On May 12, 2009, RA 9593 otherwise known as the Tourism Act of 2009 was signed into law providing for, among others, the reorganization of the PTA as
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2 On May 12, 2009, RA 9593 otherwise known as the Tourism Act of 2009 was signed into law providing for, among others, the reorganization of the PTA as the Tourism Infrastructure and Enterprise Zone Authority or TIEZA. Its IRR published on the Official Gazette on 13 July 2009
3 PRIMARY OBJECTIVES OF TIEZA - ACCELERATE TOURISM DEVELOPMENT - ASSIST LGU INITIATED TOURISM INFRASTRUCTURE - PROMOTE INVESTMENT - GENERATE INCOME AND CREATE JOBS
4 TWO MAJOR FUNCTIONS OF TIEZA - as the infrastructure arm of dot - as an investment promotions agency
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7 Two Major Considerations - TOURISM RELATED - GOVERNMENT OWNED
8 INFRASTRUCTURE GUIDELINES The project should involve development, rehabilitation and enhancement of tourism historic sites, cultural and heritage sites, and ecotourism sites; No Tourism infrastructure projects on privately-owned area shall be eligible for funding. The guidelines and criteria in the selection of tourism infrastructure projects shall refer to the system of prioritizing, processing and evaluating the various project requests.
9 Procedure 1. The proponent submits a concept note on the proposed tourism infrastructure project; 2. TIEZA Corporate Planning Department and Infrastructure Sector review the proposed tourism infrastructure project based on the criteria; 3. TIEZA management recommends to the Board; and 4. TIEZA Board approves.
10 Contents of the concept plan: Nature and description of the project Whether it is a tourism site identified in the NTDP Tourism or cultural o heritage site to be developed or enhanced Expected economic benefits Cost estimate Project management Action plan to ensure sustainability; and Economic impact to local and economic development
11 Counterpart Contribution The proponent shall be required to provide a counterpart contribution to the project, which may be in the form of financial/labor/materials and/or combination of any of the latter. The ratio of counterpart to the grant shall be calibrated according to the LGU classification and in accordance with existing policies of government as enunciated by the National Economic Development Agency (NEDA), and as indicated in the following schedule: 50%-1 st and 2 nd class 30%-3 rd and 4 th class 10%-5 th and 6 th class
12 Specific Criteria Ecological and cultural consideration (25%) Economic consideration (20%) Sustainability (20%) Community and stakeholder consideration (15%) Financial consideration (10%); and Cultural (10%)
13 Role of the Proponent Submit to TIEZA or to the DOT Regional Office the letter-request together with a brief description and pictures of the proposed project as well as the appropriate Resolution from its Sangguniang Bayan or Panlungsod or Panlalawigan, as the case may be, urging TIEZA to provide financial assistance for the project. Upon advice of TIEZA, undertakes preparation of detailed architectural-engineering plans, program of work and the financial and operational study of the project. The financial aspect shall include breakdown of project cost; projected income statement (ten-years); assumptions applied in forecasting the revenue, expenditure and clientele and other relevant information which proponent wishes to emphasize.
14 Upon advice of TIEZA, submits copies of legal documents that may be required in the project, such as but not limited to titles of property, deeds of donation, rights-of-way, and other legal documents that may be deemed necessary. Upon advice of TIEZA, assists the Authority s technical team in the conduct of on-site project evaluation, provides necessary manpower support, secures their safety and extends to them whatever assistance that may be required. Assists TIEZA in whatever manner feasible during the actual construction of the project and sees to it that project implementation is in accordance with approved standards, plans and specifications. The proponent shall monitor actual implementation of projects and any deviations shall be reported immediately to TIEZA management.
15 Prior to implementation, enters into a Memorandum of Agreement with TIEZA for the actual operation and maintenance of project. The terms and conditions of such MOA shall be mutually agreed upon between the proponent and TIEZA, provided, that the proponent shall have sole responsibility in the project s operation and maintenance, including the financial responsibility required thereto. For this purpose, the proponent shall include in its annual budget the necessary amount to cover the maintenance of the project. Further, TIEZA shall not commence construction until this provision on budget shall have been complied with. Upon completion of construction, accepts the project pursuant to the Memorandum of Agreement.
16 Role of DOT Regional Offices Receive project proposals and prescreen the documentation requirements based on a detailed checklist to be provided by TIEZA. Forward to TIEZA complete project proposals, return to proponent incomplete ones. Extend whatever support is feasible to proponent and/or TIEZA. Assist in the monitoring of project implementation.
