Franchising Tourist Bus Services LTFRB 1996

The circular recognizes tourism requirements in priority tourism areas, including Metro Manila, and the forthcoming Asia Pacific Economic Conference.
The circular treats the need for tourist transport facilities as having been quantified by the Department of Tourism (DOT).
The DOT-quantified unit needs are 1,290 units for Luzon, 360 units for Visayas, and 480 units for Mindanao, for a Total of 2,130 units.
The LTFRB aims to upgrade present tourist transportation facilities through the franchising process described in the circular.

The circular is implemented pursuant to a Memorandum of Agreement entered into among the LTFRB, DOT, and LTO dated 20 June 1996.
The circular incorporates an incentive acquisition marker linked to E.O. 226 (1987) for units acquired with incentives.
The circular provides an effectivity rule tied to Presidential Memorandum Circular No. 11 (09 October 1992) and requires filing with the U.P. Law Center.

New and expanding operators are entitled to franchising by the LTFRB for tourist buses, coaches, and mini-buses.
Individual operators must be Filipino citizens.
Partnerships and corporations must be 60% Filipino owned.
Each tourist transport operator must operate a minimum of three (3) units.

Operators must be endorsed by the DOT before the LTFRB issues their corresponding Certificates of Public Convenience.
Before issuance of the certificate, operators must have existing garages with equipment for maintenance and repairs.
Garage capability must be shown to be located in areas not covered by existing prohibitions identified by the Metro Manila Development Authority and the LTFRB.
Operators must attach pictures of the garages to the application, and the garages are subject to inspection by the Board.

Units franchised for tourism purposes must not exceed an age limit of ten (10) years for buses, coaches and mini-buses, reckoned from the year of manufacture.
The determination of compliance with the age limit is to be made by the DOT.
Every franchised unit must have the following mark inscribed conspicuously thereon:
- “ACQUIRED WITH INCENTIVES PURSUANT TO THE PROVISIONS OF E.O. 226 SERIES OF 1987”.

Operators must comply with the terms and conditions of their Certificates of Public Convenience.
The circular specifically prohibits operating franchised tourist units as regular first class air-conditioned buses on a fixed route catering to the general riding public.
Violations of the terms and conditions—“particularly” the fixed-route regular first class prohibition—trigger franchise cancellation consequences under the circular.

The LTFRB will start accepting applications for Certificates of Public Convenience to operate tourist buses, coaches, and mini-buses at the time the circular takes effect.
Acceptance continues until the total number of units indicated by the DOT is reached, which is 2,130.
Once the total 2,130 units are reached, the LTFRB will close acceptance for filing of further applications until further notice.

Operators found operating in violation of certificate terms and conditions, particularly the prohibition on operating as regular first class air-conditioned buses on fixed routes for the general riding public, are penalized with franchise cancellation.
Operators whose DOT accreditation has been revoked are also penalized with franchise cancellation.
Franchise cancellation under these grounds requires a hearing.
Cancellation is done upon recommendation of the DOT.

The circular takes effect fifteen (15) days after the filing of three (3) copies of the circular with the U.P. Law Center.
The filing rule follows Presidential Memorandum Circular No. 11, dated 09 October 1992.
The circular is adopted on 28 June 1996.