TIEZA Annual Report 2016

Published by:
Tourism Infrastucture and Enterprise Zone Authority
142 Amorsolo St., Legaspi Village, Makati City
www.tieza.gov.ph
 INTRAMUROS
ADMINISTRATION

NAYONG PILIPINO
FOUNDATION
Contents

Board of Directors 2017 . . . . . . . . . . . . . . . . . . . . . 1

About TIEZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . 3
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . 4
TIEZA Strategy Map . . . . . . . . . . . . . . . . . . . . . . . . 5
TIEZA Performance Scorecard . . . . . .. . . . . . . . . . . 6
2016 Accomplishments . . . . . . . . . . . . . . . . . . . . . . 7
Infrastructure Development
Tourism Enterprise Zones
Travel Tax
Assets Management
Human Resource
Corporate Social Responsibility . . . . . . . . . . . . . . . 16
2016 Audited Financial Statement . . . . . . . . . . . . . 18
 2017
Board of Directors

Wanda Corazon Teo Pocholo J.D. Paragas Rolando Cañizal

Department of Tourism TIEZA Chief Operating Officer DOT Undersecretary
Chairman Vice Chairman Permanent Alternate Chairman

Mark A. Villar Atty. Karen Olivia V. Jimeno Cesar Demontaño Montano Roy A. Cimatu Atty. Analiza R. Teh Datu Abul Khayr Dangcal Alonto
DPWH Secretary DPWH Undersecretary TPB Chief Operating Officer DENR Secretary DENR Undersecretary MinDA Secretary
Alternate

Catalino S. Cuy Epimaco V. Densing Catherine B. Turvill Lucas M. Nunag Maria Vida H. Stoifl Roberto U. Teo Roy B. Martin
DILG Secretary DILG Assistant Secretary Other Tourism Enterprises Accommodation / Enterprise Air, Sea and Land Transportation Travel & Tours Enterprise Tourism Estate Management
Services
About The Tourism Infrastructure and Enterprise Zone Authority (TIEZA),
formerly the Philippine Tourism Authority,
is a Government-Owned and Controlled Corporation under

TIEZA the Department of Tourism. TIEZA is mandated by law to

engage in infrastructure development focused on supporting
tourism activities in strategic areas, manage and supervise
key tourism-related assets, administer and manage travel
tax collections and designate, regulate and supervise
Tourism Enterprise Zones.

Tourism Enterprise Zone Management is a key addition in

the mandate of the agency. It was mandated through Republic
Act No. 9593 or “The Tourism Act of 2009”. The said law declares
a national policy for tourism as an engine of investment,
employment, growth and national development. It also aims to
strengthen the Department of Tourism and its attached agencies
to effectively and ef�iciently implement policies.

TIEZA is governed by a Board of Directors (TIEZA Board)

composed of Tourism Department Secretary, the TIEZA Chief
Operating Of�icer, the Tourism Promotions Board Chief Operating
Of�icer, the Department of Public Works and Highways Secretary,
the Department of Environment and Natural Resources Secretary,
the Department of Internal and Local Government Secretary,
and �ive (5) representative directors from the Private Sector that
will be recommended by the Tourism Congress.

As stated in section 64 of R.A. 9593, TIEZA shall continue to exercise

functions previously exercised by the PTA under Presidential Decree
No. 564, unless otherwise inconsistent with the other provisions of the new law.

ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 2
 TIEZA Organizational Chart

BOARD OF DIRECTORS

OFFICE OF THE CORP. SECRETARY OFFICE OF THE COO INTERNAL AUDIT DEPARTMENT

FINANCIAL AUDIT DIV. OPERATIONS AUDIT DIV.

MIS DEPARTMENT
CORPORATE PLANNING
LEGAL DEPARTMENT
DEPARTMENT

LITIGATION DIVISION LEGAL SERVICES DIVISION STRATEGIC PLAN’G DIV. MONTR’G & EVAL. DIV.

OFFICE OF THE ACOO FOR

OFFICE OF THE ACOO FOR
TOURISM ENTERPRISE
ARCH’L AND ENG’G SERVICES ZONE MANAGEMENT

PROJ. EVAL. & PLANNING CONSTRUCTION MGMT. TEZ REGULATION TEZ ASSISTANCE & MONTR’G
DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

PROJ. PLAN’G & CONSTRUCTION EVALUATION &

REGISTRATION TEZ COMPLIANCE
DESIGN DIVISION SUPERVISION DIVISION
DIVISION MONITORING DIVISION

PROJ. MGMT. CONTRACT MGMT.

