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FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
COMMITTEE REPORT NO. 45 
Submitted jointly by the Committees on Tourism; Civil Service and Government Reorganization; Ways and 
Means; Finance; Games, Amusement and Sports; and Public Works on 
Re: Senate Bill No! 
Recommending its approval in substitution of Senate Bill Nos. 88,267,367,339, 479,481,491 and 1381. 
Sponsors: Senators Gordon, Trillanes IV, Escudero, Enrile, Lapid, Revilla Jr., Pangilinan. Ejercito, 
Estrada and Legarda.. 
APR 2 8 2008 
MR. PRESIDENT: 
The Committees on Tourism: Civil Service and Government Reorganization; Ways and Means; 
Finance; Games, Amusement and Sports and Public Works to which were referred Senate Bill No. 88, 
introduced by Senator Gordon, entitled: 
“AN ACT 
DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT, 
EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT, REORGANIZING THE 
DEPARTMENT OF TOURISM AND ITS ATTACHED AGENCIES TO EFFECTIVELY 
AND 
EFFICIENTLY IMPLEMENT THAT POLICY, PROVIDING NECESSARY 
INCENTIVES FOR INVESTMENT AND APPROPRIATING FUNDS THEREFOR” 
Senate Bill No. 267, introduced by Senator Pangilinan, entitled: 
“AN ACT 
STRENGTHENING AND EXPANDING THE JURISDICTION OF THE PHILIPPINE 
COMMISSION ON THE PROMOTION AND DEVELOPMENT OF SCUBA SPORTS, 
AMENDING FOR THIS PURPOSE LETTER OF INSTRUCTION NO. 745, AND FOR 
OTHER PURPOSES” 
Senate Bill No. 339, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
APPROPRIATING A PORTION OF THE FEES COLLECTED FROM DEPARTING 
INTERNATIONAL PASSENGERS AT ALL PHILIPPINE INTERNATIONAL AIRPORTS 
TO ACCRUE TO THE DEPARTMENT OF TOURISM AND FOR OTHER PURPOSES 


COMMITTEE REPORT in substitution of Senate Bill Nos. 88,267,339,367,479,481,491 and 1381 
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Senate Bill No. 367, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
LIBERALIZING THE LICENSING OF TRAVEL AND TOUR AGENCIES” 
Senate Bill No. 479, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
PLACING ALL GOVERNMENT COTTAGES AND REST HOUSES IN BAGUIO CITY 
AND BENGUET PROVINCE UNDER THE MANAGEMENT AND ADMINISTRATION OF 
THE DEPARTMENT OF TOURISM, ALLOWING THE SALE OR LEASE OF THE SAME 
OR THEIR CONVERSION INTO TOURIST PLACES, SUBJECT TO CERTAIN 
RESTRICTIONS” 
Senate Bill No. 481, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
PROVIDING FOR THE CREATION OF A TOURISM DEVELOPMENT FUND AND THE 
ESTABLISHMENT OF A NATIONAL TOURISM DEVELOPMENT COUNCIL, AND FOR 
OTHER PURPOSES” 
Senate Bill No. 491, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
ESTABLISHING A NATIONAL TOURISM POLICY, CREATING THE TOURISM 
DEVELOPMENT ADVISORY COUNCIL, AND APPROPRIATING FUNDS THEREFOR” 
Senate Bill No. 1381, introduced by Senator Legarda, entitled: 
“AN ACT 
DECLARING A NATIONAL POLICY FOR TOURISM AS THE PRIMARY ENGINE OF 
INVESTMENT, 
EMPLOYMENT, 
GROWTH AND 
NATIONAL DEVELOPMENT, 
REORGANIZING THE DEPARTMENT OF TOURISM AND ITS ATTACHED AGENCIES 
TO EFFECTIVELY AND EFFICIENTLY IMPLEMENT THAT POLICY, PROVIDING 
NECESSARY INCENTIVES FOR INVESTMENT AND APPROPRIATING FUNDS 
THEREFOR” 
have considered the same and have the honor to report them back to the Senate with the recommendation 
that the attached bill, Senate Bill No. 
’ 
l3 , prepared by the Committees, entitled: 
“AN ACT 
DECLARING A NATIONAL POLICY FOR TOURISM AS AN ENGINE OF INVESTMENT, 
EMPLOYMENT, GROWTH AND NATIONAL DEVELOPMENT, REORGANIZING THE 
DEPARTMENT OF TOURISM AND ITS ATTACHED AGENCIES TO EFFECTIVELY 
AND EFFICIENTLY IMPLEMENT THAT POLICY, 
PROVIDING NECESSARY 
INCENTIVES FOR INVESTMENT AND APPROPRIATING FUNDS THEREFOR” 
be approved in substitution of Senate Bill Nos. 88, 267, 339, 367, 479, 481, 491 and 1381 with Senators 
Gordon, Pangilinan, Ejercito Estrada, Legarda, Trillanes IV, Escudero, Enrile, Lapid and Revilla Jr. as 
authors thereof. 


COMMITTEE REPORT in s.~ixl!~.I 
on of Senate 8111 Nos. 88. 267. 339 367,479.481 491 ana 1381 
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Respectfully submitted: 
es, Amusement and Sports; Public 
Works; and Ways and Means 
ANTONIO F. TRILLANES IV 
Commitfee on Civil Service and Government 
Reorganization; 
Committee on Ways and Means; 
Member, Committees on Finance; and Civil 
Service and Government Reorganization 
Amusement and 
Member, Committees on Tourism; Finance; 
Public Works; and Ways and Means 
Ways and Means 
Vice Chairmen: 
JOKER P. ARROYO 
Committee on Finance 
Member, Committees on Civil Service and 
Government Reorganization; Public Works; and 
Ways and Means 
Member, Commiffee on Public Works 
s; and Ways and Means 
(As manisfested on 30 January 2008) 
Committee on Civil Service and Government Reorganization; 
Member, Committees on Tourism; Finance; Games, Amusement and 
Sports; and Waysand Means 


COMMITTEE REPORT in substitution of Senate Bill Nos, 88,267,339,367,479,481,491 and 1381 
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Members: 
M. A. MADRIGAL 
Commitfees on Tourism; Finance; Public 
and Sports; and Finance; 
yorks; and Ways and Means 
& 4J/h/d 
JUAN MUGUEL F. ZUBlRl 
Committees on Finance; and Ways 
and Means J 
Commiffees on Tourism; Finance; Games, 
Amusement and Sports; Public Works; 
and Ways and Means 
ALAN PETER "COMPANERO" S. CAYETANO 
Commitfees on Civil Sewice and 
Government Reorganization; and Ways 
Committees on Finance; Games, 
Amusement and Sports; and Public Works 
Ex-Officio Members: 
c_19-- 
. 
.-IT0 EST 
esidenf Pro-Tempore 
Hon. MANNY VILLAR 
President 
Senate of fhe Philippines 
Pasay City 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
i:! 
f\pr! 28 
1-1 5) :\ ;.i 
OF THE PHILIPPINES 
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First Regular Session 
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SENATE 
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BV: 
S. No: a
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Prepared jointly by the Committees on Tourism; Civil Service and Government 
Reorganization; Ways and Means; Finance; Games, and Amusement and Sports; and 
Public Works with Senators Gordon, Pangilinan, Ejercito Estrada, Legarda, Trillanes IV, 
Escudero, Enrile, Lapid and Revilla Jr. as authors thereof 
AN ACT DECLARING A NATIONAL POLICY FOR TOURISM AS AN 
ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH AND NATIONAL 
DEVELOPMENT, REORGANIZING THE DEPARTMENT OF TOURISM AND 
ITS ATTACHED AGENCIES TO EFFECTIVELY AND EFFICIENTLY 
IMPLEMENT THAT POLICY, PROVIDING NECESSARY INCENTIVES FOR 
INVESTMENT AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: 
CHAPTER I. GENERAL PROVISIONS 
SECTION 
1. Short Title. - This Act shall be known as "The Tourism Act of 2008." 
SEC. 2. Declarafion of Po/icy. - The State declares tourism as an indispensable 
element of the national economy and an industry of national interest and importance, which 
must be harnessed as an engine of socio-economic growth and cultural affirmation to 
generate investment, foreign exchange and employment, and to continue to mold an 
enhanced sense of national pride for all Filipinos. 
Towards this end, the State shall develop the country as a prime tourist hub in Asia, 
as well as a center of world congresses and conventions, by promoting tourism anchored 
principally on the country's history, culture and natural endowments. It shall also be the duty 
of the State to uphold the primacy of protecting, preserving and promoting these resources. 
The State shall further encourage private sector participation and agri-tourism for 
countryside development and preservation of rural life. 
The State shall further promote a focused, sustainable, responsible and participative 
culture of tourism that is ecologically and culturally sensitive, economically viable, and 
ethically and socially equitable for local communities. 
