tourism enterpnses, am
others, within their jurisdictions.
SEC. 35. Coordination Between National and LocalGouernmenis. - In view of the urgent need to develop anational strategy for tourism development while giving due
regard to the principle of local autonomy, the Department, the
Department. of the Interior and Local Government (DILG) and
LGUs shall integrate and coordinate local and national plans
for tourism. development. The Department may provide financial
and technical assistance, training and other capacity-building
measures to LGUs for the preparation, implementation and
SEC. 39. Accreditation. - In order to encourage g
competitiveness, strengthen data gathering and research
tourism, and facilitate the promoti.on of individual enterpr
and the Industry as a whole, the Departm.ent shall presc
(g) Take such emergency measures as may be necessaryto avoid fires, floods and mitigate the effects of storms andother natural or public calamities;
Amounts to be collected by the TIEZA shall be distrib111 the manner provided for under this Act: Prouided,the national government shall look for alternative funsources for programs funded by the travel tax in theof a phase out of travel tax collection following internatio
agreements.h) Recommend to the TIEZA Board all necessary actsto properly supervise the operations of TEZ operators;
(i) Coordinate with the TPB for the promotion of tourismand the encouragement of investments in TEZs; and
Pursuant to Section 72 of this Act, fifty percentof the proceeds from travel tax collections shall accrue t
TIEZA.
(j) Exercise such other powers and functions as arenecessary to the implementation of this Act.
The government's contribution to the Higher Educa
Development Fund, equivalent to forty percent (40%) fromtotal gross collections of the travel tax, shall be reta
Provided, That the Commission on Higher Education (CHshall give priority to tourism-related educational programscourses. The ten percent (10%) share of the NatioCommission for Culture and the Arts from the totalcollections of the travel tax shall likewise be retained.
SEC. 71. Capitalization. - The TIEZA shall have anauthorized capital of Two hundred fifty million pesos(Php250,OOO,OOO.00) which shall be fully subscribed by thenational government.
SEC. 72. Funding. - The TIEZA shall obtain the fundsfor its operations from the following: SEC. 74. Exemption from Payment of Corporate In
Tax.. - Notwithstanding any provision of existing laws, deexecutive orders to the contrary, the TIEZA shall be exfrom the payment of corporate income tax, as provided u
the NIRC.
(a) Fifty percent (50%) of the proceeds from travel taxcollections;
(b) A reasonable share from the collections of the Offi.ceof Tourism Resource Generation, to be determined by theDepartment;
(c) Income from projects managed by the TIEZA; and
SEC. 75. Survey of Resources. - The TIEZA shalcoordination with appropriate authorities and neighboringand munici.palities, conduct a survey of the physicalnatural. assets and potentials of the TEZ areas unde
jurisdiction.
SEC. 76. Registration. - Tourism enterprises withTEZ shall register with the TIEZA to avail of incentivesbenefits provided for in this Act.
SEC. 77. One-Stop Shop Processing. - The TIEZAestablish offi.ces where- prospective TEZ investors can regto obtain the incentives and benefits under this Act annecessary permits and licenses from all national andgovernment offices. All government agencies shall coordwith the TIEZA for the issuance of such permits and lice
(d) Subsidies or grants from local and foreign sourcesthat may be received by the TIEZA.
At least five percent (5%) from the travel tax collectionwhich shall accrue to the TIEZA shall be earmarked for thedevelopment of histor ic, cultural, religious and heritage sitesand prime tourist destinations. Another five percent (5%)
shall be earmarked for the development of ecotourism sites indepressed provinces with strong tourism potentials.
SEC. 73 . Collection and Allocation of Trauel Taxes. - Forpurposes of this Act, the TIEZA shall be the principal agencyresponsible for the timely collection of travel taxes.
S UBCH AP TE R V -B . T OURISM ENT ER PR IS ES O UT SI DE TEZS (4) Accredited tourism enterprises shall be entitimport transportation and accompanying spare partstaxes and duties: Provided, however, That such transporshall be exclusively used by the enterprise in its operaand: Provided, [urth.er, That such are not manufactdomestically in sufficient quantity, comparable qualit
prices.
SEC. 88. Incentives Available to Tourism EnterprisesOutside TEZs - The grant of fiscal and other incentives totourism enterprises not located within TEZs shall be governedby the following provisions:
(a) Upon compliance with the requirements provided bylaw, they shall be entitled to avail of any economic incentivesfound under existing laws, such as Executive Order No. 226(1987), otherwise known as the Omnibus Investments Code;Republic Act No. 7042, as amended by Republic Act No. 8179,
otherwise known as the Foreign Investments Act; the SpecialEconomic Zone Act; and the Bases Conversion and DevelopmentAct, among others, subject to the last paragraph of Section8G(a), at the option of the said enterprises.
(d) Tourism enterprises located in special economiccreated under the Special Economic Zone Act or by
charter, shan continue to be governed by the same.
(b) Subject to rules and regulations jointly promulgatedby the Department and the TIEZA, an existing accommodationestablishment not located within a TEZ shall be entitled' toclaim an income tax holiday for up to six (6) years for anysignificant expansion, renovation or upgrade in its facilities inrelation to the amount of the original investment. They shallalso be entitled to import capital equipment free of taxes and.duties when necessary for such expansion, renovation orupgrade.
(e) The incentives offered under this Act shall be w
prejudice to the availznent of other incentives providedother laws, such as, but not limited to, those conceinfrastructure, or micro-, small- and medium enterpHowever, where such laws provide for similar incschemes as those contained herein, the investor may eavail of the scheme provided only under one particulardecree or issuance.
