WHAT IS TOURISM ENTERPRISE ZONE?

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Published — December 17, 2020 

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Foreign lease for tourism projects: Long-term foreign lease over lands in the Philippines

• Tourism Enterprise Zones have historical and cultural significance

• Tourism Enterprise Zones may be further utilized for bringing new investments in tourism establishments and services

• Registration as tourismIenterprise where appropriate, is encouraged

Man cannot discover new oceans unless he has the courage to lose sight of the shore. – Andre Paul Guillaume Gide

Tourism industry is one of the most affected sectors by the COVID-19 Pandemic. Currently, the national and the Local Government Units are hand in hand boosting the tourism industry. However, take note that even before the Pandemic, Republic Act No. 9593 or the Tourism Act of 2009, as one of the government’s engine in amplifying the tourism industry, was already implemented.

What is Tourism Enterprise Zone?

The law says:

Any geographic area with the following characteristics or features may be designated as Tourism Enterprise Zone (TEZ):

1. The area is capable of being defined into one contiguous territory;
2. It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;
3. It has, or it may have strategic access through transportation infrastructure, and reasonable connection with utilities infrastructure systems:
4. It is sufficient in size, such that it may further be utilized for brining new investments in tourism establishments and services; and
5. It is in a strategic location such as to catalyze the socioeconomic development of neighboring communities.

When may a particular area or territory be designated as TEZ?

The law says:

A particular area or territory may be considered as TEZ when designated as such by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) upon the recommendation of any Local Government Unit (LGU) or private entity, or through joint ventures between the public and the private sectors.

The application for designation as a TEZ must be accompanied by a development plan which shall, consistent with the principles of economic, cultural and environmentally sustainable development. It shall specifically identify the following:

1. Tourism focal points and resources available within the proposed TEZ and adjoining areas;
2. Features which satisfy the requisites for designation of a TEZ;
3. Areas for infrastructure development, for investment, and for preservation, as well as the kind of development nature of investment or sustainable activities allowed within preserved areas, respectively;
4. Medium-and long-term studies on market trends, and corresponding development strategies for the TEZ;
5. Studies on the environmental, cultural and social carrying capacity of the TEZ and surrounding communities;
6. Design plans for structures which incorporate design and sustainability principles from architecture and the surrounding environment; and
7. Such other information that the TIEZA may require.

Are there incentives for Tourism Enterprise Zone Operators? A related article will be posted in a few days.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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