DIVISION DIVISION PERMITS & TEZ DESIGNATED
LICENSES DIVISION AREAS

INCENTIVES
ADMINISTRATION
DIVISION

OFFICE OF THE ACOO FOR OFFICE OF THE ACOO FOR

ASSETS MANAGEMENT ADMINISTRATION AND FINANCE

BUSINESS DEVELOPMENT ADMIN. SVCS. FINANCIAL SVCS. TRAVEL TAX

OPERATIONS DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT DEPARTMENT

BHYH HUMAN ACCOUNTING

BUSINESS RESEARCH DIVISION EXAMINATION
RESOURCE
AND DEV’T DIV. DIVISION
SVCS. DIV.
CIGC
BUDGET
DIVISION PRIVILEGE
LIGHT AND SALES DIVISION GENERAL SVCS. ADMIN. DIV.
SOUND DIVISION
TREASURY
DIVISION
BIDR

ZGCBP

GMETV

3 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
 The TIEZA fully commits its compliance with its Code of
Corporate Governance. In the pursuit of the organization’s
mandate, the Board of Directors and the Management have

Corporate institutionalized the value of excellence in TIEZA’s

organizational performance.

Governance The TIEZA Management Committee, composed of the

Chief Operating Of�icer and the Assistant Chief Operating
Of�icers, meet regularly to discuss issues and concerns both
at the strategic and operational levels. Aside from ensuring
that targets of the strategic measures as de�ined in its
Strategy Map are met, the Committee continues to implement
measures that improved TIEZA’s core processes.
For the second year, the TIEZA has passed the revalidation
of its ISO certi�ication. The Board and Management have also
begun to draw up its enterprise risk management that is
compliant with the requisites of ISO 9001:2015.

To adapt to industry trends and to effectively respond to

stakeholders’ expectations, the Management Committee
reviewed its Corporate Quality Manual, while maintaining
focus on the �ive perspectives (Social Impact, Financial,
Customer, Internal Process and Learning & Growth) of the
Strategy Map.

The Board of Directors and its Committees have also held a

number of meetings in the exercise of its functions as the
corporation’s governing body. It has laid down policies and
directions particularly on infrastructure development,
designation of �lagship Tourism Enterprise Zones, asset
management, collection of travel tax, and human resource
development. The TIEZA has also clearly aligned its strategic
objectives with public policies.

By contributing to the competitiveness and sustainability of

the Philippine tourism industry, the TIEZA af�irms its
commitment to make tourism truly an engine of socioeconomic
development.

ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 4
 TIEZA’s 2016 Strategy Map

VISION : By 2026, TIEZA would have established sustainable tourism

zones in key areas indentified in the National Tourism Development Plan
E AND ENTERP
UR RI
SE
CT
U
TR

ZO

Contribute to country’s competitiveness thru the development of

URIS NFRAS

NE

sustainable tourism zones and support infrastructure

AUTHORITY

Impact
MI

Social

2009
Preserve historical, cultural, religious and heritage sites and develop
TO

ecotourism sites in depressed provinces with strong tourism potential

Finance

Maximize absorptive capacity based Achieve financial viability and

on approved plans and programs sustainability of assets
MISSION
Establish
sustainable Develop a portfolio of innovative, customer-centric tourism products
Stakeholder
Customer

tourism enterprise and services

zones and
undertake Institutionalize a TIEZA brand anchored on transparency, efficiency and quality
infrastructure for service and, being environment-friendly and Filipino-themed for projects
projects that will
contribute to
Internal
Process

inclusive growth. Rationalize development and

management of TEZs and key
TIEZA Assets and Projects

CORE VALUES Implement integrated information system

and Growth

EI 2
Learning

Build and strengthen human and organizational capabilities as leading

1. Excellence developer in South East Asia
2. Integrity
3. Innovation Inclusive Growth Financial Viability Operational Excellence
STRATEGIC THEMES :

2016 Strategy Map

However, because of the intervening factors
As required by the GCG, the TIEZA Technical brought about by the national election and the
Working Group for Performance Agreement changes in the new administration, certain
Negotiation (TWG-PAN) submitted to its GCG adjustments had to be made. On the whole,
counterpart the agency’s Performance Scorecard. however, the TIEZA accomplished its
commitments in 2016.

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Tourism Infrastructure and Enerprise Zone Authority
 2016 TIEZA SUMMARY OF AGREEMENTS
Performance Report as of December 31, 2016 ( Based on proposed Renegotiation )

Rating Full Year 2016 Actual Current

Component Formula Weight Sacle Target Accomplishments Rating

SO1 Contribute to Countr’s Competitiveness thru the Development of Sustainable Tourism Zones and Support Infrastructure

Implementation of the 5
Year Tourism Infrastructure Milestone
SM 1 ( Actual/ Target ) x 100% 15% 100% 100.00% 15.00%
(% Compliance to committed Achieved
Infrastructure Plan)

SO2 Preserve Historical, Cultural, Religious and Heritage Site and Develop Ecotourism Sites in Depressed Provinces with Strong Tourism Potential
SOCIAL IMPACT

Preservation of Philippine
SM 2 historical, cultural, religious
and heritage sites
Number of Philippine
historical, cultural, Actual/Target
religious and heritage sites 5% 9 9 5.00%
x Weight
preserved determined by
Board Resolution

Number of ecotourism sites

Assist development in in depressed provinces with
SM 3 ecotourism sites in depressed Actual/Target
TIEZA infrastructure 5% 11 10 4.55%
provinces x Weight
projects determined by
Board Resolution