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SEC. 3. Definition of Terms. - The following terms, as used in this Act, are defined 


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d. "Department of Environment and Natural Resources" (DENR) refers to the 
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government agency created pursuant to Executive Order No. 192 (1986); 
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e. "Department of Finance" (DOF) refers to the government agency created pursuant to 
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pursuant to this Act; 
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a. "Department" refers to the Department of Tourism created pursuant to Presidential 
Decree No. 189, as amended; 
b. "Secretary" refers to the Secretary of Tourism; 
c. "Department of Budget and Management" (DBM) refers to the government agency 
created pursuant to Executive Order No. 292 (1987); 
Executive Order No. 127 (1986) as amended; 
f. "Duty Free Philippines" (DFP) refers to the government agency created pursuant to 
Executive Order No. 46 (1986); 
g. "Duty-Free Philippines Corporation" (DFPC) refers to the corporate entity created out 
of DFP pursuant to this Act; 
h. "Philippine Conventions and Visitors Corporation" (PCVC) refers to the corporate 
entity created pursuant to Presidential Decree No. 867, as amended; 
i. "lntramuros Administration" (IA) refers to the government agency created pursuant 
to Presidential Decree No. 1616; 
j. "Philippine Retirement Authority" (PRA) refers to the government agency created 
pursuant to Executive Order No. 1037 (1985); 
k. "Tourism Enterprise Zone Authority" (TEZA) refers to the government agency created 
I. "Zone" refers to a Tourism Enterprise Zone created pursuant to this Act; 
m. "Zone Overseer" refers to the person appointed by the TEZA who shall be its alter 
ego in the specific Zone to which he or she is assigned and who shall perform such 
other powers as may be delegated to him or her by the TEZA in accordance with law; 
n. "Zone Operator" refers to a Tourism Enterprise Zone Operator, which is an entity duly 
incorporated under general Philippine law, whose capital may be provided by the 
national government, one or more city andlor provincial governments, andlor private 
entities, and which shall administer and supervise each Zone; 
0. "Zone Administrator" refers to the person appointed by the Board of Directors of a 
Zone Operator who shall be responsible for implementing the policies, plans and 
projects of the Zone Operator Board of Directors and who shall undergo and pass 
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p. "Registered Enterprise" shall refer to an enterprise located within a Zone that is duly- 
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registered with the TEZA; 
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q. "Philippine Tourism Authority" (PTA) refers to the existing implementation arm of the 
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Department of Tourism created pursuant to Presidential Decree No. 189, as 
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amended; 
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r. "Tourism Promotions Board" (TPB) shall refer to the body corporate created under 
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this Act; 
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s. "Tourism enterprises" shall refer to facilities, services and attractions involved in 
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tourism, such as, but not limited to: travel and tour services; tourist transport 
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services, whether for land, sea or air; tour guides; adventure sports services, 
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involving such sports as mountaineering, spelunking, scuba diving, and other sports 
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activities of significant tourism potential; convention organizers; accommodation 
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establishments, including but not limited to hotels, resorts, apartelles, tourist inns, 
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motels, pension houses, and home stay operators; tourism estate management 
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services, restaurants, shops and department stores, sports and recreational centers, 
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spas, museums and galleries, theme parks, convention centers and zoos; 
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t. "Primary tourism enterprises" shall refer to travel and tour services; land, sea and air 
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transport services exclusively for tourist use; accommodation establishments; 
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convention and exhibitions organizers; tourism estate management services; and 
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such other enterprises as may be identified by the Secretary, after due consultation 
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with concerned sectors; 
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the TEZA; and 
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x. "Brownfield Tourism Zone" refers to an area with existing infrastructure or 
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CHAPTER II. TOURISM GOVERNANCE 
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the relevant training program of the Department; 
u. "Secondary tourism enterprises" shall refer to all other tourism enterprises not 
covered by the preceding subsection; 
v. "Affected local government unit" shall refer to a province or a city that has a Zone, or 
a part thereof, within its territorial jurisdiction: 
w. "Greenfield Tourism Zone" refers to a new or pioneer development, as determined by 
development as determined by the TEZA. 
Subchapter 11-A. Structure of the Department 
SEC. 4. Mandate. - The Department of Tourism, hereinafter referred to as the 
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Department, shall be the primary planning, programming, coordinating and implementing 
government agency in the development of the tourism industry, both domestic and 
international, in 
coordination with 
attached 
agencies 
and 
other 
government 
instrumentalities. 
SEC. 5. Powers and Functions. - The Department shall have the following powers 
and functions: 
a. Formulate tourism policies, plans and projects; 
b. Supervise and coordinate the implementation of tourism policy, plans and projects; 
c. In coordination with local governments, delegate to regional offices specific powers 
and functions in the implementation of tourism policies, plans and projects; 
d. Communicate to the President, and the heads of departments, agencies and 
instrumentalities of the government, the impact upon tourism and the economy of 
proposed governmental actions; 
e. Represent the government in all domestic and international conferences, and in all 
multilateral or bilateral treaties and international agreements concerning tourism, and 
ensure the government's implementation thereof and compliance with all obligations 
arising therefrom: 
f. Effect the removal of unnecessary barriers to travel, and the integration and 
simplification of travel and tourist transport regulations, and ensure their efficient, fair 
and courteous enforcement to assure expeditious and hospitable reception of all 
visitors; 
g. Issue timely advisories on the safety or viability of travel to particular places within 
the Philippines and on patronage of entities engaged in tourism-related activities and 
of tourism products, the implementing rules and regulations for the issuance, 
publication and validity of which shall be promulgated within thirty (30) days from the 
effectivity of this Act; 
h. Enforce, support and promote the protection, maintenance and preservation of 
historical, cultural and natural endowments, in cooperation with appropriate 
government agencies and the private sector, and take appropriate measures against 
acts and omissions contrary to these objectives; 
i. Formulate and promulgate rules and regulations prescribing standards for the 
operation of tourism enterprises in accordance with the highest relevant international 
standards, and in consultation with the private sector; 
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j. Create standards for accreditation of tourism enterprises and other entities engaged 
in tourism-related activities, accredit and classify them, and impose reasonable 
penalties for violations of, or for failure to obtain accreditation to maintain and 
improve standards of operation and service; 
k. Ensure the proper coordination, integration, prioritization and implementation of local 
government tourism development plans with that of the national government; 
I. Receive and investigate complaints concerning tourism enterprises, and act on such 
complaints to properly implement the provisions of this Act; 
m. Collect necessary fees and charges for the proper implementation of tourism policies, 
plans and projects; and 
n. Exercise such other powers and functions as are necessary or incidental to the 
implementation of this Act. 
SEC. 6. Structure of the Deparfment. - The Department shall consist of the 
Department Proper, Department Services, Bureaus and Offices and the Regional Offices. 
the Secretary, Undersecretaries and Assistant Secretaries. 
SEC. 7. Department Proper. -The Department Proper shall consist of the offices of 
SEC. 8. Office of the Secretary. - The Office of the Secretary shall consist of the 
Secretary and hislher immediate staff. 
SEC. 9. Undersecretaries and Assistant Secretaries. - The Secretary shall be 
assisted by at least three (3) Undersecretaries, namely: 
a. Undersecretary for Tourism Development, who shall be responsible for the Bureau of 
Tourism Development Planning and Bureau of Tourism Coordination; 
b. Undersecretary for Tourism Regulation, who shall be responsible for the Bureau of 
Tourism Standards, Regulations and Industry Manpower Development, and all 
Regional Offices; and 
c. Undersecretary for Department Services. 
Additional Undersecretaries may be appointed based on exigency and upon approval 
by the President. There shall be at least three Assistant Secretaries to be appointed by the 
President. 
SEC. I O .  Department Services. - The Department Services shall consist of a 
Financial and Management Service, an Administrative Affairs Service, and a Legal Affairs 
Service. 
SEC. 11. Financial and Management Service. - The Financial and Management 
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Service shall provide the Department with staff advice and assistance on budgetary, 
financial and management matters and shall perform such other related functions as may 
be assigned or delegated to it by the Secretary. 
SEC. 12. Administrative Affairs Service. - The Administrative Affairs Service shall 
provide the Department with staff advice and assistance on personnel information, records, 
communications, supplies, equipment, collection, disbursements, security, other custodial 
work and such other related duties and responsibilities as may be assigned or deiegated to 
it by the Secretary. 
SEC. 13. Legal Affairs Service. - The Legal Affairs Service shall provide the 
Department with staff advice and assistance on all legal matters affecting the Department 
and perform such other related functions as may be assigned or delegated to it by the 
Secretary. 
It shall likewise receive and investigate complaints concerning tourism 
enterprises, and act on such complaints to properly implement the provisions of this Act. 
For this purpose, the Department shall promulgate rules of pleading and practice before the 
Legal Affairs Service in accordance with law and other pertinent issuances. The Rules of 
Procedure shall be promulgated within six (6) months from the effectivity of this Act. 
SEC. 14. Bureau of Tourism Development Planning. - Recognizing the value of 
national tourism development planning, the Bureau of Tourism Development Planning shall 
have the following functions: 
a. Prepare a National Tourism Development Plan within sixty (60) days from the 
effectivity of this Act, identifying geographic areas with potential tourism value, 
outlining approaches to developing such areas; 
b. Provide continuing research and statistical analysis on the social and economic 
impact, market and competition, standards and ethics of tourism, and such other 
data as necessary basis for tourism policies and programs; 
c. Formulate, in coordination with local government units, local tourism development 
plans which are consistent with the National Tourism Development Plan; and 
d. Monitor and evaluate the implementation of plans and programs of the Department 
and of the local government units and take appropriate action for violations of the 
same. 
SEC. 15. Bureau of Tourism Coordination. - Recognizing that increased linkages 
are necessary between various government offices and the private sector and among the 
various entities in the private sector itself to properly implement tourism policy, the Bureau 
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of Tourism Coordination shall have the following functions: 
a. Maintain close coordination with national government agencies, local government 
units, non-governmental organizations, and other private entities for the development 
and implementation of national tourism plans and policies; 
b. Call upon the assistance and support of any or all of the government agencies in the 
implementation of the policies of the Department; and 
c. Support the private sector in all tourism activities requiring governmental 
coordination. 
