AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT, AND STRENGTHENING THE DEPARTMENT OF TOURISM AND ITS ATTACHED AGENCIES TO EFFECTIVELY EFFICIENTLY IMPLEMENT THAT POLICY, AND APPROPRIATING FUNDS THEREFOR

• Number: Republic Act No. 9593
• Sections: 114

Preamble

GENERAL PROVISIONS

TOURISM GOVERNANCE

SUBCHAPTER II-A. STRUCTURE OF THE DEPARTMENT

TOURISM PROMOTIONS

SUBCHAPTER III-A. TOURISM PROMOTIONS BOARD

TOURISM ENTERPRISE ZONES

SUBCHAPTER IV-A. TOURISM ENTERPRISE ZONES

INCENTIVES

DUTY- AND TAX-FREE MERCHANDISING SYSTEM FOR TOURISM PURPOSES

INCREASED TOURIST ACCESS

CREATING A CULTURE OF TOURISM

MISCELLANEOUS PROVISIONS

Section 1 Short Title.

SECTION 1. Short Title. — This Act shall be known as "The Tourism Act of 2009".

Section 2 Declaration of Policy.

SEC. 2. Declaration of Policy. — The State declares tourism as an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socioeconomic growth and cultural affirmation to generate investment, foreign exchange and employment, and to continue to mold an enhanced sense of national pride for all Filipinos.

Towards this end, the State shall seek to:

Ensure the development of Philippine tourism that is for and by the Filipino people, conserve and promote their heritage, national identity and sense of unity;

Recognize sustainable tourism development as integral to the national socioeconomic development efforts to improve the quality of life of the Filipino people, providing the appropriate attention and support for the growth of this industry;

Promote a tourism industry that is ecologically sustainable, responsible, participative, culturally sensitive, economically viable, and ethically and socially equitable for local communities;

Create a favorable image of the Philippines within the international community, thereby strengthening the country’s attraction as a tourism destination and eventually paving the way for other benefits that may result from a positive global view of the country;

Develop the country as a prime tourist hub in Asia, as well as a center of world congresses and conventions, by promoting sustainable tourism anchored principally on the country’s history, culture and natural endowments, and ensuring the protection, preservation and promotion of these resources; and

Encourage private sector participation and agritourism for countryside development and preservation of rural life.

Section 3 Objectives.

SEC. 3. Objectives. — Pursuant to the above declaration, the State shall adopt the following objectives:

Develop a national tourism action plan and work for its adoption and implementation by national and local governments;

Encourage activities and programs which promote tourism awareness, preserve the country’s diverse cultures and heritage, and instill a sense of history and a culture of tourism among the youth and the populace;

All things being equal, grant preferential treatment to the employment of Filipino nationals in tourism-related enterprises;

Provide full government assistance by way of competitive investment incentives, long-term development fund and other financing schemes extended to tourism-related investments;

Ensure that tourism development protects and promotes the general well-being of the Filipino people, particularly in the area of investment, to include the monitoring and prevention of any act of profiteering or speculation to the detriment of local residents, as well as the exploitation of women and children in tourism;

Encourage competition in the tourism industry and maximize consumer choice by enhancing the continued viability of the retail travel industry and independent tour operation industry;

Enhance the collection, analysis and dissemination of data which accurately measure the economic and social impact of tourism in the country to facilitate planning in the public and private sectors;

Ensure the right of the people to a balanced and healthful ecology through the promotion of activities geared towards environmental protection, conservation and restoration;

Develop responsible tourism as a strategy for environmentally sound and community participatory tourism programs, enlisting the participation of local communities, including indigenous peoples, in conserving bio-physical and cultural diversity, promoting environmental understanding and education, providing assistance in the determination of ecotourism sites and ensuring full enjoyment of the benefits of tourism by the concerned communities;

Strengthen the role of tourism councils and encourage the participation of nongovernment organizations (NGOs), people’s organizations (POs) and the private sector in initiating programs for tourism development and environmental protection;

Promote the progressive development of existing civil aviation, land and sea transportation policies as they relate to tourism, in consonance with existing bilateral agreements and inter-agency pronouncements; Promote and ensure the convention-handling capability of the country as a world-class convention center;

Achieve a balance in tourism development between urban and rural areas in order to spread the benefits of tourism and contribute to poverty alleviation, better access to infrastructure and to a reduction in regional imbalances;

Enhance capability-building of local government units (LGUs), in partnership with the private sector, in the management of local tourism projects and initiatives, thereby ensuring accessible and affordable destinations throughout the country, especially in areas which have shown strong comparative advantage;

Maintain international standards of excellence in all tourism facilities and services, and promote the country as a safe and wholesome tourist destination;

Enhance international business relations for the support of tourism projects of the private sector, through partnerships, joint ventures and other cooperative undertakings involving local and foreign investors;

Support the establishment of tourism enterprise zones (TEZs), which will provide the necessary vehicle to coordinate actions of the public and private sectors to address development barriers, attract and focus investment on specific geographic areas and upgrade product and service quality; and

Ensure a sustainable funding mechanism for the implementation of tourism policies, plans, programs, projects and activities.

