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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

PRIMARY OBJECTIVES OF TIEZA


- ACCELERATE TOURISM DEVELOPMENT
- ASSIST LGU INITIATED TOURISM INFRASTRUCTURE
-

PROMOTE INVESTMENT

GENERATE INCOME AND CREATE JOBS

TWO MAJOR
FUNCTIONS
OF TIEZA

- as the infrastructure
arm of dot

- as an investment
promotions agency

Two Major Considerations


- TOURISM RELATED
- GOVERNMENT OWNED

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.

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.

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

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%-1st and 2nd class


30%-3rd and 4th class
10%-5th and 6th class

Specific Criteria
Ecological and cultural consideration (25%)
Economic consideration (20%)
Sustainability (20%)
Community and stakeholder consideration
(15%)
Financial consideration (10%); and
Cultural (10%)

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.

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 Authoritys 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.

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
projects 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.

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.

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.

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..

TIEZA
as an Investment Promotions
Agency

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.

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

GUIDELINES ON THE DESIGNATION OF TEZs AND RTEs AND THE


GRANT AND ADMINISTRATION OF INCENTIVES UNDER RA 9593
JAN 14, TIEZA Board approval
2011
FEB 11, Board approval of Schedule of fees, fines and penalties
2011

Published implementing guidelines on Philippine Daily Inquirer


JULY 15, newspapers
2011
Effectivity of the Guidelines; TIEZA started accepting applications
AUG 1,
for TEZ/RTE; TEZ received first application for mixed-use TEZ
2011

TEZ ROADSHOWS
N HOTEL, CAGAYAN DE ORO
- AUGUST 16, 2011

TEZ ROADSHOWS
MARLIM MANSION HOTEL, ANGELES CITY
- AUGUST 18, 2011

TEZ ROADSHOWS
DIAMOND HOTEL, MANILA
- AUGUST 31, 2011

TEZ ROADSHOWS
WATERFRONT HOTEL, CEBU
- SEPTEMBER 2, 2011

TEZ ROADSHOWS
FORT ILOCANDIA, LAOAG CITY
- SEPTEMBER 9, 2011

TEZ ROADSHOWS
HOTEL DEL RIO, ILOILO CITY
- SEPTEMBER 16, 2011

TEZ ROADSHOWS
LEGEND HOTEL, PALAWAN
- OCTOBER 28, 2011

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

General Rule: 5hectares and US$5M


Exemptions:
a) Eco TEZ
b) Cultural and Heritage TEZ
c) Extremely Meritorious Cases

Classification of TEZs
1)
2)
3)
4)
5)

CULTURAL HERITAGE TOURISM ZONE


HEALTH AND WELLNESS TOURISM ZONE
ECO-TOURISM ZONE
GENERAL LEISURE TOURISM ZONE
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.

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

Procedure on Designation of TEZs


PROPONENT FILES
APPLICATION

TIEZA EVALUATES
APPLICATION AND
PREQUALIFICATION
DOCUMENTS

TIEZA BOARD
DELIBERATES ON
THE EVALUATION
REPORT

PROPONENT
SUBMITS
REQUIREMENTS
PROPONENT SIGNS
DESIGNATION
AGREEMENT WITH
TIEZA SIGNED BY
THE COO

TIEZA ISSUES
NOTICE TO
COMPLETE PREDESIGNATION
REQUIREMENTS

TIEZA ISSUES
CERTIFICATION OF
DESIGNATION

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

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

PROPONENT SUBMITS
APPLICATION FORM
ATTACHING THERETO A
FAVORABLE
ENDORSEMENT FROM
THE TEZ OPERATOR

TIEZA BOARD
DELIBERATES ON
THE EVALUATION
REPORT

TIEZA EVALUATES
APPLICATION AND
PREQUALIFICATION
DOCUMENTS

TIEZA ISSUES
NOTICE TO
COMPLETE PREDESIGNATION
REQUIREMENTS

PROPONENT
SUBMITS ALL
REQUIREMENTS
PROPONENT SIGNS
REGISTRATION
AGREEMENT WITH
TIEZA SIGNED BY
THE COO

TIEZA ISSUES
CERTIFICATION OF
REGISTRATION

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.

OPERATION AND ADMINISTRATION OF TEZs


TEZ OPERATOR
ENTITY CREATED UNDER THE CORPORATION
CODE

OPERATION AND ADMINISTRATION OF TEZs


TEZ ADMINISTRATOR
APPOINTED BY TEZ BOARD OF DIRECTORS

OPERATION AND ADMINISTRATION OF TEZs


RTEs (LOCATORS)
FACILITIES, SERVICES, AND ATTRACTIONS FOR THE
PURPOSE OF ATTRACTING TOURISTS

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

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

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

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

The traveler sees what he sees,


the tourist see what he has
come to see.
Gilbert Keith Chesterton (1874-1936) British journalist, novelist and poet.