The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is the infrastructure arm of the Department of Tourism (DOT) in the Philippines. As an attached agency, TIEZA is mandated to develop, manage, and supervise tourism infrastructure projects while also serving as the primary regulatory body for the designation, management, and supervision of Tourism Enterprise Zones (TEZs). Through its work, TIEZA plays a vital role in supporting sustainable tourism growth and in positioning the Philippines as a premier global destination.
History of TIEZA
TIEZA was established under Republic Act No. 9593, also known as the Tourism Act of 2009. This landmark legislation reorganized the Philippine Tourism Authority (PTA), transforming it into TIEZA with broader functions and responsibilities. While the PTA focused mainly on infrastructure, TIEZA’s creation expanded the scope to include not only the construction and operation of tourism facilities but also the administration of TEZs. Since then, TIEZA has been instrumental in building key tourism infrastructure, from roads and bridges to visitor centers and landmark attractions, to improve access and experiences for both domestic and international travelers.
Mandates and Services
1. Tourism Infrastructure Development
TIEZA is tasked with developing and managing tourism-related infrastructure across the country. These projects include roads leading to tourist destinations, airport and seaport facilities, water and sewerage systems, and other utilities that ensure accessibility and sustainability of tourism sites.
2. Tourism Enterprise Zones (TEZs)
One of TIEZA’s central roles is the regulation and administration of TEZs. These are selected areas with rich tourism potential that, once accredited, become hubs for investment and development. Investors in TEZs are granted a variety of incentives designed to encourage sustainable and profitable tourism projects.
Specific incentives include:
- Income Tax Holiday (ITH): Exemption from income tax for up to six years.
- 5% Gross Income Earned (GIE) option: After the ITH, companies may opt to pay only 5% of their gross income in lieu of all national and local taxes.
- Tax and duty-free importation: For capital equipment, transportation, and spare parts.
- Employment of foreign nationals: For positions requiring specialized skills not available locally.
- Other non-fiscal incentives: Streamlined business permits, special visas for investors, and relaxed foreign ownership rules in some cases.
3. Travel Tax Collection
TIEZA serves as the principal collector of travel taxes imposed on individuals departing from the Philippines. The proceeds of these taxes are distributed as follows:
- 50% to TIEZA: Used to fund tourism infrastructure and TEZ-related projects.
- 40% to the Commission on Higher Education (CHED): Allocated for higher education programs, scholarships, and academic development.
- 10% to the National Commission for Culture and the Arts (NCCA): Dedicated to cultural preservation and the promotion of Filipino heritage.
4. Management of Tourism Assets
TIEZA oversees and manages government-owned tourism facilities such as resorts, parks, and cultural centers. It ensures these assets remain operational, sustainable, and beneficial to local communities while enhancing visitor experiences.
Official Website
For more information about TIEZA’s programs, services, and updates, visit their official website: https://tieza.gov.ph.