Section 4 Definition of Terms.

SEC. 4. Definition of Terms. — The following terms, as used in this Act, are defined as follows:

"Department" refers to the Department of Tourism created pursuant to Presidential Decree No. 189 (1973), as amended.

"Secretary" refers to the Secretary of Tourism.

"Duty Free Philippines (DFP)" refers to the government agency created pursuant to Executive Order No. 46 (1986).

"Duty Free Philippines Corporation (DFPC)" refers to the corporate entity created out of DFP pursuant to this Act.

"Philippine Conventions and Visitors Corporation (PCVC)" refers to the corporate entity created pursuant to Presidential Decree No. 867, as amended.

"Intramuros Administration (IA)" refers to the government agency created pursuant to Presidential Decree No. 1616 (1979), as amended.

"Philippine Retirement Authority (PRA)" refers to the government agency created pursuant to Executive Order No. 1037 (1985).

"Tourism Infrastructure and Enterprise Zone Authority (TIEZA)" refers to the government agency created pursuant to this Act.

"Tourism Enterprise Zone (TEZ)" refers to tourism enterprise zones created pursuant to this Act.

"TEZ overseer" refers to any person who shall be appointed by the TIEZA in specific zones to perform such functions as may be delegated by the TIEZA in accordance with law.

"TEZ operator" refers to an entity duly incorporated under Batas Pambansa Blg. 68, otherwise known as The Corporation Code of the Philippines, and other relevant laws, whose capital may be provided by LGUs and/or private entities, and which shall administer and supervise each TEZ.

"TEZ Administrator" refers to the person appointed by the Board of Directors of a TEZ operator who shall be responsible for implementing the policies, plans and projects of the TEZ operator.

"Registered enterprise" refers to an enterprise located within a TEZ that is duly-registered with the TIEZA.

"Philippine Tourism Authority (PTA)" refers to the existing implementation arm of the Department of Tourism created pursuant to Presidential Decree No. 189 (1973), as amended.

"Tourism Promotions Board (TPB)" refers to the body corporate created under this Act.

"Tourism enterprises" refers to facilities, services and attractions involved in tourism, such as, but not limited to: travel and tour services; tourist transport services, whether for land, sea or air transportation; tour guides; adventure sports services involving such sports as mountaineering, spelunking, scuba diving and other sports activities of significant tourism potential; convention organizers; accommodation establishments, including, but not limited to, hotels, resorts, apartelles, tourist inns, motels, pension houses and home stay operators; tourism estate management services, restaurants, shops and department stores, sports and recreational centers, spas, museums and galleries, theme parks, convention centers and zoos.

"Primary tourism enterprises" refers to travel and tour services; land, sea and air transport services exclusively for tourist use; accommodation establishments; convention and exhibition organizers; tourism estate management services; and such other enterprises as may be identified by the Secretary, after due consultation with concerned sectors.

"Secondary tourism enterprises" refers to all other tourism enterprises not covered by the preceding subsection.

"Greenfield Tourism Zone" refers to a new or pioneer development, as determined by the TIEZA.

"Brownfield Tourism Zone" refers to an area with existing infrastructure or development as determined by the TIEZA.

"Foreign visitors" refers to all passengers using foreign passports.

"Sustainable tourism development" refers to the management of all resources that meets the needs of tourists and host regions while protecting the opportunities for the future, in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems.

Section 5 Mandate.

SEC. 5. Mandate. — The Department of Tourism, hereinafter referred to as the Department, shall be the primary planning, programming, coordinating, implementing and regulatory government agency in the development and promotion of the tourism industry, both domestic and international, in coordination with attached agencies and other government instrumentalities. It shall instill in the Filipino the industry’s fundamental importance in the generation of employment, investment and foreign exchange.

Section 6 Powers and Functions.