Sub-total 25% 24.55%

SO3 Maximize Absorptive Capacity based on Approved Plans and Programs

Appropriation Utilization Total amount of Board -

Index- Allocated amount of approved projects for the
Board-approved Tourism year / Corporate Operating 7.5% Actual/Target 100% 100.00% 7.50%
SM 4
Infrastructure projects as per Budget ( Appropriated by x Weight
Corporate Operating Buget TIEZA Board )
for the year

Allotment Utilization Index

Value of Tourism Amount of projects issued
0%
Infrastructure Projects issued with Notice of Awards /
Actual/Target requested for
SM 5 with Notice of Award as per Total allocated Board - 0% 100% 0.00%
x Weight deletion: distribute
Allocated amount of Board - approved projects within
5% to SM4 and SM6
FINANCIAL

approved Projects within 1 year period

1 year period

Actual funds released over Actual funds released over 94.76%

Actual/Target
SM 6 total funds programmed for total funds programmed 7.5% 100% ( 258.502M / 7.11%
x Weight
release per workplan for release per workplan 272.801M )

SO4 Achieve Financial Viability and Sustainability of Assests

Gross revenues from all

SM 7 Net income from all assets assets less operating Actual/Target
10% 100 76.63 7.66%
expenditures x Weight

Sub-total 25% 22.27%

SO5 Intitutionalize a TIEZA Brand anchored on Transparency, Efficiency and Quality Service and Being Environment Friendly and Filipino-themed for Projects

Stakeholders Satisfaction Engage 3rd Party Consulant

SM 8 Survey for infrastructure for formulation of tool and Actual/Target
5% Satisfactory VS 5.00%
Projects conduct of survey x Weight
CUSTOMERS / STAKEHOLDERS

SO6 Develop a Portfolio of Innovative, Customer-Centric Tourism Products and Services

Number of Innovative Number of innovative

SM 9 Products and services being products and services bieng Actual/Target
5% 2 2 5.00%
developed and offered developed and offered x Weight

Number of deployed online

Absolute cumulative Actual/Target
SM 10 onsite travel tax payment 5% 16 16 5.00%
number x Weight
application system

Sub-total 15% 15.00%

 2016 TIEZA SUMMARY OF AGREEMENTS
Performance Report as of December 31, 2016 ( Based on proposed Renegotiation )

Rating Full Year 2016 Actual Current

Component Formula Weight Sacle Target Accomplishments Rating

SO8 Implement Automated Information System

Information System Milestones

SM 11 Milestones Achieved 5% 100% 100.00% 5.00%
Integrated Achieved

SO9 Rationalize Development and Management of TIEZA Assets and Projects

INTERNAL PROCESS

Actual/Target
Percent of milestones Weight of milestones x Weight
achieved in the TEZ Flagship achieved over total weight
SM 12 20% 100% 100.00% 20.00%
Program against the target of target milestone (100% of
within the year targetted
milestones)

No. of Business Development ManCom approved

SM 13 Plans formulated for TIEZA Business Development 5% 2 2 5.00%
assets Plans

Sub-total 30% 30.00%

SO10 Implement Competency-Based Human Resource System

LEARNING AND GROWTH

167 (actual
accomplishment is
Required competencies All or 167 instead of 171
SM 14 ( Actual/Target ) x Weight 5% 171 5.00%
complied Nothing because 4
employees resigned
in 2016 )

Sub-total 5% 5.00%

TOTAL 100% 96.82%*

* Rating of 96.82% is subject to GCG final assessment based on onsite validation on June 19, 2017 and additional supporting documents submitted on July 14, 2017

2016 Accomplishments

to identify and implement cultural, heritage,

religious and historical projects (CHRH).
TIEZA’s participation involves funding of
priority CHRH projects’ requirements.

NCCA Partnership Mindanao Projects

TIEZA and the National Commission for Memorandum of Agreeement between the

the Culture and the Arts (NCCA) forged Mindanao Development Authority (MINDA)
and TIEZA was signed for the identi�ication
partnership through a Memorandum of
and implementation of projects with
Agreement signed in the last quarter of 2016

7 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
biodiversity and ecotourism signi�icance
within the Mindanao Development Corridor
Framework. Executed in the latter part
of the year, the MOA serves to strengthen the
region as the next alternative tourist haven
considering the multifarious untapped
natural bounties of the island. Boracay Drainage

Under a Multi-Partite Agreement with the

public and private sectors, the project’s
objective is to provide the island with an
ef�icient drainage system that would protect
and secure the island’s environment.
Completed during the year was the project’s
Phase I development amounting to P 177.8M.
An infusion of P206M for the project’s
Phase II development, is being committed

GO Mindanao Program by TIEZA for 2017. Likewise, a review of the

existing project masterplan is being done.
To facilitate accessiblillity to natural
wonders in the island, a Tripartite
Memorandum of Understanding (MOU)
Infrastructure Projects
among DOT, TIEZA and the GO Mindanao
Corporation (an af�iliate of the Davao Metro A total of 39 infrastructure projects

Shuttle) was made. In collaboration with amounting to P271.95 million were

the various LGUs, provincial governments, completed in 2016. At the end of the

regional tourism councils, NCCA, DTI, among year the implementation of 96 projects

others, the program intends to provide amounting to P1.7 billion is still

visitors with a unique travel experience. ongoing. A detailed list of infrastructure

On-going consultative meetings with the projects in 2016 with their corresponding

program stakeholders are being done to costs and locations is shown in the succeeding
pages.
increase and sustain awareness of and
appreciation for the program’s importance.

ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 8
 COMPLETED INFRASTRUCTURE PROJECTS 2016
REGIONS LOCATION
NCR CCP Complex, Manila
NAIA Airport, PICC, CCP,
Fort Santiago, SMX,
Intramuros, So�itel, Pasay
Various Hotels
NAIA, Terminal 1,2, and 3
PICC and So�itel
NAIA Airport Terminals,
Roxas Blvd., (Ceremonial Route),
Mall of Asia (MOA)
NAIA Airport Terminals
NAIA Airport Terminals
NAIA Airport Terminals 1 and 2
NAIA Terminal Airports
Rizal Park, Manila
Club Intramuros Golf Course,
Intramuros Manila
Ermita, Manila
CAR Liwan West, Rizal, Kalinga
REGION I Alaminos, Pangasinan
Tayug, Pangasinan
REGION III Sapang Uwak, Porac,
Pampanga
REGION IV-B Puerto Princesa City
PROJECT CONTRACT
AMOUNT ( P M)
Landscaping of Selected Areas within the CCP Complex 6.00M
Supply, Delivery, Installation and De-Installation of
Information of Various Signs and Signages for the ASEAN 2.516
Tourism Forum 2016
Supply, Delivery, Installation and De-Installation of
Information Counter at the BILLET HOTELS for the 1.024
ASEAN Tourism Forum 2016
Supply, Delivery, Installation and De-Installation of
Information DESKS at the NAIA TERMINALS for the .451
ASEAN Tourism Forum 2016
Fabrication and Installation of Flagpoles for ASEAN .371
Tourism Forum 2016
Supply, Delivery, Installation and De-Installation of
VARIOUS SIGNS and SIGNAGES for the ROUTES .298
ASIA 2016
Supply, Delivery, Installation and De-Installation of .326
Information Desks for the Routes Asia 2016
Supply, Delivery, Installation and De-Installation of .326
Billboards for the Routes Asia 2016
Supply, Delivery, Installation and De-installation of .087
Indoor Billboards for the Madrid Fusion 2016
Supply, Delivery, Installation & De-installation of .243
Information Desks for Madrid Fusion Manila 2016
Supply, Delivery, Installation & De-installation of .388
Various Signs & Signages for the Madrid Fusion
Manila 2016
Permanent Lighting of Rizal Monument and �lagpole 15.400
of Rizal Park
Repair of Water Pump .231
Landscaping Repair and Rehabilitation of 7.910
Rizal Park, Manila
Construction of Eco-Tourism Park 19.833
1.722
21.555
Alaminos Gym 19.316
Development of Tayug Municipal Pangasinan 4.994
Concreting of Access Road Leading to Mt. Pinatubo 30.000
Eco-Tourism Park, Sapang Uwak
Housing for Hyperbaric Chamber Ospital ng Palawan 1.499
.889
2.388
 CONTRACT
REGIONS LOCATION PROJECT
AMOUNT ( P M)

REGION IV Dumaran, Palawan Tourist Center in the Province of Palawan 1.963

Dumaran, Palawan

Narra, Palawan Tourist Center in the Province of Palawan 2.107

Narra, Palawan

Brooke’s Point, Palawan Tourist Center in the Province of Palawan 2.083

Brooke’s Point, Palawan

Quezon, Palawan Tourist Center in the Province of Palawan 2.121

Quezon, Palawan

REGION V Sto. Domingo, Albay Tourist Information Center and Rest Area 3.722
Green Restroom

REGION VI Megaworld Blvd., Cor. Enterprise Site Development Works, Iloilo Convencion 28.855
Rd. Manduriao, Iloilo City Center

Ibajay, Aklan Ibajay Ecotourism Project (Phase II) 7.485

Roxas City, Capiz Panay River Development 18.879

REGION VII Mandaue, Cebu TIEZA Cebu Of�ice (Cost to Complete) 2.438

Moalboal, Cebu Tourist Information Center and Rest Area 3.763

Green Restroom

Argao, Cebu Tourist Information Center and Rest Area 3.763

Green Restroom

REGION VIII Palompon, Leyte Kalanggaman Development Project 7.579

Tacloban City Sto. Niño Shrine Heritage Museum Rehabilitation 9.999

Tacloban City Rehabilitation and Expansion of DOT 6.786

Regional Of�ice

REGION IX Zamboanga City Improvement of Beach Park and Facilities 7.939

Zamboanga Golf Course and Beach Park

REGION X Initao Misamis Oriental Lasang Landscape & Seascape Dev’t. Project 11.866
(Phase II)

