what is tourism enterprise

Tourism Entrepreneurship: Meaning, Characteristics & Examples

Tourism Entrepreneurship: Meaning, Characteristics & Examples – In the bustling world of travel and exploration, there exists a special breed of individuals who possess a unique blend of vision, innovation, and business acumen. They are the tourism entrepreneurs , creators, and managers of ventures that shape the experiences of travelers while driving economic growth within the tourism industry. But what exactly is tourism entrepreneurship?

This article delves into the meaning, characteristics, and examples of this fascinating field. From identifying opportunities to crafting unforgettable experiences, these entrepreneurs are the driving force behind the development of sustainable tourism ventures. Join us on a journey to explore the world of tourism entrepreneurship and discover the traits that make it a vibrant and essential component of the global travel landscape.

What Is Tourism Entrepreneurship?

Tourism entrepreneurship is an exciting realm where individuals with a passion for travel and a knack for business come together to create and manage ventures within the tourism industry. It involves identifying opportunities and developing innovative ideas to meet the needs and desires of travelers. Think of it as weaving together the threads of adventure, hospitality, and entrepreneurship to craft unique experiences.

Entrepreneurs in the tourism industry are trailblazers who succeed in their endeavors, whether they are launching a boutique hotel that offers distinctive travel experiences or creating an eco-tourism company that combines adventure with environmental protection. They can create deals that stand out from the competition since they have a solid understanding of the shifting demands and preferences of visitors.

Tourism Entrepreneurship is distinguished by its capacity to identify unrealized potential and capitalize on changing trends. Entrepreneurs that are successful concentrate on innovation, offering distinctive services, creating cutting-edge technology, and creating immersive experiences that make an impression on visitors. They make use of experiential tourism trends like farm-to-table food and eco-friendly activities to connect tourists with local culture and encourage sustainable practices.

Sustainability is a fundamental aspect of tourist entrepreneurship because entrepreneurs understand the need of preserving the environment, cultural heritage, and local communities. For instance, a wildlife refuge that prioritizes teaching and conservation boosts environmental awareness while boosting the local economy.

Read – Franchise Business in Entrepreneurship

Tourism Entrepreneurship Definitions

Tourism entrepreneurship is the process of identifying, evaluating, and exploiting opportunities to create new tourism businesses or to introduce new products, services, or practices into existing tourism businesses.  – Sheldon (2017)

Tourism entrepreneurship is the process of creating, organizing, and managing a new tourism venture to turn a profit.  – Aquino et al (2019)

Tourism entrepreneurship is the process of identifying and exploiting opportunities to create new tourism products, services, or experiences that meet the needs of tourists and create value for stakeholders. – Porter (2018)

Tourism entrepreneurship is the process of creating and managing new tourism businesses that are innovative, sustainable, and socially responsible.  – Mottiar (2018)

The process of developing new tourist enterprises that are founded on a thorough grasp of the local context and that contribute to the sustainable growth of the destination is known as tourism entrepreneurship. – Peredo & Wurzelmann (2015)

Tourism entrepreneurship is the process of creating new tourism businesses that are motivated by a desire to make a difference in the world.  – McCarthy (2008)

The process of starting new tourist enterprises that are motivated by a love of travel and a dedication to excellence is known as tourism entrepreneurship. – Jamal & Getz (1995)

Tourism entrepreneurship is the process of creating new tourism businesses that are based on a deep understanding of the tourism market and that can successfully compete in the global marketplace.   –  Crouch (2011)

tourist entrepreneurship is the process of establishing new tourist enterprises that can support the county’s social, economic, and environmental sustainability. – UNWTO (2010)

Read – Start a Business in Europe

Characteristics of Tourism Entrepreneurship

Innovation is a fundamental characteristic of tourism entrepreneurship. Successful tourism entrepreneurs constantly seek to differentiate themselves by introducing new and unique ideas, products, or services into the tourism market. For instance, consider the emergence of glamping (luxury camping) as an innovative concept within the tourism industry. By combining the thrill of outdoor adventure with the comfort and luxury of high-quality accommodation, glamping entrepreneurs have created a distinct niche that attracts travelers seeking a unique and memorable experience.