SEC. 6. Powers and Functions. — The Department shall have the following powers and functions:

Formulate tourism policies, plans and projects for the development of tourism as an engine of socioeconomic and cultural growth;

Supervise and coordinate the implementation of tourism policies, plans and projects;

Call upon all agencies of government to properly carry out their programs in relation to and in coordination with the policies, plans and projects of the Department and to assist in the implementation thereof;

Communicate to the President, and the heads of departments, agencies and instrumentalities of the government, the impact upon tourism and the economy of proposed governmental actions;

Provide an integrated market development program to attract people to visit the Philippines and enhance the prestige of the country and the Filipino people in the international community;

Represent the government in all domestic and international conferences and fora, and in all multilateral or bilateral treaties and international agreements concerning tourism, and ensure the government’s implementation thereof and compliance with all obligations arising therefrom;

Request the President for representation in all government agencies, offices, boards, commissions and committees that may affect tourism;

Call upon relevant government departments, agencies and offices, in consultation with the private sector, to provide access to travel, to facilitate the process of obtaining and extending visas, to integrate and simplify travel regulations and immigration procedures and to ensure their efficient, fair and courteous enforcement to assure expeditious and hospitable reception of all visitors;

Support, advance and promote the protection, maintenance and preservation of historical, cultural and natural endowments, in cooperation with appropriate government agencies and the private sector, and take appropriate measures against acts and omissions contrary to these objectives;

Monitor conditions of any community in the Philippines and, in consultation with the LGUs and law enforcers, issue timely advisories on the safety or viability of travel to particular places within the Philippines and on patronage of entities engaged in tourism-related activities and of tourism products;

Evaluate tourism development projects for the issuance of permits and the grant of incentives by appropriate government agencies, establish a databank of tourism areas and projects for investment purposes, and encourage private sector investment and participation in tourism activities and projects;

Formulate and promulgate, in consultation with the LGUs, the private sector industries and other tourism stakeholders, rules and regulations governing the operation and activities of all tourism enterprises including, but not limited to, a national standard for licensing, accreditation and classification of tourism enterprises, prescribing therein minimum levels of operating quality and efficiency for their operation in accordance with recognized international standards, impose reasonable penalties for violation of accreditation policies and recommend to the LGUs concerned the suspension or prohibition of operation of a tourism enterprise;

Monitor the LGUs’ compliance to national standards in the licensing of tourism enterprises, receive and investigate complaints concerning these enterprises, and act on such complaints to properly implement the provisions of this Act;

Ensure the proper coordination, integration, prioritization and implementation of local tourism development plans with that of the national government:

Provide technical assistance to LGUs in destination development, standard setting and regulatory enforcement;

Undertake continuing research studies and survey to analyze economic conditions and trends relating to tourism and travel, and compile and integrate a statistical databank on the tourism industry;

Delegate to regional offices, in coordination with LGUs, specific powers and functions in the implementation of tourism policies, plans and projects;

Collect necessary fees and charges for the proper implementation of tourism policies, plans and projects; and

Exercise such other powers and functions as are necessary for the implementation of this Act.

Section 7 Structure of the Department.

SEC. 7. Structure of the Department. — The Department shall consist of the Department Proper, Department offices, services and unit, and the regional and foreign offices.

Section 8 Department Proper.

SEC. 8. Department Proper. — The Department Proper shall consist of the Offices of the Secretary, Undersecretaries and Assistant Secretaries. necessary for the implementation of this Act.

Section 9 Office of the Secretary.

SEC. 9. Office of the Secretary. — The Office of the Secretary shall consist of the Secretary and his or her immediate staff.

Section 10 Undersecretaries and Assistant Secretaries.

SEC. 10. Undersecretaries and Assistant Secretaries. — The Secretary shall be assisted by at least three (3) Undersecretaries, namely:

Undersecretary for Tourism Development, who shall be responsible for the Office of Product Development, the Office of Tourism Development Planning, Research and Information Management and the Office of Industry Manpower Development;

Undersecretary for Tourism Regulation, Coordination and Resource Generation, who shall be responsible for the Office of Tourism Standards and Regulations, the Office of Tourism Coordination, the Office of Tourism Resource Generation and all regional and foreign offices; and

Undersecretary for Special Concerns and Administration, who shall be responsible for the Office of Special Concerns, the Financial and Management Service, Administrative Affairs Service, Legal Affairs Service, Internal Audit Service and Legislative Liaison Unit.

Each Undersecretary shall he assisted by an Assistant Secretary.

Section 11 Office of Product Development.

SEC. 11. Office of Product Development. — The Office of Product Development shall have the following functions:

Conceptualize and develop new products which will enhance tourism sites and facilities;

Undertake tests on the viability and acceptability of new tourism-related products and programs; and

Encourage and promote joint undertakings with the private sector for the development of new tourism-related products and programs.

Section 12 Office of Tourism Development Planning, Research and Information Management.

