Question & AnswerQ&A (Republic Act No. 2627)
The main purpose of the Board is to regulate travel and tourism with a view to the development of a prosperous Philippine tourist industry.
The Board is composed of the Secretary of Commerce as Chairman; the undersecretaries of Foreign Affairs, Finance, Justice, and Public Works and Communications; the President of the Philippine Chamber of Commerce; the President of the Philippine Tourist and Travel Association; and the Commissioner of Tourism who serves as executive vice chairman.
The Board is tasked to coordinate the activities of all government agencies concerned with travel and tourism.
The Board shall undertake the development of tourist attractions and provide and maintain essential facilities for tourists where private enterprises are unwilling to do so. It can also extend assistance to private enterprises for tourism projects on a loan basis with specific terms.
Loans must be supported with adequate collateral, carry a yearly interest of three percent, payable in no more than ten installments, and the recipient must provide a counterpart amount equal to the loan.
Up to 50% of collections go to the Board’s funds for general tourism development. The rest is allocated for restoration, rehabilitation, acquisition or development of tourist facilities with historical or cultural value, and for foreign publicity, advertising, and sales promotion.
Not less than one-third but not more than one-half of the said balance shall be used for foreign operations. The Central Bank is responsible for providing the foreign exchange as certified by and applied for by the Board.
The Board has exclusive authority to regulate the travel agency business, including establishing rules for operation and licensing requirements.
The Board can fix and collect an annual license fee up to one hundred pesos per year.
No, it is unlawful to engage in the travel agency business without being licensed by the Board of Travel and Tourist Industry.
A new paragraph (e) was added providing that the Board may effect other measures deemed necessary to carry out the objectives of the Act.
The Act took effect upon its approval on June 17, 1960.