Market Sensitivity

Tourism entrepreneurs possess a keen awareness of market trends, consumer preferences, and evolving demands. They stay attuned to the changing needs of travelers and adjust their offerings accordingly. An excellent example of market sensitivity is the rise of eco-tourism ventures. Entrepreneurs recognized the growing demand for sustainable travel experiences and developed businesses that offer environmentally friendly activities and accommodations, such as wildlife conservation tours or eco-lodges.

Read – Large Company Entrepreneurship

Risk-Taking

Tourism entrepreneurship inherently involves taking calculated risks. Entrepreneurs are willing to step outside their comfort zones, invest their resources, and navigate uncertainties to pursue their ventures. An illustrative example is the launch of adventure tourism businesses in remote and challenging locations. These entrepreneurs take the risk of establishing operations in unexplored territories, offering activities like mountaineering, extreme sports, or wilderness expeditions, knowing that the thrill-seeking segment of tourists will seek out these unique and adventurous experiences.

Adaptability

The ability to adapt to changing circumstances and seize emerging opportunities is a crucial characteristic of successful tourism entrepreneurs. They understand that the tourism industry is dynamic, influenced by factors like technology advancements, global events, or shifting consumer behaviors. A prime example is the adaptation of traditional tour operators to the digital age. Entrepreneurs have embraced online platforms and booking systems, enabling them to reach a wider audience, provide seamless customer experiences, and respond swiftly to market changes.

Read – Cultural Entrepreneurship

Social Responsibility

Tourism entrepreneurship places a significant emphasis on social responsibility. Entrepreneurs strive to create businesses that not only generate economic benefits but also contribute positively to local communities, cultures, and environments. For instance, community-based tourism initiatives empower residents by involving them in tourism activities, preserving their cultural heritage, and sharing economic benefits. By doing so, entrepreneurs foster sustainable development and create a sense of pride and ownership among the local population.

Collaboration and Networking

Tourism entrepreneurs understand the value of collaboration and networking. They actively engage with stakeholders, including other entrepreneurs, industry professionals, local communities, and government agencies. By building strong partnerships, entrepreneurs can access resources, share knowledge, and create synergistic opportunities. An example is the establishment of destination marketing organizations (DMOs) where entrepreneurs collaborate and local authorities to collectively promote the destination and attract a larger volume of visitors.

Passion and Vision

Passion and a clear vision are vital driving forces for tourism entrepreneurs. They possess a deep love for travel and a genuine desire to make a difference in the industry. Entrepreneurs with a vision create businesses that align with their passions, ensuring they stay motivated and committed to their goals. For instance, an entrepreneur passionate about culinary arts may establish a food tour company that showcases authentic local cuisine, supports local eateries, and promotes culinary traditions to international visitors.

Read – Modern Entrepreneurship

Types of Tourism Entrepreneurship

Accommodation and hospitality.

This type of tourism entrepreneurship involves the establishment and management of accommodation facilities such as hotels, guesthouses, and resorts. Entrepreneurs in this field focus on providing comfortable and enjoyable lodging experiences for tourists. For example, an entrepreneur in the tourism industry may launch a boutique hotel. It offers specialized services, stylish décor, and innovative amenities to appeal to discriminating customers seeking a premium and memorable stay.

Food and Beverage

Food and beverage entrepreneurship in tourism revolves around creating dining experiences for travelers. Entrepreneurs in this domain establish restaurants, cafes, food trucks, or specialty food businesses that cater to the culinary preferences of tourists. They aim to offer delicious and diverse cuisine options, ranging from local delicacies to international flavors. An example is an entrepreneur who opens a seafood restaurant in a coastal destination, serving freshly caught seafood dishes to tourists who crave an authentic taste of the local marine cuisine.