SEC. 12. Office of Tourism Development Planning, Research and Information Management. — The Office of Tourism Development Planning, Research and Information Management shall have the following functions:

Prepare a National Tourism Development Plan identifying geographic areas with potential tourism value and outlining approaches to developing such areas;

Formulate policies and programs for global competitiveness and national tourism development, and approve local government tourism development plans;

Monitor and evaluate the implementation of policies, plans and programs of the Department;

Formulate an integrated marketing and promotions plan, identifying strategic market areas and niches;

Formulate, in coordination with the TIEZA, other government agencies and LGUs exercising political jurisdiction over the area, development plans for TEZs and integrating such plans with other sector plans for the area;

Conduct researches and studies, disseminate all relevant data on tourism, monitor and analyze the socioeconomic impact of tourism upon affected local communities and the nation to maximize the benefits of tourism throughout affected local communities and to avoid or mitigate possible negative impacts of the industry;

Provide technical assistance to the LGUs and the TIEZA in the preparation of local tourism development plans to ensure adherence to national policies and programs;

Coordinate with government agencies, LGUs, NGOs and other private entities for the development and implementation of the national tourism plans and policies and other relevant concerns;

Source grants or loans from local and foreign funding institutions to implement tourism policies, plans and projects;

Create and supervise management information systems for the entire Department;

Formulate and coordinate the implementation of the Department’s information system strategic plan; and

Pursue the Department’s interests in multilateral, international and regional tourism cooperation, agreements and treaties.

Section 13 Office of Industry Manpower Development.

SEC. 13. Office of Industry Manpower Development. — The Office of Industry Manpower Development shall have the following functions:

Conduct seminars on Philippine history, culture, environment and related subjects, in coordination with appropriate government agencies and the private sector, specifically educational institutions;

Develop training modules and conduct seminars and continuing education programs for the industry manpower, in coordination with appropriate government agencies and tourism enterprises and associations, thereby upgrading their quality, competence and excellence in tourism services:

Encourage the development of training courses and apprenticeship programs for tourist guides and other similar workers jointly with concerned tourism enterprises, appropriate government agencies and the private sector; and

Enlist the participation of experts for the provision of technical assistance, training and education programs to LGUs, tourism enterprises and other entities to improve the quality of tourism services and issue certifications to the effect that these recipients of assistance, training and education have passed the standards set by the said experts, in accordance with this Act.

Section 14 Office of Tourism Standards and Regulations.

SEC. 14. Office of Tourism Standards and Regulations. — Recognizing the need for internationally competitive standards of facilities and services, the Office of Tourism Standards and Regulations shall have the following functions:

Formulate and enforce standards for the operation and maintenance of tourism enterprises, prescribing minimum and progressive levels of operating quality and efficiency consistent with local and international standards;

Coordinate with relevant tourism enterprise associations, including adventure sports associations, in the formulation of rules and regulations, accreditation and enforcement;

Develop and enforce a comprehensive system of mandatory accreditation for primary tourism enterprises, and voluntary accreditation for secondary tourism enterprises, in accordance with prescribed guidelines and standards;

Establish a system of registration, information, linkage and mutual assistance among accredited tourism enterprises to enhance the value of accreditation and improve the quality of service rendered by such enterprises; and

Evaluate tourism projects in accordance with standards and endorse the same to appropriate government agencies for availment of incentives, and provide technical assistance to incentive-giving institutions in the formulation of tourism incentives and the administration of their functions.

Section 15 Office of Tourism Coordination.

SEC. 15. Office of Tourism Coordination. - Recognizing that increased linkages are necessary between various government offices and the private sector and among the various entities in the private sector itself to properly implement tourism policy, the Office of Tourism Coordination shall have the following functions:

Maintain close coordination with national government agencies, LGUs, NGOs and other private entities for the development and implementation of national tourism plans and policies;

Call upon the assistance and support of any or all of the government agencies in the implementation of the policies of the Department; and

Support the private sector in all tourism activities requiring governmental coordination.

Section 16 Office of Tourism Resource Generation.

SEC. 16. Office of Tourism Resource Generation. — In line with the objective of ensuring a sustainable funding mechanism for the implementation of tourism policies, plans, programs, projects and activities, the Office of Tourism Resource Generation shall be tasked with the collection of necessary fees and charges which shall be used by the Department in the promotion and marketing efforts of the TPB and the development of infrastructure facilities, utilities and services of the TIEZA. The proceeds of such collection shall accrue directly and automatically to the Department. The guidelines for the collection and disbursement of these proceeds shall be defined in the implementing rules and regulations of this Act.

There is hereby created a special fund, to be disbursed and administered by the Department, called the Tourism Development Fund, which shall be used for the development, promotion and marketing of tourism and other projects of the Department that will boost tourism in the country. The fund shall be sourced from the fees and charges which will be collected by the Department. A special account shall be established for this fund in the National Treasury. Disbursements made from the fund shall be subject to the usual accounting and budgeting rules and regulations.

Section 17 Regional Offices.

