TSRO

1
(No Transcript)
2
TOURISM RELATED INVESTMENT LAWS

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

3
TOURISM ENTERPRISE ZONES
4
TOURISM ENTERPRISE ZONES

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

5
TOURISM ENTERPRISE ZONES

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

6
TOURISM ENTERPRISE ZONES

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

7
TOURISM ENTERPRISE ZONES

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

8
TOURISM ENTERPRISE ZONES

• Tax credit
• Social Responsibility Incentive
• Employment of Foreign Nationals
• Special Investors Resident Visa
• Foreign Currency Transactions
• Requisition of Investment
• Lease and Ownership of Land

9
TOURISM ENTERPRISE ZONES

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

10
TOURISM ENTERPRISE ZONES

• Classification of TEZs
• Cultural Heritage Tourism Zone
• Health Wellness Tourism Zone
• Eco-tourism Zone
• General Leisure Tourism Zone
• Mixed Use Tourism Zone

11
Ciudad De Victoria, Bulacan
DESIGNATED TEZs.
Newport City, Paranaque
12
TOURISM ECONOMIC ZONES
13
TOURISM ECONOMIC ZONES

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

14
TOURISM ECONOMIC ZONES

• SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
• Registrable Activities
• Tourism Ecozone Developers/Operators
• Tourism Ecozone Locators
• Sports and Recreational Centers
• Accommodation
• Convention Cultural Facilities
• Theme Parks
• Special Interest Attraction/Activities/Establishme
  nts

15
TOURISM ECONOMIC ZONES

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

16
TOURISM ECONOMIC ZONES
SPECIAL ECONOMIC ZONE ACT (R.A. 7916)
Incentives to Tourism Ecozone Developers

• Exemption from national and local taxes, in lieu
  thereof, 5 Gross Income Rate

17
TOURISM ECONOMIC ZONES

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

18
DECLARED ECOZONES UNDER PEZA
Boracay Eco-Cultural Village Resort
Camarines Sur Tourism Park
Ilawod Estates Cabatuan Iloilo
Paseo Del Rio De Cagayan Cagayan De Oro City
19
DECLARED ECOZONES UNDER PEZA
Pangulasian Island Green Tourism Economic Zone
Embarcadero de Legazpi Legazpi City
Manila Bay Resorts
Bagong Nayong Pilipino Entertainment City
20
INVESTMENT PRIORITIES PLAN (IPP)
21
INVESTMENT PRIORITIES PLAN

• OMNIBUS INVESTMENTS CODE OF 1987 under (EO 226)
• Accommodation Facilities (P/NP)
• (Hotels, Resorts, Condotels ,Tourist Inns,
  Apartels/Serviced Apartments, Pension Houses,
  Motels,Private Homes for Homestay, Ecolodges, Bed
  Breakfast facilities)
• Convention and exhibition facilities (MICE)
• Adventure and Eco-tourism facilities
• Sport facilities and recreational centers
• Agri-tourism farms and facilities
• Theme parks/Amusement Parks
• Tourist Transport Services
• Development of Retirement Villages
• Health/Medical Tourism Facilities (Spas, tertiary
  hospitals, ambulatory clinics)
• Tourism Training Centers/Institutes
• Restoration/preservation and operation of
  historical shrines, landmarks and structures

22
INVESTMENT PRIORITIES PLAN

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

23
INVESTMENT PRIORITIES PLAN

• OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)
• INCENTIVES TO TOURISM PRIORITY PROJECTS
• Income Tax Holiday
• Importation of Capital Equipment (pursuant to
  E.O. 70)
• Employment of foreign nationals

24
INVESTMENT PRIORITIES PLAN

• 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

25
INVESTMENT PRIORITIES PLAN

• IMPORTATION OF CAPITAL EQUIPMENT (pursuant to
  E.O. No. 70)
• 0 duty on equipment granted to enterprises
  registered with BOI
• Can be availed for five (5) years or until May
  2017.

26
INCENTIVES UNDER E.O. 63
27
INCENTIVES UNDER E.O. 63

• Special Investors Resident Visa (SIRV) to
  investor, wife and unmarried minor children
• Remittance of Earnings
• Repatriation of Capital
• Right of succession

28
QUALIFICATIONS

• He has not been convicted of a crime involving
  moral turpitude
• He is not afflicted with AIDS or any loathsome,
  dangerous or contagious disease
• He has not been institutionalized for any mental
  disorder or disability
• He is willing and able to invest at least
  US 50,000 in a tourism related project

29
TOURISM RELATED INVESTMENT LAWS

• FOREIGN INVESTMENTS ACT OF 1991 (RA 7042 AS
  AMENDED BY RA 8179)
• Domestic market is open to foreign investors as
  long as the activity is not restricted in the
  Foreign Investment Negative List (FINL)
• Ownership of private lands (up to 40 foreign
  equity)
• Tourist Transport Operation (up to 40 foreign
  equity)

Tourism Capability Building Seminar
30
TOURISM RELATED INVESTMENT LAWS

• OWNERSHIP OF PRIVATE LANDS
• General Rule
• Nationality Requirement under the Philippine
  Constitution
• up to 40 foreign equity

31
TOURISM RELATED INVESTMENT LAWS

• LEASING OF PRIVATE LANDS
• General Rule per PD 471
• 25 years - original
• 25 years - renewable
• Exception per RA 7652 or Investors Lease Act
• Minimum investment of US 5 million for tourism
  projects
• 50 years - original
• 25 years - renewable

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