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Jurisdiction

RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT NO. 9593 ON THE DESIGNATION OF TOURISM ENTERPRISE ZONES, REGISTRATION OF TOURISM ENTERPRISES AND THE GRANT OF INCENTIVES THEREIN. Jurisdiction.

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Jurisdiction

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  1. RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT NO. 9593 ON THEDESIGNATION OF TOURISM ENTERPRISE ZONES, REGISTRATION OF TOURISMENTERPRISES AND THE GRANT OF INCENTIVES THEREIN

  2. Jurisdiction The TIEZA shall have sole and exclusive jurisdiction in the establishment and designation of a Tourism Enterprise Zone (TEZ) which shall not be impliedly repealed or modified. All permits and licenses shall be issued by TIEZA to TEZ Operators and Registered Tourism Enterprises.

  3. Tourism Enterprise Zones Criteria for Designation of TEZs A. The area is capable of being defined into one contiguous territory; B. It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it; C. It has, or it may have, strategic access through transportation infrastructure, and reasonable connection with utilities infrastructure systems; Zone Classifications Flowchart Role of DOT Role of LGU

  4. Tourism Enterprise Zones Criteria for Designation of TEZs D. It must be at least five (5) hectares and sufficient in size, such that it may be further utilized for bringing in new investments. Provided that, in extremely meritorious cases, an area less than five (5) hectares may be developed as a TEZ if the Board deems it sufficient for the purposes, requirements and nature of the tourism project to be undertaken therein; E. It is in a strategic location such as to stimulate the sustainable socio-economic development of neighboring communities. F. The area must be situated where controls can easily be established to curtail illegal activities. Zone Classifications Flowchart Role of DOT Role of LGU

  5. Tourism Enterprise Zones Criteria for Designation of TEZs The dispersal of economic activities in the least developed areas in the countryside is encouraged. An area in any of the least developed areas identified in the annual Investment Priorities Plan (IPP) shall be given priority to be declared as a Tourism Enterprise Zone. Zone Classifications Flowchart Role of DOT Role of LGU

  6. Cultural Heritage Tourism Zone Criteria for Designation of TEZs areas that will allow the tourist to experience the places, artifacts and activities that authentically represent the stories of the people living in the area, past or present.The area may include, but will not be limited to: • Cultural landscapes; • Historic sites, areas and precincts; • Ruins, archaeological and maritime sites; • Sites associated with industrial, scientific and agricultural heritage; • Collections that house or collectively promote objects of heritage significance; • Historic places and areas, including villages, small towns, cities and parts of larger urban areas with significant cultural and heritage assets; • Museums, Art Galleries, Cultural Centers, Arts & Crafts Shops, and Antique Shops, and Cultural Sites. Zone Classifications Flowchart Role of DOT Role of LGU

  7. Health and Wellness Tourism Zone Criteria for Designation of TEZs areas that will allow visitors to avail of quality but affordable mainstream, traditional, or alternative healthcare services for treatment of illnesses and health problems in order to maintain one’s health and well-being. The area may include, but will not be limited to enterprises that are, or offer: • Medical and Allied Services; • Spas; • Health Farms; • Counselling and Rehabilitation Services; and • Traditional Filipino Touch Therapy Zone Classifications Flowchart Role of DOT Role of LGU

  8. Eco-Tourism Zone Criteria for Designation of TEZs areas that will allow visitors to experience a form of sustainable tourism within a given natural and/or cultural area where community participation, conservation and management of biodiversity, respect for culture and indigenous knowledge systems and practices, environmental education and ethics as well as economic benefits are fostered and pursued for the enrichment of host communities and satisfaction of visitors. The area may include, but will not be limited to: • Sites of scenic natural or rural beauty; • Areas for observing wildlife; • Spas; • Areas for low impact activities such as camping, trekking, climbing, spelunking, diving, surfing, and other similar activities; and • Sites for observing and interacting with traditional or indigenous practices in relation to the environment Zone Classifications Flowchart Role of DOT Role of LGU

  9. General Leisure Tourism Zone Criteria for Designation of TEZs areas that may offer recreational facilities that will have high visitor density. The area may include, but will not be limited to: • Golf Parks/Resorts • Theme Parks and Amusement Centers • Convention and Meeting Centers; • Sports Complexes/Resorts • Event Centers/ Resorts • Department Stores/Restaurants/Shops • Zoos Zone Classifications Flowchart Role of DOT Role of LGU