SEC. 17. Regional Offices. — The Department shall establish, operate and maintain a regional office in each administrative region in the country. A regional office, headed by a regional director, shall have the following functions:

Implement laws, policies, plans, programs, rules and regulations of the Department, particularly those relating to compliance therewith, and to the accreditation of tourism enterprises promulgated by the Department;

Coordinate with regional offices of other departments, bureaus and agencies, LGUs, NGOs and the regional offices of the Department's attached agencies in the implementation of such laws, policies, plans, programs and rules and regulations;

Undertake research and data gathering on local tourism trends and other relevant tourism information;

Together with LGUs, establish such tourist information and assistance centers at strategic locations as are necessary to disseminate relevant information pertaining to the tourist locations and products and to assist tourists and tourism enterprises;

Conduct trainings and information campaigns, and assist the TPB in domestic promotions in the pertinent region on subject matters such as this Act, the functions of the Department, tourism traffic and new tourism sites, among others; and

Make recommendations to the Secretary on all matters relating to tourism in the region.

Section 18 Foreign Offices.

SEC. 18. Foreign Offices. — The creation, operation and supervision of foreign field offices of the Department shall be retained therein.

Section 19 Office of Special Concerns.

SEC. 19. Office of Special Concerns. — The Office of Special Concerns shall be responsible in effectively coordinating and monitoring the various directives, pronouncements and issuances of the President pertaining to the priorities of the government and the Department.

Section 20 Financial and Management Service.

SEC. 20. Financial and Management Service. — The Financial and Management Service shall provide the Department with staff advice and assistance on budgetary, financial and management matters and shall perform such other related functions as may be assigned or delegated to it by the Secretary.

Section 21 Administrative Affairs Service.

SEC. 21. Administrative Affairs Service. — The Administrative Affairs Service shall provide the Department with staff advice and assistance on personnel information, records, communications, supplies, equipment, collection, disbursements, security, other custodial work and such other related duties and responsibilities as may be assigned or delegated to it by the Secretary.

Section 22 Legal Affairs Service.

SEC. 22. Legal Affairs Service. — The Legal Affairs Service shall provide the Department with staff advice and assistance on all legal matters affecting the Department and perform such other related functions as may be assigned or delegated to it by the Secretary.

Section 23 Internal Audit Service.

SEC. 23. Internal Audit Service. — The Internal Audit Service shall be responsible for instituting and conducting an audit program for the Department to ensure compliance with existing rules and regulations for an efficient and effective fiscal administration and performance of department affairs.

Section 24 Legislative Liaison Unit.

SEC. 24. Legislative Liaison Unit. — The Legislative Liaison Unit shall establish and maintain regular coordination and liaison with Congress, monitor the passage of legislative measures that are in the Department’s agenda, provide relevant information and technical support to Members of Congress, and perform such other related functions as may be assigned or delegated by the Secretary.

SUBCHAPTER II-B. RATIONALIZATION OF FUNCTIONS

Section 25 Reorganization of Offices.

SEC. 25. Reorganization of Offices. — The Philippine Tourism Authority is hereby reorganized as the Tourism Infrastructure and Enterprise Zone Authority, as hereinafter provided. The Philippine Conventions and Visitors Corporation is hereby reorganized as the Tourism Promotions Board, as hereinafter provided.

The Bureaus for Domestic and International Tourism Promotions, and the Office of Tourism Information of the Department are hereby absorbed into the Tourism Promotions Board.

Section 26 Human Resources.

SEC. 26. Human Resources. — Where certain functions are declared redundant on account of the reorganization, the Department, the TIEZA Board and the Tourism Board shall provide for the reassignment, insofar as practicable, of affected employees to similar positions within the Department and its attached agencies, taking into consideration their skills and experience, without loss of seniority or other rights and privileges. In any case, all relevant laws, decrees, executive orders, rules and regulations concerning the rights of government employees in the reorganization of an office shall be respected.

Section 27 Optional Retirement and Compensation.

SEC. 27. Optional Retirement and Compensation. — There shall be no mandatory separation of any employee as a result of the reorganization of the Department and its attached agencies and corporations. However, if any employee elects to leave the service or retire, said employee shall be entitled to claim separation or retirement benefits as may be provided under existing laws governing the civil service or other laws and issuances, whichever may be beneficial to the employee concerned.

SUBCHAPTER II-C. ATTACHED AGENCIES AND CORPORATIONS

Section 28 Attached Agencies and Corporations.

SEC. 28. Attached Agencies and Corporations. — The TPB, the TIEZA and the DFPC shall be attached to the Department and shall be under the supervision of the Secretary for program and policy coordination. Furthermore, the following agencies and corporations shall be attached to the Department under the supervision of the Secretary for program and policy coordination: the IA; the National Parks Development Committee (NPDC), created under Executive Order No. 30 (1963); the Nayong Pilipino Foundation (NPF), created under Presidential Decree No. 37 (1972), as amended; the PRA; and the Philippine Commission on Sports Scuba Diving (PCSSD). Except as hereinafter provided, each of the attached agencies and corporations shall continue to operate under their respective charters.

Section 29 Intramuros Administration, National Parks Development Committee and Nayong Pilipino Foundation.

