TIEZA Annual Report 2014-2015

Published by:
Tourism Infrastructure and Enterprise Zone Authority
142 Amorsolo St., Legaspi Village, Makati City
www.tieza.gov.ph
Message
from the
Chairman
As in any developing country, any
industry where government intervention
is crucial has to have inclusiveness as its
most important objective. The capacity to
include as many people as possible in the
growth is of paramount importance to any
developing society.

Tourism is one of the industries with

the greatest capacity to reach and create
genuine impact on diverse number of
people. It creates jobs where there were no
jobs before – volcano craters, underground
rivers, isolated islands, or sandbars.
While these are unexpected areas for
commerce, they are fast becoming areas for
businesses, and ultimately, for jobs.
One of our essential tasks of the
Department of Tourism (DOT) is to further
allow our tourists to gain access to these
emerging new destinations. By giving
our visitors a smooth and seamless travel
experience, we will be able to encourage
and facilitate more tourism activity in
various parts of the country.
It is in this light that we are pleased to
share the accomplishments of the Tourism
Infrastructure and Enterprise Zone
Authority (TIEZA), an attached agency
of the DOT, with their Consolidated
2014-2015 Annual Report. Our warmest
congratulations to all of our tourism
partners and stakeholders, who
accompanied us in this journey to
success.
With the development of infrastructure,
we are bringing more travelers to new
places and allowing them to circulate
more easily. But more importantly, what
this truly means is that we are providing
opportunities for Filipinos all over the
country to take part in the business that
is tourism.
Mabuhay!

RAMON R. JIMENEZ, JR.

DOT Secretary and Chairman,
TIEZA Board of Directors
Message
from the
Chief Operating
OfficerMessage from the COO
(ATTY. ASIDO)
A journey is best told by a story of when
it began and how it is at the moment.

Ours began in 2009 when the law

mandated the reorganization of the
Tourism Infrastructure and Enterprise
Zone Authority (TIEZA) from a three-
decade old organization into one with
a new mandate and direction. Seven
years thereafter, the playing field has The story that began seven years ago is
changed considerably and much has now unfolding. There will be days when
been achieved and much is expected our mettle will be tested, and there will
further. be times as well when laurels will come
and served upon us. Regardless of these
In the last quarter of 2015, we took the events, the years to come will see the
first step for the organization to have its best of what the organization has to offer,
paradigm shift by having the Board of and what it can contribute fully to the
Directors approve the 5-Year Tourism national goal of inclusive growth.
Infrastructure Plan that will effectively
map out its direction and priorities in The time for us to build better, to aim
the next years. higher and compete harder is now upon
us and my confidence is all the more
The Authority prides itself of its strong that we will achieve them.
significant accomplishments for the last six
years. But these past two years will just be
mere numbers unless we move forward to
achieving what we have sought out to do.
This means allocating resources properly,
focusing on priorities and the substance,
Atty. GUILLER B. ASIDO
rather than on the inessential and trivial.
TIEZA Chief Operating Officer
1 19 29
Our Story: 5-Year Tourism Assets
Strategic Shifts Infrastructure Management
and Transformation Plan Sector

11 23
Architectural Tourism
and Engineering Enterprise Zone
Services Sector Management Sector
37 66
Administration Board of
and Finance Directors
Sector

58 69
Office of the Corporate
Chief Operating Social
Officer Responsibility
Our Story: B eyond the charts and numbers, we share with
Strategic you some excerpts from our quest for organizational
excellence. There is a compelling reason for the narratives.
Shifts The footprints on the paths we trod may yet lead to more
inspiring accounts in later journals. For no matter how fast
and and far time flies, the past always bears on the present.

Transformation Reorganizing the Philippine Tourism Authority (PTA)

into the Tourism Infrastructure and Enterprise Zone
Authority (TIEZA) led us to an unfamiliar terrain. Not
that it was unexpected. Republic Act 9593, or the Tourism
Act of 2009, called for it. But undoing a structure that had
existed over a span of three decades and setting up a new
one was not as easy or as fun as building sand castles.

Letting go of 370 employees, who had opted to avail of

the separation incentive package, created packets of void
and uncertainty. The reorganization process began in the
last quarter of 2013 and ended in 2014. We weathered that
turbulent period and pulled a number of levers to lift us off
from where we were to what we wanted to be.

The new law mandates the TIEZA, as a government-

owned and controlled corporation attached to the
Department of Tourism (DOT), to perform six major
functions:

• Designation, regulation and supervision of

sustainable tourism enterprise zones (TEZs);
• Development, management and supervision
of tourism infrastructure projects;
• Provision of technical and financial assistance
for qualified tourism projects, investors, and
proponents;
• Collection of travel tax
• Generation of revenues to fund both national
and corporate developmental needs and/or
undertakings; and
• Exercise previous functions of the Philippine
Tourism Authority (PTA) under Presidential
Decree No. 564.
 These duties positioned our organization acts as a central advisory, monitoring,
at the forefront of the government’s efforts and oversight body with the authority to
to boost the country’s competitiveness in formulate, implement, and coordinate policies
the global and regional travel and tourism for Government Owned and Controlled
industry. Corporations (GOCCs). After a series of
consultations, the GCG approved the TIEZA’s
The stakes are high even as the competition organizational structure and staffing pattern
gets tougher. In 2011, tourism ranked as on June 19, 2013.
the world’s fourth largest industry, next to
fuels, chemicals, and automotive products.
Tourism has become one
of the top foreign exchange
earners for 83 percent of
developing countries and
the leading export earner for
one-third of the world’s least
developed countries.

The United Nations

World Travel Organization
(UNWTO) reported that in
2014 international tourist
arrivals had breached the
1 billion mark, and tourism
receipts soared to US
$1.2 trillion. To enjoy the
socio-economic benefits of
tourism, both developed and
developing countries compete
for a bigger share of the
international tourism market.

With its mandate to build
tourism-related infrastructure
and establish new tourism
enterprise zones, the TIEZA
plays an important role to
enable the Philippine tourism
industry to cope with the
competition.

Another law, Republic Act

10149 in 2011, created the
Governance Commission
for Government Owned and
Controlled Corporations
(GCG) under the Office of
the President. The GCG

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Tourism Infrastructure and Enterprise Zone Authority 2
 In describing the challenges that the TIEZA contribute substantively to the nation’s poverty
faced, the GCG observed: reduction program.”

“Through its new mandate, the TIEZA targets to Following the directives of the GCG,
achieve ‘inclusive growth,’ within the economy to we reviewed our organizational priorities
address the existing disparity in wealth distribution and perspectives, resulting in a number of
of the country’s economic benefits, thereby helping paradigm shifts.

With its mandate to build tourism-related infrastructure

and establish new tourism enterprise zones, the TIEZA
plays an important role to enable the Philippine tourism
industry to cope with the competition.

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 We drew our strategy map with the
corresponding Balanced Scorecard (BSC).
Taking off from the Kaplan-Norton model, the
organization’s BSC perspectives included: Social
Impact, Customer Satisfaction, Financial, Internal
Process, and Learning & Growth. Initially used as
a tool to measure organizational performance,
our BSC model eventually evolved into our own
Strategic Management Framework (SMF). Since
2012, we held our yearly strategic planning
sessions within the context of this framework.
Aside from the vision and mission
statements, the strategy map defined our
strategic objectives that were aligned with the
goals of poverty reduction, job creation, and
inclusive growth as declared in the Philippine
Development Plan (2011-2016). The strategic
measures for each objective determined the
targets in the performance scorecard that the
GCG and the TIEZA agreed on. In 2014, we
achieved 92.4 percent of our performance
target, and 97.34 percent in 2015.
2015 Strategy Map
Complying
with the policy
on access to
information from
government
organizations,
we posted on our
website all the
organizational
data and information required in the
Transparency Seal and Governance Seal.
To track departmental and individual
performance, we applied the Strategic
Performance Management System (SPMS)
prescribed by the CSC. We customized
our own versions of the Office Performance
Commitment and Review (OPCR) and
Individual Performance Commitment and
Review (IPCR). To promote compliance with the
new performance evaluation system, we held a
series of cascading and mentoring sessions in all
departments and offices. By the second semester
of 2015, the SPMS was fully implemented across
the organization.
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 We seized the momentum of structural change
for organizational transformation. We recognized
that our employees needed to feel loved even as
they needed to learn.