CHAPTER VI
DUTY· AND TAX-FREE MERCHANDISING SYSTEM
FOR TOURISM PURPOSES
(c) Tourism enterprises may avail of incentives under theOmnibus Investments Code: Provided, That:
SEC. 89. Duty Free Philippines Corporation. - TheFree Philippines shall be reorganized to become the DutyPhilippines Corporation (DFPC), which shall be attachedDepartment.
(1) Tourism activities shall always be included in theInvestment Prior ities Plan; SEC. 90. Mandate. - The DFPC shall be a body corto operate the duty- and tax-free merchandising systemPhilippines to augment the service facilities for touristto generate foreign exchange and revenue for the governas established by the Department under Executive Ord46.
(2) Rules and regulations concerning the grant ofincentives to tourism enterprises shall be jointly formulatedby the Board of Investments and the Department;
(3) The income tax holiday provided under Section 39.1of the Omnibus Investments Code shall also apply to existingaccommodation enterprises undergoing substantial capitalinfusion for expansion or substantial upgrade of facilities; and
In the performance of Its functions, the DFPC shallall the general powers of a corporation established undCorporation Code, in furtherance of its charter.
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CH AP TER IX necessary. The same shall apply to agencies which hav
attached to the Department by virtue of this Act.
As such, all offices under the Department aattached agencies affected by the provisions of this Acontinue to function under their present mandates
transition is effected as provided for under this Act.
All officers currently serving in the PCVC, the PTthe DFP Boards shall continue to serve the unexpiredof the term of the position in the Boards of the 'I'P
TIEZA and th e DFPC, respectively.
MISCELLANEOUS PROViSIONS
SEC. 105. Personnel arui Compensation: - The employeesand management of the TrEZA, the TPB and the DFPC shallbe exempt from the coverage of the Salary StandardizationLaw. .
Subject to existing constitutional an-d legal prohibitions
On double compensation for Board members in an ex officiocapacity, the members of the TIEZA Board, the Tourism Board
and the OFPC Board shall not be entitled to compensation butmay receive reasonable pe r diems for' attendance at regular
and special Board meetings.The beads of the agencies shall continue to serv
replaced as p<ovided for under this Act.
SEG 110. Transfer of Rights and Liabilities. - Ththe TIE'ZAand the DFPC shall, by virtue of this
subrogated to all rights and a-ssum~ aU liabilities of thethe PTA and the DFP, respectively, Inaccordance
pertinent laws, rules and regulations.
SE;G. Ill. Repealing Clause. - The pro,?sioris of Ex
Order No. 120 (Reorganizing the Ministry of Tourism, D
its Powers and Functions and for Other PUrpO.\18S); ExOrder No. 292, as amended (The Administrative COde oPre3idential Decree No. J89, as amended, (Creatin
Philippine Tourism Authority); Presidential Decree Noas amended, (Creating thePhilippme Cor'JV8ntJ.Ol1. andCorporation); Executive Order No. 46 (Granting . the Dep
of Tourism; Through the Philippine TburlSI11 AutAuthority to Establish and Operate a Duty- and TMerchandising System); Executive Order No. 30 (CreaExecutive Com mittee for the Development of Quezon M
Luneta and Other National' Parks); Presidential Dec37 (Creating the Nayong Pilipino Foundation); Pr:sidDecree No. 161.6 (Creating the Intramuros Adrninist
Presidential Decree No . 442, .a s amended (Labor Code); RAct No. 7160 (The Local Oovernment Code); Republic7722 (Creating the Commission on Higher Education): RAct No. 9497 (Creating the Civil Aviation AuthorityPhilippines); and an other laws, presidential ~ecrees, e
orders, procl arna tions and adrn inis tr at.rve regu
SEC. 106. Budgetary Approval. - All attached agencies
of the Department shall submit their annual budgets to theSecretary for approval, and shall furnish copies of the same
to the Oversight Committee. .
The budgets of the TPB, the l1IEZA and the DFPCreported to the Oversight Committee shall contain detailed
information on the compensation and benefits received by theiremployees.
SEC. 107. Jinpletnentl:n.g Rules a nd Reg ula Li Ons . - Uponconsultation with stakeholders, the Secretary shall promulgat.€
the implementing rules and regulations of this Act within
ninety (90) days after its effectrvity. The Oversight Connruttee
shall be furnished a copy thereof i.mrn ed.ia te lv afterprom ulgation.
SEC. 108. Reoiei». - This Act shall be subject to
congressional review by Congress three (8) years after its
approval and every three (3) years thereafter.
S E C . 109. Transitory Prouisions ..- The transfer of powersand functions Inthe Department and agencies attached thereto,as herein provided for,shali take effect within six (6) monthsafter the effectivity of this Act. The foregoing transfer ofpowers and functions shall include all applicable funds;personnel, records, property and equipment, as may be
illCGnsistent with the proviaionsof this Act are hereby
amended, modified, superseded or repealed accordingly.
SEC. 112. Separability Clause. ~ In the event that anyprovision of this Act 'or parts thereof be declaredunconstitutional, such declaration shall not affect the validityof the other provisions.
SEC. 113. EftectiuityClouse. ~ This Actshall take effect
thirty (30) days after its publication in the Official Gazette orin at least two (2) newspapers of national circulation.
Approved,
C. NOGHALES . _ . . . . . . 5nr of the House President
Represen. tot iues
This Actwhich is 2 \ consolidation of Senate Bill No. 2213
and House Bill No. 5229 Was finally passed by the Senate
and the House of Representatives on March 5, 2009 and March 4,
2009, respectively.
r [)f~~
Mr\J.tlLYN 8. BARUA-YAP
. Secretary General
House a/Representatives
~YES
Secretary a/the Senate
Approved:
.~£~.It..Utvkff)GLO . T\1ACAPAGAJ"tfARROYO
, President of (he Phihppines
o
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