17 Role of TIEZA Evaluates closely all project proposals in accordance with this set of criteria, guidelines and the National Tourism Master Plan as well as the budget ceiling approved by the TIEZA Board for every current year. Within thirty days from receipt of the letter-request from the proponent, informs proponent of the status of said request, i.e. whether the project is within the priority or low priority category and accordingly advice proponent of whatever activities it will further undertake, if applicable. Enters into a Memorandum of Agreement with the proponent, requiring the latter, among others, to submit the approved budget which includes an appropriation for the operation and maintenance of the project.
18 Conduct bidding and implements construction of project in accordance with the standards and specifications, and as well as existing government rules and regulations. Upon completion, turns-over project to proponent for management and operation in accordance with the MOA. Coordinates and advises concerned Regional Office to require the project proponent to submit annual report of the status of project implementation, management and operation in accordance with MOA..
19 TIEZA as an Investment Promotions Agency
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21 Jurisdiction The TIEZA shall have sole and exclusive jurisdiction in the establishment and designation of a Tourism Enterprise Zone (TEZ) as well as the registration of Tourism Enterprises (RTE) which shall not be impliedly repealed or modified. All permits and licenses shall be issued by TIEZA to TEZ Operators and Registered Tourism Enterprises. TIEZA shall also administer and grant the incentives under RA 9593.
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23 MEMORANDUM OF AGREEMENT WITH OTHER AGENCIES JUNE 29, 2010 BUREAU OF INTERNAL REVENUE AUGUST 23, 2010 BUREAU OF CUSTOMS AUGUST 31, 2010 BUREAU OF IMMIGRATION DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES JANUARY 3, 2011 DEPARTMENT OF LABOR AND EMPLOYMENT
24 GUIDELINES ON THE DESIGNATION OF TEZs AND RTEs AND THE GRANT AND ADMINISTRATION OF INCENTIVES UNDER RA 9593 JAN 14, 2011 TIEZA Board approval FEB 11, 2011 JULY 15, 2011 AUG 1, 2011 Board approval of Schedule of fees, fines and penalties Published implementing guidelines on Philippine Daily Inquirer newspapers Effectivity of the Guidelines; TIEZA started accepting applications for TEZ/RTE; TEZ received first application for mixed-use TEZ
25 TEZ ROADSHOWS N HOTEL, CAGAYAN DE ORO - AUGUST 16, 2011
26 TEZ ROADSHOWS MARLIM MANSION HOTEL, ANGELES CITY - AUGUST 18, 2011
27 TEZ ROADSHOWS DIAMOND HOTEL, MANILA - AUGUST 31, 2011
28 TEZ ROADSHOWS WATERFRONT HOTEL, CEBU - SEPTEMBER 2, 2011
29 TEZ ROADSHOWS FORT ILOCANDIA, LAOAG CITY - SEPTEMBER 9, 2011
30 TEZ ROADSHOWS HOTEL DEL RIO, ILOILO CITY - SEPTEMBER 16, 2011
31 TEZ ROADSHOWS LEGEND HOTEL, PALAWAN - OCTOBER 28, 2011
32 Criteria for Designation of TEZs ONE CONTIGUOUS TERRITORY IT HAS HISTORICAL AND CULTURAL SIGNIFICANCE, ENVIRONMENTAL BEAUTY, OR EXISTING OR POTENTIAL INTEGRATED LEISURE FACILITIES IT HAS, OR IT MAY HAVE, STRATEGIC ACCESS THROUGH TRANSPORTATION INFRASTRUCTURE, AND CONNECTION WITH UTILITIES INFRASTRUCTURE SYSTEMS IT MUST BE AT LEAST 5 HECTARES IN SIZE STRATEGIC LOCATION ** MINIMUM INVESTMENT REQUIREMENT OF $ 5M
33 General Rule: 5hectares and US$5M Exemptions: a) Eco TEZ b) Cultural and Heritage TEZ c) Extremely Meritorious Cases
34 Classification of TEZs 1) CULTURAL HERITAGE TOURISM ZONE 2) HEALTH AND WELLNESS TOURISM ZONE 3) ECO-TOURISM ZONE 4) GENERAL LEISURE TOURISM ZONE 5) MIXED USE TOURISM ZONE - AREAS THAT WILL ALLOW COMBINATION OF SOME OR ALL OF THE AFOREMENTIONED ZONES WITHIN ONE AREA ** RETIREMENT COMMUNITIES AND FACILITIES DULY ACCREDITED BY THE PHILIPPINE RETIREMENT AUTHOURITY MAY BE LOCATED IN GENERAL LEISURE, HEALTH AND WELLNESS, AND MIXED USE TOURISM ZONES.