Our strategic human resources development

program began with the Organizational Diagnosis
(OD) based on McKinsey’s 7S framework.

Then the Training Needs Analysis (TNA)

determined the gaps between functions on one
hand, competencies and skills on the other. The
findings resulted in a precise roadmap for the
human resources development.

We believe that our employees are our

organization’s most valuable assets. They are the
bridge that connects strategy and execution. They
are the lead drivers for innovation, productivity,
and financial sustainability.

Our journey towards ISO 9001:2008

Certification, at a time when we were going
through the grueling process of reorganization
and relocating from our old office to another, was
replete with difficulties. What carried us through
was our determination to become a customer-
centric organization.

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 What we have done thus far draws a twist
of hope for the future. With clearly defined
vision and a strong sense of mission, we have
embraced a performance framework for an
excellence-driven organization based on:

• Commitment to the national

government’s development goals;
• Alignment with the DOT’s sectoral goal;
• Adoption of strategy map and balanced
scorecard to measure the Sectors’
performance;
• System to measure departmental
performance;
• System to measure individual
performance; and
• Development of organizational culture.

Moving on, we have no illusion that the road
ahead will be devoid of pitfalls. We may falter
after every fall, but we will bounce back and
rise to every challenge. We will have our share
of doubts and tears but surely there will also
be moments of fun.
Over and above earning a living, we
wish to leave a legacy, fully knowing that
our organization, just like any GOCC, is only
as good as how well it serves its reason for
being. ⌂

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 TIEZA-GCG Performance Agreement Negotiation

Front Row: TIEZA Director Roberto Teo, GCG Director Clarence Pascual, GCG Commissioner Ma. Angela Ignacio, TIEZA Director Atty. Lucas Nunag, TIEZA Director Ma.Vida Stoifl
Back Row: GCG Corporate Governance Officer II Anne Stephanie Nilo, GCG Corporate Governance Officer IV Ralph Owen de Castro, TIEZA ACOO (TEZ) Atty. Joy Bulauitan, TIEZA ACOO (AFS) Fidel Arcenas
TIEZA COO Atty. Guiller Asido, TIEZA ACOO (AMS) Jetro Nicolas Lozada, TIEZA Compliance Officer Atty. Niño Ruperto Aquino

T he GCG's and the TIEZA’s technical working

groups hold a series of preliminary
discussions prior to the Performance Agreement
map and balanced scorecard. We had anticipated
the use of the BSC performance framework
for GOCCs since the new law cited the terms
Negotiation (PAN) between the GCG “strategy map” and “scorecard” which are uniquely
commissioners and the TIEZA Board of Directors. inherent in the BSC concept. The first time we
These sessions, at times punctuated by differences met with the GCG Commissioners to present our
in defining the key performance indicators (KPIs) reorganization plan in the last quarter of 2012,
with the corresponding formulas and weights,
have provided us with fresh insights and new
perspectives on how best to measure our yearly To the credit of the GCG, its
organizational performance. To the credit of representatives have always been
the GCG, its representatives have always been straightforward yet fair, persistent
straightforward yet fair, persistent but not so but not so unbending as to be
unbending as to be inconsiderate. inconsiderate.

Upon the instruction of the GCG, we applied they commented that we were one of the very few
the Organizational Performance Indicator GOCCs that had a BSC performance framework
Framework (OPIF) for our 2014 performance already in place. One of the commissioners,
framework since most GOCCs, per the however, suggested that we include Social Impact
Commission’s observation, were not yet fully in addition to the four basic BSC perspectives, the
attuned to the Balanced Scorecard (BSC). TIEZA being a non-profit public sector enterprise.
We have adopted that recommendation.
There is a side story to our use of the BSC. As
early as the late 2012, following the enactment For the 2015 performance framework, the GCG
of the GOCC Governance Act of 2011, we have required the use of the BSC for all GOCCs. We
already developed our own BSC-based strategy have also complied with that requirement. ⌂

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TIEZA 2014 Performance Scorecard (OPIF Framework)

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 TIEZA 2015 Performance Scorecard (BSC Framework)

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 TIEZA 2015 Performance Scorecard (BSC Framework)

*Final rating subject for GCG Validation

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 Architectural
and Engineering
Services
Sector
Engr. Nestor M. Domalanta
Assistant Chief Operating Officer
Engr. Amelita S. Caganda
Manager, Project Planning & Design Division
Engr. Jeoffrey L. Macalalad
Manager, Project Management Division
Engr. Resurrecion L. Aspuria
Manager, Construction Management Department
Engr. Gregory A. Oller
Manager, Construction Supervision Division
Engr. Eliel Joy A . Sison
Manager, Contract Management Division
S ince tourism is an export that is enjoyed
and remains on site, the development of
infrastructure essential to enhancing visitors’
experience is a game changer.
Studies confirm that the absorptive capacity and
quality of tourism-related infrastructure and facilities
underpin a country destination’s comparative
advantage.
As the number of international tourists continues
to climb and travellers’ expectations get more
exacting year after year, building more quality
ground support infrastructure spells the difference
between attracting more tourists and losing them to
other countries.
The private sector surely pitches in its share
in developing more facilities in existing tourist
destinations. But the heavier burden to strengthen
the industry’s fundamentals and to expand its reach
through hard infrastructure rests on the government.
The TIEZA assumes a greater part of that task.
Limited only by our resources, we build what
adds value to the country’s tourism industry and
what makes it more competitive. We construct
new tourism facilities or improve existing ones.
We develop flagship tourism enterprise zones. We
rehabilitate and preserve historical, cultural, heritage,
and religious sites, and enhance eco-tourism sites
in depressed provinces. We help make tourist
destinations more attractive, and more accessible -
more competitive.
Over the past five years we have funded tourism-
related infrastructure projects in the total amount of
P4.5 billion. In 2014, including those partly carried
over from 2013, we implemented 110 projects worth
P1.6 billion and in 2015 140 projects worth P2.8
billion. Over the two-year period, these infrastructure
projects generated direct jobs and created more
business and livelihood opportunities in the
communities where the projects were located.
Iloilo Convention Center

BIWC Drainage System

NAIA Lounge

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 Alburquerque Sanitary Landfill Facility

Construction of Davao Oriental Provincial Museum

Aliwagwag Falls Eco Park

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 Reconstruction of Loboc River Terminal

Permanent Lighting of Rizal

Park Monument & Flagpole

Tourist Information Centers and Green Restroom

Mt. Hamiguitan Range and Wildlife Sanctuary Eco-Tourism Development

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 To gauge our clients’ assessment
of our performance, we engaged a
third-party survey for infrastructure
projects in the last two years.
At the beginning of the survey,
respondents were asked for their
general satisfaction rating on the
projects. The initial results (topline
satisfaction) revealed that 80%
were Very Satisfied, and only 20%
were Satisfied. However, the survey
did not merely inquire of the
respondents’ general satisfaction;
they were also interviewed on
the aspects of quality of work,
timeliness and coordination. After
the interview on these project
aspects, respondents were asked
again of their general satisfaction
rating. The results (endline
satisfaction) shifted to 70% - Very Satisfied,
27% - Satisfied and 3% - Not Satisfied. There was on other project aspects. The ratings for both
an increase in the Not Satisfied section when questions (topline and endline satisfaction) are
asked of their satisfaction after inquiring not statistically different at 95% confidence level.

