Title
Amendment to Travel and Tourist Industry Act
Law
Republic Act No. 2627
Decision Date
Jun 17, 1960
The amendment establishes a Board of Travel and Tourist Industry, led by the Secretary of Commerce, to regulate and develop the Philippine tourism sector, coordinate government activities, and oversee travel agency operations while providing financial assistance for tourism projects.
A

Coordination and Development Functions of the Board

  • Coordinates activities of all government agencies concerning travel and tourism.
  • Develops tourist attractions and maintains essential facilities where private enterprise is unwilling or unable.
  • May extend assistance to private enterprises for tourism projects.
  • Assistance terms:
    • Provided as a loan with adequate collateral.
    • Yearly interest of 3%.
    • Payable in up to ten-year installments.
    • Recipient must provide counterpart funding equal to the assistance.

Allocation and Use of Board Funds

  • Up to 50% of collections under relevant sections accrue to the Board's funds.
  • Funds spent exclusively for:
    • General development of tourist facilities.
    • Promotion of tourism.
  • Remaining balance allocated specifically for:
    • Restoration, rehabilitation, acquisition, or development of tourist plants, facilities, conveniences, and historical/cultural attractions.
    • Foreign publicity, advertising, and sales promotion.
  • Foreign operations funding:
    • Between one-third and one-half of the balance must be used.
    • Central Bank to provide necessary foreign exchange upon Board certification and application.

Regulation of the Travel Agency Business

  • Board holds exclusive authority to regulate travel agency businesses in any form.
  • Empowered to prescribe rules for establishment and operation.
  • Authority to fix and collect an annual license fee, not exceeding one hundred pesos.
  • Prohibits unlicensed individuals or firms from engaging in the travel agency business.

Additional Powers of the Board

  • Empowered to effect any other necessary measures to achieve the Act’s objectives.

Effective Date

  • The Act took effect immediately upon approval on June 17, 1960.

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