SEC. 16. Bureau of Tourism Sfandards, Regulations and lndusfry Manpower 
Development. - Recognizing the need for internationally competitive standards of facilities 
and services, the Bureau of Tourism Standards, Regulations and Industry Manpower 
Development shall have the following functions: 
a. Formulate and enforce standards for the operation and maintenance of tourism 
enterprises, prescribing minimum and progressive levels of operating quality and 
efficiency consistent with local and international standards; 
b. Coordinate with relevant tourism enterprise associations, including adventure sports 
associations, in the formulation of rules and regulations, accreditation, and 
enforcement; 
c. Develop and enforce a comprehensive system of mandatory accreditation for 
primary tourism enterprises, and voluntary accreditation for secondary tourism 
enterprises, in accordance with prescribed guidelines and standards; 
d. Establish a system of registration, information, linkage, and mutual assistance 
among accredited tourism enterprises to enhance the value of accreditation and 
improve the quality of service rendered by such enterprises; 
e. Conduct seminars on Philippine history, culture, environment and related subjects, in 
coordination with appropriate government agencies and the private sector, 
specifically educational institutions; 
f. Encourage the development of training courses and apprenticeship programs for 
tourist guides and other similar workers jointly with concerned tourism enterprises, 
appropriate government agencies and the private sector; and 
y. Enlist the participation of experts for the provision of technical assistance, training 
and education programs to local governments, tourism enterprises and other entities 
to improve the quality of tourism services and issue certifications to the effect that 
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these recipients of assistance, training and education have passed the standards set 
by the said experts, in accordance with this Act. 
SEC. 17. Regional Offices. -The Department shall establish, operate and maintain a 
Regional Office in each administrative region in the country. A Regional Office shall be 
headed by a Regional Director and shall, within its administrative region, have the following 
functions: 
a. Implement and enforce laws, policies, plans, programs, rules and regulations of the 
Department, particularly those relating to the accreditation of tourism enterprises 
promulgated by the Department; 
b. Coordinate with regional offices of other departments, bureaus, and agencies, local 
government units, non-governmental organizations and the regional offices of the 
Department's attached agencies in the implementation of such laws, policies, plans 
programs and rules and regulations; 
c. Together with local government units, establish such tourist information and 
assistance centers at strategic locations as are necessary to disseminate relevant 
information pertaining to the tourist locations and products and to assist tourists and 
tourism enterprises; 
d. In coordination with the Tourism Promotions Board, carry out domestic promotions, 
training and information campaign for the benefit of the general public in the 
pertinent region on subject matters such as this Act, the functions of the Department, 
tourism traffic and new tourism sites, among others; 
e, Make recommendations to the Secretary on all matters relating to tourism in the 
region; and 
f. Exercise such other functions as are necessary or incidental to the implementation of 
this Act. 
Subchapter Il-B. Rationalization of Functions 
SEC. 18. Reorganization of Offices. - The Philippine Tourism Authority (PTA) is 
hereby reorganized as the Tourism Enterprise Zone Authority (TEZA), as hereinafter 
provided. The Philippine Conventions and Visitors Corporation (PCVC) is hereby 
reorganized as the Tourism Promotions Board (TPB), as hereinafter provided. 
The Bureaus for Domestic and International Tourism Promotions, and the Offices of 
Tourism Information and Product Development of the Department are hereby absorbed into 
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the Tourism Promotions Board. 
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SEC. 19. Human Resources. - Where certain functions are declared redundant on 
account of the reorganization, the Department, the Tourism Enterprise Zone Authority Board 
("TEZA Board"), and the Tourism Board shall provide for the reassignment, insofar as 
practicable, of affected employees to similar positions within the Department and its 
attached agencies, taking into consideration their skills and experience, without loss of 
seniority or other rights and privileges. In any case, all relevant laws, decrees, executive 
orders, rules and regulations concerning the rights of government employees in the 
reorganization of an office shall be respected. 
SEC. 20. Rationalization of Assets. - The assets and liabilities of the PTA shall be 
held in trust and managed by a special committee composed of the Secretaries of Tourism, 
Budget and Management, and Finance. Within one hundred and twenty (120) days from 
the effectivity of this Act, the committee shall prepare a report identifying all the assets of the 
PTA, indicating their values, and recommendations on the proper disposition of those 
assets. 
When economically feasible and financially viable, assets may be assigned to the 
TEZA for sale, lease andlor development into Zones, as hereinafter provided. 
SEC. 21. Retirement and Separation Compensafion. - Should any employee be 
separated from government service on account of the reorganization of the Department, 
said employee shall be entitled to claim such separation pay, retirement benefits or other 
benefits provided by law, decree or executive order. 
SEC. 22. Foreign Field Offices. - The operation and supervision of foreign field 
offices of the Department shall be transferred to the Tourism Promotions Board. 
Subchapter 114. Attached Agencies and Corporations 
SEC. 23. Attached Agencies. - The TPB and the TEZA created herein shall be 
attached to the Department and shall be under the supervision of the Secretary for program 
and policy coordination, Furthermore, the following agencies and corporations shall be 
attached to the Department under the supervision of the Secretary for program and policy 
coordination: the Duty-Free Philippines Corporation as hereinafter provided; the Intramuros 
Administration; the National Parks Development Committee, created under Executive Order 
No. 30 (1963); the Nayong Pilipino Foundation, created under Presidential Decree No. 37, 
as amended; the Philippine Retirement Authority; and the Philippine Commission on Sports 
Scuba Diving. Except as hereinafter provided, each of the attached agencies shall continue 
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to operate under their respective charters. 
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SEC. 24. Duty-Free Philippines Corporation. - The Duty Free Philippines System 
shall be reorganized as a body corporate to be known as Duty-Free Philippines Corporation 
(DFPC), which shall operate the duty and tax free merchandising system for tourists and 
generate foreign exchange for the Philippines. 
The DFPC shall have the exclusive authority to operate, or to contract out the 
operation of, stores and shops that would sell, among others, tax and duty-free 
merchandise, goods and articles, in international airports and seaports, and in tourism 
enterprise zones throughout the country, in a manner that: 
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The DFPC and the operation of duty free stores and shops shall always remain in 
government control and shall not be bidded out to private parties, except as provided for in 
Republic Act No. 6768, as amended, otherwise known as "An Act Instituting A Balikbayan 
Program". 
Such merchandise, goods and articles shall only be sold to persons departing for 
abroad. Under such limitations, rules and regulations that may be provided by the 
Department of Tourism and concurred in by the Department of Finance, such merchandise, 
goods and articles may also be sold to passengers arriving in the Philippines from abroad. 
a. In the performance of its functions, DFPC shall have all the general powers of a 
corporation established under Batas Pambansa Blg. 68, otherwise known as the 
Corporation Code of the Philippines, in furtherance of its Charter. 
Is competitive with international standards; 
Effectively showcases Philippine culture, craftsmanship and industry; and 
Efficiently and effectively generates foreign exchange. 
b. Duty-Free Philippines shall be governed by a Board of Directors composed as 
follows: 
i, The Secretary of Tourism as Chairperson; 
ii. The General Manager of DFPC as Vice Chairperson; 
iii. The Chief Operating Officer of the TPB; 
iv. The Administrator of the TEZA; and 
v. Four persons appointed by the President with recognized competence in 
business management, marketing, finance, tourism or related fields. 
The General Manager shall be appointed by the Secretary to implement the plans, 
programs and policies of the Board of Directors. Helshe must have recognized 
competence in business management, marketing, finance, tourism or related fields. 
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c. The properties, assets and funds currently being utilized by the present Duty-Free 
Philippines system shall be considered as the capitalization of the new corporate 
en ti ty. 
d. Consistent with the nature of its operations and primary function to operate as a tax 
and duty free merchandising system, and to enable it to compete in the international 
tax and duty free market, DFPC shall be entitled to exemption from the following: 
i. Duties and taxes, including excise and VAT, relative to the importation of 
merchandise for sale; 
ii. Local taxes and fees imposed by the local government units; and 
iii. Income taxation. 
SEC. 25. lntramuros Administration. - In order to fully implement the mandate 
of the lntramuros Administration under Presidential Decree No. 1616, as amended, 
the area delineated as lntramuros is hereby declared a Tourism Enterprise Zone and the 
lntramuros Administration its Zone operator, under the supervision of the TEZA. The 
delimitations of lntramuros may be modified by executive order, upon recommendation of 
the TEZA. 
SEC. 26. Philippine Refiremenf Authority. - For purposes of policy and 
program coordination, the Philippine Retirement Authority is hereby attached to the 
Department and placed under the supervision of the Secretary. The Secretary shall 
be the ex-officio Chairperson of its Board of Trustees. 
SEC. 27. Philippine Commission on Sports Scuba Diving. - The Philippine 
Commission on Sports Scuba Diving shall likewise be attached to the Department and 
placed under the supervision of the Secretary, who shall be the ex-officio 
Chairperson of its Board of Trustees. The state shall undertake measures to provide the 
standard basic dive rules to all levels or kinds of divers, regulate scuba sports and 
technical diving in the country and ensure the safety of the sport through the 
enactment of laws pursuant thereto, including the regulation of the accredited scuba 
sports and technical diving establishments. The pertinent law shall be enacted for the 
efficient and effective implementation of this state policy. 
