Creation of Tourism Dept., Authority

Policy declaration and purpose

Section 1 declares government policy to use the tourist industry as a positive instrument toward accelerated national development.
The policy aims to bring more people from other lands to visit and better appreciate the Philippines.
The policy also aims to enable Filipinos to learn more about the natural beauty, history and culture of the country, fostering greater pride in and commitment to the nation.
The Decree is grounded on the need to realign government efforts and prioritize tourism development to address administrative and organizational problems affecting the tourism program.

Creation of Department of Tourism

Section 2 creates a Department of Tourism as a primary policy, planning, programming, coordinating, and administrative entity of the executive branch for tourism development, both domestic and international.
Section 3 vests the authority and responsibility for the Department in the Secretary of Tourism, who is assisted by one Undersecretary.
The Department is tasked with overall executive functions for tourism under the reorganization framework referenced in Part IX of the Integrated Reorganization Plan.

Department functions and regulatory powers

Section 4 requires the Department to supervise all government activities concerning tourism.
The Department must remove unnecessary barriers to travel, integrate and simplify travel regulations, and ensure their efficient, fair and courteous enforcement for expeditious and hospitable reception of visitors.
The Department must formulate an integrated program of promotion and publicity to attract people abroad to visit the Philippines and patronize things Philippine, and to enhance the prestige of both Filipinos and the Republic.
The Department must review all tourism projects involving loans from government financial institutions before those institutions may act.
The Department must approve tourism projects and firms applying for tax incentives under the Export Incentives Act, as amended by Presidential Decree No. 92, before the Board of Investments may act.
The Department must represent the Government in tourism and travel conferences and meetings and discharge government responsibilities arising from treaties, agreements, and other tourism commitments where the Philippines is a signatory.
The Department must license, regulate and supervise travel agents, tour operators and tour guides.
The Department must classify, regulate, supervise and license hotels, resorts, inns, motels, hostels, restaurants, and related facilities and services for tourists, and must formulate standards to ensure highest possible standards, reasonable fees and charges, and services with honesty, courtesy, and efficiency.
Section 4 also authorizes the Department to perform other functions provided by law.

Department internal structure and field offices

Section 5 provides that the Department has an Administrative Service, a Planning Service, and a Financial and Management Service in conformity with Part II of the Integrated Reorganization Plan.
Section 6 authorizes the Department to have such number of field offices here and abroad as may be necessary for effective tourism promotion.

Bureau of Tourist Promotion

Section 7 creates a Bureau of Tourist Promotion tasked to organize and support a public relations, promotion, and publicity program to interest, attract and encourage overseas travellers to visit the Philippines.
The Bureau’s activities include publishing and disseminating pamphlets, brochures and other literature and publicity materials, and production and distribution of audio-visual materials, plus participation in travel fairs and other sales and promotion arts.
Section 7 further directs the Bureau to include:
- A Press and Publication Division that publishes and disseminates materials about tourist attractions, the history of the Philippines, progress, natural resources, and culture and art; encourages educational and cultural tours for domestic tourism; and participates in fairs and exhibits to promote local goods and provide information about the Philippines as a tourist spot.
- A Research and Statistics Division that compiles, analyzes, and integrates statistical data on the Tourist Industry; develops, forecasts, and prepares economic reports and reviews based on research; and undertakes continuing analysis of economic conditions and trends relating to the sector.
- A Training and Evaluation Division that conducts training courses and apprenticeship programs for tourist guides, hotel and restaurant personnel and other tourism-relevant personnel; and organizes and conducts promotional training seminars.

Bureau of Special Services and tourist support

Section 8 creates a Bureau of Special Services with operational divisions and duties.
The Tourist Reception Division must coordinate with all other concerned agencies (government or private) to assure hospitable reception of tourists, including establishing efficiently-run information centers at strategic locations.
The Tourist Reception Division must maintain a security force where necessary to provide security and assistance to tourists and travellers and to extend investigative services when tourists require assistance.
The Licensing and Inspection Division must maintain a register of businesses and establishments that offer transportation, accommodation, or any service to tourists.
The Licensing and Inspection Division must regulate and license travel agencies, tour operators, and tour guides; classify, regulate and license tourism accommodations and related services according to set standards and guidelines; and exercise supervision over facilities and services that cater to or relate to travellers.

Philippine Tourism Authority attachment and powers

Section 9 creates a Philippine Tourism Authority, attached to the Department, to implement the Department’s policies and programs.
Section 9 declares the functions of the Authority to be governmental.
Section 10 empowers the Authority to implement Department policies and programs on project development.
Section 10 authorizes the Authority to collect taxes as provided by law.
The Authority may operate and/or contract to operate agencies, functional units, offices, and departments it deems necessary for its purposes.
The Authority must extend assistance when necessary to private enterprise undertaking tourist projects.
The Authority must undertake development of tourist attractions, conduct feasibility studies, and where necessary recommend agreements for tourist plant and facilities development with private entities.
The Authority must provide and maintain essential tourist and traveller facilities where private enterprise is not prepared to handle them.
The Authority may adopt, alter, and use a corporate seal; make contracts; lease, own, or otherwise dispose of personal and real property; sue and be sued; and do any lawful acts necessary or proper to carry out its purposes.

