2. TOURISM RELATED INVESTMENT LAWS
The Tourism Act of 2009 (Republic Act No. 9593)
Special Economic Zone Act (Republic Act No. 7916)
The Omnibus Investment Code of 1987
(Executive Order No. 226)
Act Granting of Special Investors Resident Visa (SIRV)
(Executive Order No. 63)
The Foreign Investments Act of 1991
(Republic Act No. 7042)
Investors’ Lease Act
(Republic Act No. 7652)

3. TOURISM ENTERPRISE ZONES

4. TOURISM ENTERPRISE ZONES
THE TOURISM ACT OF 2009 (R.A. 9593)
Designation, operation and administration of incentives to the establishment of tourism enterprise zones (TEZ)
CRITERIA
Defined into one contiguous territory;
Must have historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;
Strategic access through transportation infrastructure, utilities, infrastructure system

5. TOURISM ENTERPRISE ZONES
At least five (5) hectares and sufficient in size.
It is in a strategic location such as to stimulate the sustainable socio-economic development of neighboring communities.
The area must be situated where controls can easily be established to curtail illegal activities.

6. TOURISM ENTERPRISE ZONES
THE TOURISM ACT OF 2009 (R.A. 9593)
Incentives Available to Tourism Enterprises outside of designated TEZs
CRITERIA
Registered Tourism Enterprise undertakes a substantial expansion/upgrade of facilities
Cost of expansion/upgrade of physical assets amounts to at least 50% of the original investment
There is a significant change in its category classification under the DOT’s accreditation system

7. TOURISM ENTERPRISE ZONES
Incentives to TEZs and tourism enterprises within the zone
Income Tax Holiday (6 years, extendible for another 6 years)
Net Loss Carry Over (Deduction from gross income for 6 years)
Gross Income Taxation (5% GIT Rate)
Importation of Capital Investment and Equipment
Importation of Transportation Equipment and Spare Parts
Importation of Goods and Services

8. TOURISM ENTERPRISE ZONES
Tax credit
Social Responsibility Incentive
Employment of Foreign Nationals
Special Investor’s Resident Visa
Foreign Currency Transactions
Requisition of Investment
Lease and Ownership of Land

9. TOURISM ENTERPRISE ZONES
Incentives to Tourism Enterprise located outside of TEZ
Income Tax Holiday (6 years, non-extendible)
Importation of capital equipment free of taxes and duties

10. TOURISM ENTERPRISE ZONES
Classification of TEZs
Cultural Heritage Tourism Zone
Health & Wellness Tourism Zone
Eco-tourism Zone
General Leisure Tourism Zone
Mixed Use Tourism Zone

11. Ciudad De Victoria, Bulacan
DESIGNATED TEZs.
Ciudad De Victoria, Bulacan
Newport City, Paranaque

12. TOURISM ECONOMIC ZONES

13. TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
MOA between DOT and PEZA
Signed October 7, 2002
Guidelines for Registration of TEZs
Effective November 12, 2002

14. TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
Registrable Activities
Tourism Ecozone Developers/Operators
Tourism Ecozone Locators
Sports and Recreational Centers
Accommodation
Convention & Cultural Facilities
Theme Parks
Special Interest Attraction/Activities/Establishments

15. TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
Registrable Activities
Enterprises establishing and operating airports, seaports/marinas

16. SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
Incentives to Tourism Ecozone Developers
Exemption from national and local taxes, in lieu thereof, 5% Gross Income Rate

17. TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
Incentives to Tourism Ecozone Locators
Tax and duty free importation of Capital Equipment
Income Tax Holiday
Employment of foreign nationals
Exemption from national and local taxes, in lieu thereof, 5% Gross Income Tax Rate
SIRV under E.O. 63

18. Ilawod Estates Cabatuan Paseo Del Rio De Cagayan
DECLARED ECOZONES UNDER PEZA
Boracay Eco-Cultural Village
Resort
Camarines Sur Tourism Park
Ilawod Estates Cabatuan
Iloilo
Paseo Del Rio De Cagayan
Cagayan De Oro City

19. Bagong Nayong Pilipino
DECLARED ECOZONES UNDER PEZA
Pangulasian Island Green
Tourism Economic Zone
Embarcadero de Legazpi
Legazpi City
Manila Bay Resorts
Bagong Nayong Pilipino
Entertainment City

20. INVESTMENT PRIORITIES PLAN (IPP)

21. INVESTMENT PRIORITIES PLAN
OMNIBUS INVESTMENTS CODE OF 1987 under (EO 226)
Accommodation Facilities (P/NP)
(Hotels, Resorts, Condotels ,Tourist Inns, Apartels/Serviced Apartments, Pension Houses, Motels,Private Homes for Homestay, Ecolodges, Bed & Breakfast facilities)
Convention and exhibition facilities (MICE)
Adventure and Eco-tourism facilities
Sport facilities and recreational centers
Agri-tourism farms and facilities
Theme parks/Amusement Parks
Tourist Transport Services
Development of Retirement Villages
Health/Medical Tourism Facilities (Spas, tertiary hospitals, ambulatory clinics)
Tourism Training Centers/Institutes
Restoration/preservation and operation of historical shrines, landmarks and structures
Guidelines for formulation/finalization by DOT and BOI on the ff:
Historico-Cultural Heritage Projects
Tourism Training Institutions
Agri-Tourism Projects

