General Purposes.
SEC. 4. General Purposes. — The Authority
shall have the following general purposes:
Implementing arm. — As the implementing arm of the
Department of Tourism, to implement policies and programs of the
Department pertaining to the development, promotion and supervision of
tourism projects in the Philippines;
Develop tourist zones. — To promote the development into
integrated resort complexes of selected and well denned geographic
areas with potential tourism value, known otherwise as "tourist
zones", wherein optimum use of natural assests and attractions as well
as existing facilities and concentration of efforts and limited
resources of both government and private sector may be effected and
realized in order to generate foreign exchange as well as other
tourist receipts. Such tourist zones shall consist of substantially
undeveloped areas the ownership of which may be partially or wholly
acquired by the Authority or whose existing owners may choose to
contribute their property into a consortium or in a new corporation in
which the Authority shall participate, which in any case shall be under
the control of the Authority as to the manner of development to be
undertaken within the zone.
Assist private enterprise. — Whenever necessary, to
extend all forms of assistance to private enterprise in undertaking
tourism projects.
Operate and maintain tourist facilities. — To undertake
for its own account or in joint venture with the private sector the
operation and maintenance of essential tourist facilities which private
enterprise alone is not prepared or willing to undertake;
Assure land availability. — To assure availability of
land at reasonable prices or rental rates for private investors in
hotels and other tourist facilities;
Coordinate all tourism project plans and operation. — To
coordinate and assist implement tourism related project plans or
operations of local governments, governmental agencies, public
corporations and, where clearly necessary and feasible, those of private
entities so as to make possible the accelerated and balanced growth and
development of tourism in the Philippines which is responsive to the
needs of targeted travel markets here and abroad.
Specific Functions and Powers.
SEC. 5. Specific Functions and Powers. — In the
furtherance of the aforestated purposes, the Authority shall be charged
and vested with the following functions and powers:
A. PLANNING AND DEVELOPMENT OF TOURISM PROJECTS
Tourist zones. — To assist the Department of Tourism
make a comprehensive survey of the physical and natural tourism
resources and potentialities of the Philippines for purposes of
identifying specific geographic areas with potential tourism value
leading to the preparation of a national tourism development plan; to
establish the order of priority for the development of said areas; to
recommend to the President from time to time the proclamation of a
tourist zone of any area so identified according to the established
order of priority; and to define and fix the boundaries of the zone so
proclaimed.
Zone Development Plan. — To formulate a development
plan for each zone in coordination with the Department of Tourism and
other government agencies and the local government(s) exercising
political jurisdiction over the area: Provided, That in case
the zone in question to be developed is not solely for tourism purposes,
the development plan shall cover specifically those aspects
pertaining to tourism; Provided, further, That the tourism
development plan is fully coordinated and integrated with other sectoral
plans for the area.
Submission of Plans for Tourism Projects. — Upon
confirmation by the Department of Tourism, to submit to the President
through the National Economic and Development Authority for review and
approval all aforementioned plans before the same are enforced and/or
implemented.
Annual Report. — To submit to the President an Annual
Report based upon the Authority's continuing assessment and evaluation
of the progress of its activities in the light of its approved plans,
including those done in collaboration with the various government and
private entities.
Tourism Priorities Plan. — To assist the Department of
Tourism determine from time to time the additional capacity
requirements for various tourist facilities and services throughout
the country, particularly within tourist zones; to prepare a ten-year
Tourism Priorities Plan enumerating specific investments which the
private sector shall be induced to make with various tax and other
incentives as well as financial aids provided by law and identifying the
specific infrastructure works and other activities that the government
or its agencies must discharge and accomplish to support or complement
the investments of the private sector; and to update annually said
Tourism Priorities Plan.
Gather, collate and analyze statistical data and other
pertinent information required for the effective implementation of this
Decree.
B. ACQUISITION AND DISPOSITION OF LANDS OTHER
ASSETS FOR TOURIST ZONE PURPOSES
Acquisition of Public Lands. — To acquire possession and
ownership of all lands transferred to it from other government
corporations and institutions by virtue of this Decree, and any land
having tourism potential and earmarked in the Tourism Priorities Plans
for intensive development into a tourist zone or as a part thereof,
subject to the approval of the President. The meaning of the word
"land" or "lands" as used herein and elsewhere in this Decree shall be
understood to include any interest in land, the bed of any lake or
river, and such structure, things or properties attached to land or
permanently fastened to anything attached to land.