Authority capitalization, bonds, governance

Section 11 sets the Authority’s capital as:
- Existing assets transferred to it from the Board of Travel and Tourist Industry and the Philippine Tourist and Travel Association, and other properties contributed by the Government; and
- Taxes under Republic Act No. 1478 and Republic Act No. 6141.
Section 11 assigns to the Authority all hotel room taxes collected under existing laws as part of its capital.
Section 12 requires that when the Board deems it advisable for the Authority to contract indebtedness or issue bonds and similar instruments for development and/or operation of the tourist industry, it must pass a Board resolution stating the purpose and citing the project study.
Section 12 requires the Board resolution to be passed by the affirmative vote of at least four members.
Section 12 requires Presidential approval of such resolution upon the recommendation of the Secretary of Finance, after consultation with the National Economic and Development Authority and the Monetary Board of the Central Bank.
Section 13 provides that the Authority is administered by a General Manager appointed by the President from among persons of proven executive competence and experience in tourist development.
Section 14 provides corporate powers are exercised by a Board of Directors composed of the Secretary of Tourism as Chairman, the General Manager as Vice Chairman, and three part-time members appointed by the President for their expertise.
Section 15 fixes the tenure of Board members at six years, with first appointments staggered as one member for six years, one member for four years, and the third member for two years, and with no vacancy filled except for the unexpired portion of the term.
Section 16 provides the Board meets regularly once a month and as exigencies demand; three members constitute a quorum; and the vote of three members is necessary for adopting rules, resolutions, decisions, or other Board acts.
Section 17 authorizes Board members to receive per diems and allowances fixed by the President.
Section 18 authorizes the Board to promulgate policies and rules to implement the Decree; such rules take effect thirty (30) days following their publication in two (2) newspapers of general circulation in the Philippines.
Section 18 requires the Board to approve the annual budget and implemental budgets submitted by the Chairman.
Section 18 authorizes the Board, upon recommendation of the General Manager, to organize/reorganize determine staffing pattern and fix salaries and define powers and duties.
Section 18 allows the Board to enter contracts or agreements by itself notwithstanding contrary provisions of law, rules, and regulations, for proper, efficient, stable administration and attainment of Decree objectives.
Section 18 requires annual reports to the President and special reports as requested.
Section 19 assigns the General Manager duties including directing and managing affairs consistent with Board policies; preparing Board agendas; submitting within thirty (30) days after the close of each fiscal year an annual report to the Board and other required reports; submitting annual and supplemental budgets for Board approval; establishing internal organization subject to Board prescriptions and Board approval for major reorganization; and performing other Board-assigned duties.

Advisory council, civil service coverage, appointments

Section 20 authorizes the Secretary of Tourism to establish a Tourism Advisory Council composed of representatives of: (1) hotels, (2) restaurants, (3) air carriers, (4) travel agencies, (5) cottage industry producers and/or distributors, (6) sea carriers, (7) land transportation operators, and (8) bankers association.
Section 20 entitles Council members to per diems and allowances authorized by the Secretary, with power to designate representatives from other trade organizations as necessary.
Section 20 exempts Council members from conflict-of-interest provisions of the Anti-Graft and Corrupt Practices Act.
Section 21 provides that all Authority officials and employees except technical and professional personnel are subject to the Civil Service Law, its rules and regulations, and the coverage of the Wage and Position Classification Office.
Section 22 provides that employees of the Authority are appointed by the Board upon the recommendation of the General Manager for positions in the approved budget, guided by standards set forth in the Civil Service Law and its rules.

Transitory, rescission, attachments, and trade functions

Section 23 transfers to the Authority, as a government corporation, the properties, monies, assets, rights, choses in action, obligations, liabilities, records, and contracts of the defunct Board of Travel and Tourist Industry.
Section 23 authorizes the Board of Directors to determine which personnel of the Board of Travel and Tourist Industry are absorbed by the Authority.
Section 24 rescinds the charter of the Philippine Tourist and Travel Association granted under Republic Act No. 710, while preserving its continued existence as a duly registered private corporation.
Section 24 directs that assets derived from the government subsidy under the RA 710 charter be transferred to the Authority.
Section 25 provides that staffing requirements of the Department shall be provided for in the General Appropriation Act.
Section 26 reconstitutes and attaches the Civil Aeronautics Board to the Department, consisting of: the Secretary of Tourism as Chairman; the Civil Aeronautics Administrator; the Commanding Officer of the Philippine Air Force; the Assistant Director for Air Transportation of the Bureau of Transportation; and two other members appointed by the President.
Section 27 attaches the Hundred Islands Conservation and Development Authority, the San Juanico Tourist Development Authority, the Looc Estate, and other entities organized to promote tourism to the Department.
Section 28 provides that the Department of Trade performs all functions except those on tourism, of the Department of Trade and Tourism under the applicable provisions of the Integrated Reorganization Plan.

Repeals, amendment, and effectivity

Section 29 repeals Presidential Decree No. 132 dated February 19, 1973 and any and all acts, statutes, decrees, rules, regulations, or parts thereof inconsistent with this Decree, which are repealed or modified accordingly.
The Decree states it is amended by Presidential Decree No. 259.
Section 30 confirms immediate effectivity.