22. INVESTMENT PRIORITIES PLAN
OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)
PIONEER STATUS CRITERIA
Hotel projects/apartment hotels/serviced apartments/condotels classified as First Class or Deluxe costing at least US $100,000 / room
Resort projects classified as Class “AAA” with project cost of at least US $ 10 million per project
Projects located in LDAs
Modernization of hotels classified as First Class or De Luxe with a project cost of at least US$ 10,000/room
Amusement parks/theme parks with a minimum project cost of US$ 10 million involving the development sites or attractions considered as novel in the Philippines
Adventure and ecotourism facilities/agri-tourism farms and facilities with a project cost of at least the Philippine Peso equivalent of USD 5 million.

23. INVESTMENT PRIORITIES PLAN
OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)
INCENTIVES TO TOURISM PRIORITY PROJECTS
Income Tax Holiday
Importation of Capital Equipment (pursuant to E.O. 70)
Employment of foreign nationals
EO 70 signed March 29, 2012 effective May 10, 2012

24. INVESTMENT PRIORITIES PLAN
INCOME TAX HOLIDAY UNDER EO 226
New Projects (Pioneer) - 6 years
New Projects (Non-Pioneer) - 4 years
Expansion Projects years
Projects in Less Developed - 6 years
Areas (regardless of status)
Modernization Projects - 3 years

25. INVESTMENT PRIORITIES PLAN
IMPORTATION OF CAPITAL EQUIPMENT (pursuant to E.O. No. 70)
0% duty on equipment granted to enterprises registered with BOI
Can be availed for five (5) years or until May
E.O. 528 expired last June 18, 2011

26. INCENTIVES UNDER E.O. # 63
SIRV Holders : permitted to enter and reside in the Phils. for as long as the investment subsists, provided that said investor visits the country at least twice a year and stays in the country at least seven (7) days for each visit
: issuance of multiple entry SIRV without further documentary requirements other than valid passports
: exempt from payment of alien immigration and registration fees and from securing Alien Certificates of Registration (ACR).
Remittance of Earnings and Repatriation of Investments - shall be serviced at the exchange rate prevailing on the date of actual remittance.
Right of succession - in case of death, the surviving immediate family shall be entitled to the same privileges.

27. Remittance of Earnings Repatriation of Capital Right of succession
INCENTIVES UNDER E.O. # 63
Special Investor’s Resident Visa (SIRV) to investor, wife and unmarried minor children
Remittance of Earnings
Repatriation of Capital
Right of succession
SIRV Holders : permitted to enter and reside in the Phils. for as long as the investment subsists, provided that said investor visits the country at least twice a year and stays in the country at least seven (7) days for each visit
: issuance of multiple entry SIRV without further documentary requirements other than valid passports
: exempt from payment of alien immigration and registration fees and from securing Alien Certificates of Registration (ACR).
Remittance of Earnings and Repatriation of Investments - shall be serviced at the exchange rate prevailing on the date of actual remittance.
Right of succession - in case of death, the surviving immediate family shall be entitled to the same privileges.

28. QUALIFICATIONS:
He has not been convicted of a crime involving moral turpitude
He is not afflicted with AIDS or any loathsome, dangerous or contagious disease
He has not been institutionalized for any mental disorder or disability
He is willing and able to invest at least US $50,000 in a tourism related project
AD LIB on AIDS test Requirement:
AIDS test requirement no longer required in view of RA otherwise known as the Philippines AIDS Prevention and Control Act of 1998 which provides for the prohibition of compulsory HIV testing.

29. TOURISM RELATED INVESTMENT LAWS
FOREIGN INVESTMENTS ACT OF 1991 (RA 7042 AS AMENDED BY RA 8179)
Domestic market is open to foreign investors as long as the activity is not restricted in the Foreign Investment Negative List (FINL)
Ownership of private lands (up to 40% foreign equity)
Tourist Transport Operation (up to 40% foreign equity)
Tourism Capability Building Seminar

30. TOURISM RELATED INVESTMENT LAWS
OWNERSHIP OF PRIVATE LANDS
General Rule
Nationality Requirement under the Philippine Constitution
up to 40% foreign equity

31. TOURISM RELATED INVESTMENT LAWS
LEASING OF PRIVATE LANDS
General Rule per PD 471
25 years - original
25 years - renewable
Exception per RA 7652 or Investor’s Lease Act
Minimum investment of US $5 million for tourism projects
50 years - original

32. SUMMARY
At present, the Philippine tourism industry is very dynamic and fast growing .... more and more investments are needed to sustain its growth...
Focus on the National Tourism Development Clusters for tourism investments
Invest in Philippine tourism. When? NOW.
To achieve our target of 10M tourists by 2016, our country needs tourism investment support in building new accommodation facilities,
developing roads that lead to tourist sites, building & improving airports & seaports, provision of support amenities -- transport,
terminals, among others.... Destination clusters have been identified in the NTDP where these investments must be poured...
There is no better time to invest in Philippine tourism than NOW.... as the whole country is just beginning to have fun getting
themselves involved in tourism....

33. Investments. More fun in the Philippines