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36 Who may apply for designation of TEZs? Private entity created under Corporation Code Local Government Unit or any instrumentality of government in pursuit of its mandate Joint Venture between Private and Public Sector
37 Procedure on Designation of TEZs PROPONENT FILES APPLICATION TIEZA EVALUATES APPLICATION AND PRE- QUALIFICATION DOCUMENTS TIEZA ISSUES NOTICE TO COMPLETE PRE- DESIGNATION REQUIREMENTS TIEZA BOARD DELIBERATES ON THE EVALUATION REPORT PROPONENT SUBMITS REQUIREMENTS PROPONENT SIGNS DESIGNATION AGREEMENT WITH TIEZA SIGNED BY THE COO TIEZA ISSUES CERTIFICATION OF DESIGNATION
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39 What enterprises may register within a TEZ? Tourism Enterprises shall refer to facilities, services and attractions primarily engaged in whole or in part in tourism and for the purpose of attracting visitors to and within the country
40 Facilities, Services and Attractions Involved in Tourism Travel and Tour Services Tourist Transport Services Adventure Sports Services Convention Organizers Accommodation Establishments Theme Parks Convention Centers Zoos Tourism Estate Management Services Restaurants Shops Sports and Recreational Centers Spas Facilities offering Health and Wellness Services Museums and Galleries
41 PROPONENT SUBMITS APPLICATION FORM ATTACHING THERETO A FAVORABLE ENDORSEMENT FROM THE TEZ OPERATOR TIEZA EVALUATES APPLICATION AND PRE- QUALIFICATION DOCUMENTS TIEZA ISSUES NOTICE TO COMPLETE PRE- DESIGNATION REQUIREMENTS TIEZA BOARD DELIBERATES ON THE EVALUATION REPORT PROPONENT SUBMITS ALL REQUIREMENTS PROPONENT SIGNS REGISTRATION AGREEMENT WITH TIEZA SIGNED BY THE COO TIEZA ISSUES CERTIFICATION OF REGISTRATION
42 Section 77. One - Stop Shop Processing. - The TIEZA shall establish offices where prospective TEZ investors can register to obtain the incentives and benefits under this Act and all necessary permits and licenses from all national and local government offices. All government agencies shall coordinate with the TIEZA for the issuance of such permits and licenses. The TlEZA shall collect fees necessary for the issuance of these permits and licenses.
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44 OPERATION AND ADMINISTRATION OF TEZs TEZ OPERATOR ENTITY CREATED UNDER THE CORPORATION CODE
45 OPERATION AND ADMINISTRATION OF TEZs TEZ ADMINISTRATOR APPOINTED BY TEZ BOARD OF DIRECTORS
46 OPERATION AND ADMINISTRATION OF TEZs RTEs (LOCATORS) FACILITIES, SERVICES, AND ATTRACTIONS FOR THE PURPOSE OF ATTRACTING TOURISTS
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48 Fiscal Incentives INCOME TAX HOLIDAY (ITH) 6 Years Extendible for another 6 years NET LOSS CARRY OVER Net operating loss may be carried over as a deduction from gross income for the next 6 consecutive years following the year of the loss. GROSS INCOME TAXATION (GIT) 5% gross income tax in lieu of all national internal revenue taxes except real estate tax
49 Fiscal Incentives TAX AND DUTY FREE IMPORTATION Capital investment and equipment Transportation and accompanying spare parts Goods and Services TAX CREDIT ON LOCALLY SOURCED GOODS SOCIAL RESPONSIBILITY INCENTIVE Tax deduction of 50% of the cost of social responsibility programs
50 Non-fiscal Incentives EMPLOYMENT OF FOREIGN NATIONALS SPECIAL INVESTORS RESIDENT VISA NO REQUISITION OF INVESTMENT EXCEPT IN TIME OF WAR OR NATIONAL EMERGENCY AND ONLY FOR THE DURATION THEREOF LEASE OF LAND BY FOREIGN NATIONALS
51 Incentives for Enterprises Outside TEZs Limited to EXISTING ACCOMMODATION ESTABLISHMENTS outside TEZ which shall undertake substantial expansion or upgrade - INCOME TAX HOLIDAY (NON-EXTENDIBLE 6 YRS); and - TAX AND DUTY-FREE IMPORTATION ON CAPITAL INVESTMENT AND EQUIPMENT
52 The traveler sees what he sees, the tourist see what he has come to see. Gilbert Keith Chesterton ( ) British journalist, novelist and poet.
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