Subchapter Il-D. Control and Supervision of Areas of 
Overlapping Jurisdictions 
SEC. 28. Rafionalizafion of Tourism Zones, Areas and Spots. - Any jurisdiction 
over any tourism zone, area or spot previously vested by law, executive order or presidential 


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decree on the PTA or any other national government agency shall be vested in the 
Department. 
In the interest of efficiency in supervision and in recognition of local autonomy, the 
Department, through appropriate arrangements, may from time to time transfer control over 
a tourism zone, area or spot, or a portion thereof, to another agency or office of the 
government, or to a local government unit. This shall only be effected upon the submission 
of the latter, within a reasonable time, of comprehensive plans for the use, development, 
preservation and promotion of all tourism zones, areas, or spots and upon the approval 
thereof. Such transfer shall not have the effect of diminishing the jurisdiction of the 
Department over these zones, areas or spots. 
The Department shall exercise supervisory powers over such agency, office or local 
government unit in accordance with the terms of the transfer or the development plan of the 
zone, area or spot. Where a national government agency or a local government unit fails to 
implement the comprehensive plan approved by the Department, the Department may, after 
due notice and hearing, rescind the arrangement transferring control over the tourism zone, 
area or spot and regain such control thereof. 
SEC. 29. National Integrated Protected Areas System and the National Eco- 
tourism Policy. -Within one (1) year from the effectivity of this Act, the Department and the 
DENR shall identify areas covered by the National Integrated Protected Areas System with 
ecotourism potential and prepare comprehensive plans for the use, development, 
preservation and promotion of these areas subject to prior environmental impact 
assessments. When practicable, and with the concurrence of the DENR, the Protected 
Area or portions thereof, and areas currently covered by the Ecotourism Policy proclaimed 
under Executive Order No. 111 (1999), may be organized as Zones under the supervision of 
the TEZA, as hereinafter provided. 
Subchapter Il-E. Shared Responsibilities of National and 
Local Governments 
SEC. 30. Coordinafion between National and Local Governments. - In view of the 
urgent need to develop a national strategy for tourism development while giving due regard 
to the principle of local autonomy, the Department and the local governments shall integrate 
and coordinate local and national plans for tourism development. The Department may 
provide financial and technical assistance, training and other capacity-building measures to 
local governments for the preparation and implementation of tourism development plans, 
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giving due priority to areas that have been identified as strategic in the implementation of 
the national tourism development plan. Local governments shall ensure the implementation 
of such plans. The TPB shall prioritize promotion and development assistance for local 
government units which successfully adopt and implement their tourism development plans. 
SEC. 31, Local Tourism Development Planning. - Local government units are 
encouraged to utilize their powers under the Local Government Code to ensure the 
preparation and implementation of a tourism development plan. They shall, insofar as 
practicable, draft tourism development plans that integrate zoning, land use, infrastructure 
development, the national system of standards for tourism enterprises, heritage and 
environmental protection imperatives in a manner that encourages sustainable 
development. 
SEC. 32. National Tourism Development Planning. - The Department, in 
coordination with its attached agencies, local government units and the private sector, shall 
continuously update the existing national tourism development plan in view of evolving 
needs and capabilities of local governments and the domestic and global tourism market. 
SEC. 33. Reporfs. - In order to monitor the resources of the Department and to 
ascertain the economic and social impact of tourism, every provincial or city local 
government unit shall provide an inventory of all the resources available to the Department 
for use in the implementation of this Act. They shall likewise periodically report to the 
Department on the status of tourism, plans and programs, tourist arrivals, and tourism 
enterprises, among others, within their jurisdictions. 
SEC. 34. Accreditation. - In order to encourage global competitiveness, strengthen 
data gathering and research on tourism, and facilitate the promotion of individual 
enterprises and the industry as a whole, primary tourism enterprises shall be periodically 
required to obtain accreditation from the Department as to the quality of their facilities and 
standard of services. Accreditation shall be voluntary for secondary tourism enterprises. 
The Department shall evolve a system of standards for the accreditation of these 
enterprises in accordance with the relevant tourism development plan. These standards 
should adhere, insofar as practicable, to those recognized internationally. The Department 
and local governments shall ensure strict compliance of tourism enterprises with these 
standards. 
The Department, through the Legal Affairs Service, shall act on complaints regarding 
accredited tourism enterprises, and after notice and hearing, may impose fines, or 
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downgrade, suspend or revoke accreditation, for violation of the terms of accreditation. The 
Department shall likewise have the power and the duty to issue tourism advisories 
pertaining to tourism enterprises found to have violated the terms of their accreditation. A 
tourism advisory shall contain the following: 
a) Complete identification of the pertinent tourism enterprise; 
b) Location of this entity: 
c) Its registered owner or proprietor and the business address thereof; 
d) The specific term or terms of accreditation violated: and 
e) The statement that the advisory shall only be lifted upon continued compliance of the 
enterprise with the terms of accreditation. 
Tourism enterprises registered with the TEZA in accordance with the pertinent 
provisions below and availing of the incentives under this Act may further be ordered to pay 
backtaxes in the amount equivalent to the difference between the taxes that they should 
have paid had they not availed of the incentives under this Act and the actual amount of 
taxes being paid by them under the same incentive scheme. The backtaxes to be collected 
shall be computed up to three (3) years directly preceding the date of promulgation of the 
decision or order finding that the tourism enterprise violated the terms of its accreditation. 
For this purpose, the Department shall enlist the participation of the Bureau of Internal 
Revenue in arriving at an accurate computation of backtaxes to be paid by the pertinent 
tourism enterprise. The proceeds of these backtaxes shall be distributed as follows: 
a) One-third to the national government; 
b) One-third to the local government unit or units concerned, to be shared by them 
equally should there be more than one local government unit concerned; and 
c) One-third to the TEZA. 
Nothing in this section shall diminish the powers of the local government units under 
Republic Act No. 7160, otherwise known as the Local Government Code of 1991, pertaining 
to the issuance of business permits, licenses and the like. When an enterprise fails to 
obtain or loses accreditation, the Department shall notify the local government unit 
concerned so that it may take appropriate action in relation to an enterprise's licenses and 
permits to operate. 
The Department may, under such relevant terms and conditions stipulated, delegate 
the enforcement of the system of accreditation to local government units that have adopted 
and successfullv imdemented their tourism develonment plan. 
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The Department shall promulgate the necessary implementing rules and regulations 
to enforce the provisions of this section pursuant to its powers and functions as defined 
under Section 5 of this Act. 
SEC. 35. Value of Accreditation. - The Department shall develop a system to 
enhance the value of accreditation among primary and secondary tourism enterprises. 
Accredited enterprises shall be preferred in promotional, training and other programs of the 
Department and its attached agencies. 
Accredited enterprises shall, insofar as practicable, give due preference to other 
The Department shall develop an integrated system of accreditation with government 
agencies and instrumentalities that independently accredit tourism and other enterprises in 
order to reduce the regulatory and financial burden on the private sector. 
accredited enterprises in obtaining relevant services. 
SEC. 36. Local Government Capabilities Enhancement - The Department shall 
develop support and training programs to enhance the capacities and capabilities of local 
governments to monitor and administer tourism activities, and enforce tourism laws, rules 
and regulations in their respective jurisdictions. Funding for such programs shall be shared 
equitably between the Department and the local governments concerned. 
CHAPTER 111. TOURISM PROMOTIONS 
Subchapter Ill-A. Tourism Promotions Board 
SEC. 37. Tourism Promotions Board. - Under the supervision of the Secretary and 
attached to the Department for purposes of program and policy coordination shall be a body 
corporate known as the Tourism Promotions Board (TPB). 
SEC. 38. Mandate. -The TPB shall be responsible for marketing and promoting the 
Philippines domestically and internationally as a major global tourism destination, 
highlighting the uniqueness and assisting the development of its tourism products, with the 
end in view of increasing tourist arrivals and tourism investment. Specifically, it shall market 
the Philippines as a major convention destination in Asia. To this end, it shall take charge of 
attracting, promoting, facilitating, and servicing large-scale events, international fairs and 
conventions, congresses, sports competitions, expositions and the like. It shall likewise 
ensure the regular advertisement abroad of the country's major tourism destinations and 
other tourism products, not limited to tourism enterprise zones. It shall also provide 
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investments to the country. 
incentives to travel agencies abroad which are able to draw tourists and tourism 
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SEc. 39. Board of Direcfors. -The TPB shall be governed and its powers exercised 
by a Board of Directors ("Tourism Board"), composed as follows: 
a. The Department Secretary, as Chairperson; 
b. The TPB Chief Operating Officer, as Vice Chairperson; 
c. The TEZAAdministrator; 
d. The General Manager of DFPC; 
e. A representative from the Philippine Amusements and Gaming Corporation 
(PAGCOR); 
f. A representative from the international airport or seaport providing the largest 
contribution to the Tourism Development Fund as provided under Subchapter Ill-B, 
Section 49; 
g. One representative each from the League of Cities of the Philippines and the League 
of Provinces of the Philippines: 
SEC. 40. The Chief Operating Officer. - The TPB shall have a Chief Operating 
Officer who shall be a Filipino with a degree in business, law, tourism, public administration 
or relevant fields, and with demonstrated expertise therein. 