REGION XI J.P. Laurel, Bajada, Asian Fruit Market 11.161

Davao City

REGION XII Lake Sebu, South Cotabato Cementing of Circumferential Road leading 21.988
Seven Falls
2.140
Tiboli, South Cotabato Construction of Tourism Information Center

CARAGA San Agustin, Surigao Development of Brittania Islets Jump-off Point - 1.499
Del Sur Foot Bridge, Reception Center

Total 271.953M
 To further improve the process in the implementation
of infrastructure projects, Process Flow shown below has been established

Complete

Inspection &
Board
Evaluation of
Approval
Proposed Project

Process Flow

Performance Development of Public

Report Infrastructure Bidding
Project

Third Party
Satisfaction Construction
Survey

Project Contractor’s
Turn-over & Performance
Acceptance Evaluation

Revalidation of existing guidelines / vetted upon the DOT’s Regional

criteria for the selection and Directors’ Of�ice recommendation and the
funding of proposed tourism infrastructure concurrence of the Board Infrastructure
projects is ongoing. With the abolition of the Committee. With the streamlining and
DOT’s Oversight Committee, institutionalization of the process system,
current selection of projects is now a smoother and faster selection procedure
is being ensured.

11 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority

1. Identi�ication
• Coordination (letters, phone calls,
meetings, etc.) with concerned
of�ices/agencies: DOT, DOT
Regional Of�ices, Provincial and
Municipal LGUs, Regional Ecotourism
Council, Mindanao Development
Authority, etc.; Desktop Research
• Collection of data of potential Flagship
TEZs and other sites proposed or
recommended by DOT, LGU or
private sector
• Collation of snapshots, presentation
of suggested sites
• Shortlisting for ocular inspection
• Ocular inspection of proposed or
recommended sites (includes
preliminary discussions with owners
or directly concerned stakeholders) with
representatives from DOT, UP Technical
Panel, TIEZA and Provincial/Municipal
LGU representatives when applicable
• Submission of Technical Site
Evaluation Report
• Joint Evaluation of site by DOT, TIEZA
and UP Technical Panel
• Shortlisting of sites for submission to
TIEZA Board for identi�ication as
Flagship TEZ
• Board approval for identi�ied Flagship
TEZ to be master planned
TEZ Incentives
After a protracted impasse, the Bureau
of Internal Revenue (BIR) �inally issued
the rules and regulations for TEZ �iscal
incentives on 14 November 2016 and
took effect on the 30th of the same
month. With the �iscal incentives in place,
more private investors are expected to
apply for TEZ designation.
Master Planning of the
2. Identi�ied Flagship TEZ 3. Implementation
• Memorandum of Agreement with • Identi�ication of Infrastructure
concerned property owner Project/s in the designated
(e.g. LGU, private sector, etc.) Flagship TEZ
and/or other directly concerned
stakeholder/s • Preparation of Terms of
Reference for the design and
• Preparation of Terms of Reference construction of an infrastructure
for the Master Planning of the project inside the Flagship TEZ
identi�ied Flagship TEZ
• Bidding Process for the identi�ied
• Bidding Process infrastructure project
• Awarding of Contract for Master • Awarding of the Design – and –
Planning (Consultancy) Build or Construction Contract
• Submission of consultants of
different deliverables in the course
of Master Planning, such as
Inception Report, Situational
Analysis Report, Preliminary Master
Plan and Comprehensive Master
Plan, amongst others
• During the course of the master
planning there are also numerous
meetings, discussions, public
consultations, FGDs with concerned
stakeholders, Technical Working
Group meetings site visits as needed,
presentation of deliverables to the
TWG and concerned of�ices/
stakeholders, evaluation reports and
comments, revisions if needed, etc.
• After the �inal output, the Master Plan
of the identi�ied Flagship TEZ is
presented to the TIEZA Board for
approval
• Designation of the identi�ied site as a
Flagship TEZ
TIEZA conducted a series of investment
roadshows participated by LGUs,
landowners, developers, and different
business organizations nationwide.
Consequently, TIEZA CARES (Client Assistance
Retention and Expansion System)
was established to make “doing business
in TEZs” easier and more convenient.
The newly created Investment Facilitation
Services (IFS) responded to queries from local
and foreign investors.
ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 12
 Flagship TEZs
The San Vicente Flagship TEZ is in the
implementation stage. To jumpstart
its development, the TIEZA is now
conducting investment promotion
activities as infrastructure projects are
being initiated. The feasibility study for
the power and water supply systems
will be bid out. A tourism information
center with a TIEZA Of�ice is now
being constructed. A modular docking
facility will also be installed in anticipation
of cruise ships that may call on the area.
Construction of access roads from the
main road to the beach is also being bid
The TIEZA Board has approved the
out, while the expansion of the airport is
redevelopment of Corregidor Island as
now ongoing.
a Tourism Enterprise Zone. An Interim
The Rizal Park Complex Flagship Committee has been created to prepare
TEZ is also in its implementation stage, the appropriate plans and studies for the
and is included in our investment take over of the island from its current
promotions program.
operator, the Corregidor Foundation, Inc.
(CFI).The foundation was formed through
The construction of three (3) green
a Board resolution of the then Philippine
restrooms is now being bid out.
The construction of the Waterfront Tourism Authority, with its General
Manager as the Chairperson.
Development (Multi-parking Building
and Esplanade) shall soon be bid out. Under the TIEZA’s new direction,
The Terms of Reference for the the agency will operate it during the
Redevelopment of the Children’s transition period when the master
Playground is being �inalized and the
plan for its redevelopment shall be
project is expected to be bid out within
prepared. Eventually, the operation and
the 2nd quarter of 2017.
management of the property may be
offered to private investors, or TIEZA
may engage in a partnership with private
parties.