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 To clearly set our direction, we developed
a five-year infrastructure plan. This medium-
term blueprint highlights the strategic shift in
the use of our resources. In the next five years,
we will focus on the infrastructure in support
of the Flagship TEZ, the productive use of idle
properties and improvement of our existing
facilities in the tourism zones, and priority
projects in the revised NTDP.
The AESS also took the lead in the TIEZA’s
convergence initiatives with other government
agencies particularly with the Department
of Public Works and Highways (DPWH),
Department of Social Welfare and Development
(DSWD), the Intramuros Administration (IA),
National Commission for Culture and the Arts
(NCCA), National Historical Institute (NHI),
and National Museum (NM). The convergence
with these agencies resulted in the construction
of the Iloilo Convention Center with the
DPWH as the lead agency; the deployment of
local residents selected by the DSWD in the
maintenance of the TIEZA tourist information
centers; the restoration of the old churches in
Bohol damaged by natural disasters in the case
of NHI and NM; the restoration of the historical
sites in Intramuros District in partnership with
IA; and the preservation of other historical sites
in coordination with NCCA.
Building better for tourism may as well be
the slogan of the AESS. Hard work defines
every infrastructure project - from evaluation
to planning to construction and completion.
Teams consult with the proponents to make
sure that the project design corresponds to their
expectations and the TIEZA’s fund allocation.
Project engineers track the progress of the
construction and check its compliance with
specifications, while a separate team evaluates
the contractor’s performance before turning over
the completed project to the proponents.
The cycle goes on year in, year out. But every
project’s completion leads to another new
undertaking. By each project we open a door of
opportunity where tourism truly becomes an
engine of socio-economic growth for the local
communities, and for the country. ⌂
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 Five-Year Strategic Development Plan
for Infrastructure Projects (2016 - 2020)
T he Tourism Act of 2009 provides a clear
public policy foundation for the TIEZA’s
Five-Year Strategic Development Plan for
Infrastructure Projects (TSDPIP 2016-2020).
The Act maintains the TIEZA’s stature as
the nation’s builder of tourism infrastructure,
including tourism facilities and amenities of
cultural, historical, religious, heritage and
ecotourism significance.
The medium term plan takes into account
the national government’s perspective of
the tourism industry as an engine of socio-
economic growth. The industry is one of the
country’s top foreign-exchange earners. It
embraces a wide range of business activities
and generates a multiplier effect that positively
impacts on national development.
The Visioning Exercise in July and the
Strategic Planning Session in December last
year attended by the COO, Assistant COOs,
Department and Division Managers resulted in
the redefinition of the organization’s strategic
directions for infrastructure projects.
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Under the new plan, the concept of “Tourism
Zones” was described in reference to the TEZs
and TIEZA entities that will be developed into
major tourism destinations. A tourism zone can
either be a TEZ or a TIEZA-owned entity. Both
will be the TIEZA’s priority projects that shall
take precedence above and over third-party
initiatives.
Approved by the Board of Directors on
December 28, 2015, the five-year blueprint
specifically covers the following type of
projects:
• TIEZA Asset-based/TEZ Support;
• NTDP Initiatives;
• Historical, Cultural, Religious, and
Heritage Sites and Prime Tourist
Destinations;
• Ecotourism Sites in Depressed Provinces
with Strong Tourism Potentials; and
• Other Tourism Development Projects
 Funding for the projects under the five-year
plan, projected in the amount of P6.8 billion,
shall be sourced from the Corporate Operating
Budget (COB) from 2016-2020.
The development of tourism enterprise
zones (TEZs) and TIEZA-owned assets in
tourism zones encourages private stakeholders
to be active partners in tourism. Through its
infrastructure projects, the TIEZA envisions to
create jobs and generate tourism-dependent
businesses and livelihood opportunities in the
local communities. This strategy is aligned with
the goals of the Philippine Development Plan:
job creation, poverty reduction, and inclusive
growth.
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 Other projects may be subsequently
identified and approved for funding by the
TIEZA Board in accordance with prevailing
circumstances and requirements that are at
present non-existent. In the future, however,
all projects shall be consistent with the
general framework – that they must be in
support of a tourism zone.
Ecotourism projects in depressed provinces
with strong tourism potentials shall consider
the existing National Ecotourism Strategy
(NES) of the Department of Environment
and Natural Resources (DENR) and the
DOT. The NES includes plans for sustainable
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management of destination, information,
education, and communication campaigns to
encourage community involvement. Tourism
products development and improvement of
tourism-related skills and competencies will
further enhance income-generating activities
and livelihood opportunities.
The development, improvement,
rehabilitation and preservation of historic,
cultural, religious, and heritage sites shall be
implemented in close coordination with the
National Commission on Culture and the
Arts (NCCA). ⌂
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 Tourism
Enterprise
Zone
Management R epublic Act 9593 provides that Tourism
Enterprise Zone (TEZ) operators and
registered tourism enterprises (RTEs) may avail of

Sector fiscal and non-fiscal incentives. The basic rationale

is that fiscal and non-fiscal incentives positively
influence investments that in turn would enhance
socio-economic growth. In the case of tourism,
such incentives to TEZ operators and locators
can lead to more hotel rooms, better facilities,
and more diverse destinations. This inevitably
results in more jobs and more tourism-dependent
business opportunities. Within the framework of
the industry’s value chain, the strategic objective
is for the TEZs to contribute to countryside
development.

The other view, however, is that fiscal incentives

granted by investment promoting agencies result
in a substantive revenue loss. This observation
raised the question: How to simplify the incentive
scheme, complex as it is, to efficiently manage
investment incentives without losing the country’s
appeal to investors?

In the meantime, proposals to rationalize the

Atty. Joy Bulauitan fiscal perks for investors have to pass through the
Assistant Chief Operating Officer
legislative mill. Without the Bureau of Internal
Revenue’s (BIR) rules and regulations on TEZ
incentives, the TIEZA faced a zugzwang.
Atty. Niño Ruperto F. Aquino
Manager, TEZ Regulation Department

Atty. Michelle P. M. Sabitsana

OIC - Manager
Evaluation and Registration Division

Hernando A. Enal
Manager, TEZ Assistance & Monitoring Department
 The solution came by way of another program:
the development of flagship tourism enterprise
zones. In the Philippines, it is an innovative way
to attract investors sans the fiscal incentives. With
the DOT as its institutional partner, the TIEZA
proceeded to develop new hubs for investments in
the archipelago’s three major island groups.

For flagship TEZs, we funded the master

planning of the sites. We have also appropriated
initial funding for horizontal development, to
eventually include utilities like water and power
supply systems. These are geared towards
attracting investors – even without the fiscal
incentives.

The process of identifying a geographical area as

a potential flagship TEZs follows a set of criteria.
Teams inspect potential sites, gather relevant data,
and submit the shortlist to the TEZ Committee
for endorsement to the TIEZA Board. The final
identification and funding for master planning
and development of the site are subject to the
approval of the Board.

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 Take San Vicente, Palawan where fine white sand stretches
for about 14 kilometers along its shoreline. Complement
this with its pristine waters, and you have another
international tourist destination. We engaged the services
of Palafox Associates for the master plan of the priority area
of development consisting of 883 hectares. The tourism
master plan of San Vicente, Palawan as a Flagship Tourism
Enterprise Zone is a finalist in the category for International
Award for Planning Excellence at the 2016 Royal Town
Planning Institute (RTPI). Of the total development cost
of P4.9B the TIEZA Board of Directors last year approved
an initial funding of P390 million. The development of San
Vicente is a partnership among the DOT-TIEZA, the local
government, and the private landowners.

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 Rizal Park | Manila

Another flagship TEZ that is about to take

off is located at the heart of Manila, the Rizal
Park. A partnership between the National Parks
Development Committee (NPDC) and the TIEZA,
the site covers an area of 54 hectares. The project is
part of the DOT’s thrust to revive the rich history
and heritage of the City of Manila. This Flagship
TEZ, master planned by Berkman International,
Inc. (BII), costs P3.2 billion. The TIEZA Board has
approved P405 million to start the project.

Rizal Park Masterplan

In the pipeline are three more Flagship TEZs that the

TIEZA Board has approved for master planning.

One is the Mt. Samat Shrine of Valor in Pilar, Bataan

consisting of 173 hectares. The plan is to position this
Flagship TEZ as a historical and heritage destination
with the 555-meter Memorial Cross, a testament to the
Filipino soldiers’ heroism in World War II, as the main
landmark. BII won the public bidding for the master
planning of this project.