Helshe must have been 
engaged in a managerial capacity for at least five (5) years prior to hislher appointment. 
The President shall appoint a Chief Operating Officer in an acting capacity until such time 
when the Tourism Board convenes and elects a qualified individual for such position. After 
the Tourism Board convenes, the Chief Operating Officer shall then be elected by a majority 
of the members of the Tourism Board and shall serve for a term of three (3) years, unless 
earlier removed for cause as provided by law. He or she may, however, be reappointed. 
SEC. 41. Elected Directors. - In accordance with Section 39, paragraph (9) of this 
Act, the Tourism Congress as created under Chapter VI, Section 83 shall elect from among 
its members the directors to represent the tourism industry, specifically the following 
sectors: 
h. Nine directors elected by the Tourism Congress as provided below. 
a. Accommodation enterprises; 
b. Travel and tour services; 
c. Land, air and sea tourist transport services; 
d. Conventions and exhibitions services and suppliers; and 
e. Three representatives from other tourism enterprises. 
All directors shall each serve a term of two (2) years. 
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SEC. 42. Powers of fhe Tourism Promotions Board. - The TPB shall have all the 
general powers of a corporation provided under Batas Pambansa Blg. 68, otherwise known 
as the Corporation Code of the Philippines. Furthermore, it shall have the following powers: 
a. Engage in the business of tourism and perform acts in consonance therewith, such 
as, but not limited to, attending conventions and other events abroad in 
representation of the country, encouraging sales promotions and advertising, and 
implementing programs and projects with the objective of promoting the country and 
enticing tourists to visit its tourism destinations and to enjoy its tourism products; 
b. Contract loans, indebtedness and credit, and issue commercial papers and bonds, in 
any local or convertible foreign currency from international financial institutions, 
foreign government entities, and local or foreign private commercial banks or similar 
institutions under terms and conditions prescribed by law, rules and regulations; 
c. Execute any deed of guarantee, mortgage, pledge, trust or assignment of any 
property for the purpose of financing the programs and projects deemed vital for the 
early attainment of its goals and objectives, subject to the provisions of the 
Constitution (Article VII, Section 20, and Article XII, Section 2, paragraphs (4) and 
(5)); 
d. Receive donations, grants, bequests and assistance of all kinds from local and 
foreign governments and private sectors, and utilize the same; 
e. Extend loans, provide grants and other forms of financial assistance for manpower 
training, heritage preservation, infrastructure development, and other programs of 
the Department; 
f. Obtain the services of local and foreign consultants, and enter into contracts locally 
and abroad in the performance of its functions; and 
g. Exercise such other powers and functions as are necessary or incidental to the 
implementation of this Act. 
SEC. 43. Meetings of the Board. - The Tourism Board shall meet at least once a 
month at the principal office of the TPB, unless the Tourism Board previously agrees in 
writing to meet at another location. 
SEC. 44. lnternal Structure. - The Tourism Board shall have the power to determine 
its operational and staffing structure in a manner that will allow it to best implement its 
mandate. 
SEC. 45. Capitalization. - From the collections of travel taxes, the national 


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government shall set aside an amount of two hundred fifty million pesos (PHP 250,000,000) 
to capitalize the operations of the TPB. 
SEC. 46. Strafegic Marketing Plan. - The TPB shall draft comprehensive short-, 
medium- and long-term marketing plans for the Philippines as a destination for travel, 
business and investment, particularly tourism investment. It shall coordinate, insofar as 
practicable, with relevant agencies of the government and the private sector in the 
preparation of such plans. 
Such plans shall be duly approved by the Tourism Board. The Chief Operating 
Officer shall ensure that the marketing plans are duly implemented, and shall periodically 
report to the Tourism Board the status of their implementation. Helshe shall also coordinate 
to ensure that the other agencies of the government and the private sector which assisted in 
the preparation of marketing plans perform their respective duties under the plans. 
SEC. 47. Foreign and Domestic Promotions Offices. - In the implementation of its 
mandate, the TPB shall establish foreign and domestic offices, which shall be responsible in 
their respective areas for marketing and promotions, market research, and such other 
functions delegated by the Board. Each office shall submit periodic reports to both the 
Tourism Board and the Secretary on the performance of its functions. 
Subchapter Ill-B. Tourism Promotion and 
Development Fund 
SEC. 48. Tourism Promofion and Development Trust. - The Tourism Promotion 
and Development Trust shall hereby be established from the proceeds of the sale or lease 
of the assets of the PTA. The Trust shall be managed by a government-owned bank or 
financial institution selected by the Tourism Board. Said bank or institution shall report the 
status and profitability of the trust on a quarterly basis to the Secretary and the Joint 
Congressional Tourism Oversight Committee created under this Act. 
SEC. 49. Tourism Promotion and Development Fund. I The proceeds of the 
following shall be placed in a special Tourism Promotion and Development Fund to finance 
the activities of the TPB: 
a. The investment earnings from the Tourism Promotion and Development Trust; 
b. The full amount of travel taxes less the statutory allocation for the National 
Commission on Culture and the Arts and the Commission on Higher Education; 
c. An appropriation from the national government of not less than five hundred million 
pesos (PHP 500,000,000) annually for at least five (5) years from the time of its 
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cons ti tu tion; 
d. At least 50% of the net income of DFPC, in lieu of its statutory remittance to the 
National Government under Republic Act No. 7656; 
e. At least 25% of the net income of the PAGCOR, to be taken from the share of the 
National Government under Republic Act No. 7656; and 
f. At least 25% of the net income of international airports and seaports, to be taken 
from the share of the National Government under Republic Act No. 7656. 
In no case shall promotions and marketing activities receive less than fifty percent 
(50%) of the annual utilization of the Fund. Not more than ten percent (10%) of the Fund 
shall be used for all other administrative and operating expenses of the TPB. 
The 
unallocated portion of the Fund shall be earmarked by the TPB as follows: 
i. For use by the TEZA in the development of Tourism Enterprise Zones; 
ii, For the Department, to enhance its programs for development planning, 
heritage preservation, and infrastructure development, and manpower 
training including but not limited to scholarships for trainings abroad, among 
others; or 
iii. For such other purposes as may contribute to the development of the 
tourism industry. 
The collection of travel taxes and portions of the net income of government 
corporations and other enterprises provided under this section due the TPB shall be 
remitted directly thereto on a quarterly basis. 
SEC. 50. Special Contingency Fund. - At the beginning of each year, ten percent 
(10%) of the allocation for promotions and marketing shall be set aside as a Special 
Contingency Fund of the TPB. This shall be used in the event of emergencies to provide 
the TPB with sufficient resources to undertake marketing and promotions activities that will 
encourage sustained tourism interest in the Philippines and that will address the adverse 
effects of these emergencies. 
CHAPTER IV. TOURISM ENTERPRISE ZONES 
Subchapter IV-A. Tourism Enterprise Zones 
SEC. 51. Tourism Enterprise Zones, - Any geographic area with the following 
characteristics may be designated as a Tourism Enterprise Zone: 
a. The area is capable of being defined into one contiguous territory; 
b. It has historical and cultural significance, environmental beauty, or existing or 
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potential integrated leisure facilities within its bounds or within reasonable distances 
from it; 
c. It has, or it may have, strategic access through transportation infrastructure, and 
reasonable connection with utilities infrastructure systems: 
d. It is sufficient in size, such that it may be further utilized for bringing in new 
investments in tourism establishments and services; and 
e. It is in a strategic location such as to catalyze the socio-economic development of 
neighboring communities. 
SEC. 52. Designation. - The designation of a Zone may be proposed to the TEZA 
by the national government, city governments, provincial governments with the consent of 
component municipalities, private initiative, or by joint venture between the public and 
private sectors. 
developmental value to the national economy. 
SEC. 53. Development Planning. - Each application for designation as a Zone shall 
be accompanied by a Zone development plan which shall, consistent with principles of 
economic, cultural and environmentally sustainable development, specifically identify: 
Zones shall not proliferate in a manner that diminishes their strategic economic and 
a. Features which satisfy the requisites for the designation of a Zone enumerated under 
Section 51 of this Chapter: 
b. Areas for infrastructure development, for investment, and for preservation, as well as 
the kind of development, nature of investment, or the sustainable activities allowed 
within preserved areas, respectively; 
c. Medium and long-term studies on market trends, and corresponding development 
d. Studies on the economic impact of development within the Zone and in surrounding 
strategies for the Zone; 
communities; 
e. Studies on the environmental, cultural and social carrying capacity of the Zone and 
surrounding communities; and 
f. Design plans for structures which incorporate design and sustainability principles 
from local architecture and the surrounding environment. 
No Zone shall be designated without a duly approved development plan by the TEZA 
and without the approval, by resolution, of the local government unit concerned. 
Any 
deviation or modification from the development plan shall require the prior authorization of 
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the TEZA. The TEZA may cause the suspension of granted incentives and withdrawal of 
recognition as a Zone Operator. It may likewise impose reasonable fines and penalties 
upon Zone Operators and responsible persons for any failure to properly implement the 
approved development plan. 
Lands identified as part of a Zone shall qualify for exemption from the coverage of 
Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 
1992, and Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform 
Law, subject to rules and regulations to be crafted by the TEZA, the Housing and Urban 
Development Coordinating Council and the Department of Agrarian Reform. 
