Chap6 (tourism act of 2009)

Chapter 6

TOURISM ACT OF 2009

Learning Objectives

Understand the importance and benefits of Department of Tourism’s reorganization through R.A. 9593 (Tourism Act of 2009) to the country;

Analyze the changes that has occurred in the department especially to its attached agencies after the implementation of the new law; and

Check the country’s status after this law’s implementation.

Presentation Outline

Tourism Act of 2009 – background What is R. A. 9593 (Tourism Policy Act of 2009)? DOT changes after the law implementation

(structure, attached agencies, funding, functions/duties and policies)

Status of program implementation

R.A. 9593 (Background)

Approved by former President Gloria Macapagal-Arroyo on May 12, 2009 and published in the Official Gazette on July 13, 2009;

Approved by Congress as SENATE BILL 2213/HOUSE BILL 5229, entitled:

“AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT AND STRENGTHENING THE DOT, ITS ATTACHED AGENCIES, TO EFFECTIVELY IMPLEMENT THAT POLICY…”

R.A. 9593 (Background)

IRR was signed on November 10, 2009 and published November 12, 2009;

Signed by the former President during the “One Visayas Summit on Climate Change” at Imperial Palace, Cebu City;

Tourism Act of 2009

DECLARED POLICY: Tourism is an indispensable element of the national economy and an industry of national interest and importance; harnessed as an engine of socio-economic growth/cultural affirmation, to generate investment, foreign exchange, employment and to mold national pride.

Strengthens the Department of Tourism (DOT) and its attached agencies to effectively and efficiently implement that policy, and appropriates funds therefore.”

The Department of Tourism (DOT)

Primary planning, programming, coordinating and implementing/regulatory agency in the development and promotion of the tourism industry.

CHANGES AFTER THE IMPLEMENTATION OF

R.A. 9593

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DOT Structure

After R.A. 9593, DOT will be…

empowered to strengthen the different agencies attached to it in order to more efficiently and effectively coordinate the functions and resources of government for tourism promotions and development programs, as well as eliminate overlaps of functions.

given a bigger jet engine to make our tourism industry very globally competitive” as the law allows the setting up of a system of accreditation, standards-setting and classification to make the tourism industry globally competitive (former Secretary Ace Durano).

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Attached Agencies Before

Philippine Tourism Authority

Philippine Convention and Visitors Corporation

Intramuros Administration

Nayong Pilipino Foundation, Inc.

National Parks Development Committee

After Tourism Infrastructure and

Enterprise Zone Authority Tourism Promotions Board Intramuros Administration Nayong Pilipino Foundation,

Inc. National Parks

Development Committee Duty Free Philippines

Corporation Philippine Retirement

Authority Philippine Commission on

Sports Scuba Diving

Attached Agencies

From PTA to TIEZA From PCVC to TPB From DFP to DFPC

TIEZA

a corporate body, to regulate and supervise TEZs as well as develop, manage and supervise tourism infrastructure projects in the country.

TIEZA

Funding: 50% of the proceeds of travel taxes Reasonable share from the collections of the Office of

Resource Generation Income from TIEZA projects At least 5% from the travel tax collection in the TIEZA

share shall be earmarked for historic, cultural, religious and heritage sites and prime tourist destination

TPB

To formulate and implement an integrated domestic and international promotions and marketing program, market the Philippines as a major convention destination, ensure regular advertisement abroad.

TPB

Funding: 70% of the 50% income of the DFPC At least 25% of the 50% share of the NG in PAGCOR

remittance At least 25% of the NG share in the remittances from

airports/seaports Special contingency fund- 10% of the allocation for

promotions shall be set aside for emergencies

Mandatory Accreditation

DOT shall prescribe and regulate standards for the operation of tourism business. Primary tourism enterprises shall be required to periodically obtain accreditation.

Accreditation for Secondary tourism Enterprises shall be voluntary.

LOCAL TOURISM DEVELOPMENT

PLANS/TOURISM OFFICERS

LGU’s shall prepare local tourism development plans, land use, infrastructure development and standards for tourism enterprises.

Every province, city or municipality which has a significant tourism industry shall have a permanent position for a tourism officer and must also establish a tourist information and assistance centre.

Other Feature

PNP to create a Tourism Security Force within areas of high tourism traffic.

CURRENT STATUS

Projects/Programs

Key Issues

Transition to RA 9593 (Tourism Act) Industry conflicts on IRR Organizational structure, staffing and funding

Major Industry Concerns Blacklisting

Key Hurdles to Increased Arrivals Limited access and interconnections to source markets Lack of, or inadequate, infrastructure and tourist facilities

Bottlenecks to Investment Generation Unfriendly business environment Inconsistent regulations

Immediate actions taken to address key

issues Ongoing review of IRR, in consultation with

industry stakeholders; Coordinate and fast-track implementation of

RA 9593; Work with Economic Managers to address

nagging industry concerns.

Status of Infrastructure Projects in Central

PhilippinesProject Type Project Cost(in Pesos)

Status

Government 72.14B

Bicol International Airport Development Project 3.44B On-Going

Tacloban Airport Development Project 1.21 B Completed

Panglao Island International Airport Development Project 7.540 B On-Going

Siargao Airport Development Project 0.058 B Completed

Dumaguete Airport Development Project 0.290 B Completed

Puerto Princesa Airport Development Project 3.347 B Completed

Busuanga Airport Development Project 224.80 M Completed

Kalibo Airport Development Project 179.0 M Completed

Cebu North Coastal Road Project 2.696 B Completed

Bohol Circumferential Road Project 2.200 B Completed

Boracay Island Circumferential Road Project 60.0 M On-Going

Tubigon Port Development Project 20.00 M Completed

Balbagon Port Project 75.27 M Completed

South Rail Project 50.89 B On-Going

Private

Boracay Water Utility Project 1.169 B On-Going

Caticlan International Airport Development Project 2.507 B On-Going

TOTAL 75.817 B

International airlines have already announced new regular and charter flights not only to Manila but also to

key tourist destinations.

New Iloilo Airport New Bacolod (Silay)Airport

TOURISM ECONOMIC ZONES (TEZ) APPROVED INVESTMENTS

NAME OF APPROVED TEZ LOCATION SIZE (HA.)

Boracay Eco-Village Resort Tourism Economic Zone

Boracay Island 79.21

Eastbay Arts, Recreational and Tourism Zone (Thunderbird Fiesta Resort & Casino)

San Roque, AngonoBinangonan, Rizal

26.88

Fort Ilocandia Tourism Economic Zone Laoag, Ilocos Norte 77.47

John Hay Social Tourism Economic Zone Baguio City 301.86

Misibis Resorts and Estates Bacacay, Albay 19.67

Newport City CyberTourism Zone (Megaworld development in Villamor

Airbase)

Pasay City 25.34

Pamalican Island Tourism Ecozone (Joint venture of Aboitiz and Andres Soriano

groups)

Cuyo, Palawan 89.75

Phil. BXT Corp. Tourism Economic Zone (Imperial Palace Waterpark & Spa)

Lapu – Lapu City 7.50

San Lazaro Tourism and Business Park (Manila Jockey Club)

Sta. Cruz, Manila 7.42

Tourism Sector Level Value Chain

Awarenessand Perception

of thePhilippines

Tour Package

Acquisition

Transpor- tation/

Air Flight

Accom- modation

Delivery and Tourist

Satisfaction

Awareness and perception of the Philippines

Sales channels

Travel agents

Air accessibility and airports

Hotel capacity and utilization

Tourist satisfaction levels

Quality and value of tourist products and services

All elements to be tracked and measured by the DOT