Title
Creation of Tourism Dept., Authority
Law
Presidential Decree No. 189
Decision Date
May 11, 1973
Presidential Decree No. 189 establishes the Department of Tourism in the Philippines to develop and promote the tourist industry, with the aim of attracting international visitors and fostering appreciation for the country's natural beauty, history, and culture.

Questions (PRESIDENTIAL DECREE NO. 189)

It declares as policy to make the tourist industry a positive instrument toward accelerated national development—encouraging foreign visitors to better appreciate the Philippines and enabling Filipinos to learn more about the country’s natural beauty, history, and culture, thereby strengthening pride and commitment to the nation.

PD 189 amends Part IX of the Integrated Reorganization Plan by renaming the “Department of Trade and Tourism” as the “Department of Trade” and creating a new “Department of Tourism,” with a Philippine Tourist Authority attached to it.

Authority and responsibility are vested in the Secretary of Tourism, who is assisted by one Undersecretary.

Examples include: (1) supervise government tourism activities; (2) remove unnecessary barriers to travel and ensure efficient, fair, courteous enforcement of travel regulations; (3) formulate integrated tourism promotion and publicity programs; (4) review tourism projects involving government loans and approve tourism projects/firms applying for tax incentives under the Export Incentives Act before the Board of Investments acts; (5) represent the government in tourism-related conferences and treaty commitments; (6) license, regulate, and supervise travel agents, tour operators, and tour guides; (7) classify, regulate, supervise, and license tourist facilities and regulate standards/fees.

PD 189 provides that the Department shall have an Administrative Service, a Planning Service, and a Financial and Management Service, conforming with Part II of the Integrated Reorganization Plan.

Two bureaus are created: (1) Bureau of Tourist Promotion—responsible for public relations, promotion, publicity, publications, audiovisual materials, and participation in travel fairs; and (2) Bureau of Special Services—includes Tourist Reception and Licensing/Inspection functions for hospitable reception and regulation/licensing of tourism-related businesses.

It coordinates with other agencies (government or private) to assure hospitable reception of tourists, including information centers at strategic locations; and, when necessary, maintains a security force for tourist security and assistance and provides investigative services to tourists needing help.

It prepares and maintains a register of businesses and establishments that provide transportation, accommodation, or other services to tourists; regulates and licenses travel agencies, tour operators, and tour guides; classifies/regulates/licenses accommodations and related facilities according to standards and guidelines; and supervises operations of facilities/services that cater to or relate to travelers.

It is created as the Philippine Tourism Authority attached to the Department of Tourism, and its functions are declared to be governmental.

Examples include: implementing Department policies/programs on project development; collecting taxes provided by law; operating/contracting functional units for tourism purposes; extending assistance to private enterprise for tourist projects; developing tourist attractions and feasibility studies; recommending agreements with private entities for tourist plant/facilities development; providing and maintaining essential tourist facilities where private enterprise is not prepared; and powers such as using a corporate seal, contracting, leasing/owning/disposal of property, suing and being sued, and doing acts necessary/proper to carry out the purposes.

Capital consists of: (1) existing assets transferred from the Board of Travel and Tourist Industry and the Philippine Tourist and Travel Association, plus other government-contributed properties; and (2) taxes under Republic Act No. 1478 and Republic Act No. 6141. Hotel room taxes collected under existing laws are also assigned to the Authority as part of its capital.

The Board has the Secretary of Tourism as Chairman, the General Manager as Vice Chairman, and three part-time members appointed by the President for their expertise.

The Board meets regularly once a month and as often as required. Quorum is the presence of at least three members. Adoption of any rule, resolution, decision, or act requires the vote of three members.

All properties, monies, assets, rights, choses in action, obligations, liabilities, records, and contracts of the defunct Board continue to be vested in and assumed by the Authority as a government corporation. The Board of Directors determines which personnel of the defunct Board are absorbed by the Authority.

The charter is rescinded under PD 189, without prejudice to its continuing as a duly registered private corporation; any assets derived from the government subsidy under that charter shall be transferred to the Authority.


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