13 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
Travel Tax
Travel tax collection posted a consistent
climb, since the start of the increase of
the TIEZA’s share to 50% of travel tax
in 2010. In compliance with the general
directive to extend assistance to OFWs,
the COO issued Memorandum Circular
No. 1, s. 2016 directing the cessation of
the collection of the P200 processing fee
for every travel certi�icate issued, whether
for exemption, reduced rate or refund
effective 25 July 2016. The agency also
opened travel tax service counters in the
POEA main of�ice and in one-stop shops
for OFWS.
To provide convenience to travel
tax payers, we have also opened travel
tax service counters in strategically
located malls.
THE PHILIPPINE
ONLINE PAYMENT SYSTEM
CLICK HERE
Online-Onsite Travel Tax
Payment System
Also for the convenience of
passengers, the agency has established
the Online-Onsite Travel Tax Privilege
Application and Payment System
(OOTTPAPS) that allows travel-tax payment
with the use of Visa, Bancnet, and
Mastercard. Recently, however, the use of
Mastercard was suspended since the Bank
of Philippine Islands (BPI) with which
DBP had an arrangement on Mastercard
has transferred its Mastercard
transactions to Global Payment. In the
meantime, DBP has applied with the
Bangko Sentral for it to be able to directly
accept payment through Mastercard.
The system also allows applications for
travel tax exemption and reduced rates.
The Management Information
Systems Department (MISD) has
developed an onsite travel tax
payment system and has deployed this
in 11 travel tax of�ices, including that in
the Main Of�ice.
Assets Management
The �inancial viability and sustainability
of the Balicasag Island Dive Resort, the
Club Intramuros Golf Course, Gardens
of Malasag Ecotourism Village, the
Intramuros Light and Sound Museum,
Zamboanga Golf Course and Beach Park,
and Banaue Hotel and Youth Hostel is an
ongoing concern.
Various revenue generating activities and
cost cutting measures have been
implemented to reduce subsidies for
these operating entities. Efforts to reduce
maintenance and operating expenses,
alongside aggressive marketing efforts,
have improved over-all �inancial
performance of the entities which by the
end of 2016 reported an aggregate total
net income of P76.63million.
ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 14
 Development plans were approved for
non-operational assets, some of which
are being implemented as part of
the Five-Year Tourism Development Plan.
San Fabian Bagong Lipunan Lodge
has been provided funds for clearing
and installation of basic utilities;
the masterplan and design of the
Balacad property is ongoing; and funds
have been provided for the development
of part of the Zamboanga Golf Course
and Beach Club for a Government Center;
and the Mt. Data Lodge, which we
repossessed last year from the local
government, shall soon be rehabilitated.
In 2014, a Highest and Best Use Study was
conducted for 13 properties.
In view of the privatization efforts of the
agency, we have engaged the services
of the Development Bank of the
Philippines to appraise twelve more
properties.
Human Resource
Development
and GCG Circular No. 2016-01.
The agency has also established a process
in the selection of applicants for plantilla
positions through the Personnel
Selection Board (PSB). All applications
are �irst evaluated based on the minimum
requirements of the CSC. Quali�ied
applicants are required to take a written
exam to be followed by an interview by
the members of the PSB. The interview is
recorded on video and kept as part of the
records of the selection process.
Organizational Development
The Corporate Planning Department has
established the Automated Monitoring
and Evaluation Toolkit (AMET) which
is actually a dashboard that provides
updates on the progress of the
achievement of performance targets.
This enables departments to keep
track of their respective performance
and make adjustments on their quarterly
accomplishments to meet their targets.
Strategic planning and operations
planning are also regularly conducted
to ensure that targets are clearly
de�ined and fully understood by the

Aside from holding trainings and respective departments. These planning

sessions facilitate the alignment of goals
seminars to further improve the skills
and strategic objectives, and enable
and competencies of personnel, the
employees to understand what are
agency has engaged the services of Willis-
expected of them in terms of individual
Towers Watson for the job-leveling in
performance.
TIEZA as required Compensation and
Position Classi�ication System (CPCS)
per Executive Order No. 203, s. 2016,