SEC. 29. Intramuros Administration, National Parks Development Committee and Nayong Pilipino Foundation. — The Intramuros Administration, the National Parks Development Committee and the Nayong Pilipino Foundation shall continue to be attached to the Department and operate under their respective charters. They may be authorized to operate TEZs, under the supervision of the TIEZA, as provided under Chapters IV and V of this Act, within their respective jurisdictions: Provided, That any restoration activity undertaken by the IA, the NPDC or the NPF may be entitled to a tax deduction equivalent to the full cost of the restoration activity directly incurred in accordance with the provisions of the National Internal Revenue Code, as amended.

Section 30 Philippine Retirement Authority.

SEC. 30. Philippine Retirement Authority. - For purposes of policy and program coordination, the Philippine Retirement Authority is hereby attached to the Department and placed under the supervision of the Secretary. The Secretary shall be the ex officio Chairperson of its Board of Trustees: Provided, That this provision shall apply after the expiration of the term of office of the incumbent Chairperson.

Section 31

SEC. 31. Philippine Commission on Sports Scuba Diving — The Philippine Commission on Sports Scuba Diving shall likewise be attached to the Department and placed under the supervision of the Secretary, who shall be the ex officio Chairperson of its Board of Trustees. It shall undertake measures to provide the standard basic dive rules to all levels or kinds of divers, regulate scuba sports and technical diving in the country and ensure the safety of the sport through the formulation of policies pursuant thereto, in coordination with the Office of Tourism Standards and Regulations, including the regulation of the accredited scuba sports and technical diving establishments.

SUBCHAPTER II-D. CONTROL AND SUPERVISION OF AREAS WITH OVERLAPPING JURISDICTIONS

Section 32 Rationalization of Tourism Areas, Zones and Spots.

SEC. 32. Rationalization of Tourism Areas, Zones and Spots. — Any other area specifically defined as a tourism area, zone or spot under any special or general law, decree or presidential issuance shall, as far as practicable, be organized into a TEZ under the provisions of this Act. With respect to tourism zones, areas or spots not organized into TEZs, the Department, through appropriate arrangements, may transfer control over the same or portions thereof, to another agency or office of the government, or to a LGU. This shall only be effected upon the submission by the latter, within a reasonable time, of comprehensive development plans for the use, preservation and promotion of these zones, areas or spots and upon the approval thereof by the Department. Such transfer shall not have the effect of diminishing the jurisdiction of the Department over these zones, areas or spots.

The Department shall exercise supervisory powers over such agency, office or LGU in accordance with the terms of the transfer or the development plan of the zone, area or spot. Where a government agency or office or a LGU fails to implement the comprehensive plan approved by the Department, the Department may rescind the arrangement transferring control over the tourism zone, area or spot and regain such control thereof.

Section 33 National Integrated Protected Areas System (NIPAS) and the National Ecotourism Policy.

SEC. 33. National Integrated Protected Areas System (NIPAS) and the National Ecotourism Policy. — The Department, in coordination with the Department of Environment and Natural Resources (DENR), shall identify areas covered by the NIPAS with ecotourism potentials and cultural heritage value, and prepare policies, plans and programs for their development, preservation, operation or conversion into TEZs. The designation of these areas as TEZs shall be subject to the provisions of Subchapter IV-A of this Act.

The ecotourism sites in the National Ecotourism Strategy pursuant to Executive Order No. 111 (1999) may also be developed into TEZs with the National Ecotourism Steering Committee responsible for finding the appropriate TEZ operator for the sites.

Section 34 Tourism Infrastructure Program.

SEC. 34. Tourism Infrastructure Program. — The Department, in accordance with the National Tourism Development Plan and local government initiatives, shall coordinate with the Department of Public Works and Highways (DPWH) and the Department of Transportation and Communications (DOTC) in the establishment of a tourism infrastructure program in the respective work programs of said agencies, identifying therein vital access roads, airports, seaports and other infrastructure requirement in identified tourism areas. The said agencies and the Department of Budget and Management (DBM) shall accord priority status to the funding of this tourism infrastructure program.

SUBCHAPTER II-E. SHARED RESPONSIBILITIES OF NATlONAL AND LOCAL GOVERNMENTS

Section 35 Coordination Between National and Local Governments.

SEC. 35. Coordination Between National and Local Governments. — In view of the urgent need to develop a national strategy for tourism development while giving due regard to the principle of local autonomy, the Department, the Department of the Interior and Local Government (DILG) and LGUs shall integrate and coordinate local and national plans for tourism development. The Department may provide financial and technical assistance, training and other capacity-building measures to LGUs for the preparation, implementation and monitoring of their tourism development plans, gathering of statistical data, and enforcement of tourism laws and regulations, giving due priority to areas that have been identified as strategic in the implementation of the national tourism development plan. LGUs shall ensure the implementation of such plans. The Department, the TPB and the TIEZA shall prioritize promotion and development assistance for LGUs which successfully adopt and implement their tourism development plans.