Acquisition of Private Lands, Power of Eminent Domain. —
To acquire by purchase, by negotiation or by condemnation proceedings
any private land within and without the tourist zones for any of the
following reasons: (a) consolidation of lands for tourist zone
development purposes, (b) prevention of land speculation in areas
declared as tourist zones, (c) acquisition of right of way to the zones,
(d) protection of water shed areas and natural assets with tourism
value, and (e) for any other purpose expressly authorized under this
Decree and accordingly, to exercise the power of eminent domain under
its own name, which shall proceed in the manner prescribed by law and/or
the Rules of Court on condemnation proceedings. The Authority may
use any mode of payment which it may deem expedient and acceptable to
the land owners: Provided, That in case bonds are used as
payment, the conditions and restrictions set forth in Chapter III,
Capitalization.
SEC. 6. Capitalization. — The Authority shall
have an authorized capital of Five Hundred Million Pesos
(P500,000,000.00) which shall be fully subscribed by the Republic of the
Philippines and other government institutions, corporations,
instrumentalities and agencies whether national or local within the
framework of their respective charter, and shall be paid out as follows:
The sum of one hundred million
pesos (P100,000,000), which is hereby appropriated out of any general
fund in the National Treasury not otherwise appropriated, and from
proceeds of bond issues, loans and from any other sources of income of
the National Government, upon approval of this Act;
The balance, from the same sources mentioned in
paragraph (a) hereof, upon approval of the President. The authorized
capital of five hundred million pesos shall constitute a revolving fund
for the purpose of financing the Authority's business transactions.
to 13 inclusively, of this Decree shall apply. Disposition of Lands.
Section 8 to 13 inclusively, of this Decree shall apply.
Disposition of Lands. — For the purpose of providing land
acquisition assistance to registered tourism enterprises, to sell,
subdivide, resell, lease, subless, rent out, or otherwise, including
improvements thereon, if any, to said registered tourism enterprises
under sufficiently soft terms for use specifically in the development of
hotels, recreational facilities, and other tourist services: Provided,
That the Authority shall reserve the right to repossess in accordance
with the law any land so sold or leased in cases of insufficient use or
misuse of land by said enterprise or their possible assignees.
Development and Sale of Subdivisions and Condominiums. —
To develop and/or subdivide any land in its name or undertake
condominium projects thereon, and sell subdivided lots or condominium
units to private persons for investment purposes: Provide,
That such subdivision and/or condominium projects are undertaken
within the tourist zones and in conjunction with the development
thereof; Provided, further, That their use shall be within the
guidelines set forth by the Authority.
Transfer of Foreshore Leases. — To take over or transfer
to a registered tourism enterprise in accordance with law any lease on
foreshore areas within a tourist zone or adjacent thereto, in cases
wherein said areas are not being utilized in accordance with the
Authority's approved zone development plan and wherein the lessee
concerned does not agree to conform accordingly after due consultation
with the local government having jurisdiction over the granting of said
leases.
Reclamation of Land. — To arrange for the reclamation
of any land adjacent to or adjoining a tourist zone in coordination with
appropriate government agencies.
C. INFRASTRUCTURE DEVELOPMENT FOR TOURIST ZONE
PURPOSES
Interned Infrastructure. — To contract, supervise and pay
for infrastructure works and civil works within a tourist zone owned
and operated by the Authority, or where necessary, to construct,
acquire, own, lease, operate and/or maintain within said zone such
infrastructure facilities as dams, reservoirs, water distribution
systems, electric power systems, sewerage systems, telecommunications,
roads, transportation facilities or other services and facilities
necessary or useful for the conduct of business of the hotels, shops,
restaurants and other tourist facilities and services in the zone, in
coordination with appropriate government agencies.
External Infrastructure. — To coordinate with appropriate
government agencies the development of infrastructure requirements
supporting a tourist zone, such as but not limited to, access roads to
the zone, electric power brought to the property line of the zone,
airports, harbors, and other support facilities.