SEC. 54. Operation of the Zone. - The Zone proponent shall establish a corporate 
entity to administer the Zone and supervise activities within the Zone. The designation of a 
Zone does not vest ownership of the resources therein upon the Zone Operator. Where the 
Zone Operator possesses rights to land or other resources within the Zone, the Zone 
Operator shall be entitled to exercise such rights as allowed by existing laws in a manner 
consistent with the duly-approved development plan as provided above. 
Where rights to land and other resources within the Zone are vested in a private third 
party, the Zone Operator shall encourage the private third party to participate in 
policymaking, planning and program development and implementation by encouraging its 
registration as a tourism enterprise where appropriate, and through the judicious 
administration of incentives and provision of services. 
Except as herein provided, the local government units which comprise, overlap, 
embrace or include a Zone in their territorial jurisdictions shall retain their basic autonomy 
and identity in accordance with Republic Act No. 7160, otherwise known as the Local 
Government Code of 1991. 
The government shall encourage, facilitate and provide incentives for private sector 
participation in the construction and operation of public utilities and infrastructure in and 
around Zones using any of the schemes allowed under Republic Act No. 6957, otherwise 
known as the Build-Operate-and-Transfer Law, as amended. 
Subchapter IV-B. Tourism Enterprise Zone Authority 
SEC. 55. The Tourism Enterprise Zone Authority. - Under the supervision of the 
Secretary shall be a body corporate known as the Tourism Enterprise Zone Authority 
(TEZA). 
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SEC. 56. Mandate. - The TEZA shall supervise and regulate the cultural, economic 
and environmentally sustainable development of Zones toward the primary objective of 
encouraging investments therein. It shall ensure strict compliance of the Zone operator with 
the approved development plan. Pursuant thereto, the TEZA shall have the power to 
impose penalties for failure or refusal of the tourism enterprises to comply with the approved 
development plan. Moreover, such failure or refusal shall be considered a violation of the 
terms of accreditation and shall cause the suspension or revocation of the same and the 
imposition of the corresponding penalties therefor. Such power shall further be defined 
under the implementing rules and regulations of this Act and the Rules of Procedure 
provided for under Section 13 of this Act. 
pertinent laws, rules and regulations. 
exercised by a Board of Directors (“TEZA Board”), composed of the following: 
Tourism enterprises outside of Zones and without accreditation shall be governed by 
SEC. 57. Board of Directors. - The TEZA shall be governed and its powers 
a. The Department Secretary, as Chairperson; 
b. The Administrator of the TEZA, as Vice Chairperson; 
c. The Chief Operating Officer of the TPB; 
d. The Undersecretary for Tourism Development; 
e. A representative from the Department of Environment and Natural Resources; 
f. A representative from the Department of Labor and Employment; 
g. A representative from the Department of Public Works and Highways; 
h. A representative from the Department of the Interior and Local Government; 
i. One representative each from the League of Cities of the Philippines and the League 
of Provinces of the Philippines; 
j. The chairperson of the National Commission on Culture and the Arts; 
k. Six directors elected by the Tourism Congress as provided below. 
SEC. 58. Administrator. - The TEZAAdministrator must be a Filipino with at least a 
bachelor’s degree in business, law, tourism, public administration, urban planning, or other 
relevant fields, and demonstrated expertise therein. Helshe must have been engaged in a 
managerial capacity for at least five (5) years prior to hislher appointment. Helshe shall be 
appointed by the President and shall have a term of office of five (5) years. 
SEC. 59. Directors Nected by the Tourism Congress. - The Tourism Congress 
shall elect directors to represent each of the following sectors: 
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a. Tourism estate managers; 
b. Hotels, resorts and other accommodation establishments; 
c. Air, sea and land tourism transport services; 
d. Travel and tour services; and 
e. One representative from other tourism enterprises. 
These directors must be Filipinos engaged in management in the sectors they 
represent for at least five (5) years, and have recognized expertise in their respective 
sectors. These directors shall each serve a term of four (4) years. 
SEC. 60. Meefings of the Board. - The TEZA Board shall meet at least once a 
month at the principal office of the TEZA, unless the TEZA Board previously agreed in 
writing to meet at another location. 
SEC. 61, General Powers and Functions of the TEZA Board. - The TEZA Board 
shall have the general powers of a corporation as provided under Batas Pambansa Blg. 68, 
the Corporation Code of the Philippines. Furthermore, it shall also have the following 
powers: 
a. Adopt rules and regulations necessary for the implementation of the provisions of 
this Chapter; 
b. Enter into and carry out contracts of every class, kind and description which are 
necessary or incidental to the realization of its purposes with any person, firm or 
corporation, private or public, and with foreign government entities; 
c. Contract loans, indebtedness and credit, and issue commercial papers and bonds, in 
any local or convertible foreign currency from international financial institutions, 
foreign government entities, and local or foreign private commercial banks or similar 
institutions under such terms and conditions prescribed by law, rules and regulations; 
d. Execute any deed of guarantee, mortgage, pledge, trust or assignment of any 
property for the purpose of financing the programs and projects deemed vital for the 
early attainment of its goals and objectives, subject to the provisions of Article VII, 
Section 20, and Article XII, Section 2, paragraphs (4) and (5) of the Constitution; 
e. In coordination with local government units andlor appropriate agencies concerned, 
construct, own, lease, operate and maintain infrastructure facilities, and grant 
franchises for and supervise the operation of public utilities within Zones; 
f. Undertake or authorize the undertaking of reclamation projects; 
g. Receive donations, grants, bequests and assistance of all kinds from local and 
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foreign governments and private sectors and utilize the same in furtherance of its 
powers; 
h. Exercise eminent domain and police power, including, but not limited to, the power to 
recommend to the Department the removal of structures which may be considered 
nuisances per se or which impede or impair the enjoyment of historical, cultural and 
natural endowments; 
il Coordinate with the local government units and other government offices for the 
provision of basic services, utilities and infrastructure required by Zones; 
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Review and approve proposals for the designation of Zones based on criteria 
provided herein; 
k. Approve, facilitate and assist in the organization of zone operators; 
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plans, and establish and implement other policies, plans and programs for the 
development and operation of Zones; 
m. Register, monitor and regulate enterprises seeking to invest and operate within a 
Zone, and approve and grant incentives to such registered enterprises as provided 
under this Act; 
n. Collect taxes, as provided under Section 73 below, and necessary fees to defray 
administrative and operational expenses, and impose penalties and fines for 
violations of duly promulgated rules and regulations; and 
implementation of this Act. 
The TEZA shall be deemed a government infrastructure corporation under the 
provisions of the Administrative Code of 1987 (Executive Order No. 292, Book IV, Chapter 
13, Section 58). 
SEC. 62. Powers and Functions of fhe Administrator. - The Administrator shall 
implement the policies, plans and programs of the TEZA Board, and shall periodically report 
thereto the status of their implementation. The TEZA Administrator shall also recommend to 
the TEZA Board all acts necessary to properly supervise the operations of Zone Operators. 
In addition, he/she shall have the following specific powers and responsibilities: 
0. Exercise such other powers and functions as are necessary or incidental to the 
a. Subject to the approval of the TEZA Board, determine the structure, staffing pattern 
and personnel complement of the TEZA, including the appointment of specific Zone 
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b. Coordinate with the Philippine National Police for the proper maintenance of peace 
and order within Zones and for the designation of specific units trained and 
supervised by the Department to serve as tourism police; 
c. Ensure that all Zone Operators properly perform their functions and duties in 
accordance with this Act, the TEZA implementing rules and regulations, and all other 
relevant laws, orders, decrees and executive issuances; 
d. Receive all protests, complaints, and claims concerning Zone Operators, and make 
recommendations to the TEZA Board for appropriate action; 
e. Make recommendations to the Department and take necessary actions for the 
enforcement of all legal easements along seashores, lakeshores, and riverbanks and 
other historical, cultural and natural endowments, among others, to ailow free and 
open access thereto and aid in the proper development of the national patrimony; 
f. Take such emergency measures as may be necessary to avoid or mitigate the 
impact of fires, floods, storms and other calamities or disasters, natural or otherwise, 
upon persons or properties within Zones and adjoining communities; 
g. Coordinate with the TPB for the promotion of tourism and the encouragement of 
investment in Zones; and 
h. Exercise such other powers and functions as are necessary or incidental to the 
implementation of this Act. 
SEC. 63. Capitalization. - From the collection of travel taxes, the national 
government shall appropriate the sum of two hundred fifty million pesos (PHP 250,000,000) 
for the capitalization of the TEZA. 
SEC. 64. Regisfrafion. - Business enterprises within a Zone must be registered with 
the TEZA to avail of the incentives and benefits provided for in this Act. 
SEC. 65. One-stop Shop Processing. - The TEZA shall establish offices where 
prospective Zone investors can register to obtain the incentives and benefits under this Act 
and all necessary permits and licenses from all national and local government offices. All 
government agencies shall coordinate with the TEZA for the issuance of such permits and 
licenses. 
SEC. 66. lnvestigation and Inquiries. - Upon a written formal complaint made under 
oath, which on its face provides reasonable basis to believe that some anomaly or 
irregularity might have been committed within the Zone, the TEZA Administrator shall have 
the power to inquire into and investigate the conduct of Zone Operators, registered 
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enterprises, and/or their employees. For that purpose, he/she may subpoena witnesses, 
administer oaths, and compel the production of books, papers, and other evidence. The 
Administrator shall thereafter make a recommendation to the TEZA Board for appropriate 
action. In these cases, the Rules of Procedure as provided for under Section 13 of this Act 
shall likewise apply. 