Mt. Samat Shrine of Valor | Bataan

 Kapihan Nature and Adventure Park | Surigao del Norte
The (Bucas Grande) Flagship TEZ in Socorro,
Surigao del Norte, with an area of 167 hectares
is another Flagship TEZ that is being master
planned by UP Planades. With its clear waters
and beautiful islets and its unblemished
landscapes and seascapes the area is an ideal
ecotourism destination.
The Flagship TEZ that the TIEZA recently
approved is the Panglao Bay Premiere group of
properties in Bohol which is owned by Panglao
Bay Premiere Parks and Resorts Corporation.
The site boasts of a 750-meter frontage of white-
sand beach – the longest in any resort in Panglao
island. The TIEZA funded the preparation of
the master plan for this project. The agreement
between the TIEZA and the PBP is for the latter
to strictly comply with the approved master plan
in developing the property identified out as a
flagship TEZ.
When fully operational, the Flagship TEZs are
expected to create 10,000 rooms to accommodate
1.7 million tourists, and generate an additional
280,000 jobs. This in effect will significantly
contribute to the attainment of inclusive growth
in the communities where the Flagship TEZs will
be established.
Completing these big-ticket projects will
certainly take time. They also require substantial
financial resources. We have no doubt, however,
that with the right business and investment plans
– these projects will in the long run not only pay
for themselves but also positively make their
mark in lifting the country’s tourism industry to
new heights. ⌂
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Tourism Infrastructure and Enterprise Zone Authority 28
Parks and Resorts Corporation
 Assets
Management
Sector
Jetro Nicolas F. Lozada
Assistant Chief Operating Officer
Ma. Evelyne A. Francisco
Manager, Business Development Department
Ma. Zenaida R. Quiñahan
Manager, Business Research and Development Division
Eva Marie M. Vicedo
Manager, Sales Division
Leonardo M. Mendoza
Manager, Operations Department
Marlon S. Prieto
Resident Manager, Banaue Hotel & Youth Hostel
Adelfo A. Mendoza III
Resident Manager, Club Intramuros
Ma. Carmela L. Marquez
Resident Manager, Zamboanga Golf Course & Beach Park
Trixie Juanita T. Maningas
Resident Manager, Intramuros Light & Sound Museum
Jose Mari O. Salgado
Resident Manager, Balicasag Island Dive Resort
Magdara A. Sarip
Resident Manager, Gardens of Malasag
Ma. Gina I. Martinez
Tourism Coordinator, Cebu Extension Unit
T he Assets Management Sector (AMS)
manages and operates tourism facilities,
a function that the TIEZA’s precursor, the
PTA, performed since the late 70’s.
A recent addition to these facilities was the
Iloilo Convention Center - positioned to be
the prime venue for conventions, meetings,
exhibitions, and major events. The center is
expected to further boost local and foreign
tourist arrivals in Iloilo and in Western
Visayas.
The strategic direction for these operating
entities has shifted from simply encouraging
tourism activities in less developed areas to
contributing to the organization’s financial
sustainability. Thus, along with our efforts to
turn around the financial performance of these
facilities, we have considered privatizing some
of them, particularly those that are heavily
subsidized, either thru disposal or operation
and management arrangements with private
partners.
To implement its assets privatization
program, the TIEZA had commissioned a
best-use study of all its operating assets,
and subsequently engaged the services of
a consortium of firms with expertise in the
privatization of government assets. Last year,
a reputable private company acquired the
Paskuhan Village, in the City of San Fernando,
Pampanga through public bidding. The net
proceeds from the sale of the property shall
accrue to the Tourism Promotion Fund as the
law provides.
Gardens of Malasag Ecotourism Village

Club Intramuros Golf Course

Banaue Hotel and Youth Hostel

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 Zamboanga Golf Course and Beach Park

Intramuros and Rizal’s Bagumbayan

Light and Sound Museum

Iloilo Convention Center

Balicasag Island Dive Resort

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 The privatization of Banaue Hotel and Youth
Hostel and Club Intramuros Golf Course is
limited to operation and management (O&M)
only since the law prohibits the sale of the
TIEZA properties with cultural and historical
significance. The Balicasag Island Dive Resort
and the Gardens of Malasag Ecotourism
Village are also up solely for O&M since the
TIEZA does not own the sites of these entities.
Following cost-cutting measures and
tightening up of operations from end to end,
the Banaue Hotel increased its net income by
P1.6 million in 2014, and P6.3 million last year.
Even as the TIEZA privatizes its operating
entities, the five-year plan includes the
development of some unproductive assets.
These are the 12-hectare Balacad Integrated
Tourism Complex in Ilocos Norte, the 5-hectare
Government Center in Zamboanga City, the
30-hectare Maomawan Ecotourism Park and
Moalboal Resorts Site in Cebu, the 116-hectare
Palina Ecotourism Park in Pugo, La Union,
the San Fabian Beach Resort in San Fabian,
Pangasinan, and the 20-hectare Watersports
and Wakeboarding Facility in Clark Special
Economic Zone, Pampanga.
By adopting innovative business models,
upgrading customer service, and creating
new portfolios more focused on the use of idle
properties, the Sector seeks to significantly
contribute to the TIEZA’s financial viability
and help strengthen the competitive edge of
the areas where these assets are located.
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33 ANNUAL REPORT
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 To promote the on-line travel tax payment
system, the Business Development Department
drew up a multi-media campaign plan in the
last quarter of 2015. The implementation of the
campaign is scheduled on the first quarter of
2016.
Another accomplishment of the sector was
the development and implementation of sales
programs and promotional activities for the
organization’s products and services.
We supported the Philippines’ Tourism
Campaign “VISIT THE PHILIPPINES
YEAR (VPY) 2015" of the DOT and
Tourism Promotions Board (TPB) by way
of sponsorship and participation in major
events such as the Madrid Fusion Manila,
Dive Resort Travel (DRT), World Trade Center
Association (WTCA), General Assembly and
Asia Marketing Leadership Summit (AMLS).
We also joined in a wide array of Philippine
festivals focusing on the country’s diverse
culture, products, and destinations such as
the Sinulog Festival, Dinagyang Festival,
Panagbenga Festival, Tsinelas Festival, Pahiyas
Festival, Maskara Festival.
To complement the VPY-2015 campaign,
we developed the VPY 2015 Rewards Card
that extended 15 percent discount on the
published room rates of the TIEZA-owned
facilities, particularly Banaue Hotel, Club
Intramuros Golf Course, Zamboanga Golf
Course. The VPY Rewards Card also offered
additional freebies on the 5th, 10th, and 15th visit
to promote repeat patronage of the TIEZA’s
facilities.
To generate additional revenues for the
TIEZA operating entities, we offered “Book
and Buy” sales promo during travel trade
exhibits like the PTAA TravelTour Expo
(TTE), PHILTOA TravelMart (PTM), NAITAS
Travel and Trade Show (NTTS), and Travel
Innovators, Inc. – Travel Madness (TMI).
We also designed new flyers for the entities
and produced materials to effectively promote
and market the operating entities.
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The Boracay Island Water Company, Inc.
A joint venture company of the TIEZA
and Manila Water Co., Inc., the Boracay
Island Water Company (BIWC) developed,
improved, and expanded the water and
wastewater services in the three barangays
in Malay, Aklan. Its services have
benefitted not only the hotels, resorts, and
tourism-dependent businesses in Boracay
but also the local households.
As early as 2013, 100 percent of the
island’s road network has been covered by
the BIWC’s water distribution system. The
company achieved this service obligation
through the implementation of an
aggressive network expansion program.
The BIWC also increased the sewage
flow in terms of strength and volume,
while maintaining a minimum of 95
percent compliance with the DENR
effluent standards for water bodies
classified as Class SB. ⌂
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 Administration
and Finance
Sector T hree departments, performing different functions,
comprise the Administration and Finance Sector:
the Travel Tax Department (TTD), Administrative Services
Department (ASD), and Financial Services Department (FISD).

The TTD’s primary responsibility is to collect travel tax−

Fidel M. Arcenas
Assistant Chief Operating Officer
the TIEZA’s biggest revenue source. The ASD and FISD,
on the other hand, are responsible for personnel, logistical,
and funding support to the whole organization, particularly
the development of tourism infrastructure, establishment
of flagship tourism enterprise zones, and the operation of
TIEZA-owned tourism facilities.

Travel Tax Department

Florencio V. Abenes
Manager, Travel Tax Department
Edna E. Mañgalino
Manager, Privilege Administration Division
Perlita C. Adefuin
Manager, Examination Division
In 2015, the Travel Tax Department collected a total of P4.22
billion in travel tax, up by P373.2 million in 2014. Fifty
percent of the amount accrues to TIEZA, 40 percent to the
Commission on Higher Education, and 10 percent to the
National Commission for the Culture and the Arts.