Read – Corporate Partnerships

Adventure and Outdoor Recreation

Adventure and outdoor recreation tourism entrepreneurship focus on providing exciting and adventurous activities for travelers seeking thrilling experiences. Entrepreneurs in this field create ventures such as adventure tour companies, water sports centers, hiking, and trekking expeditions, or wildlife safaris. They cater to the interests of adventure enthusiasts by offering activities like white-water rafting, zip-lining, mountain biking, or wildlife encounters. For instance, an entrepreneur may establish a company that offers guided rock climbing trips in picturesque natural landscapes, providing adrenaline-pumping experiences for adventurous travelers.

Cultural and Heritage

Cultural and heritage tourism entrepreneurship centers around showcasing the local culture, traditions, and historical attractions of a destination. Entrepreneurs in this field create businesses such as guided heritage tours, cultural performances, museums, art galleries, or craft workshops. They aim to preserve and promote the cultural identity of a place while providing educational and enriching experiences for visitors. For example, an entrepreneur may establish a cultural center that offers interactive workshops on traditional arts and crafts, allowing tourists to engage with the local culture and learn traditional craftsmanship.

Read – Modern Business

Sustainable and Ecotourism

Sustainable and ecotourism entrepreneurship focuses on developing businesses that prioritize environmental conservation and sustainable practices. Entrepreneurs in this realm establish eco-lodges, nature-based tour operators, wildlife conservation initiatives, or sustainable transportation services. They aim to minimize the negative impact on the environment while promoting nature appreciation and conservation. An example is an entrepreneur who starts an eco-tour company offering guided hikes in protected areas, emphasizing the importance of preserving natural habitats and educating tourists about sustainable practices.

Specialized and Niche Tourism

Specialized and niche tourism entrepreneurship involves catering to specific interests, hobbies, or target markets within the tourism industry. Entrepreneurs in this category create ventures such as wellness retreats, wine and culinary tours, photography expeditions, adventure sports, or cultural festivals. They focus on providing tailored experiences and catering to the unique needs and preferences of niche segments. For instance, an entrepreneur may establish a company that offers guided bird-watching tours for bird enthusiasts, providing expert guides, specialized equipment, and access to prime bird-watching locations.

Read – C an Anyone Be an Entrepreneur

Popular Examples of Tourism Entrepreneurship

Founded in 2008, Airbnb is a prime example of tourism entrepreneurship. It revolutionized the accommodation sector by providing a platform for homeowners to rent out their properties to travelers. This innovative concept enabled individuals to become tourism entrepreneurs by turning their spare rooms or vacant properties into profitable accommodations. Airbnb disrupted the traditional hotel industry and opened up new opportunities for individuals to participate in the tourism economy.

G Adventures

G Adventures is a renowned adventure travel company that offers small group tours to destinations worldwide. Founded in 1990, it exemplifies tourism entrepreneurship in the adventure and outdoor recreation sector. The company was started by Bruce Poon Tip to provide authentic and sustainable travel experiences. G Adventures focuses on responsible tourism practices, supports local communities, and offers unique adventure itineraries, appealing to travelers seeking immersive and socially responsible experiences.

Lonely Planet

Lonely Planet is a well-known travel guidebook publisher that has been a trusted source of travel information for over four decades. Founded in 1973 by Tony Wheeler and his wife Maureen, it reflects tourism entrepreneurship in the publishing industry. Their travel guides provide comprehensive information, tips, and recommendations for travelers, enabling them to explore destinations independently. The secret to Lonely Planet’s success is its capability to satisfy the demands of curiosity. Also, daring visitors looking for real-world encounters.

Read – Businessman vs Entrepreneur

Viator is an online travel agency. They provide a large choice of tours, experiences, and activities in places all over the world. Rod Cuthbert launched it in 1995, and it is now a major participant in the tours and activities industry. Viator connects travelers with local tour operators, allowing them to book unique experiences conveniently. This platform showcases the entrepreneurial spirit by bringing together various tourism service providers and offering curated experiences for tourists.

Rick Steves’ Europe

Rick Steves, an American travel writer and television personality, is an example of an individual entrepreneur who has made significant contributions to tourism entrepreneurship. He has built a brand focused on European travel, sharing his expertise through guidebooks, television shows, and tours. Rick Steves’ Europe provides valuable insights, cultural information, and practical advice to travelers interested in exploring Europe independently. His entrepreneurial journey demonstrates how a passion for travel can be turned into a successful tourism enterprise.