Section 36 National Tourism Development Planning.

SEC. 36. National Tourism Development Planning. — The Department, in coordination with its attached agencies, LGUs and the private sector, shall continuously update the existing national tourism development plan in view of evolving needs and capabilities of LGUs and the domestic and global tourism market.

Section 37 Local Tourism Development Planning.

SEC. 37. Local Tourism Development Planning. — LGUs, in consultation with stakeholders, are encouraged to utilize their powers under Republic Act No. 7160, otherwise known as the Local Government Code of 1991, to ensure the preparation and implementation of a tourism development plan, the enforcement of standards and the collection of statistical data for tourism purposes. They shall, insofar as practicable, prepare local tourism development plans that integrate zoning, land use, infrastructure development, the national system of standards for tourism enterprises, heritage and environmental protection imperatives in a manner that encourages sustainable tourism development.

Section 38 Reports.

SEC. 38. Reports. — In order to monitor the resources of the Department and to ascertain the economic and social impact of tourism, all LGUs shall provide an inventory of all the resources available to the Department for use in the implementation of this Act. They shall likewise periodically report to the Department on the status of tourism plans and programs, tourist arrivals and tourism enterprises, among others, within their jurisdictions.

Section 39 Accreditation.

SEC. 39. Accreditation. — In order to encourage global competitiveness, strengthen data gathering and research on tourism, and facilitate the promotion of individual enterprises and the industry as a whole, the Department shall prescribe and regulate standards for the operation of the tourism industry. Primary tourism enterprises shall be periodically required to obtain accreditation from the Department as to the quality of their facilities and standard of services. Accreditation shall be voluntary for secondary tourism enterprises.

The Department shall evolve a system of standards for the accreditation of these enterprises in accordance with the relevant tourism development plan. These standards shall adhere, insofar as practicable, to those recognized internationally. The Department and LGUs shall ensure strict compliance of tourism enterprises with these standards.

The Department, through the Office of Tourism Standards and Regulations, shall act on complaints regarding accredited tourism enterprises, and after notice and hearing, may impose fines, or downgrade, suspend or revoke accreditation, for violation of the terms thereof. The Department shall likewise have the power and the duty to issue tourism advisories pertaining to tourism enterprises found to have violated the terms of their accreditation. A tourism advisory shall contain the following:

Complete identification of the pertinent tourism enterprise:

Location of this entity;

Its registered owner or proprietor and the business address thereof;

The specific term or terms of accreditation violated; and

The statement that the advisory shall only be lifted upon continued compliance of the enterprise with the terms of accreditation.

Tourism enterprises registered with the TIEZA in accordance with the pertinent provisions below and availing of the incentives under this Act shall further be ordered to pay back taxes in the amount equivalent to the difference between the taxes that they should have paid had they not availed of the incentives under this Act and the actual amount of taxes being paid by them under the same incentive scheme. The back taxes to be collected shall be computed up to three (3) years directly preceding the date of promulgation of the decision or order finding that the tourism enterprise violated the terms of its accreditation. For this purpose, the Department shall enlist the assistance of the Bureau of Internal Revenue in arriving at an accurate computation of back taxes to be paid by the pertinent tourism enterprise. The proceeds of these back taxes shall be distributed as follows:

One-third to the national government;

One-third to the LGUs concerned, to be shared by them equally should there be more than one such LGU and

One-third to the TIEZA.

Nothing in this section shall diminish the powers of the LGUs under the Local Government Code, pertaining to the issuance of business permits, licenses and the like. When an enterprise fails to obtain or loses accreditation, the Department shall notify the LGU concerned so that it may take appropriate action in relation to an enterprise’s licenses and permits to operate.

The Department may, under such relevant terms and conditions stipulated, delegate the enforcement of the system of accreditation to LGUs that have adopted and successfully implemented their tourism development plans.

The Department shall promulgate the necessary implementing rules and regulations to enforce the provisions of this section pursuant to its powers and functions as defined under Section 6 of this Act.

Section 40 Value of Accreditation.

SEC. 40. Value of Accreditation. — The Department shall develop a system to enhance the value of accreditation among primary and secondary tourism enterprises. Only accredited enterprises shall be beneficiaries of promotional, training and other programs of the Department and its attached agencies and corporations.

Accredited enterprises shall, insofar as practicable, give due preference to other accredited enterprises in obtaining relevant services.

The Department shall develop an integrated system of accreditation in coordination with concerned agencies and entities, in order to reduce the regulatory and financial burden on tourism-related enterprises.

Section 41 Local Government Capabilities Enhancement.

