Tourism Dialogue endorses IRR Recommendations to DOT 
Last October 27, 2009, the National Dialogue on Enhancing Philippine Competitiveness in Tourism concluded with an endorsement of the conference recommendations for the Implementing Rules and Regulations (IRRs) of the Tourism Act of 2009 to the Department of Tourism. Undersecretary Phineas Alburo, head of the Task Force on the IRRs received it on behalf of the department. He welcomed the initiative as part of the nationwide consultation currently being undertaken by the DOT and committed to review the suggestions as they finalize the draft due for release next month. Tourism Secretary Ace Durano addressed the conference earlier in the day, highlighting the achievements of the tourism department and looked forward to a more robust sector with the passage of the law. On the first day of the conference, Senator Richard Gordon, principal author of R.A. 9593 lauded the PCCI for their effort to initiate public-private dialogue, underlining the importance of such avenues for making the laws more responsive to the needs of the market. 

The Tourism Committee of the Philippine Chamber of Commerce and Industry (PCCI) in cooperation with the Department of Tourism and the Department of Trade and Industry, with the support of the PSP-SMEDSEP and the Linc-Eg Project of USAID organized the National Dialogue on Enhancing Philippine Competitiveness in Tourism with the objective of consolidating private sector suggestions for the IRRs of the Tourism law. The conference gathered close to 300 participants in a 2-day conference held at the Dusit Thani Hotel Manila, which was attended by representatives of the the DOT, DTI, PCVC, and PTA, including major tourism associations, such as the Federation of Tourism Industries of the Philippines, National Association of Independent Travel Agencies, Philippine Hotel Federation, Spa Association of the Philippines, Philippine Association of Tourist Transport Operators, Philippine Travel and Tourism Council, Philippine Travel Agencies Association, Philippine Tour Operators, Hotel and Restaurant Association of the Philippines, among others, including regional tourism associations from various parts of the country. 

The Plenary session on the first day by PCCI President Edgardo Lacson together with Mr. Volker Steigerwald, Program Manager of the PSP-SMEDSEP. Mr. Ruy Moreno, Executive Director of the National Competitiveness council highlighted the Philippines’ strong potential in the tourism industry in the context of the rapid growth of the medical, health and wellness sector over the past few years. Philippine performance in the 2009 Travel and Tourism Competitiveness Report of the World Economic Forum was presented by Mr. Uwe Sturmann, Component Manager of PSP-SMEDSEP. Atty. Alejandra Clemente, Chairman of FTIP and Mr. Bobby Lim Joseph, President of NAITAS also expressed their support for the passage of the law and discussed their views on its salient points. Klaus Lengefeld, Manager for GTZ Sustainable Tourism Development Program talked about the ingredients for a successful tourism industry, drawing on international examples. The morning session concluded with a presentation by Ms. Cherry Lyn Rodolfo of the University of Asia and the Pacific on key issues of the law pertinent to the IRRs, focusing on 4 areas—enhancing quality through tourism standards and accreditation; incentives for tourism investments; creation and operation of tourism enterprise zones; and destination marketing and financing options. Senator Richard Gordon, principal author of the Tourism Law, addressed the conference after lunch and highlighted the potential of the tourism industry as a tool for poverty alleviation. 

The afternoon session was divided into four breakout sessions, each with 30-50participants each, to generate suggestions from the participants on the four areas. With the guidance of a facilitator and inputs from resource persons and industry experts, the groups formulated recommendations for the IRRs. Session 1, on tourism standards and accreditation, had presentations from Geoff Penrose, of Qualmark, and Tristan Loveres and Eric Santos of TUV on the tourism and accreditation standards in New Zeland and Europe respectively. Ms. Lucita Reyes, Executive Director of the Boards of Investments, presented the incentives available for tourism investors under the 2009 IPP, while Ms. Cherry Lyn Rodolfo discussed the proposed bill on the Rationalization of Fiscal Incentives now pending in the Senate, which may contradict the incentives offered under the law in session 2. Issues pertaining to the Creation and Operation of Tourism Enterprise Zones were discussed in session 3. It included presentations from Klaus Lengefeld on examples of TEZs in South America, and Erwin Balane on the development of the Sohoton Caves in Leyte, which illustrates a possible model for tourism enterprises within a defined area. Finally, session 4 focused on destination management, with presentations from Shahram Saber, who discussed international examples on funding national tourism promotions, and Roger Zbinden, drawing examples from the Swiss Government’s tourism promotion activities. The participants continued their discussions up to the second day to finalize their recommendations for the IRRs. 