The process of planning, establishing, and running new businesses within the tourist sector is referred to as tourism entrepreneurship . It is essential for promoting innovation, economic expansion, and job creation. tourism entrepreneurs display traits like innovation, flexibility, and a love for their business. They aid in the creation of distinctive tourism goods, services, and experiences through their entrepreneurial initiatives, which meet the changing demands of tourists.

The examples of Airbnb, G Adventures, Lonely Planet, Viator, and Rick Steves’ Europe showcase the diverse range of entrepreneurial ventures within the tourism sector. Ultimately, tourism entrepreneurship not only benefits individuals and businesses but also contributes to the overall sustainability and vibrancy of the tourism industry.

FAQs about Tourism Entrepreneurship

Why is entrepreneurship important in tourism.

Entrepreneurship is important in tourism as it drives innovation. Also, it boosts economic growth, and produces employment opportunities, leading to a vibrant and passionate tourism industry.

How can you relate entrepreneurship to tourism?

Entrepreneurship in tourism is evident through the creation of new businesses, innovative products, and unique experiences that cater to the evolving needs and desires of travelers.

What are the qualities of a tourism entrepreneur?

Qualities of a successful tourism entrepreneur include creativity, adaptability, passion for the industry, strong business acumen, a customer-centric mindset, and a willingness to take calculated risks.

What are the entrepreneurial opportunities in tourism?

Entrepreneurial opportunities in tourism encompass various areas such as starting accommodation establishments, developing niche tours and activities, leveraging technology for online booking platforms, and promoting sustainable and responsible tourism practices.

Why is entrepreneurship important in hospitality and tourism?

Entrepreneurship plays a vital role in hospitality and tourism by driving competitiveness, spurring the development of new hospitality ventures, enhancing guest experiences through innovative services, and contributing to the overall growth and success of the industry.

Similar Posts

Strategic Entrepreneurship: Meaning, Characteristics & Examples

The entrepreneurial aspect of strategic entrepreneurship focuses on finding opportunities to take advantage of through innovation, while the strategic aspect considers the best method to manage the firm’s innovation initiatives. A company may pursue strategic entrepreneurship for a variety of objectives, such as boosting organizational profitability, strengthening its position in the market, or revitalizing existing firms.

Barriers to Entrepreneurship with Solutions (fully explained)

Barriers to entrepreneurship are the frameable perceptions in entrepreneurs’ minds concerning starting and managing new businesses. But some barriers are depends on entrepreneurs’ internal weaknesses, their countries’ economic status, culture and the political environment. Barriers are obstructions that prevent movement in entrepreneurs’ journey.

Collective Entrepreneurship: Meaning, Characteristics & Examples

The past few years indicate that teams are what generate business opportunities. The global entrepreneurial climate is beginning to value collective entrepreneurship more than heroic individual enterprise. Throughout the entrepreneurial process, collective dimensions take precedence over individual dimensions, and the percentage of new companies founded by teams is steadily rising.

Business Administration and Entrepreneurship: Beyond Boundaries

In Business Administration, you navigate the currents. In Entrepreneurship, you create the waves. This is said by renowned author and motivational speaker Simon Sinek. The beautifully encapsulates the dynamic essence of our entrepreneurial journey. As we delve into the realms of Business Administration and Entrepreneurship, we embark on a voyage beyond boundaries.

Wealth Management for Entrepreneurs: Protecting Your Wealth

The single biggest mistake entrepreneurs make is neglecting their financial house, emphasizing the necessity of responsible wealth management as a luxury rather than a luxury. Entrepreneurial passion can lead to neglect of wealth, as noted by Barbara Corcoran, Investor and Shark Tank Personality. In this comprehensive guide, we delve into the heart of wealth management for entrepreneurs. We unravelling its essence, exploring the unique financial challenges faced by visionaries like you. Then we emphasise the paramount importance of tailoring financial strategies to ensure entrepreneurial success.

