Section 39Sec./Art. 39

Accreditation. - In order to encourage global competitiveness, strengthen data gathering and research on tourism, and facilitate the promotion of individual enterprises and the industry as a whole, the Department shall prescribe22 and regulate standards for the operation of the tourism industry. Primary tourism enterprises shall be periodically required to obtain accreditation from the Department as to the quality of their facilities and standard of services. Accreditation shall be voluntary for secondary tourism enterprises.

The Department shall evolve a system of standards for the accreditation of these enterprises in accordance with the relevant tourism development plan. These standards shall adhere, insofar as practicable, to those recognized internationally. The Department and LGLJs shall ensure strict compliance of tourism enterprises with these standards.

The Department, through the Office of Tourism Standards and Regulations, shall act on complaints regarding accredited tourism enterprises, and after notice and hearing, may impose fines, or downgrade, suspend or revoke accreditation, for violation of the terms thereof. The Department shall likewise have the power and the duty to issue tourism advisories pertaining to tourism enterprises found to have violated the terms of their accreditation. A tourism advisory shall contain the following:

(a) Complete identification of the pertinent tourism enterprise:

(b) Location of this entity;

(c) Its registered owner or proprietor and the business address thereof; and

(d) The specific term or terms of accreditation violated:

(e) The statement that the advisory shall only be lifted upon continued compliance of the enterprise with the terms of accreditation.

Tourism enterprises registered with the TIEZA in accordance with the pertinent provisions below and availing of the incentives under this Act shall further be ordered to pay back taxes in the amount equivalent to the difference23 between the taxes that they should have paid had they not availed of the incentives under this Act and the actual amount of taxes being paid by them under the same incentive scheme. The back taxes to be collected shall be computed up to three (3) years directly preceding the date of promulgation of the decision or order finding that the tourism enterprise violated the terms of its accreditation. For this purpose, the Department shall enlist the assistance of the Bureau of Internal Revenue in arriving at an accurate computation of back taxes to be paid by the pertinent tourism enterprise.

The proceeds of these back taxes shall be distributed as follows:

(a) One - third to the national government;

(b) One - third to the LGUs concerned, to be shared by them equally should there be more than one such LGU and

(c) One - third to the TIEZA.

Nothing in this section shall diminish the powers of the LGUs under the Local Government Code, pertaining to the issuance of business permits, licenses and the like. When an enterprise fails to obtain or loses accreditation, the Department shall not,$ the LGU concerned so that it may take appropriate action in relation to an enterprises licenses and permits to operate.

The Department may, under such relevant terms and conditions stipulated, delegate the enforcement of the system of accreditation to LGUs that have adopted and successfully implemented their tourism development plans.

The Department shall promulgate the necessary implementing rules and regulations to enforce the provisions of this section pursuant to its powers and functions as defined under Section 6 of this Act.