The document discusses various laws related to tourism investment in the Philippines, including the Tourism Act of 2009, Special Economic Zone Act, Omnibus Investment Code, and others. It outlines the criteria and incentives for establishing Tourism Enterprise Zones and Tourism Economic Zones, including income tax holidays and import duty exemptions. Priority tourism investment projects are also identified, such as accommodation facilities, convention centers, eco-tourism, and medical tourism. Overall, the Philippines seeks to attract more tourism investment to sustain its growing industry.

2.  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)
TOURISM RELATED INVESTMENT LAWS

3. TOURISM ENTERPRISE ZONES

4. 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
TOURISM ENTERPRISE ZONES

5. • 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.
TOURISM ENTERPRISE ZONES

6. 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
TOURISM ENTERPRISE ZONES

7. 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
TOURISM ENTERPRISE ZONES

8. • 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
TOURISM ENTERPRISE ZONES

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

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

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

12. TOURISM ECONOMIC ZONES

13. 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
TOURISM ECONOMIC ZONES

14. 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
TOURISM ECONOMIC ZONES

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

16. 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
TOURISM ECONOMIC ZONES

17. 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
TOURISM ECONOMIC ZONES

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

19. SYMPOSIUM ON PROPERTY DATA BANKING FOR TOURISM INVESTMENTS
Tourism Investments Promotion Group
Office of Tourism Standards and Regulation
Department of Tourism
DECLARED ECOZONES UNDER PEZA
Embarcadero de Legazpi
Legazpi City
Pangulasian Island Green
Tourism Economic Zone
Bagong Nayong Pilipino
Entertainment City
Manila Bay Resorts

20. INVESTMENT
PRIORITIES PLAN
(IPP)

21. 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
INVESTMENT PRIORITIES PLAN

22. 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.
INVESTMENT PRIORITIES PLAN

23. 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
INVESTMENT PRIORITIES PLAN

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

25. 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
2017.
INVESTMENT PRIORITIES PLAN

26. INCENTIVES UNDER
E.O. # 63

27. • Special Investor’s Resident Visa (SIRV)
to investor, wife and unmarried minor
children
• Remittance of Earnings
• Repatriation of Capital
• Right of succession
INCENTIVES UNDER E.O. # 63

28. • 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
QUALIFICATIONS:

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

31. 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
 25 years - renewable
TOURISM RELATED INVESTMENT LAWS

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.

33. Investments. More fun in the
Philippines