Product Planning Process: Secret Weapon for Winning Products

The product planning process is not a straight line from idea to launch. It’s a journey of discovery, iteration, and adaptation. In the entrepreneurial landscape, where innovation is the heartbeat. Mastering the Product Planning Process is nothing short of wielding a secret weapon for crafting winning products.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

To read this content please select one of the options below:

Please note you do not have access to teaching notes, entrepreneurship and entrepreneurs in tourism.

The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality

ISBN : 978-1-78743-530-8 , eISBN : 978-1-78743-529-2

Publication date: 11 July 2018

The aim of this chapter is to discuss and highlight the importance of entrepreneurship and entrepreneurs in tourism in order to engage the reader in the central topic of the handbook.

Methodology/approach

A literature review was conducted on conceptual issues and practical aspects of entrepreneurs and entrepreneurship. Case studies are included to illustrate the role and contribution of entrepreneurs in the tourism field.

This chapter highlights (1) practical definitions of the terms entrepreneurs and entrepreneurship; (2) main features of tourism entrepreneurs; and (3) the role of entrepreneurs in tourism activities and their contribution to the development of a tourism destination.

Research limitations/implications

This chapter is explorative in nature, because the discussion is mostly based on a literature review. Thus, more research-based knowledge and more empirical studies are needed in this field.

Practical implications

The chapter presents the main features and characteristics of individuals involved in entrepreneurship, as well as the need for developing the appropriate skills for successful business ventures.

Originality/value

This chapter deals with the question of why tourism entrepreneurship is so important in the contemporary context and in the business environment of tourism. The practical and entrepreneurial approach of the book is also discussed.

• Entrepreneurs
• Entrepreneurship
• Tourism-related industries
• Contribution

Sotiriadis, M. (2018), "Entrepreneurship and Entrepreneurs in Tourism", Sotiriadis, M. (Ed.) The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality , Emerald Publishing Limited, Leeds, pp. 3-17. https://doi.org/10.1108/978-1-78743-529-220181001

Emerald Publishing Limited

Copyright © 2018 Emerald Publishing Limited

We’re listening — tell us what you think

Something didn’t work….

Report bugs here

All feedback is valuable

Please share your general feedback

Join us on our journey

Platform update page.

Visit emeraldpublishing.com/platformupdate to discover the latest news and updates

Questions & More Information

Answers to the most commonly asked questions here

Entrepreneurship in Tourism

• Living reference work entry
• Latest version View entry history
• First Online: 02 September 2023
• Cite this living reference work entry

• Zhaoping (George) Liu 3 &
• Cathy A. Enz 4  

14 Accesses

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Cooper, A. 2003. Entrepreneurship. In Handbook of entrepreneurship research , ed. Z. Ács and D. Audretsch, 21–34. Boston: Kluwer.

Google Scholar  

Fu, H., F. Okumus, K. Wu, and M. Köseoglu. 2019. The entrepreneurship research in hospitality and tourism. International Journal of Hospitality Management 78: 1–12.

Article   Google Scholar  

Li, L. 2008. A review of entrepreneurship research published in the hospitality and tourism management journals. Tourism Management 29: 1013–1022.

Mottiar, Z. 2016. Exploring the motivations of tourism social entrepreneurs. International Journal of Contemporary Hospitality Management 28: 1137–1154.

Sarasvathy, S., N. Dew, R. Velamuri, and S. Venkataraman. 2003. Three views of entrepreneurial opportunity. In Handbook of entrepreneurship research , ed. Z. Ács and D. Audretsch, 141–160. Boston: Kluwer.

Chapter   Google Scholar  

Shane, S., and S. Venkataraman. 2000. The promise of entrepreneurship as a field of research. Academy of Management Review 25: 217–226.

Solvoll, S., G. Alsos, and O. Bulanova. 2015. Tourism entrepreneurship – Review and future directions. Scandinavian Journal of Hospitality and Tourism 15 (supplement 1): 120–137.

Download references

Author information

Authors and affiliations.

Singapore Institute of Technology, Singapore, Singapore

Zhaoping (George) Liu

Cornell University, Ithaca, USA

Cathy A. Enz

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Zhaoping (George) Liu .