Subchapter IV-C. Zone Administration 
SEC. 67. Adminisfration of Zones. - Each Zone shall be administered and 
supervised by a Zone Operator. A Zone Operator shall be an entity duly incorporated under 
general Philippine law, whose capital may be provided by the national government, one or 
more city andlor provincial governments, andlor private entities. 
SEC. 68. Articles of Incorporation and Bylaws of Zone Operators - Except as 
provided herein and as may be provided by rules and regulations duly promulgated by the 
TEZA, each Zone Operator may draft its articles of incorporation and by-laws in accordance 
with the Corporation Code. 
SEC. 69. Boards of Directors and Consultative Bodies of Zone Operators. - The 
seats of the Board of Directors of a Zone Operator shall be allocated pro-rata according to 
the respective capital contributions of the Zone Operator’s shareholders. 
Zone Operators are encouraged to reserve seats on their Boards of Directors for 
special interest groups relevant to their Zones, such as those representing environmental, 
religious, cultural, Zone investors’, Zone residents’, and other interests. In any case, Zone 
Operators shall form consultative bodies for such special interest groups to assist them in 
the formulation and implementation of policies, plans and projects. 
SEC. 70. Zone Administration. - The Board of Directors of each Zone Operator shall 
appoint its Zone Administrator. The Zone Administrator shall be responsible for 
implementing the policies, plans and projects of the Zone Operator Board of Directors. The 
TEZA shall provide guidelines on the necessary educational and practical qualifications 
required of a Zone Administrator. In addition to such qualifications, all Zone Administrators 
must undergo and pass a training program of the Department to provide Zone 
Administrators with knowledge and skills relevant to the operation of the Zone. 
SEC. 71, Civil Dispute Resolution. - The TEZA shall establish a civil dispute 
mediation office to effectively and efficiently resolve civil disputes concerning tourism 
enterprises andlor tourism-related issues within the Zone where at least one (1) of the 
parties to the dispute was residing in the Zone at the time the dispute arose, and is still 
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residing within the Zone at the time the complaint is filed with the mediation office. No civil 
dispute may be filed in court without having undergone mediation proceedings as provided 
under this section except in extraordinary cases where a party may suffer irreparable 
damage. This provision is without prejudice to the application of the rules pertaining to 
Katarungang Pambarangay with respect to other matters. 
Subchapter IV-D. Incentives for Zone Operators and Locators 
SEC. 72. Grant and Adminisfrafion of Incentives. - Recognizing the strategic 
economic importance of tourism, and the necessity that investments within Zones be 
properly coordinated with environmental, cultural and developmental imperatives, and 
fundamental differences between the export manufacturing and tourism industries, the 
TEZA shall have sole and exclusive jurisdiction to grant the incentives hereinafter provided. 
In the formulation of rules and regulations defining and implementing the incentives 
hereinafter provided, and without derogating from the incentives granted herein, the TEZA 
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. In the grant of incentives, it shall give 
equal preference to large investments and those with great potential for employment 
generation and those of local small and medium enterprises. The amount of required 
investments shall be defined in the implementing rules and regulations of this Act. 
The TEZA shall further coordinate with the Bureau of Customs and the Bureau of 
Internal Revenue in the preparation and enforcement of rules and regulations to prevent the 
abuse of these incentives. 
The jurisdiction of the TEZA in the grant and administration of incentives shall not 
SEC. 73, Fiscal lncenfives Available to Zone Operators and Registered 
Enterprises. -The following incentives may, in the discretion of the TEZA Board, be granted 
to registered tourism enterprises within Zones: 
impliedly repealed or modified. 
a. Income Tax Holidav. New enterprises in Greenfield and Brownfield Tourism Zones 
shall, from the start of business operations, be exempt from tax on income for a 
period of six (6) years, This income tax holiday may be extended if the enterprise 
undertakes a substantial expansion or upgrade of its facilities prior to the expiration 
of the first six years, This extension shall consider the cost of such expansion or 
upgrade in relation to the original investment, but shall in no case exceed an 
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c. Capital Investment and Equipment. Subject to rules and regulations which properly 
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define capital investments and equipment necessary for various kinds of tourism 
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enterprises, registered enterprises shall be entitled to an exemption of one hundred 
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percent (100%) of all taxes and customs duties on importations of capital equipment. 
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An existing enterprise in a Brownfield Tourism Zone shall be entitled to avail of a 
non-extendible income tax holiday if it undertakes an extensive expansion or 
upgrade of facilities. Such an income tax holiday shall consider the cost of such 
expansion or upgrade'in relation to the original investment, but shall in no case 
exceed six (6) years to be counted from the time of completion of the expansion or 
b. Gross Income Taxation. In lieu of all other national and local taxes, license fees, 
imposts and assessments, except real estate taxes and such fees as may be 
imposed by the TEZA, a new enterprise shall pay a tax of five percent (5%) on its 
gross income earned, which shall be distributed as follows: 
1) One-third to be proportionally allocated among affected local government; 
2) One-third to the national government; and 
3) One-third to the TEZA for the funding of its operations and its programs in the 
Zones, which shall include the protection, maintenance and enrichment of the 
environment, tangible cultural and historical heritage, and the intangible cultural 
heritage of communities within and surrounding the Zones. 
Gross income as used herein is defined under Republic Act No, 8424 (The National 
Internal Revenue Code), Section 27(A) and further defined under relevant rules and 
enterprises shall be entitled to the following: 
1) Importation of goods actually consumed in the course of services actually 
rendered by or through registered enterprises within a Zone shall enjoy one 
hundred percent (100%) exemption from all taxes and customs duties; Provided 
however, That no goods shall be imported for the purpose of operating a 
wholesale or retail establishment in competition with (DFPC). 
2) A tax credit equivalent to all national internal revenue taxes paid on all locally- 
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sourced goods and services directly or indirectly used by the registered 
enterprise for services actually rendered within the Zone. 
e. Social Responsibilitv Incentive. A registered enterprise shall be entitled to a tax 
deduction equivalent to a reasonable percentage, not exceeding fifty percent (50%), 
of the cost of environmental protection or cultural heritage preservation activities, 
sustainable livelihood programs for local communities, and other similar activities. 
SEC. 74. Non-fiscal incentives Available to Zone Operators and Locators. - The 
following incentives may, in the discretion of the TEZA Board, be granted to registered 
tourism enterprises within Zones: 
a. Emulovment of foreiqn nationals. A registered enterprise may employ foreign 
nationals in executive, supervisory, technical or advisory positions for such 
reasonable periods and under such terms as may be provided by the TEZA Board, 
with due regard for the proper protection and representation of foreign investments in 
registered enterprises,, and the need to ensure easy travel into and out of the 
Philippines by such nationals and their immediate families. 
b. Special Investor's Resident Visa. Under such terms as may be provided by the TEZA 
Board, a foreign national who shall have made an investment with a value of at least 
two hundred thousand US dollars (US$ 200,000) in a registered enterprise shall be 
entitled to a Special Investor's Resident Visa. With such Visa, the foreign national 
shall be entitled to reside in the Philippines while hislher investment subsists. 
c. Foreign Currencv Transactions. Subject to the provisions of Section 72 of Republic 
Act No. 7653 otherwise known as the New Central Bank Act, as amended: 
1) Repatriation of Investments. In the case of foreign investments, the right to 
repatriate the entire proceeds of the liquidation of the investment in the currency 
in which the investment was originally made and at the exchange rate prevailing 
at the time of repatriation. 
2) Remittance of Foreign Exchanqe. The right to remit earnings from a foreign 
investment in the currency in which the investment was originally made and at 
the exchange rate prevailing at the time of remittance. 
3) Foreiqn Loans and Contracts. The right to remit at the exchange rate prevailing 
at the time of remittance such sums as may be necessary to meet the payments 
of interest and principal on foreign loans and foreign obligations arising from 
technological assistance contracts. 
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d. Requisition of Investment. 
There shall be no requisition of the property of 
enterprises or represented by investment, except in the event of war or national 
emergency, and only for the duration thereof. In any case, the affected person shall 
be entitled to just compensation, and shall have the right to repatriate such 
compensation as provided in paragraph c above. 
e. Lease and Ownership of Land. Without prejudice to existing laws regulating the 
ownership of land by individuals and corporations, and consistent with the provisions 
of Republic Act No. 7652, otherwise known as the Investor's Lease Act, lands and 
buildings in each Zone may be leased to foreign investors for a period not exceeding 
fifty (50) years, renewable once for a period of not more than twenty-five (25) years. 
The leasehold right acquired under long-term contracts may be sold, transferred or 
assigned, subject to the conditions set forth under the Investor's Lease Act. 
CHAPTER V. INCREASED TOURIST ACCESS 
SEC. 75. lnternational and Domestic Tourist Travel. - The Department, through the 
development of an inter-modal international and domestic land, sea, and air access system, 
in coordination with relevant government agencies, shall increase and improve the 
accessibility of the Philippines to domestic and foreign tourists. Realizing the critical 
importance of a liberalized civil aviation environment in the development of the country's 
international and domestic tourism sector: 
a. The Secretary shall be the ex officio Chairperson of the Civil Aviation Board; 
b. The Secretary shall be the ex officio Chairperson of the Manila International Airport 
Authority and the governing boards of other international airports; 
directors of each international seaport of the Philippines; and 
c. The Secretary shall be authorized to appoint a representative to the board of 
d. To enhance the standards of transportation services for tourist use, the Department 
and the relevant government agency shall develop an integrated, one-stop shop 
system for the speedy issuance of franchises and accreditation for tourism transport 
operators. 