Dr. Rosanna M. Olgado

Manager, Administrative Services Department

Josefina U. Soriano
Manager, Human Resource Services Division

Jose Ramon R. Ramos

Officer-In-Charge, General Services Division

Rodolfo E. Ancheta
Manager, Financial Services Department

Eva M. Yu
Manager, Budget Division

Leonila G. de Peralta
Manager, Accounting Division

Myrna A. Suarez
Manager, Treasury Division
 One of the major innovations that the TTD
has implemented is the On-Line On-Site Travel
Tax Privilege Application and Payment System
(OOTTPAPS) with its depository bank, the
Development Bank of the Philippines, as the
gateway. Travel-tax payers can now pay their
travel tax thru the internet with Bancnet, Visa,
and Mastercard credit cards. The department
also deployed the on-site payment system
where passengers can pay travel tax with their
credit or debit cards at the main office or at the
travel service counters in the airports.

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 The TTD opened travel tax service
counters in malls, where travellers can
pay their travel tax or file applications for
reduced rates or full exemption. Soon new
travel tax service counters will be opened at
the main office of the Philippine Overseas
Employment Administration (POEA),
39 ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority
SM Aura Premier in the Global City, and SM
Mall of Asia.
As part of TIEZA’s customer-centric
program, the TTD personnel attended
a series of Customer Service Excellence
trainings.
Administrative Services Department
Aside from its role as the secretariat of the
Personnel Placement Committees (PPCs),
the ASD had to consider the employees’
emotional state before, during and after the
reorganization process. Inexperienced as the
Change Management Team and the ASD were
in handling this volatile situation, they drew
some perspectives and insights from best change-
management principles and practices, including
William Bridges’ organizational transition model
(1992, Managing Transitions). Despite the many
issues and concerns during the reorganization,
neither the Appeals Committee nor the Civil
Service Commission (CSC) received any formal
complaint with regard to the separation and
placement of personnel.
Recognizing that employees are the
organization’s most valuable assets, top
management responded to the employees’
need to learn. We had begun to aggressively
pursue our learning programs in 2014 even as
the reorganization process was still underway.
This was necessary to bridge competencies
and skills gaps as new employees joined the
organization and as old-timers were appointed
to new positions.
With the Balanced Scorecard (BSC) as our
strategic management framework, we decided
to be a learning organization. The direction
embraced three basic principles: a top-to-bottom
clear understanding of the organization’s goals
and objectives as defined in our Strategy Map;
empowering personnel from the down lines
up to the level of top management to be open-
minded and innovative; and enabling an effective
interface between and among groups or teams
The human resources development program
took a crucial turn, when TIEZA adopted
the Balanced Scorecard (BSC) as its strategic
management framework. The BSC’s Learning
and Growth perspective integrated the culture
of continuous learning into the over-all strategic
direction of the organization. So committed
was the organization to improve the skills and
competencies of its personnel that “an excellence-
driven organization” became the linchpin of its
vision. From 2014 to 2015, the Administrative
Services Department (ASD) initiated a wide
range of trainings across all levels.
to efficiently execute the organization’s core
processes in an ever changing environment.
Our learning sessions were primarily targeted
to jibe with the five dimensions of the Strategy
Map. We believed, however, that while every
perspective required separate sets of skills and
competencies, these must be interwoven to
achieve organizational goals and objectives.
The long-term view however, is for the
learning continuum to result in organizational
transformation. Trainings for the past two
years were not solely confined to providing
the employees with cognitive tools to improve
their performance. We also held a series of
teaming sessions that encouraged self-awareness,
developed affective skills, and promoted
harmonious relationship between and among
employees.
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 An integral part of the personnel
development thrust is the CSC-approved
Career Development Program. The program,
subject to specific terms and conditions, offers
local and foreign scholarship, study leave for
employees reviewing for bar or board exams,
and those who are about to complete their
Master’s degree.

Another program that extends incentives

and awards to exemplary and highly
meritorious service either to the organization
or its clientele is the Program on Awards and
Incentives for Service Excellence (PRAISE).

Developing the competencies and skills

of employees took into account another
equally important perspective: managing
and measuring their performance. The ASD
initiated a series of intensive learning sessions
on the organization’s Office Performance
Commitment and Review (OPCR) and
Individual Performance Commitment and
Review (IPCR) in accord with the Strategic
Performance Management System (SPMS) of
the Civil Service Commission (CSC). By the
second semester of 2015, the SPMS was fully
implemented across the organization. The
performance ratings for all departments and
all employees were based on their respective
OPCRs and IPCRs.

Our learning sessions were primarily targeted to jibe with the five
dimensions of the Strategy Map. We believed, however, that while every
perspective required separate sets of skills and competencies, these must
be interwoven to achieve organizational goals and objectives.

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 Another ASD major initiative was the
development of leadership, technical, and
core competency models for all positions.
The Personnel Selection Board (PSB) used these
competency models in the interview and
evaluation of applicants. The ASD also used
these models to identify skills and competency
gaps that in turn determined the types of
trainings that the department focused on.
The ASD began to develop the organization’s
Competency Based Job Description (CBJD)
last year to define the essential functions
of positions based on specific required
competencies. Aside from being an effective
tool for recruitment, the CBJD also provides
employees an understanding of the
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Tourism Infrastructure and Enterprise Zone Authority
accountabilities, duties, and responsibilities
expected of them.
To preempt silos from gaining any foothold,
we held a series of teaming sessions. These
teaming sessions, primarily designed to
develop particularly the employees’ affective
values, sought to improve internal processes
that require interface between and among
employees, divisions, and departments. The
overriding objective was to create a synergy
and make the whole organization more
effective and productive. Last year, all the
top management and supervisory personnel
have undergone teaming exercises under
the guidance of one of the country’s top
consulting firms.
The Personnel Selection Board

Personnel Selection Board in action. (L-R) Rodolfo Ancheta, Dr. Rosanna Olgado, Fidel Arcenas, Atty. Ivy Asetre, Nenita Medina

After the termination of the reorganization

process, the Personnel Selection Board (PSB) was
reconstituted, supplanting the Personnel Placement
Committee (PPC). By the end of 2015, the PSB has
assessed 406 applications and recommended 208
applicants who were subsequently appointed by
the COO. Of the 527 positions approved by the
GCG, 430 have been filled.

Onboarding sessions provided new employees

with an overview of the organization's mandate,
vision and mission, policies, processes,
compensation and benefits, and career development
opportunities.

Aside from making the new hirees feel a sense

of belonging, these sessions enabled them to get
acquainted with each other.

One of the major breakthroughs that the ASD

has begun to implement is the Competency Based
Human Resource System (CBHRS) which had
been approved by the TIEZA Board last year. The
CBHRS covers five HR functions:

• Recruitment and Selection

• Learning and Development
• Performance Management
• Compensation and Benefits
• Rewards and Recognition

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 Other responsibilities of the ASD include
payroll preparation, updating and safekeeping
of personnel data and information, keeping track
of employees’ benefits and contributions to the
Government Service Insurance System (GSIS),
PAG-IBIG, and PHILHEALTH.
Property and Supply Accomplishment Report
Period Covered - CY 2015
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The ASD through its General Services Division
provided logistical support to all sectors through
the procurement of required goods and services.
Maintenance of vehicles, security and janitorial
services, inventory of non-expendable items,
carpentry and electrical works were also among
its concerns.
Procurement Accomplishment Report
Period Covered - CY 2015

Records Accomplishment Report

Period Covered - CY 2015

Ancillary and Maintenance Accomplishment Report

Period Covered - CY 2015

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 Gender and Development
Going by the number of male and female
employees in our organization, gender parity
is not a major concern. As of 2015 there were
200 men and 271 women occupying various
positions.
Our recruitment and promotion processes
placed all applicants, on even footing regardless
of sex, religion, and status. Recruitment is based
on competency, and promotion on merit.
and 2015, we conducted a number of GAD-
related activities. We also participated in the
ASEAN Tourism GAD Forum organized
by the DOT, and the National Women’s
Month and 18-Day Campaign to End Violence
Against Women spearheaded by the Philippine
Commission on Women (PCW).