Other Related Powers. — In coordination with appropriate
government agencies, to take water from any public stream, river, creek,
lake spring, or waterfall in the Philippines; and to alter, straighten,
obstruct or increase the flow of water in streams or in water channels
intersecting or connecting therewith or contiguous to its works or any
part thereof, for purposes of enhancing the attractiveness of projects
for tourism purposes.
D. ZONE ADMINISTRATION AND CONTROL
Zoning Regulations. — In coordination with the
Department of Local Government and Community Development and other
appropriate government agencies, to formulate and implement zoning
regulations, including building codes, hotel standards, and such
other restrictions as may be necessary within a tourist zone to
control its orderly development, to preserve such historical, cultural
and/or natural assets or relics giving the zone its tourism value and
significance, and to assure adherence to approved zone development
plans.
Determination and Regulation of Zone Enterprises. —
To determine and regulate the enterprises to be established within a
tourist zone.
Ecological Preservation and Maintenance. — To ensure,
through the proper authorities concerned, the ecological preservation,
maintenance and/or rehabilitation of the common and the public areas
within a tourist zone and the environment thereof; and specifically, to
control beach erosion and pollution to preserve all aspects giving the
zone its tourism value.
Preservation and Restoration of Tourist Attractions. —
In coordination with appropriate government agencies; (a) to identify
and recommend to the President the preservation and/or restoration of
national monuments or preserves; (b) arrange for the preservation and/or
restoration of the same with appropriate government agencies or with
the private sector or with the owners themselves of said tourist
attractions; and (c) identify and recommend to the appropriate
authorities concerned the declaration of tourist areas and attractions
as national monuments and preserves.
E. PROJECT AND INVESTMENT PROMOTIONS
Promotion of Own Projects. — To identify, develop,
invest in, own, manage and operate such projects as it may deem to be
vital for recreation and rest but which are not sufficiently attractive
economically for private investment.
Construction and Leasing of Tourist Facilities. — To
construct hotel buildings and other tourist facilities within a tourist
zone and in turn lease such facilities to registered tourism enterprises
for operation, management and maintenance.
Promotion of Wholly-Owned Subsidiary Corporations. — To
organize, finance, invest in, manage and operate wholly-owned
subsidiary corporations when such arrangement is hereby necessary
to implement the purposes, functions and powers conferred or
granted to it under this Decree, subject to the approval of the
President for each: Provided, That such corporations may not
declare dividends.
In the exercise of the above functions, the Authority shall avoid
competing against or discouraging the private sector in undertaking
similar projects and shall engage only in those activities as are in the
nature of pioneering ventures or are demonstrably beyond the scope,
capacity, or interest of purely private enterprises due to
considerations of geography technical or capital requirements, returns
on investments and risks: Provided, That the Authority may choose
to engage private parties to provide the direct operating management of
these projects under terms and conditions beneficial to the Authority.
F. DIRECT ASSISTANCE TO REGISTERED ENTERPRISES
Administration of Incentives. — To administer the tax
and other incentives granted to registered enterprises under
Presidential Decree No. 535 or under any law as may later be enacted: Provided,
That the Authority shall prescribe the procedure and manner under which
the incentives may be made available and the qualifications that may be
required of the registered tourism enterprises availing of said
incentives: Provided, further, That the Authority shall
reserve the prerogative to determine and select which of the authorized
incentives shall be granted to a particular type of registered
enterprise, or conversely, which types of registered enterprise may
avail of a particular incentive: Provided, finally, That the
administration of the collection of internal revenue taxes and customs
duties shall be left to the Bureau of Internal Revenue and the Bureau of
Customs, respectively, as the case may be.
Approval and Registration of Tourism Projects. — To
evaluate, approve and register or reject any and all tourism projects or
enterprises established within the tourist zones, applying for
financial assistance, and/or availing of tax and other incentives
provided by law.
Granting of Loans; Re-lending of Borrowed Funds. — To
grant medium and long-term loans and/or re-lend any funds borrowed for
the purpose to duly qualified registered tourism enterprises for the
development, establishment expansion, rehabilitation and/or
encouragement of tourism projects owned, managed and/or operated by said
enterprises, and/or for the acquisition or procurement of machinery,
equipment and other implements needed in the operations of registered
tourism enterprises.
