Republic Act No. 9593, otherwise known as the Tourism Act of 2009, stands as the primary legislative framework governing the Philippine tourism industry. Signed into law on May 12, 2009, it fundamentally shifted the state’s approach to tourism, elevating it from a mere service sector to a "national engine of investment, employment, growth, and national development."
I. Declaration of Policy and National Strategy
The Act declares tourism as an indispensable element of the national economy. Under RA 9593, the State recognizes that tourism must be:
- Sustainable: Development that meets the needs of the present without compromising future generations.
- Integrated: Harmonizing the efforts of the national government, local government units (LGUs), and the private sector.
- Inclusive: Ensuring that the socio-economic benefits of tourism trickle down to local communities.
The law mandates the creation of a National Tourism Development Plan (NTDP), which serves as the blueprint for tourism infrastructure, product development, and marketing.
II. Reorganization of the Department of Tourism (DOT)
RA 9593 reorganized the DOT to strengthen its role as the primary planning, programming, coordinating, and administrative entity of the executive branch.
Key Attached Agencies
The Act restructured several agencies to specialize in specific facets of the industry:
- Tourism Promotions Board (TPB): Replaced the Philippine Convention and Visitors Corporation (PCVC). Its primary mandate is domestic and international marketing and promotion.
- Tourism Infrastructure and Enterprise Zone Authority (TIEZA): Replaced the Philippine Tourism Authority (PTA). It functions as the infrastructure arm and the body responsible for designating and regulating Tourism Enterprise Zones (TEZs).
- Duty Free Philippines Corporation (DFPC): Mandated to operate the duty-and tax-free merchandising system to generate foreign exchange and revenue for tourism programs.
- Intramuros Administration (IA) and National Parks Development Committee (NPDC): Remain attached to the DOT for specialized heritage and park management.
III. Tourism Enterprise Zones (TEZs)
A cornerstone of RA 9593 is the creation of Tourism Enterprise Zones (TEZs). These are specific geographical areas (at least 5 hectares) identified as having high tourism potential, which are then granted "Special Economic Zone" status for tourism.
Classification of TEZs
- Cultural Heritage Tourism Zones: Areas with significant historical or cultural value.
- Health and Wellness Tourism Zones: Areas for medical tourism and spa retreats.
- Eco-Tourism Zones: Areas emphasizing environmental conservation.
- General Leisure Tourism Zones: Areas for golf courses, theme parks, and integrated resorts.
- Mixed-use Tourism Zones: A combination of the above.
IV. Incentives for Tourism Enterprises
To encourage private investment, TIEZA is authorized to grant fiscal and non-fiscal incentives to TEZ Operators and Registered Tourism Enterprises (RTEs).
Summary of Fiscal Incentives
| Incentive | Description |
|---|---|
| Income Tax Holiday (ITH) | New enterprises in TEZs may enjoy ITH for a period of six (6) years, extendable under certain conditions. |
| Gross Income Taxation | In lieu of all other taxes, a 5% tax on gross income may be paid (except real estate taxes). |
| Duty-Free Importation | Exemption from customs duties and national taxes on capital investment and equipment. |
| Tax on Raw Materials | Tax credits on tax-paid locally purchased goods or duty-free importation of raw materials. |
Non-Fiscal Incentives
- Employment of Foreign Nationals: For executive, advisory, or technical positions.
- Special Investor’s Resident Visa: Granted to foreign investors who invest at least $200,000 in a TEZ or an RTE.
- Foreign Exchange Assistance: Right to remit earnings and pay foreign obligations.
V. Local Government Units (LGUs) and Devolution
The Act reinforces the Local Government Code of 1991 by emphasizing the role of LGUs in tourism management.
- Mandatory Accreditation: While the DOT sets the standards, LGUs are prohibited from issuing business permits to tourism enterprises that have not obtained DOT Accreditation.
- Tourism Officers: Every province, city, and municipality with significant tourism activity is encouraged to appoint a permanent Tourism Officer.
- Local Tourism Councils: LGUs are mandated to form councils to ensure community participation in tourism planning.
VI. Regulatory and Quality Standards
RA 9593 empowers the DOT to enforce a National Standard for Accreditation. This system classifies tourism facilities (hotels, resorts, spas) to ensure international competitiveness.
"The DOT shall prescribe the minimum levels of operating quality and efficiency for all tourism enterprises, including but not limited to, the safety and security of tourists and the protection of the environment."
VII. Funding and Sustainability
The Act established the Tourism Promotions Fund, sourced from:
- Proceeds of the national government's share from PAGCOR (Philippine Amusement and Gaming Corporation).
- International airport terminal fees.
- Dues and fees collected by the DOT and its agencies.
Furthermore, the law mandates the protection of the environment and the rights of indigenous peoples. It explicitly prohibits tourism development that causes irreversible damage to the ecological balance or displaces local cultures without due process.
VIII. Legal Implications of Non-Compliance
Failure to comply with DOT standards or TIEZA regulations can result in:
- Fines and penalties.
- Revocation of DOT Accreditation.
- Forfeiture of fiscal incentives.
- Closure of the enterprise by the LGU upon recommendation by the DOT.