15 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
Corporate Social Responsibility
As mandated per Ex ecutive Order #26
on National Greening Program of the
Department of Environment and
Natural Resources (DENR), TIEZA
conductedthe “Trees for Tourism”
(T4T) a tree planting activity focused
to promote – sustainable ecotourism,
disaster prevention, climate change
protection and environmental
beauti�ication. The latest T4T activity
was held at Burnham Park last
September 24, 2016. With a contingent
composing of 63 participants, TIEZA
CEPMO, Burnham Park
CEPMO Manager symbolically received
the 100pcs of citronella from TIEZA
purposely to be placed strategically in the
Children’s Playground of Burnham Park
as part of the City’s healthb campaign
against dengue.
planted 200 pine tree saplings with the
assistance of the DENR representatives
and the City Environment and Park
Management Of�ice (CEPMO) who has
assured post planting care of the plants.
This was the third successful tree
planting activity of the Authority.
Likewise, as laudably recommended
by the Regional Director of DOT-CAR,
Ms. Venus Tan, the Citronella-Giving
activities hereunder were conducted
after the T4T event:
Trees 4 Tourism
le Eco-Tourism Disaster Prevention
Sustainab
hange Protection Environmental Beautificati
Climate C on
ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 16
 STOBOSA COMMUNITY, La Trinidad, Benguet
Dubbed as “Greens for Tourism”, RD Tan
spearheaded the giving of 400 pcs citronella
to the Stobosa Community represented by
the Mayor of La Trinidad. The Inspirational
Women of the Cordilleras (IWOC) comprising
of the spouses of the elected of�icials of the
region graced the event to support the shared
Corporate Social Responsibility of DOT and TIEZA.

17 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
CITY CAMP, Baguio City (District 5)
Since the district is composed of 8 barangays,
500 pcs citronella were donated through
their Barangay Chairmen during the
distribution ceremonies. Mrs. Soledad Go
who represented Congressman
Mark Go gave an inspirational message and
Ms. Racquel A. Gaerlan, Manager of Corporate
Planning Department, gave a highlight on the
Corporate Social Responsibility objective of
TIEZA. Representatives on the Bureau of Plant
Industry gave a lecture on the propagation of
citronella and other insect repellant plants and
herbs for sustainability of the project. Likewise,
a City Health Of�icer discussed on the prevention
of dengue. The ceremonies were covered by the
Philippine Information Agency (PIA) and other
local media.
ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority 18
 TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY
STATEMENT OF FINANCIAL POSITION
For the Year Ended December 31, 2016 and 2015

2016 2015 as restated Increase ( Dec )

ASSETS
Current Assets
Cash and Cash Equivalents 645,044,526 632,165,414 12,879,112
Investments in Time Deposits - Local * 9,579,556,202 6,042,358,781 3,537,197,421
Receivables 148,046,513 145,113,695 2,932,818
Inventories 12,886,906 11,208,744 1,678,162
Other Current Assets 92,591,376 141,020,686 (48,429,310)
Total Current Assets 10,478,125,523 6,971,867,320 3,506,258,203

Non-Current Assets
Financial Assets held to maturity 402,241,600 2,497,893,760 (2,095,652,160)
Investment in Joint Venture 60,000,000 60,000,000 -
Other Investments 10,036,405 10,036,405 -
Receivables 510,808,548 458,279,865 52,528,683
Investment Property 498,177,936 498,177,936 -
Property, Plant and Equipment 5,357,924,367 5,132,932,783 224,991,584
Other Non-current Assests 175,706,600 54,869,462 120,837,138
Total Non-current Assets 7,014,895,456 8,712,190,211 (1,697,294,755)
TOTAL ASSETS 17,493,020,979 15,684,057,531 1,808,963,448

LIABILITIES
Current Liabilities
Financial Liabilities 132,858,477 118,690,638 14,167,839
Inter - Agency Payables 1,432,682,774 1,362,043,354 70,639,420
Trust Liabilities 147,562,638 124,882,877 22,679,761
Deferred Credits 11,316,447 4,452,809 6,863,638
Provisions 13,099,828, 22,295,023 (9,195,638)
Other Payables 21,713,882 21,091,649 622,233
Total Current Liabilities 1,759,234,046 1,653,456,350 105,777,696

Non-Current Liabilities
Financial Liabilities 271,613,680 285,943,988 (14,330,308)
Inter - Agency Payables 10,602,437 21,122,065 (10,519,628)
Trust Liabilities 33,654,502 20,623,912 13,030,590
Deferred Credits 13,160,372 18,990,381 (5,830,009)
Provisions 37,569,597 22,722,188 14,847,409
Total Non-current Liabilities 366,600,588 369,402,188 (2,801,946)
TOTAL LIABILITIES 2,125,834,634 2,022,858,884 102,975,750

Total Assests Less Total Liabilities 15,367,186,345 13,661,198,647 1,705,987,698

EQUITY
Government Equity 10,850,215 10,850,215
Accumulated Surplus * 15,356,336,130 13,650,348,432 1,705,987,698
Equity 15,367,186,345 13,661,198,647 1,705,987,698