Guarantee Local and Foreign Currency Obligations of
Registered Enterprises. — Whenever deemed necessary for purposes of
enabling registered enterprises to secure financing at preferred and
competitive terms to assure the viability and implementation of the
registered projects, the Authority may guarantee local and foreign
borrowing of registered enterprises under terms and conditions it shall
promulgate.
Provide Equity Investments. — In order to meet the
necessary local counterpart funds for specific projects where the
existing local equity is not adequate, the Authority may provide equity
investments in the form of cash and/or land under terms and conditions
it shall promulgate, and with the end in view that said equity
investments will be eventually sold to the public to provide dispersal
of ownership in the tourism industry.
Provide Technical, Management and Financial Assistance.
— In order to ensure the realization of projects deemed by it
to be viable and deserving, the Authority shall extend technical,
management and financial assistance to such tourism projects, subject to
policies and guidelines which the Board shall formulate; and in this
direction the Authority may prepare or contract for the preparation of
feasibility and other pre-investment studies upon its own initiative: Provided,
That any expenses so incurred by the Authority shall be reimbursed by
the tourism enterprises benefiting therefrom within five years from
their start of operations; and Provided, further, That the
reimbursement by the benefiting enterprises of the Authority's expenses
for such assistance shall be a condition for the grant of such
assistance.
Promote Joint Ventures. — The Authority shall
identify, contract and assist in negotiations suitable partners for both
local and foreign investors interested in investment or participation
in the tourism industry.
Provide Facilitation Services to Investors. — The
Authority shall assist registered enterprises and prospective investors
to have their papers processed with dispatch by all government offices,
agencies, instrumentalities and institutions.
G. OTHER POWERS AND FUNCTIONS
Services of Consultants. — To engage or retain and pay
for the services of financial, management, legal, technical and/or
project consultants from the private or government sector. Said
consultants shall be exempt from the requirement set forth in Section 37
hereof.
Succession. — To have the power to succeed by its
corporate name.
Corporate Seal. —To adopt, alter, and use a corporate
seal which shall be judicially noticed.
Sue and Be Sued. — To sue and be sued under its corporate
name.
Contracts. — To enter into contract of any kind and
description to enable it to discharge its functions and powers under
this Decree.
Ownership or Possession of Personal and/or Real Property.
— To acquire, lease, own, or possess such personal and/or real property
as it deems necessary or convenient in the transaction of its business
and/or in relation with the carrying out of its purposes, functions and
objectives under this Decree; and to lease, mortgage, sell, alienate, or
otherwise encumber or dispose of any such personal and real property
held by it.
Rules and Regulations. — To make, adopt, promulgate and
enforce such rules and regulations as are necessary to execute the
powers, duties and functions vested in it by this Decree and by
Presidential Decree No. 535, or to implement the policies and programs
of the Department of Tourism, subject to the programs, policies and
guidelines prescribed by the Department of Tourism. The rules and
regulations issued by the Authority shall take effect immediately
following their publication in two (2) national newspapers of
general circulation in the Philippines: Provided, That in case of
conflict between the Rules and Regulations promulgated by the Authority
and the policies, guidelines or rules and regulations promulgated by
the Department of Tourism, the latter shall prevail.
Purchase, Hold, Alienate Stocks or Bonds. — To purchase,
hold, alienate, mortgage, pledge, or otherwise dispose of, the shares of
the capital stock of, or any bond, security, or other evidence of
indebtedness created by any other corporation or co-partnership of this
or any other country, and while the owner of said stock, to exercise all
the rights of ownership, including the right to vote thereon: Provided,
That such stock or indebtedness arise from projects or activities
related to the promotion and development of tourism unless such holdings
were made purely for temporary investment of unutilized funds.
Collection of Fees, Charges, etc. — To collect such fees
and charges as may be imposed and assigned to it under this Decree or
other laws: Provided, That all taxes accruing to the Philippine
Tourism Authority under this Decree and other laws, which will be
collected by the Bureau of Internal Revenue and the Bureau of Customs,
shall be remitted to the Authority quarterly.
Borrowing Power. — When essential to the proper
administration of its corporate affairs or when necessary for the
transaction of its business or for carrying out the purpose of this
Decree, to contract indebtedness and issue bonds, subject to the
conditions set forth in Sections 8 to 13, inclusively, of Chapter III
hereof.