Editor information

Editors and affiliations.

School of Hospitality Leadership, University of Wisconsin-Stout, Menomonie, WI, USA

Jafar Jafari

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, Hong Kong

Honggen Xiao

Section Editor information

Makerere University Business School, Kampala, Uganda

Peter U. C. Dieke PhD

Rights and permissions

Reprints and permissions

Copyright information

© 2023 Springer Nature Switzerland AG

About this entry

Cite this entry.

Liu, Z.(., Enz, C.A. (2023). Entrepreneurship in Tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_70-2

Download citation

DOI : https://doi.org/10.1007/978-3-319-01669-6_70-2

Received : 20 April 2021

Accepted : 20 October 2022

Published : 02 September 2023

Publisher Name : Springer, Cham

Print ISBN : 978-3-319-01669-6

Online ISBN : 978-3-319-01669-6

eBook Packages : Springer Reference Business and Management Reference Module Humanities and Social Sciences Reference Module Business, Economics and Social Sciences

• Publish with us

Policies and ethics

Chapter history

DOI: https://doi.org/10.1007/978-3-319-01669-6_70-2

DOI: https://doi.org/10.1007/978-3-319-01669-6_70-1

• Find a journal
• Track your research

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

U.S. Department of Commerce

• Fact Sheets

Was this page helpful?

Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

• Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
• Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
• Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
• Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

• The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
• Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
• The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
• The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
• By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

Share this page

WHAT IS TOURISM ENTERPRISE ZONE?

Image Source

Published — December 17, 2020 

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Foreign lease for tourism projects: Long-term foreign lease over lands in the Philippines

Tourism Enterprise Zones have historical and cultural significance

Tourism enterprise zones may be further utilized for bringing new investments in tourism establishments and services, registration as tourism i enterprise where appropriate, is encouraged.

M an cannot discover new oceans unless he has the courage to lose sight of the shore. – Andre Paul Guillaume Gide

Tourism industry is one of the most affected sectors by the COVID-19 Pandemic. Currently, the national and the Local Government Units are hand in hand boosting the tourism industry. However, take note that even before the Pandemic, Republic Act No. 9593 or the Tourism Act of 2009 , as one of the government’s engine in amplifying the tourism industry, was already implemented.

What is Tourism Enterprise Zone?

The law says:

Any geographic area with the following characteristics or features may be designated as Tourism Enterprise Zone (TEZ):

• The area is capable of being defined into one contiguous territory;
• It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;
• It has, or it may have strategic access through transportation infrastructure, and reasonable connection with utilities infrastructure systems:
• It is sufficient in size, such that it may further be utilized for brining new investments in tourism establishments and services; and
• It is in a strategic location such as to catalyze the socioeconomic development of neighboring communities.

When may a particular area or territory be designated as TEZ?

A particular area or territory may be considered as TEZ when designated as such by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) upon the recommendation of any Local Government Unit (LGU) or private entity, or through joint ventures between the public and the private sectors.

The application for designation as a TEZ must be accompanied by a development plan which shall, consistent with the principles of economic, cultural and environmentally sustainable development. It shall specifically identify the following:

• Tourism focal points and resources available within the proposed TEZ and adjoining areas;
• Features which satisfy the requisites for designation of a TEZ;
• Areas for infrastructure development, for investment, and for preservation, as well as the kind of development nature of investment or sustainable activities allowed within preserved areas, respectively;
• Medium-and long-term studies on market trends, and corresponding development strategies for the TEZ;
• Studies on the environmental, cultural and social carrying capacity of the TEZ and surrounding communities;
• Design plans for structures which incorporate design and sustainability principles from architecture and the surrounding environment; and
• Such other information that the TIEZA may require.

Are there incentives for Tourism Enterprise Zone Operators? A related article will be posted in a few days.

Alburo Alburo and Associates Law Offices  specializes in business law and labor law consulting. For inquiries, you may reach us at [email protected], or dial us at (02)7745-4391/0917-5772207.

All rights reserved.

SUBSCRIBE NOW FOR MORE LEGAL UPDATES!