The second day started with a plenary presentation from Shahram Saber on successful examples of tourism promotion boards. It was followed by the keynote speech of Secretary Ace Durano, where he highlighted the Department’s achievements for 2009. It was followed by a presentation of Usec. Phineas Alburo on the provisions of the Tourism Act of 2009. The breakout groups presented their recommendations as follows: 

Session 1: Tourism standards and Accreditation 

• DOT should revisit existing criteria, rules and regulations to be able to come up with a viable standard that applies specifically to each sector 
• The assessment of primary tourism enterprises should be done by an independent third party 
• To create a credible accreditation system, the certificate coming from an independent third party entity must be recognized by the LGU as part of the annual licensing requirement 

Session 2: Incentives 

• Incentives should only be offered to accredited tourism enterprises 
• Define minimum requirements for micro and SMEs based on consultation with the private sector, DTI, National SMED Council and based on SME and BSMBE Laws 
• Provide transitory provisions for tourism enterprises that availed of incentives through other government agencies 

Session 3: Creation and operation of tourism enterprise zones 

• Define the role of TIEZAm stakeholders and other authorities in the IRR 
• Establishment of thematic areas for specific IRRs and a separate IRR for eco-tourism development in protected areas 
• TEZ should be synchronized with CLUP of LGU especially in the overall zoning ordinance of the LGU , Create Development Authorities within TEZs within each zone with the objectives of enforcing the 3 regulatory instruments 
• Instrument to Capitalize on Development (user-charges; entrance fees; enviro protection fees, etc.) 
• Instrument to penalize development (building code deviance/ violation penalties; penalties against physical setbacks violations; charges against going beyond what is within the zone) 
• Instrument to Facilitate investments (e.i. BOT projects) 

Session 4: Destination Marketing 

• Encourage Public-Private Partnership in the development and implementation destination management, marketing and financing options. 
• Develop a short-term marketing program that can address the immediate need to boost tourism in the near future and a long term program that can build up tourism industry in the next 10 years 
• Unify and streamline our marketing message to promote Philippine tourism in terms of tag lines, campaigns and the likes that will downplay negativism and capitalize on our strengths 

The recommendations were presented in the plenary and commented on by a panel discussion including Usec. Phineas Alburo, DOT; Mr. Ruy Moreno, NCC; Hon. Cynthia Nierras, PA for Region 8; Mr. Samie Lim, PCCI; and Mr. Humphrey O’leary, President of the Hotel and Restaurant Association of the Philippines. The conference concluded with the handing over of recommendations to Usec Alburo on behalf of Secretary Durano. The DOT promised to consider the recommendations in the drafting process of the IRRs. 

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SMEDSEP is implemented in partnership with the Department of Trade and Industry (DTI) at national, regional and provincial levels and the GTZ on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). 

The SMEDSEP’s financial services aim to support financial institutions in providing more finance to SME on a sustainable basis. This requires improving the capacities of partner financial institutions to efficiently manage commercially viable SME portfolios and to offer innovative and target group oriented financial services. 

GTZ is an international cooperation enterprise for sustainable development with worldwide operations owned by the German Government. For 30 years, it has been providing forward looking contributions to political, economic, ecological and social development in partner countries. GTZ supports reform and change processes in an increasingly globalized world, often working under difficult conditions. GTZ`s major approach to facilitate change is promoting capacity development of people and partner organizations as well as improving institutions and frame conditions in partner countries. The joint projects and programs are outcome and impact oriented. They contribute towards socioeconomic progress.