Fixing and Collection of Rentals, Fees and Other Charges.
— To fix and collect rentals for the lease, use or occupancy of
lands, buildings, structures, facilities and other properties
owned or administered by the Authority; to fix and collect fees for
services of utility systems owned or operated by it; and to fix and
collect fees and charges for the processing of registration application,
issuance of permits, and rendering of services not enumerated herein,
the provision of any law, decree or rule to the contrary
notwithstanding.
Reservation of Power Necessary to Carry Out the Authority's
Purposes, Functions and Objectives. To do any and all acts and
things necessary, convenient and expedient to be done to carry out the
purposes for which the Authority is created and organized and not
repugnant to law, it being hereby expressly provided that the
enumeration herein of specific purposes, objects, business, powers
rights, and privileges shall not be construed is limiting or restricting
in any way the general purposes, powers, rights, and privileges to be
possessed and exercise by the Authority.
Instruments of Indebtedness Made Securities.
SEC. 10. Instruments of Indebtedness Made Securities.
— The instruments of indebtedness issued by the Authority under and by
virtue of this Decree are hereby made securities in which all public
offices, all political subdivisions, all commercial banks, all insurance
companies and associations, all savings banks and savings institutions,
including savings and loan association, executors, administrators,
guardians, trustees and all fiduciaries in the Philippines may properly
and legally invest their own funds or the funds within their control,
and the same shall be receivable as security in any transaction with the
government, its agencies and instrumentalities, including government
owned or controlled corporations and government banking and financial
institutions in which such security is required. Said instruments may be
made payable both as to principal and interest in Philippine currency
or any readily convertible currency.
Instruments of Indebtedness Exempt from Taxes.
SEC. 11. Instruments of Indebtedness Exempt from
Taxes. — The bonds and other instruments of indebtedness which the
Authority is authorized to issue under this Decree and any income
derived therefrom, including those contracted with private international
banking and financial institutions, may be exempt from the payment of
all taxes of whatever kind and nature, including withholding taxes
imposed by the Republic of the Philippines, its agencies,
instrumentalities or political subdivisions, upon the recommendation of
the Secretary of Finance and subject to the provisions of Republic Act
No. 1000.
Guarantee by the Government.
SEC. 12. Guarantee by the Government. — Any or
all loans or instruments of indebtedness which the Authority is
authorized to contract or issue under this Decree may be guaranteed,
both as to principal and interest, by the Government of the Republic of
the Philippines whenever the President of the Philippines, by himself or
through his duly authorized representatives, may deem such guarantee by
the Government of the Philippines to be advisable and necessary, 'n
which case, the President of the Philippines or his duly authorized
representative is hereby authorized to execute and deliver said
guarantee of the Government of the Republic of the Philippines.
Sinking Funds Means of Payment of Indebtedness.
SEC. 13. Sinking Funds Means of Payment of
Indebtedness. — The Authority is hereby authorized to pay out of its
capital, operating income, proceeds from its borrowings or issuance of
bonds, and other instruments of indebtedness, and from all other sources
of funds, the amounts necessary to meet its maturing obligations on the
loans, credits or indebtedness contracted by the Authority or on the
bonds, notes or other instruments of indebtedness issued by it. For this
purpose, a sinking fund may be established out of said sources of funds
of the Authority, in the Central Bank of the Philippines in such manner
that the total thereof at each due date of the bonds and other
instruments of indebtedness and the loans, credits or indebtedness
contracted by the Authority shall be equal to the aggregate maturing
obligations or amortizations as of that date. Said fund shall be under
the custody of the Central Bank of the Philippines under a special
account, which shall invest the same in such manner as the Monetary
Board may approve, charging all expenses of such investments to the said
sinking fund and crediting the same with interest on investments and
other income belonging to it. A standing appropriation is hereby made
out of any general fund in the National Treasury not otherwise
appropriated, of such sum as may be necessary to meet all obligations of
the Government of the Republic of the Philippines under all guarantees
which may be sufficient to fully pay the indebtedness of the Authority
guaranteed by the Government of the Republic of the Philippines or in
case the Authority fails to fully pay the same by some other means.