[email-subscribers-form id=”4″]

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

• Toggle Accessibility Statement
• Skip to Main Content

Tourism Enterprise Zone

A TEZ is a tract of land with defined boundaries master planned to be developed into an integrated tourism complex prescribed carrying capacities to host tourism enterprise facilities and services within the property; and designated as such as by the TIEZA Board under R.A.9593.

It refers to an area with existing infrastructure or tourism related development as determined by TIEZA with a minimum area of five (5) hectares.

It refers to an area with minimal or no existing infrastructure and  tourism related development as determined by TIEZA with a minimum area  of five (5) hectares.

WHO MAY QUALIFY TO APPLY AS A TOURISM ENTERPRISE ZONE?

Any geographic area with the following characteristics may be designated as a Tourism Enterprise Zone:

• The area is capable of being defined into one contiguous territory;
• It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it;
• It has, or it may have, strategic access through transportation infrastructure, and reasonable connection with utilities infrastructure systems;
• It must be at least five (5) hectares and sufficient in size, such that it may be further utilized for bringing in new investments in tourism establishments and services. Provided that, in extremely meritorious cases, an area less than five (5) hectares may be developed as a TEZ if the Board deems it sufficient for the purposes, requirements and nature of the tourism project to be undertaken therein;
• It is in a strategic location such as to stimulate the sustainable socio-economic development of neighboring communities.
• The area must be situated where controls can easily be established to curtail illegal activities. The dispersal of economic activities in the least developed areas in the countryside is encouraged. An area in any of the least developed areas identified in the annual Investment Priorities Plan (IPP) shall be given priority in the designation as a Tourism Enterprise Zone.

WHO MAY QUALIFY TO APPLY AS ITS OPERATOR?

• Any entity duly incorporated under the Corporation Code and other relevant laws, or
• Any Local Government Unit (LGU) or any instrumentality of the government in the pursuit of their mandate

CLASSIFICATION OF TOURISM ENTERPRISE ZONES

Cultural Heritage Tourism Zone – Areas that will allow the tourist to experience the places, artifacts and activities that authentically represent the stories of the people living in the area, past or present. The area may include, but will not be limited to:

• Cultural landscapes;
• Historic sites, areas and precincts;
• Ruins, archaeological and maritime sites;
• Sites associated with industrial, scientific and agricultural heritage;
• Collections that house or collectively promote objects of heritage significance;
• Historic places and areas, including villages, small towns, cities and parts of larger urban areas with significant cultural and heritage assets; and
• Museums, Art Galleries, Cultural Centers, Arts & Crafts Shops, and Antique Shops, and Cultural Sites.

Health and Wellness Tourism Zone – Areas that will allow visitors to avail of quality but affordable mainstream, traditional, or alternative healthcare services for treatment of illnesses and health problems in order to maintain one’s health and well-being. The area may include, but will not be limited to enterprises that are, or offer:

• Medical and Allied Services;
• Health Farms;
• Counselling and Rehabilitation Services; and
• Traditional Filipino Touch Therapy.

Eco-Tourism Zone – Areas that will allow visitors to experience a form of sustainable tourism within a given natural and/or cultural area where community participation, conservation and management of biodiversity, respect for culture and indigenous knowledge systems and practices, environmental education and ethics as well as economic benefits are fostered and pursued for the enrichment of host communities and satisfaction of visitors. The area may include, but will not be limited to:

• Sites of scenic natural or rural beauty;
• Areas for observing wildlife;
• Areas for low impact activities such as camping, trekking, climbing, spelunking, diving, surfing, and other similar activities; and
• Sites for observing and interacting with traditional or indigenous practices in relation to the environment.

General Leisure Tourism Zone – Areas that may offer recreational facilities that will have high visitor density. The area may include, but will not be limited to:,/p>

• Golf Parks/Resorts;
• Theme Parks and Amusement Centers;
• Convention and Meeting Centers;
• Sports Complexes/Resorts;
• Event Centers/Resorts;
• Department Stores/Restaurants/Shops; and;

Mixed Use Tourism Zone – Areas that will allow a combination of some or all of the features of the aforementioned zones within one area. Retirement communities and facilities duly accredited by the Philippine Retirement Authority may be located in General Leisure Tourism Zones, Health and Wellness Tourism Zones and Mixed-used Tourism Zones.

