This document summarizes several key Philippine laws related to tourism investment, including the Tourism Act of 2009, Special Economic Zone Act, Omnibus Investment Code, and others. It outlines the incentives available for tourism enterprises and economic zones, including tax holidays and import duty exemptions. It also identifies priority investment areas for the tourism industry such as accommodations, conventions, eco-tourism, and healthcare facilities.

1. DOT POWERPOINT
 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
SpecialInvestors ResidentVisa (SIRV)(Executive OrderNo. 63)
The Foreign Investments Act of 1991(Republic ActNo. 7042)
Investors’Lease Act(Republic ActNo. 7652)TOURISMRELATED
INVESTMENT LAWS
 TOURISMENTERPRISE ZONES
 THE TOURISMACT OF 2009 (R.A. 9593)Designation, operation and
administration of incentives to theestablishment of tourism enterprise
zones (TEZ)CRITERIA• Definedinto one contiguous territory;• Must
have historical and cultural significance,environmental beauty,or
existing or potential integrated leisure facilities within its bounds
orwithin reasonable distances from it;• Strategic access through
transportation infrastructure, utilities,infrastructure systemTOURISM
ENTERPRISE ZONES
 • At least five (5) hectares and sufficientin size.• It is in a strategic
location such as to stimulate thesustainable socio-economic
developmentof neighboringcommunities.• The area must be situated
where controls can easily beestablishedto curtail illegal
activities.TOURISMENTERPRISE ZONES
 THE TOURISMACT OF 2009 (R.A. 9593)Incentives Available to
Tourism Enterprises outside of designatedTEZsCRITERIA•
Registered Tourism Enterprise undertakes a
substantialexpansion/upgrade of facilities• Cost of expansion/upgrade
of physical assets amounts to at least 50% ofthe original investment•
There is a significant change in its categoryclassificationunder
theDOT’s accreditation systemTOURISMENTERPRISE ZONES
 Incentives to TEZs and tourism enterprises within thezone•Income
Tax Holiday (6 years, extendible for another 6 years)•Net Loss Carry
Over (Deductionfrom gross income for 6years)•Gross Income
Taxation (5% GIT Rate)•Importationof Capital Investment and
Equipment•Importationof Transportation Equipmentand Spare
Parts•Importationof Goods and ServicesTOURISMENTERPRISE
ZONES
 • Tax credit• Social ResponsibilityIncentive• Employmentof Foreign
Nationals• SpecialInvestor’s ResidentVisa• Foreign Currency

2. Transactions• Requisitionof Investment• Lease and Ownership of
LandTOURISMENTERPRISEZONES
 Incentives to Tourism Enterprise located outside of TEZ•Income Tax
Holiday (6 years, non-extendible)•Importationof capital equipment
free of taxes and dutiesTOURISMENTERPRISE ZONES
 Classificationof TEZs•Cultural Heritage Tourism Zone•Health &
Wellness Tourism Zone•Eco-tourism Zone•GeneralLeisure Tourism
Zone•Mixed Use Tourism ZoneTOURISMENTERPRISE ZONES
 Ciudad De Victoria, BulacanNewport City, ParanaqueDESIGNATED
TEZs.
 TOURISMECONOMIC ZONES
 SPECIALECONOMIC ZONE ACT (R.A. 7916)• MOA betweenDOT
and PEZASigned October7, 2002• Guidelines for Registration of
TEZsEffective November12, 2002TOURISMECONOMIC ZONES
 SPECIALECONOMIC ZONE ACT (R.A. 7916)Registrable Activities•
Tourism Ecozone Developers/Operators• Tourism Ecozone
LocatorsSports and Recreational Centers Accommodation
Convention & Cultural Facilities Theme Parks SpecialInterest
Attraction/Activities/EstablishmentsTOURISMECONOMIC ZONES
 SPECIALECONOMIC ZONE ACT (R.A. 7916)Registrable Activities•
Enterprises establishing and operating
airports,seaports/marinasTOURISMECONOMIC ZONES
 SPECIALECONOMIC ZONE ACT (R.A. 7916)Incentives to Tourism
EcozoneDevelopers• Exemptionfrom national and local taxes,in lieu
thereof, 5% Gross Income RateTOURISMECONOMIC ZONES
 SPECIALECONOMIC ZONE ACT (R.A. 7916)Incentives to Tourism
Ecozone Locators• Tax and duty free importation of
CapitalEquipment• Income Tax Holiday• Employmentof foreign
nationals• Exemption from national and local taxes, in lieuthereof,5%
Gross Income Tax Rate• SIRV under E.O. 63TOURISMECONOMIC
ZONES
 DECLARED ECOZONES UNDER PEZACamarines Sur Tourism
ParkBoracay Eco-Cultural VillageResortIlawod Estates
CabatuanIloiloPaseo Del Rio De CagayanCagayan De Oro City
 SYMPOSIUM ON PROPERTYDATA BANKING FOR TOURISM
INVESTMENTSTourismInvestments PromotionGroupOffice of
Tourism Standards and RegulationDepartmentof
TourismDECLAREDECOZONESUNDER PEZAEmbarcadero de