  10. Mixed Use Tourism Zone Criteria for Designation of TEZs areas that will allow a combination of some or all of the features of the aforeaforementioned zones within one area. Retirement communities and facilities duly accredited by the Philippine Retirement Authority may be located in General Leisure Tourism Zones, Health and Wellness Tourism Zones and Mixed-used Tourism Zonesmentioned zones within one area. Zone Classifications Flowchart Role of DOT Role of LGU

  11. Qualification of Applicants Criteria for Designation of TEZs Any entity duly incorporated under the Corporation Code and other relevant laws, or any LGU or any other instrumentality of government in the pursuit of their mandate may qualify as an applicant for the designation of an area as a TEZ. Zone Classifications Flowchart Role of DOT Role of LGU

  12. Investment Requirement Criteria for Designation of TEZs The minimum amount of investment required to be entitled to incentives provided under the Act shall not be less than Five Million US Dollars (US $5,000,000.00) exclusive of land acquisition costs. Provided that, in extremely meritorious cases, an amount less than Five Million US Dollars (US $5,000,000.00) may be invested for a Cultural Heritage Tourism Zone or an Eco-Tourism Zone if the Board deems it sufficient for the purposes, requirements and nature of the tourism project to be undertaken therein Zone Classifications Flowchart Role of DOT Role of LGU

  13. Designation of Tourism Enterprise Zones Criteria for Designation of TEZs Proponent files application TIEZA evaluates application and pre-qualification documents TIEZA issues notice to complete pre-designation requirements Zone Classifications TIEZA Board evaluates application and evaluation report Proponent submits requirements Flowchart Role of DOT TIEZA issues Certificate of Designation Proponent signs Designation Agreement with TIEZA signed by the COO Role of LGU

  14. TIEZA Incentives Compared to other IPAs Criteria for Designation of TEZs Zone Classifications Incentives for TEZs Role of DOT Role of LGU

  15. TIEZA Incentives Compared to other IPAs Criteria for Designation of TEZs Zone Classifications Incentives for TEZs Role of DOT Role of LGU

  16. TIEZA Incentives Compared to other IPAs Criteria for Designation of TEZs Zone Classifications Incentives for TEZs Role of DOT Role of LGU

  17. TIEZA Incentives Compared to other IPAs Criteria for Designation of TEZs Zone Classifications Incentives for TEZs Role of DOT Role of LGU

  18. TIEZA Incentives Compared to other IPAs Criteria for Designation of TEZs Zone Classifications Incentives for TEZs Role of DOT Role of LGU

  19. Registered Tourism Enterprises within TEZs Criteria for Designation of TEZs Any person, firm, association, partnership, corporation, or any other form of business organization may apply for registration as a tourism enterprise to avail of incentives and benefits. Applications for registration shall comply with the applicable nationality, control and/or ownership requirements of the working capital thereof in accordance with the pertinent provisions of the Philippine Constitution, Foreign Investments Act of 1991 as amended and other relevant existing laws and regulations. Zone Classifications Registered Tourism Enterprises Role of DOT Role of LGU

  20. Registered Tourism Enterprises Outside TEZs Criteria for Designation of TEZs Only an existing accommodation establishment not located within a TEZ shall be entitled to claim incentives. The enterprise may avail of a non-extendible Income Tax Holiday incentive not to exceed six (6) years from the time of completion of the expansion or upgrade It shall also be entitled to import capital equipment free of taxes and duties when necessary for the expansion, renovation or upgrade Zone Classifications Registered Tourism Enterprises Role of DOT Role of LGU

  21. Role of DOT Regional Offices Criteria for Designation of TEZs -Assist potential TEZ Operators in the application process and participate in the review of the TEZ development plan -Endorsement of TEZ Designation to LGU No TEZ shall be designated without a development plan duly approved, by resolution, by the LGU concerned. -Monitoring of a TEZ Operator’s compliance with the development plan and rules and regulations of TIEZA  Zone Classifications Flowchart Role of DOT Role of LGU

  22. Thank you!

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