INVESTMENT REQUIREMENTS

The minimum amount of investment required to be entitled to incentives provided under the Act shall not be less than Five Million US Dollars (US $5,000,000.00) exclusive of land acquisition costs . Provided that, in extremely meritorious cases, an amount less than Five Million US Dollars (US $5,000,000.00) may be invested for a Cultural Heritage Tourism Zone or an Eco-Tourism Zone if the Board deems it sufficient for the purposes, requirements and nature of the tourism project to be undertaken therein.

Documentary Requirements for designation

• Duly accomplished TIEZA Application Form;
• SEC Registration Certificate, copies of the articles of incorporation and by-laws; in case of a joint venture, a copy of the joint venture agreement;
• Company Profile, containing basic data/ information on its technical, financial, marketing and management capability/ competence to undertake the proposed project;
• Resolution of the applicant’s board of directors authorizing the filing of the application and the designation of their authorized representative to TIEZA; list of its directors, principal officers, and major stockholders, including their respective bio-data. In the case of an instrumentality of the national government acting in pursuit of its mandate and/or a local government unit an authority from the Head of Agency or Local Chief Executive authorizing the filing of the application and the designation of their authorized representative to TIEZA;
• Vicinity Map reflecting various land uses, important verifiable landmarks within the five (5) kilometers radius of the project site, proximity to transportation and utilities infrastructure, and tourism focal points in the vicinity and their distances from the project site;
• Proof of land ownership and/ or Long-Term Lease Agreement(s) for a period of not less than twenty five (25) years on the entire area of the proposed TEZ ;
• Endorsement letter from the National Historical Institute (NHI) in the case of Cultural and Heritage Tourism Zone, from the Department of Health (DOH) in the case of Health and Wellness Tourism Zone; or from Philippine Retirement Authority (PRA) in the case of retirement villages/communities; and
• Other supporting documents/ papers/ clearances as may be required by the TIEZA depending upon the nature of the business and the type of business organization of the applicant.
• Resolution of the concerned LGU approving the development plan;
• Copy of the approved Comprehensive Land Use Plan of the concerned LGU;
• Verified survey returns and technical description of the land area for the proposed TEZ;
• Environmental Compliance Certificate issued by the Department of Environment and Natural Resources (DENR);
• Clearance/Permit from the concerned Protected Area Management Board if the proposed zone is within a Protected Area;
• Financial statement for (3) years for existing companies;
• Tourism focal points and resources available within the proposed TEZ and adjoining areas;
• Features which satisfy the requisites for the designation of a TEZ enumerated under Section 2, Rule II of these Rules;
• Amount to be invested by the applicant in the area;
• Areas for infrastructure development and the kind of development, for investment and the nature of investment, and for preservation and the sustainable activities allowed within preserved areas;
• Public utilities to be operated within the TEZ;
• Medium and long-term studies on market trends, and corresponding development strategies for the TEZ;
• Studies on the economic impact of development within the TEZ and in surrounding communities;
• Studies on the carrying capacity of the TEZ and surrounding communities;
• Design plans for structures incorporating therein measures that should ensure the sustainable development of the area and the surrounding environment, to include the following: the civil and architectural plans that preferably incorporates Philippine design elements and cultural heritage, structural plans, electrical, mechanical, sanitation and design computations, cost estimates and specifications, financial schedules and construction timetable;
• Energy efficiency and climate change mitigation measures to be adopted and implemented in the area; and
• Infrastructure Requirements;
• Setback Requirements;
• Consumption of natural resources;
• Sewerage Disposal System;
• Surface Water Disposal;
• Safety and security;
• Site Coverage Density;
• Landscaping;
• Visual Security;
• Vehicle Parking;
• Waste Water Treatment; and
• Ventilation Requirements.
• Cost-benefit Analysis Form

Applicaton Form

Schedule of fees.