3. LegazpiLegazpiCityPangulasian Island GreenTourism Economic
ZoneBagong Nayong PilipinoEntertainment CityManila Bay Resorts
 INVESTMENTPRIORITIESPLAN(IPP)
 OMNIBUS INVESTMENTS CODE OF 1987 under (EO
226)AccommodationFacilities (P/NP)(Hotels, Resorts,Condotels
,Tourist Inns, Apartels/Serviced Apartments,PensionHouses,
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/AmusementParks• Tourist
Transport Services• Developmentof Retirement Villages•
Health/Medical Tourism Facilities (Spas, tertiary hospitals,
ambulatoryclinics)• Tourism Training Centers/Institutes•
Restoration/preservation and operation of historical shrines,
landmarks andstructuresINVESTMENT PRIORITIES PLAN
 OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)PIONEER
STATUS CRITERIA Hotelprojects/apartmenthotels/serviced
apartments/condotelsclassified as First Class or Deluxe costing at
least US $100,000 / roomResortprojects classified as Class “AAA”
with project costof at leastUS $ 10 million per project Projects
located in LDAs Modernization of hotels classified as First Class or
De Luxe with a projectcostof at least US$ 10,000/roomAmusement
parks/theme parks with a minimum projectcostof US$ 10million
involving the developmentsites or attractions consideredas novel
inthe Philippines Adventure and ecotourism facilities/agri-tourism
farms and facilities with aproject costof at least the Philippine Peso
equivalent of USD 5 million.INVESTMENT PRIORITIES PLAN
 OMNIBUS INVESTMENTS CODE OF 1987 (EO 226)INCENTIVES
TO TOURISMPRIORITYPROJECTS• IncomeTax Holiday•
Importation of Capital Equipment(pursuantto E.O. 70)• Employment
of foreignnationalsINVESTMENT PRIORITIESPLAN
 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 yearsAreas (regardless of
status)• Modernization Projects - 3 yearsINVESTMENT PRIORITIES
PLAN
 IMPORTATIONOF CAPITAL EQUIPMENT (pursuantto E.O. No. 70)•
0% duty on equipmentgranted to enterprisesregistered with BOI•

4. Can be availed for five (5) years or until May2017.INVESTMENT
PRIORITIES PLAN
 INCENTIVESUNDERE.O.# 63
 • SpecialInvestor’s ResidentVisa (SIRV)to investor, wife and
unmarried minorchildren• Remittance of Earnings• Repatriation of
Capital• Right of successionINCENTIVES UNDER E.O. # 63
 • He has not been convicted of a crime involvingmoral turpitude• He
is not afflicted with AIDS or any loathsome,dangerousor contagious
disease• He has not beeninstitutionalized for any mentaldisorderor
disability• He is willing and able to invest at leastUS $50,000 in a
tourism related projectQUALIFICATIONS:
 TOURISMRELATED INVESTMENT LAWSFOREIGN
INVESTMENTS ACT OF 1991 (RA 7042 AS AMENDEDBYRA
8179)Domestic market is open to foreign investors as long as
theactivity is not restricted in the ForeignInvestment NegativeList
(FINL) Ownership of private lands (up to 40% foreign equity)
Tourist Transport Operation (up to 40% foreignequity)Tourism
Capability Building Seminar
 OWNERSHIPOF PRIVATE LANDSGeneralRule Nationality
Requirementunder the PhilippineConstitution up to 40% foreign
equityTOURISMRELATEDINVESTMENT LAWS
 LEASING OF PRIVATELANDSGeneral Rule per PD 471 25
years - original 25 years - renewable Exceptionper RA 7652 or
Investor’s Lease Act Minimum investment of US $5 million for
tourismprojects50 years - original 25 years - renewableTOURISM
RELATEDINVESTMENT LAWS
 SUMMARYAt present, the Philippine tourism industry is verydynamic
and fast growing .... more and moreinvestments are needed to
sustain its growth...Focus on the National Tourism Development
Clustersfortourism investmentsInvestin Philippine tourism. When?
NOW.
 Investments.More fun in thePhilippines