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 oareMAY_ 02 2018
TIME:

Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, _7935

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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EXPLANATORY NOTE

The enactment of Republic Act No. 9593, or the “Tourism Act of 2009", marked the
country’s recognition of tourism as a fast-growing economic driver. This set the
development of a national tourism action plan for the industry and mandated
government support for the creation of Tourism Enterprise Zones (TEZs). Along with
this was the creation of the Tourism Infrastructure and Enterprise Zone Authority,
reorganized from the Philippine Tourism Authority, which was given authority to grant
incentives to enterprises within a TEZ for a period of ten years from effectivity of the
Act in 2009. The grant of incentives was intended to spur investments in sustainable
tourism developments and encourage global competitiveness

Unfortunately, the necessary revenue regulations for these incentives were only
approved and released in November 2016, expending 7 of the provided 10 years by
the Tourism Act.

This bill proposes to resolve this by amending Section 85 of Republic Act No. 9593
to extend the effectivity of the incentives schemes for the 7 years expended. It hopes
to continue to spur investments on tourism in the country with the provision and grant
of these incentives as well as encourage further developments in the country's
growing tourism industry and build on the growth it has sustained.

The approval of this bill is earnestly sought.

LUIS RA “Lu * F, VILLAFUERTE, JR.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 7935

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

—
AN ACT
AMENDING CHAPTER V, SECTION 85 OF REPUBLIC ACT NO. 9593,
OTHERWISE KNOWN AS THE “TOURISM ACT OF 2009”

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Section 85 of Republic Act No. 9593 is hereby amended to read as

follows:

“Section 85. General Principles on the Grant and Administration of Incentives.

a. Recognizing the strategic economic importance of tourism, the necessity
that investments within the TEZs be properly coordinated with
environmental, cultural, and developmental imperatives, and the
fundamental differences between the export manufacturing the tourism
industries, the TIEZA shall have sole and exclusive jurisdiction to grant the

incentives hereinafter provided.

In the formulation of rules and regulations defining and implementing these
incentives, and without derogating therefrom, the TIEZA may coordinate
with the Board of Investments and other government agencies or entities
responsible for the grant and administration of incentives to assist in the
development of a rationalized national investment incentive policy.

v


In the grant of incentives, it shall give equal preference to large
investments, those with great potential for employment generation and
those of local small and medium enterprises. Registered tourism
enterprises owned and operated by overseas Filipino investors shall enjoy
the same incentives granted to TEX operators and registered enterprises
in general. The amount of required investments shall be defined in the
implementing rules and regulations of this Act. The incentive schemes set
forth in Sections 86, 87, and 88 shalll be in effect for a period of [ten (10)]
SEVENTEEN (17) years from the effectivity of this Act, which period is
subject to review by the Joint Congressional Oversight Committee on

Tourism."
XXX

SECTION 2. Repealing Clause. — All laws, decrees, orders, rules, and regulations
or other issuances or parts inconsistent with the provisions of this Act are hereby

repealed, amended, or modified accordingly.

SECTION 3. Effectivity Clause. — This Act shall take effect in fifteen (15) days after
publication in the Official Gazette or in one (1) newspaper of general circulation in

the Philippines.

Approved,