We have implemented most of the Gender and

Development (GAD) programs to strengthen
gender sensitivity and equality in the workplace
and ensure a healthy work - life balance. In 2014

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GAD Events and Activities in 2014 and 2015

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TEA Officers with DOT Sec. Ramon Jimenez Jr. and COO Atty. Guiller Asido. (L-R) Director Anita Torres, Director Sheena Borromeo, VP-Internal Dominador
Catbagan, Director Geraldine Pilapil, President Nenita Medina, Secretary Reyna Palacay, and VP-External Anna Cano.

TIEZA Employees Association

The TIEZA Employee Association (TEA)
elected their new set of officers and board
directors on July 29, 2015. Harmonious
employee-management relationship gained
further headway with the renewal of the
Collective Negotiation Agreement (CNA)
between the TIEZA and the TEA which was
subsequently affirmed by the CSC.

Representatives of the association sit

in the Personnel Selection Board (PSB), TEA Officers Oath-Taking
the Employee-Management Relations
Council (EMRC), the Grievance Machinery
Committee (GMC), Personnel Development
Committee (PDC), and the GAD Focal Point
System (GAD-FPS).

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Signing of CNA
Emergency Response and Disaster
Preparedness
The Emergency Response Group (ERG) was The ERG has
created to lead the organization’s preparedness undergone trainings
and response to the occurrence of disaster and seminars on
and emergency. It is also tasked to coordinate disaster preparedness,
with the National Disaster Risk Reduction and rescue operation, first
Management Council, the DOT Risk Reduction aid and CPR. It has also
Team, and with other government and non- led the conduct of fire
government agencies in cases of disaster in a and earthquake drills.
larger scale.

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 Financial Services Department
Equitable distribution of resources, taking into
the funding requirements for the organization’s
major programs, required a thorough review
of organizational priorities while taking into
account each sector’s personnel and operational
requirements.
A series of discussion between the FISD and
all departments preceded the final preparation of
the organization’s Corporate Operating Budget
(COB). On the recommendation of the Chief
Operating Officer (COO), the Board’s Finance
Committee reviewed the proposed COB prior to
submission to the Board of Directors. Except for
minor revisions, the Board approved the 2014
and 2015 COB.
The FISD ensured compliance with government
accounting and auditing rules and regulations
in all of the organization’s transactions. In 2014,
as in 2013, the Commission on Audit (COA) has
issued “unqualified opinion on the fairness of the
presentation of the financial statements” of the
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Tourism Infrastructure and Enterprise Zone Authority
Authority. As of the preparation of this report,
the COA has yet to issue its opinion for 2015.
The Department regularly submitted the
following financial reports within the required
period:
• Corporate Operating Budgets
• Annual Audited Financial and
Performance Report
• Quarterly and Annual Reports
and Trial Balance
• Certification of foreign borrowing
Through its Treasury Division, the
Department ensured prompt payments of
claims from creditors, and established effective
and efficient cash management systems to
ensure the availability of funds required for
the organization’s activities, projects, and
programs. ⌂
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 Office of
the Chief
Operating
Officer F
Atty. Guiller B. Asido
Chief Operating Officer
David John D. Pontiga
Head Technical Assistant, Office of the COO
Racquel A. Gaerlan
Manager, Corporate Planning Department
Anna Leah R. Bayot
Manager, Strategic Planning Division
Raquel S. dela Cruz
Manager, Monitoring and Evaluation Division
Godofredo G. Lapuz, Jr.
Manager, Management Information Systems Department
Atty. Ivy V. Asetre
Attorney VI, Legal Department
Atty. Jose T. Bechayda, Jr.
Attorney V, Litigation Division
Atty. Shangrila C. Quezon
Attorney V, Legal Services Division
ollowing the resignation of Chief
Operating Officer Mark T. Lapid who
resigned on October 15, 2015 to vie for a senate
seat. Atty. Guiller B. Asido, the former Assistant
Chief Operating Officer for AESS, assumed the
COO post.
After a review of the major programs and
pressing concerns, the new COO identified
those that needed special attention, particularly
the full implementation of the on-line travel tax
payment system.
Another top priority was the strategic
shift in the utilization of corporate funds for
infrastructure projects. Before the end of the last
quarter of 2015, the Board approved the 5-year
Infrastructure Development Plan, ensuring
focus on infrastructure projects in support of
the flagship TEZs, and those within the tourism
zones identified in the NTDP.
Also on top of his agenda were the
formulation of a comprehensive risk
management system, and adaptation to the
requisites for the upgrading of the organization’s
ISO certification to 9001:2015 by 2017.
He strengthened the Management Committee
(MANCOM) by defining its scope of authority,
and setting regular schedules for the regular
MANCOM meetings and management’s
periodic review of the Quality Management
System.
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 Oath-taking of Atty. Guiller B. Asido as Chief Operating Officer of TIEZA

In defining his concept of synergy to
boost organizational performance, the COO
underscored four basic principles:
• Shared vision, values and goals;
• Good leadership and fellowship;
• Embracing a culture of trust, respect
and compassion; and
• Creating a positive environment to
build the business of tourism
Alongside his thrust to ensure the
organization’s financial sustainability,
the COO placed equal emphasis on personnel
welfare and development, cultivating the value
of integrity, and commitment to perform the
organization’s mandate.
There are three departments directly under
the Office of the COO:
• The Corporate Planning Department
• The Management Information
Systems Department
• The Legal Department

Management Committee. (L-R) Technical and Secretarial Staff Sheena Anjeli Botiwey, Carmelita Zuñiga, CORPLAN Manager Racquel
Gaerlan; MANCOM Members ACOO Atty. Joy Bulauitan, COO Atty. Guiller B. Asido, ACOO Fidel Arcenas, ACOO Jetro Nicolas Lozada,
ACOO Nestor Domalanta, and Corporate Secretary Atty. Al Conrad Espaldon.

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The Corporate Planning Department
Acting as the top management’s core advisory
body, the Corporate Planning Department (COPD)
oversaw and orchestrated the organization’s
strategic planning activities. It took charge of
the cascading of strategic objectives in all levels,
and monitored the quarterly performance of all
departments based on corporate targets.
From 2014 to 2015, the COPD took the lead role in
initiating a comprehensive review of the TIEZA’s
strategic management framework, resulting
The COPD also set in place a monitoring system
that enabled top management to keep track of
the performance of each Sector and its respective
departments. It has developed an automated BSC
dashboard that provides updated performance data
and information.
In collaboration with the Administrative
Services Department, the COPD assisted in the
detailed formulation and review of performance
targets, indicators, and ratings following the CSC-
prescribed Office Performance Commitment and
Review (OPCR) system.
Balanced Scorecard (BSC). The revision
incorporated changes in its strategic directions.
The revised BSC provided a clearer, more focused,
and well-defined Strategy Map. It underscored
the linkages and interfaces between and among
the departments and offices whose functions and
performance commitments had direct impact on the
attainment of strategic objectives.
With its manager as the Quality Management
Representative (QMR), the COPD also acted as the
coordinator of the implementation of the TIEZA’s
Quality Management System (QMS). TUV
Rheinland Philippines issued the organization’s
ISO 9001:2008 certificate on May 13, 2015.
Since the reorganization, the COPD has
consistently played an important role in the
change management process, focusing its attention
on helping the organization to fully adapt itself
to new models of measuring performance, and
management frameworks that clearly define the
organization’s strategic directions.
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 The Management Information Systems Department
The Online-Onsite Travel Tax Privilege Application
and Payment System (OOTTPAPS) ranked as one
of the top priorities of the Management Information
Systems Department (MISD). The MISD, the
OOTTPAPS Project Management Team, and the
Travel Tax Department (TTD) with the Development
Bank of the Philippines (DBP), and the private
systems developer collaborated to develop an
automated system that allows travel-tax payment
with the use of Visa, Bancnet, and Mastercard. The
system also allows travellers to apply online for
exemption and reduced rates in the payment of the
travel tax.
The OOTTPAPS has been installed at the TIEZA
Main Office, the NAIA Terminals and major
international airports.
The Legal Department
The Legal Department (LEGD) is composed of two
divisions – the Legal Services Division (LSD) and
the Litigation Division (LD).
The LSD prepared legal opinions on certain
contentious issues, and position papers on tourism-
related bills filed either at the Senate or the House
of Representatives. It conducted research on legal
problems that impact on the organization’s major
concerns or day-to-day operations. The Division
also reviewed and drafted contracts, and extended
assistance to all departments and offices that
required its services.
The LD filed cases involving property ownership,
including the revocation of illegally issued land
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The MISD has also started working on a
computerized system that would integrate all
the organization’s processes dubbed as TIEZA
Infrastructure Management Business Solution
(TIMBA). It will cover the business operations of the
Administration and Finance Sector, the Architectural
and Engineering Services Sector, the Assets
Management Sector, and the Tourism Enterprise
Zone Management Sector. The integrated system
shall guarantee the accuracy of information on real
time - an indispensable tool for monitoring financial
performance and decision-making.
OOTTPAPS Systems Flow
titles carved of the TIEZA’s property in Moalboal,
Cebu. It has also fast-tracked the 99 cadastral cases in
Cebu for the titling of the lots in the name of TIEZA
and filed cases against contracting parties who
defaulted in their obligations.
Despite being handicapped by lack of personnel,
the LEGD has assumed other duties and
responsibilities, including the drafting and review
of management comments to the Commission on
Audit’s observation memoranda. ⌂
 The TIEZA Management Team:
DOERS and CHANGERS

