REVENUE MEMORANDUM CIRCULAR NO. 63-2019 issued on June 17, 2019 circularizes Republic Act (RA) No. 11262, entitled “An Act Amending Sections 85 and 103 of RA No. 9593, Otherwise Known as the “Tourism Act of 2009”.

Recognizing the strategic economic importance of tourism, the necessity that investments within Total Exclusion Zones (TEZs) be properly coordinated with environmental, cultural and developmental imperatives and the fundamental difference between the export manufacturing and tourism industries, the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) shall have sole and exclusive jurisdiction to grant the incentives provided in RA No. 11262.

The TIEZA may coordinate with the Board of Investments and other government agencies or entities responsible for the grant and administration of incentives to assist in the development of a rationalized national investment incentive policy.

In the grant of incentives, it shall give equal preference to large investments, those with great potential for employment generation and those of local small and medium enterprises. Registered tourism enterprises owned and operated by overseas Filipino investors shall enjoy the same incentives granted to TEZ operators and registered enterprises in general. The amount of required investments shall be defined in the implementing rules and regulations of RA No. 9593. The incentive schemes set forth in Sections 86, 87 and 88 of RA No. 9593 shall be in effect until December 31, 2029, subject to review by the Joint Congressional Oversight Committee.

The TIEZA shall further coordinate with the Bureau of Customs and the BIR in the preparation and enforcement of rules and regulations to prevent the abuse of these incentives. The jurisdiction of the TIEZA in the grant and administration of incentives shall not be impliedly repealed or modified.

Local Government Units (LGUs) are likewise encouraged to provide incentives for tourism enterprises through, among others, reductions in applicable real estate taxes and waivers of fees and charges, among others. Should LGU grant such incentives, it shall report the same to the Department of Tourism and the Tourism Promotions Board (TPB) to assist in the marketing and promotions of investment in that LGU.