AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT

Republic Act No. 9593

Summary of Republic Act No. 9593 (The Tourism Act of 2009)

Declaration of Policy and Objectives (Sections 2-3)
- Declares tourism as an indispensable element of the national economy and an industry of national interest
- Outlines objectives such as developing a national tourism action plan, preserving cultural heritage, ensuring sustainable tourism development, and promoting the Philippines as a prime tourist hub in Asia

Tourism Governance (Sections 5-24)
- Establishes the Department of Tourism as the primary planning, programming, coordinating, implementing, and regulatory agency for tourism development
- Outlines the powers and functions of the Department, including formulating policies, supervising implementation, representing the government in international forums, and enforcing standards for tourism enterprises
- Reorganizes the Philippine Tourism Authority as the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and the Philippine Conventions and Visitors Corporation as the Tourism Promotions Board (TPB)
- Defines the structure, offices, and responsibilities of the Department, TIEZA, and TPB

Rationalization of Functions (Sections 25-34)
- Absorbs the Bureaus for Domestic and International Tourism Promotions and the Office of Tourism Information into the TPB
- Provides for the reassignment or retirement of affected employees during the reorganization
- Attaches agencies like the Intramuros Administration, National Parks Development Committee, Nayong Pilipino Foundation, Philippine Retirement Authority, and Philippine Commission on Sports Scuba Diving to the Department
- Allows for the transfer of control over tourism areas, zones, and spots to other agencies or LGUs with comprehensive development plans
- Requires coordination with the DENR for the development of ecotourism sites and the National Integrated Protected Areas System (NIPAS)
- Mandates the establishment of a tourism infrastructure program in coordination with the DPWH and DOTC

Shared Responsibilities of National and Local Governments (Sections 35-44)
- Requires coordination between the Department, DILG, and LGUs for integrating local and national tourism development plans
- Mandates the preparation and implementation of local tourism development plans by LGUs
- Requires LGUs to provide reports and inventories of tourism resources to the Department
- Establishes a system of accreditation for primary and secondary tourism enterprises by the Department
- Allows the Department to delegate the enforcement of accreditation to LGUs with implemented tourism development plans
- Requires LGUs with significant tourism industries to have a tourism officer and tourist information and assistance centers
- Provides for the classification and evaluation of tourism destinations by regional tourism councils

Tourism Promotions (Sections 45-58)
- Establishes the TPB as a body corporate responsible for marketing and promoting the Philippines as a major global tourism destination
- Outlines the mandate, composition, powers, and functions of the TPB and its Board of Directors
- Creates the Tourism Promotions Trust from the proceeds of the sale or lease of Philippine Tourism Authority assets
- Establishes the Tourism Promotions Fund, sourced from investment earnings, government appropriations, and shares from the Duty Free Philippines Corporation (DFPC), PAGCOR, and international airports and seaports
- Provides for a Special Contingency Fund for emergencies and exempts the TPB from corporate income tax

Tourism Enterprise Zones (Sections 59-84)
- Defines the characteristics and requirements for designating Tourism Enterprise Zones (TEZs)
- Outlines the process for developing and approving TEZ development plans
- Establishes the TIEZA as the body corporate responsible for designating, regulating, and supervising TEZs and developing tourism infrastructure projects
- Outlines the mandate, composition, powers, and functions of the TIEZA and its Board of Directors
- Provides for the administration of TEZs by TEZ operators, including their incorporation, boards of directors, and administrators
- Establishes civil and labor dispute resolution mechanisms within TEZs

Incentives (Sections 85-88)
- Grants the TIEZA sole and exclusive jurisdiction to grant incentives to TEZ operators and registered tourism enterprises
- Outlines fiscal incentives such as income tax holidays, gross income taxation, exemptions for capital investments and equipment, transportation and spare parts, and goods and services
- Provides non-fiscal incentives like employment of foreign nationals, special investor's resident visas, foreign currency transactions, protection against requisition of property, and land lease and ownership rights
- Allows tourism enterprises outside TEZs to avail incentives under existing laws like the Omnibus Investments Code and the Foreign Investments Act

Duty and Tax-Free Merchandising System (Sections 89-95)
- Reorganizes the Duty Free Philippines as the Duty Free Philippines Corporation (DFPC), a body corporate attached to the Department
- Outlines the mandate and exclusive authority of the DFPC to operate or franchise duty- and tax-free stores in international airports, seaports, TEZs, and ports of entry
- Defines the composition of the DFPC Board of Directors and the appointment of its Chief Operating Officer
- Provides for the capitalization and funding of the DFPC, including remittance of a portion of its net profits to the Department
- Grants the DFPC exemptions from duties, taxes, local taxes and fees, and corporate income taxation

Increased Tourist Access (Sections 96-97)
- Requires the Department to develop an inter-modal international and domestic land, sea, and air access system for tourists
- Provides for the Secretary's representation in various aviation and seaport governing bodies
- Mandates the development of an integrated system for issuing franchises and accreditation for tourism transport operators
- Requires the Department, DFA, and Department of Justice to develop a system for granting visas to encourage tourist arrivals and longer stays

Creating a Culture of Tourism (Sections 98-104)
- Establishes a Tourism Coordinating Council to serve as a coordinating body for national tourism development efforts
- Requires the Department to work with the DepEd and CHED for developing education programs and curricula related to tourism
- Mandates the establishment of a Tourism Security Force by the PNP and tourist police assistance desks in areas with high tourism traffic
- Encourages government-owned banks and financial institutions to provide microfinance schemes for small- and medium-scale tourism enterprises
- Creates a Joint Congressional Oversight Committee on Tourism to monitor the implementation of the Act
- Establishes the Tourism Congress as a private sector consultative body to assist the government in tourism policy development and implementation

Miscellaneous Provisions (Sections 105-113)
- Exempts employees and management of the TIEZA, TPB, and DFPC from the Salary Standardization Law
- Requires budgetary approval and reporting for attached agencies of the Department
- Mandates the promulgation of implementing rules and regulations within 90 days of the Act's effectivity
- Provides for a congressional review of the Act every three years
- Includes transitory provisions for the transfer of powers, functions, rights, and liabilities to the reorganized agencies
- Contains a repealing clause for inconsistent laws and regulations
- Includes a separability clause and an effectivity clause