S ynergy out of diversity thrives here

in our community. Despite differences
in gender, age, culture, traits, skills, and
competencies, the TIEZA Management
stands out as a team of doers and changers.

Teamwork among our COO, Assistant

COOs, Department and Division Managers
led to better performance as our 2013
and 2014 Scorecards show. In the face of
formidable challenges, we have managed
change, planned or unplanned, as evidenced
by strategic shifts, adaptive use of resources,
and innovative processes to satisfy our
customers and stakeholders.

This inclusive management team of men,

women, baby boomers, millennials, lawyers,
engineers, master degree holders, drives our
organization towards excellence.
 The COO
& ACOOs

(L-R) ACOO for AMS Jetro Nicolas Lozada, ACOO for TEZ Atty. Joy Bulauitan, TIEZA COO Atty. Guiller Asido,
ACOO for AESS Engr. Nestor Domalanta, and ACOO for AFS Fidel Arcenas
 Department Managers. (L-R) Godofredo Lapuz Jr., Florencio Abenes, Engr. Resurrecion Aspuria, Leonardo Mendoza, Ma. Evelyne Francisco, Dr. Rosanna Olgado, Atty. Ivy Asetre,
Atty. Ma.Teresa Alvarez, Racquel Gaerlan, Rodolfo Ancheta, Hernando Enal, and Atty. Niño Ruperto Aquino

Division Managers. Front Row (L-R) Leonila de Peralta, Josefina Soriano, Perlita Adefuin, Anna Leah Bayot, Myrna Suarez, Edna Mañgalino, Atty. Michelle P. Sabitsana
Back row (L-R): Engr. Jeoffrey Macalalad, Jose Ramon Ramos, Engr. Eliel Joy Sison, Engr. Amelita Caganda, Irene Tumaob, Raquel dela Cruz, Engr. Gregory Oller, Atty. Shangrila Quezon,
Eva Marie Vicedo, Ma. Zenaida Quinahan, Eva Yu, Adelfo Mendoza III, and Antonio Mari Oriondo.
(Not in photo) Atty. Al Conrad Espaldon, Atty. Jose Bechayda Jr., Edwin Verde, and Marlon Prieto

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Tourism Infrastructure and Enterprise Zone Authority
 Board
of T he Secretary of the DOT chairs the TIEZA

Directors
Board of Directors, with the TIEZA COO as
Vice Chairman. On the part of the government, the
Secretaries of the Department of Public Works and
Highways (DPWH), Department of Environment
and Natural Resources (DENR), Department of
Interior and Local Government (DILG), Mindanao
Development Authority (MINDA), or their
alternates, sit as members of the Board. The other
Sec. Ramon R. Jimenez, Jr. five members represent each of the following
Department of Tourism sectors of the tourism industry:
Chairman

Atty. Guiller B. Asido • Tourism estate development and

TIEZA Chief Operating Officer management services
Vice Chairman
• Accommodation enterprises
Rogelio L. Singson • Air, land and sea tourist transport services
DPWH Secretary • Travel and tours enterprises
• Other accredited tourism enterprises
Domingo Ramon C. Enerio III
TPB Chief Operating Officer
The Board’s consistent support to
Ramon P. Paje management contributed to the organization’s
DENR Secretary
improved performance and further strengthened
Analiza R. Teh the alignment of corporate objectives with national
DENR Secretary goals.
Mel Senen S. Sarmiento
DILG Secretary Some of the major resolutions approved by the
Board from 2014 to 2015 were:
Austere A. Panadero
DILG Undersecretary
• Approval of the 5-Year Infrastructure
Luwalhati R. Antonino Development Program;
MINDA Secretary
• Relocation of the TIEZA’s main office to
Catherine B. Turvill the proposed Philippine Travel Center
Other Tourism Enterprises in Intramuros District, Manila where the
Lucas M. Nunag DOT and its attached agencies will also be
Accomodation/Enterprise relocated;
• Initial funding for the flagship TEZ projects in
Maria Vida H. Stoifl
San Vicente, Palawan and Rizal Park, Manila;
Air, Sea and Land Transportation Services
• Funding for the master planning of two
Roberto U. Teo more flagship TEZs – the Mt. Samat Shrine of
Travel & Tours Enterprise
Valor in Bataan and the Kapihan Nature and
Roy B. Martin Adventure Park (Bucas Grande) in Socorro,
Tourism Estate Management Surigao del Norte;

ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority 66
 • Funding for the master planning of
one flagship TEZ, the Panglao Bay
Premiere group of properties, owned by
Panglao Bay Premiere Parks and Resorts
Corporation in Panglao, Bohol;
• Approval of the establishment of the TIEZA
Center for Competitive Tourism
• Approval of the TIEZA’s “No Gift Policy”
• Approval of funds for 2015 infrastructure
projects;
• Financial Sponsorship for Diving and
Resort Travel Expo Philippines;
• Approval of the TIEZA’s Guidelines and
Criteria in the grant of Sponsorship and
Financial Assistance;
• Approval of the TIEZA Competency Based
Human Resource System;

Aside from the regular Board meetings, the

Board’s various Committees also held preliminary
discussions of important concerns prior to
endorsement to the Board en banc.

Committee Meeting Committee Meeting

Board of Directors Meeting

67 ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority
The Office of the Corporate Secretary
The Office of the Corporate Secretary
(CORSEC) provided corporate secretarial
services to the TIEZA Board of Directors. It
ensured that all items in the agenda in the
Board Committees or in the Board proper had
undergone through complete staff work and
supported with proper documentations.
The CORSEC facilitated communication
between the Board of Directors and the
TIEZA’s top management, particularly in the
The Internal Audit Department
The Internal Audit Department (IAD)
advises the TIEZA Board on matters related to
management control, financial and operations
audit.
In 2014, the Department conducted several
types of audit in travel tax offices and operating
entities.
Internal Audit Department Accomplishment Report
Period Covered - CY 2015
preparation of the agenda and the scheduling
of meetings. It kept complete records of
the minutes of all Board deliberations and
resolutions, and regularly issued advisories on
the status of pending matters requiring board
action.
In 2015, its accomplishments included field
audits and physical inventory audit. It also
audited the transfer of funds (TOF) to operating
entities and to LGUs.
The IAD presented its audit findings to
the Sectors and Departments as part of the
organization's efforts to continually improve
internal control systems and processes. ⌂
ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority 68
 Corporate
Social
Responsibility I t started in 2012 as a class project of
TIEZA scholars taking up Master’s
degree at the University of the Philippines-
Los Baños. The class conceived the Trees
4 Tourism (T4T), as an advocacy for tree-
planting to promote:

• Sustainable ecotourism
• Disaster prevention
• Climate change protection
• Environmental beautification

Since then, planting trees in sites

identified by the DENR has evolved into
a Corporate Social Responsibility (CSR)
program. In 2013, employees planted trees
in its property, the Hilaga Paskuhan Village
in San Fernando. The following year, more
than 1,000 trees were planted in what used
to be a landfill site in Pintong Bukawe, San
Mateo, Rizal. Last year, we went to Laoag,
Ilocos Norte to plant 1,000 trees in Barangay
Balacad.
 ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority 70
 The TIEZA’s operating entities reached out
to nearby communities not only to promote
harmonious community relations but more
importantly to instill among its employees a
sense of social responsibility.
Employees of the Banaue Hotel and Youth
Hostel and Balicasag Island Dive Resort
distributed school supplies to public school
pupils in their respective communities.
As part of its activities during the Christmas
season last year, the Chief Operating Officer
visited the orphanage run by the Associacion de
Damas de Filipinas in Paco, Manila, where the
TIEZA employees tendered a program of fun and
games. The COO also distributed gifts and food
packages among the orphans. ⌂

71 ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority
 Moving Forward
O ur journey continues. The stream of challenges will flow in different hues and forms,
sometimes predictably, oftentimes unexpectedly.