* Appropriated Funding for Board Approved Infrastructure Projects

 TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY
STATEMENT OF FINANCIAL PERFORMANCE
For the Year Ended December 31, 2016 and 2015

2016 2015 as restated Increase ( Dec )

Revenue
Tax Revenue 2,370,754,500 2,112,572,650 258,181,850
Service and Business Income 576,854,599 466,143,593 110,711,006
Total Revenue 2,947,609,099 2,578,716,243 368,892,856

Current Operating Expenses

Personnel Services 344,715,459 328,914,553 15,800,906
Maintenance and Other Operating Expenses 754,027,771 1,149,847,886 (395,820,115)
Financial Expences 10,913,537 10,114,631 798,906
Cost of Sales 16,036,647 15,040,604 996,043
Non-Cash Expenses 124,664,405 90,063,021 34,601,384
Total Current Operating Expenses 1,250,357,819 1,593,980,695 (343,622,876)

Surplus from Current Operations 1,697,251,280 984,735,548 712,515,732

Non Operating Current Operations

Non-Operating Income/Gain 62,236 32,241,600 (32,179,364)
Non-Operating Losses (23,386,179) (19,297,973) (4,150,442)
(23,386,179) 12,943,627 (36,329,806)

1,673,865,101 997,679,175 676,185,926

TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY

STATEMENT OF FINANCIAL PERFORMANCE
For the Year Ended December 31, 2016 and 2015

Accumulated Goverment
Surplus Equity Total

Balance as at January 1, 2016 13,650,348,432 250,000,000 13,900,348,432

Subscription Receivable 0 (239,149,785) (239,149,785)
13,650,348,432 10,850,215 13,661,198,647

Channges in Equity
Surplus for the period 1,673,865,101 0 1,673,865,101
Adjustments 32,122,597 0 32,122,597
1,705,987,698 0 1,705,987,698
Balance as at December 31, 2016 15,356,336,130 10,850,215 15,356,336,130

Balance as at January 1, 2015 11,171,582,706 250,000,000 11,421,582,706

Subscription Receivable 0 (239,149,785) (239,149,785)
11,171,582,706 10,850,215 11,182,432,921

Channges in Equity
Surplus for the period 997,679,175 0 997,679,175
Adjustments 1,481,086,551 0 1,481,086,551
2,478,765,726 0 2,478,765,726
Balance as at December 31, 2015 13,650,348,432 10,850,215 13,661,198,647
 TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY
STATEMENT OF FINANCIAL PERFORMANCE
For the Year Ended December 31, 2016 and 2015

2016 2015 Increase ( Dec )

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from Customer and Others 5,423,483,586 5,905,550,952 5,905,550,952
Cash Paid to Suppliers, Employees and Others (3,369,971,731) (3,367,108,274) (3,367,108,274)
Cancellation/Replacement of Issued, Staled and Lost Checks 14,979,681 37,833,493 37,833,493
Net Interbranch Transfer of Funds (3,106,152) 45,155,206 45,155,206
Cash Advances to Officets and Employees (13,994,227) (24,025,847) (24,025,847)
Net Adjustment of Cash Accounts (2,359,387) (34,360,668) (34,360,668)
Refund of Travel Tax/Retention Fee/Guaranty Deposits/Others (74,138,919) (79,507,688) (79,507,688)
Realized Gain on Foreign Exchange Transactions 1,723 191,418 191,418
Net cash provided by operating activities 1,974,894,574 2,483,728,592 2,483,728,592

CASH FLOWS FROM INVESTING ACTIVITIES

Termination/Maturity of Investment in Securities 2,095,652,160 0 2,095,652,160
Proceeds from Sale of Bonds 0 212,241,600 (212,241,600)
Placement on Time Deposits/Purchase of Bonds and Treasury Bills (3,537,197,421) (2,906,883,980) (630,313,441)
Payment of Progress/Final Billing of Contractors for Public infrastructure (459,319,058) (273,069,357) (186,249,701)
Capital Expenditures (25,802,091) (19,662,664) (6,139,427)
Net cash used in investing activities (1,926,666,410) (2,987,374,401) (1,034,944,169)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Financial Liabilities (35,389,562) (26,985,038) (8,404,524)
Net cash used in financing activities (35,389,562) (26,985,038) (8,404,524)

Effects of Exchange Rate Changes on Cash and Cash Equivalents 40,510 12,275 28,235

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 12,879,112 (530,618,572) 543,497,684
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 632,165,414 1,162,783,986 (530,618,572)
CASH AND CASH EQUIVALENTS AT END OF YEAR 645,044,526 632,165,414 12,879,112

21 ANNUAL REPORT
Tourism Infrastructure and Enerprise Zone Authority
 E AND ENTERP
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AUTHORITY
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www.tieza.gov.ph
142 Amorsolo St., Legaspi Village
Makati City, Philippines