SEC. 41. Local Government Capabilities Enhancement. — The Department shall develop support and training programs to enhance the capability of LGUs to monitor and administer tourism activities, and enforce tourism laws, rules and regulations in their respective jurisdictions. Funding for such programs shall be shared equitably between the Department and the LGUs concerned.

Section 42 Tourism Officers.

SEC. 42. Tourism Officers. — Every province, city or municipality in which tourism is a significant industry shall have a permanent position for a tourism officer. He or she shall be responsible for preparing, implementing and updating local tourism development plans, and enforcing tourism laws, rules and regulations. In the performance of his or her functions, the tourism officer shall coordinate with the Department and its attached agencies.

Prior to appointment, every tourism officer must have obtained a relevant bachelor’s degree and at least five (5) years of substantial involvement in the tourism industry. The Department may also prescribe other relevant qualifications and require periodic completion of training programs. Such qualifications and the powers and functions of tourism officers shall be defined in the implementing rules and regulations of this Act.

Section 43 Tourism Assistance.

SEC. 43. Tourism Assistance. — In coordination with the Department’s regional offices, every province, city or municipality in which tourism is a significant industry shall establish a tourist information and assistance center to assist tourists and tourism enterprises.

Section 44 Tourism Site Classification.

SEC. 44. Tourism Site Classification. — The tourism councils established in the administrative regions of the country shall meet, on a regular basis, to classify and evaluate tourism destinations, sites and activities within their respective regions. Such classifications and evaluations may be used by the Department and its attached agencies, LGUs, and the private sector as guide in the development and implementation of their respective programs.

Section 45 Tourism Promotions Board.

SEC. 45. Tourism Promotions Board. — Under the supervision of the Secretary and attached to the Department for purposes of program and policy coordination shall be a body corporate known as the Tourism Promotions Board (TPB). The TPB shall formulate and implement an integrated domestic and international promotions and marketing program for the Department.

Section 46 Mandate.

SEC. 46. Mandate. — The TPB shall be responsible for marketing and promoting the Philippines domestically and internationally as a major global tourism destination, highlighting the uniqueness and assisting the development of its tourism products and services, with the end in view of increasing tourist arrivals and tourism investment. Specifically, it shall market the Philippines as a major convention destination in Asia. To this end, it shall take charge of attracting, promoting, facilitating and servicing largescale events, international fairs and conventions, congresses, sports competitions, expositions and the like. It shall likewise ensure the regular advertisement abroad of the country‘s major tourism destinations and other tourism products, not limited to TEZs. It may also provide incentives to travel agencies abroad which are able to draw tourists and tourism investments to the country.

Section 47 Board of Directors.

SEC. 47. Board of Directors. — The TPB shall be governed and its powers exercised by a Board of Directors ("Tourism Board"), composed as follows:

The Department Secretary, as Chairperson;

The TPB Chief Operating Officer, as Vice Chairperson;

The TIEZA Chief Operating Officer;

The Department of Foreign Affairs (DFA) Secretary;

The Department of Trade and Industry (DTI)

The DOTC Secretary; and

Five (5) representative directors, to be appointed by the President, upon the recommendation of the Tourism Congress from a list of at least three (3) nominees per group as enumerated in Section 49. They must be Filipinos with recognized competence in business management, marketing, finance, tourism and other related fields and shall serve a term of office of three (3) years, which term may be extended for a period not exceeding three (3) years. Secretary;

The Secretaries of the DFA, the DTI and the DOTC shall each designate a permanent representative in the Board, who must possess relevant experience. The permanent representative shall be duly authorized to act on behalf of the Secretary in his or her absence.

The Chairperson of the Tourism Board shall have voting rights in case of a tie.

The Tourism Board shall appoint a corporate secretary whose functions shall include the preparation of agenda for board meetings, in consultation with the Chairperson.

Section 48 The Chief Operating Officer.

SEC. 48. The Chief Operating Officer. — The TPB shall have a Chief Operating Officer who must be a Filipino, with a bachelor’s degree in any of the following fields: business, law, tourism, public administration or other relevant fields and have demonstrated expertise therein. He or she must have been engaged in a managerial capacity for at least five (5) years prior to his or her appointment. He or she shall be elected by the Board from a list of qualified applicants and appointed by the Secretary, and shall have a term of office of six (6) years, unless removed for cause in accordance with law.

Section 49 Representative Directors.

SEC. 49. Representative Directors. — In accordance with Section 47, paragraph (g) of this Act, the Tourism Congress, as created under Chapter VIII, Section 104, shall elect from, among its members the directors to represent the tourism industry in the Tourism Board, specifically the following groups:

Accommodation enterprises;

Travel and tour services;

Land, air and sea tourist transport services;

Conventions and exhibitions services and suppliers; and

Other tourism enterprises.

If a representative director ceases to be connected with the sector he or she represents, a new representative director shall be appointed to serve the unexpired term.