The prospects of the Philippine tourism industry have never been brighter. The TIEZA
will certainly deliver its commitment, as the country seizes the opportunities to make
tourism truly an “engine for socioeconomic growth.” Calling on the workforce of the TIEZA,
COO Atty. Guiller B. Asido, said:

“… the years to come will see the best of what the organization has to offer, and
what it can contribute fully to the inclusive goal of inclusive growth.”

In the face of the competition among countries regardless of their stage of development,
we are fortunate that the Philippines has one strong competitive advantage: the Filipino.

In his speech before the Makati Business Club three years ago, the DOT Secretary
Ramon R. Jimenez Jr. vividly described this advantage:

“If tomorrow, and around the world, the Philippines was able to successfully
convince investors that solid investment is not about where you invest your money
but whom you will work with, the Philippines will win hands down.”

“The Philippines is the most established business solution in workforces in the

world. It is the established business solution in the healthcare industry. The Filipino
worker is the established business solution in the maritime industry. The Filipino
worker is the established business solution in the BPO industry, and as even people
from Singapore and Malaysia will tell you, the Filipino workforce is the established
business solution in the tourism and hospitality industry.”

“We are sitting on top of a goldmine, because the Filipino is really the most
significant advantage we have as a country.”

With the Filipino’s affinity with tourism, we have hurdled a greater part of the
challenge. Setting in place the right infrastructure will certainly keep us at par, if not
better, than other country destinations. The TIEZA, to the limit of its resources, in
convergence with the private sector and the agencies of government, and in accordance
with its 5-Year Strategic Development Plan for Infrastructure Projects (2016-2020) and the
National Tourism Development Plan, is committed to do just that. ⌂

ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority 72
 Snapshots

Flag ceremony on Mondays goes beyond

the singing of the Philippine National
Anthem, and reciting the Panunumpa
sa Watawat, and Panunumpa ng Kawani
ng Gobyerno. We also reaffirm our
commitment to our vision and mission,
quality policy statement, and strategy
map. It is an occasion for updates:
training schedules, birthdays, office
orders, personnel movements, and
forthcoming events.

Internal communication gets a boost

with the TIEZA’s Intranet. An initiative
of a group of young and enterprising
employees, the website enables the
downloading of forms, posting of
advisories or personal shout-outs, and
creative self-expressions.

Excitement always pops up

on special occasions. Whether
it’s Mother’s Day, Father’s Day,
Valentine’s Day, you can expect
the Administrative Services
Department to come up with a
surprise or two to mark the event.

73 ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority
 Celebration of big and small wins has
become part of our organizational culture.
Individual and organizational achievements
are accorded recognition during the
culminating activities of the month-long
yearly celebration of the Civil Service Week.
Our general assembly, usually held during
the organization’s anniversary celebration,
showcased individual talents.
In the 2014 GCAA Chess Tournament, we
bagged the gold and silver medals in the first
and third boards. The hastily organized team
often played with incomplete line up as some
members had to attend to official duties. In
the same year, we took the GCAA Sportfest
Championship Trophy, and ranked 1st runner-
up in golf and basketball. ⌂
ANNUAL REPORT
Tourism Infrastructure and Enterprise Zone Authority 74
 Credits
I n our first editorial meeting, the staff decided that this two-year report should tell a story. We could
have opted to simply dish out cold numbers and percentages. But that would be less than
fair to the men and women who helped transform our organization to what is today.

We couldn’t recall the last time the PTA press-printed a year-end report. We are certain, however, that
this is TIEZA’s first attempt to do one and upload the same version into our website.

Soon after COO G. B. Asido switched the green light, the indefatigable Corporate Planning Chief
R. A. Gaerlan, organized the editorial staff. Without their support this report would have been just
“a consummation devoutly to be wished.”

We, therefore, wish to acknowledge with gratitude Racquel A. Gaerlan, Atty. Michelle P. M. Sabitsana,
Anna Leah R. Bayot, Carmelita B. Zuñiga; Anthony L. Oriondo, Irene R. Tumaob, Atty. Shangrila C. Quezon,
Ana Ruth L. Mateo, Abigail R. Percela, Nicetas M. Godoy, Guillan F. Castillo, Ruby Amor C. Barraca, Lahren
Lee M. Caranay, Maria Kathleen R. Gamboa, Realyn B. Constantino, Ma. Cecilia C. de la Rosa, and Josie R.
Flores for the initial manuscripts; Raquel S. dela Cruz for the scorecards and Bernadette M. Alvarez for her
report on general services; Mikhael Bryan G. Caluya for coordinating the staff’s tasks;

Dr. Rosanna M. Olgado, Rodolfo E. Ancheta, Florencio V. Abenes, Leonardo M. Mendoza, Godofredo G.
Lapuz Jr., Ma. Evelyne A. Francisco; Atty. Niño Ruperto F. Aquino, Hernando A. Enal, Atty. Ma. Teresa C.
Alvarez; Atty. Ivy V. Asetre, Engr. Resurrecion L. Aspuria; Division Managers Engr. Amelita S. Caganda,
Engr. Eliel Joy A. Sison, Engr. Gregory A. Oller, Josefina U. Soriano, and Emily T. Cariaga for the data and
information from their respective departments; Kate Michelline S. Malano for collecting and checking out
important data;

Front Row: (L-R) Kate Michelline Malano, Realyn Constantino, Maria Kathleen Gamboa, Guillan Castillo, Mary Rose Loperez, Lyka Ellace Dado
Back Row: (L-R) Mark Anthony Virtus, Carmelita Zuniga, Ana Ruth Mateo, Raquel dela Cruz, Racquel Gaerlan, Atty. Michelle Sabitsana, Ma. Cecilia dela Rosa,
Ruby Amor Barraca, Irene Tumaob, Leah Bayot, Mikhael Bryan Caluya, and Fidel Arcenas.
(L-R) Renato de Leon, Mary Rose Loperez, Jose Ramon Ramos, Lyka Ellace Dado, Mark Anthony Virtus, Fidel Arcenas, Kate Michelline Malano, and Rodel Tala

David John D. Pontiga and Odonilo B. San Juan for mapping the locations of infrastructure projects; Rodel
L. Tala, Glory Hope M. Peco, and Renato S. de Leon for some of the photos; Jose Ramon “Ping” L. Ramos
who lent us his skills in graphics and experience in printing; and all those who in one way or the other
contributed to the completion of this report.

We also extend our gratitude and appreciation to our COO, and ACOOs Atty. Joy M. Bulauitan, Jetro
Nicolas F. Lozada, and Engr. Nestor M. Domalanta for their encouragement and support.

On a personal note, I wish to profusely thank Lyka Ellace C. Dado and Mary Rose U. Loperez of MISD, and
Mark Anthony K. Virtus of the TTD who literally pitched tent for weeks in my office as we did the first draft,
countless revisions, and the final layout. Lyka, our InDesign artist and Mark, our go-to-guy for the visuals
and graphics, collaborated on the page make-up. Mary Rose, with her skills in Photoshop, did the design
for a number of info-graphics. For me, working with these three millennials ushered recurring rushes of
déjà vu.

They’ve done their part exceedingly well. Any error in any form in this report is mine - and mine alone.

But you wouldn’t beat an old horse, would you? J

Fidel M. Arcenas
Editor-in-Chief