SEC. 76. Visas. - The Department and the Departments of Justice and of Foreign 
Affairs shall develop a system of visas that encourages the arrival and longer stay of tourists 
in the Philippines. 
CHAPTER VI. CREATING A CULTURE OF TOURISM 
SEC. 77. Tourism Coordinating Council. - A council shall be formed consisting of 
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the Secretary, as Chairperson; representatives from each of the sectors in the Tourism 
Congress; the heads of other agencies attached to the Department; the Secretaries of the 
Departments of Transportation and Communication, Public Works and Highways, Foreign 
Affairs, Environment and Natural Resources, Education, Interior and Local Government, 
and Labor and Employment; and the heads of the Philippine National Police, Bureau of 
Immigration, National Historical Institute, National Commission on Culture and the Arts, 
Philippine Amusements and Gaming Corporation, the Leagues of Local Governments, and 
such other government agencies that the President may designate, that shall serve as a 
coordinating body for national tourism development efforts. 
The Council shall prepare 5-year strategic plans to develop and enhance a culture of 
tourism. It shall also approve an annual infrastructure development plan that shall promote 
access to and from airports and seaports, and Zones and other tourism destinations which 
shall be accorded priority by the relevant infrastructure agencies of the national government. 
SEC. 78. Education. - The Department shall work closely with the Department of 
Education for the development of educational programs for the primary and secondary 
levels that assist in the creation of a culture of tourism, specifically through the 
enhancement of education in languages, history and culture. 
The Department shall also work closely with the Commission for Higher Education in 
the regulation of colleges and universities that grant undergraduate and postgraduate 
degrees in tourism. 
The Technology and Skills Manpower Development Administration is hereby 
mandated to develop, in conjunction with the Department, programs for the training of 
tourism entrepreneurs, with focus on the youth, by providing programs for languages, 
history and cultural appreciation, and small business management. 
SEC. 79. Peace and Order. - The Philippine National Police shall establish a 
Tourism Security Force to assist in maintaining peace and order within areas of high tourism 
traffic. The Department shall ensure the training of members of the Force in cultural 
sensitivity, languages and relevant laws. 
SEC. 80. Funding Grassroofs Tourism Enterprises. - Insofar as allowed by 
applicable laws and their respective charters, government-owned and controlled banks and 
financial institutions shall provide microfinance schemes for the assistance and 
development of small- and medium-scale enterprises in the tourism industry. 
SEC. 81. Congressional Oversight - An oversight committee consisting of five 
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members each from both Houses of Congress shall constitute a Joint Congressional 
Oversight Committee responsible for overseeing the implementation of this Act. The 
Oversight Committee shall be composed of representatives from each Mouse from their 
respective Committees on Tourism; Government Corporations and Public Enterprises; 
Environment; Education, Arts and Culture; and Local Governments. 
The Secretary shall report to the Oversight Committee on a monthly basis the latest 
statistics on tourist arrivals and other relevant data. Helshe shall also report on a quarterly 
basis the status of implementation of this Act. 
SEC. 82. The Tourism Congress. - Within two (2) years from the effectivity of this 
Act, the Secretary shall convene a Tourism Congress of representatives of all accredited 
tourism enterprises and former government officials involved in the tourism industry to serve 
as the private sector consultative body to assist the government in the development, 
implementation and coordination of Philippine tourism policy. 
Under a constitution adopted and ratified by the Congress, it shall elect its officers 
and establish a secretariat, both for the Congress as a whole and for component sectors. It 
shall also elect such representatives as required under this Act. 
CHAPTER VII. MISCELLANEOUS PROVISIONS 
SEC. 83. Personnel and Compensation. - The employees and management of the 
TEZA, the TPB and DFPC shall be exempt from the coverage of the Salary Standardization 
Law. 
Subject to existing constitutional and legal prohibitions on double compensation for 
Board members in an ex-oficio capacity, the members of the TEZA Board, Tourism Board 
and DFPC Board shall not be entitled to compensation but may receive reasonable per 
diems for attendance at regular and special Board meetings. 
SEC. 84. Reportorial Requirements. -All attached agencies of the Department shall 
submit a quarterly report to the Secretary and to the Joint Congressional Oversight 
Committee on Tourism on the implementation of their respective programs. 
SEC. 85. Budgetary Approval. - All attached agencies of the Department shall 
submit their annual budgets to the Secretary for hislher approval, and shall furnish copies of 
the same to the Joint Congressional Oversight Committee on Tourism. 
The budgets of the TEZA, the TPB and DFPC reported to the Joint Congressional 
Oversight Committee must contain detailed information on the compensation and benefits 
received by their employees. 
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SEC. 86. Ofherlncentives, - 
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a. Tourism enterprises not located within Zones shall, upon approval by the 
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Department, be entitled to avail of any economic incentives found under existing 
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Economic Zone Act of 1995, and the Bases Conversion and Development Act, 
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Importation of transportation and the accompanying spare parts of new and 
expanding tourism-registered enterprises shall be exempt from customs duties and 
national taxes: Provided, That they are not manufactured domestically in sufficient 
quantity, of comparable quality and at reasonable prices, and that they are 
reasonably needed and will be used exclusively by an accredited tourism enterprise. 
Subject to rules and regulations jointly promulgated by the Department and the 
relevant government agency, such as the Board of Investments or the Philippine 
Economic Zone Authority, an existing accommodation establishment not located 
within a Zone shall be entitled to claim an income tax holiday for up to six (6) years 
for any significant expansion, renovations or upgrades in its facilities in relation to the 
amount of the original investment. They shall also be entitled to import capital 
equipment free of taxes and duties when necessary for such expansion, renovation 
b. The Department and the Department of Trade and Industry shall promulgate rules 
and regulations to govern the relationship between Zones created under this Act, 
and economic zones created under Republic Act No. 7227, as amended, otherwise 
known as the Bases Conversion and Development Act of 1992 andlor Republic Act 
No, 7916, as amended, otherwise known as the Special Economic Zone Act of 1995, 
where an area comprising a Zone overlaps, falls within or encompasses that of an 
economic zone; Provided, That such rules and regulations shall consider the special 
nature and requirements of tourism in relation to other industries, establishments and 
c. The investment incentives offered under this Act shall be without prejudice to availing 
other incentives provided under other laws, decrees, and presidential issuances. 
However, where such other laws, decrees or presidential issuances provide for 
similar or identical benefits, the beneficiary may only elect to avail of the benefit 
provided under one particular law, decree or presidential issuance. 
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d. Local governments are likewise encouraged to provide incentives for tourism 
enterprises through, among others, suspension or reduction in applicable real estate 
taxes and waivers of fees and charges, among others. Should a local government 
grant such incentives, it shall report the same to the Department and the TPB to 
assist in the marketing and promotions of investment in that local government. 
be governed by the following provisions: 
e. The grant of fiscal and other incentives to enterprises not located within Zones shall 
1) Tourism enterprises may avail of incentives provided under Executive Order 
No. 226 (1987), known as the Omnibus Investments Code, provided that: 
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Tourism activities shall always be included in the Investment Priorities 
Plan; 
Rules and regulations concerning the grant of incentives to tourism 
enterprises shall be jointly formulated by the Board of Investments and 
the Department; 
The income tax holiday provided under section 39.1 of the Omnibus 
Investments Code shall also apply to existing accommodation 
enterprises undergoing substantial expansions, renovations or 
upgrades of facilities; and 
Accredited tourism enterprises shall be entitled to import transportation 
and accompanying spare parts free of taxes and duties, provided that 
such transportation shall be exclusively used by the enterprise in its 
operations, and provided further that such are not manufactured 
domestically in sufficient quantity, comparable quality and prices. 
2) Tourism enterprises located in special economic zones created under 
Republic Act No. 7916 or by special charter shall continue to be governed by 
the same. 
f. The incentives offered under this Act shall be without prejudice to the availment of 
other incentives provided under other laws, such as, but not limited to, those 
concerning infrastructure, or micro-, small- and medium enterprises. However, 
where such laws provide for similar benefits as those contained herein, the 
beneficiary may elect to avail of the benefit provided only under one particular law, 
decree or issuance. 
SEC. 87. implementing Rules and Regulations. - Except as otherwise provided, 
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the Secretary shall have the power to issue rules and regulations to implement this Act. 
SEc. 88. Repealing Clause. - The provisions of Executive Orders No. 292 (The 
Administrative Code of 1987, as amended), Presidential Decree No. 189, as amended 
(Creating the Philippine Tourism Authority), Presidential Decree No. 1448, as amended 
(Creating the Philippine Convention and Visitors Corporation), the Local Government Code 
.(Republic Act No. 7160), Presidential Decree No. 1616 (Creating the lntramuros 
Administration), and all other laws, presidential decrees, executive orders, proclamations 
and administrative regulations inconsistent with the provisions of this Act are hereby 
amended, modified, superseded or repealed accordingly. 
SEC. 89. Separability Clause. - In the event that any provision of this Act or parts 
thereof be declared unconstitutional, such declaration shall not affect the validity of the other 
provisions. 
SEC. 90. Effectivity Clause. - This Act shall take effect one month after the 
completion of its publication in a newspaper of general circulation 
Approved, 
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