Law Summary
Responsibilities and Duties of the Board
- Coordination of government agencies involved in international travel and tourism.
- Promotion of removal of unnecessary travel barriers and simplification of travel regulations.
- Enforcement of travel regulations with efficiency, fairness, and courtesy.
- Development and maintenance of tourist attractions and essential facilities where private enterprise is absent.
- Organization and support of tourism promotion and publicity program that enhances the Republic's prestige.
- Regulation and licensing of travel agents.
- Supervision over all travel-related facilities and services catering to foreign travelers ensuring high standards, reasonable charges, and courteous service.
Passenger Tax Imposition and Rates
- Passenger tax imposed on fares of passengers leaving or entering the Philippines.
- Tax rates scaled based on fare cost, ranging from 7.50 pesos to 100 pesos depending on the fare bracket.
- Repeal of conflicting provision from Commonwealth Act No. 466.
Collection and Remittance of Passenger Tax
- Carriers and travel agencies collecting the tax upon ticket issuance.
- Mandatory quarterly remittance of collections within first ten days of each quarter to the Board of Travel and Tourist Industry.
Allocation of Tax Collections
- Up to 50% of collections used exclusively by the Board for tourist facility development and tourism promotion domestically and internationally.
- Remaining 50% remitted to the government’s general funds.
Regulation and Licensing of Travel Agencies
- Board empowered to regulate travel agency business.
- Authority to prescribe operational rules and require licensing.
- Annual license fee capped at 100 pesos.
- Operating without a license is prohibited.
Supervision and Enforcement of Standards
- Board empowered to prescribe operational and maintenance rules for travel-related facilities and services.
- Authority to cancel permits or recommend prosecution for non-compliance with regulations.
Presidential Powers to Enhance International Tourism
- Upon Board recommendation, President may:
- Suspend visa fees for foreign tourists.
- Exempt foreign tourists from certain taxes during their stay.
- Allow export of locally purchased souvenirs under a value limit free from export taxes/licenses.
- Transfer control of government tourism facilities to the Board.
Role of the Philippine Tourist and Travel Association
- Designated as the government’s exclusive agency for promoting tourism.
- Serves as the instrumentality of the Board in implementing tourism development programs.
Funding Support for the Philippine Tourist and Travel Association
- Board to approve Association’s requirements.
- Provision of funds from Board’s revenues to support the Association’s programs.
Reporting Obligations to Congress
- Board required to submit a verified detailed report to Congress annually before the opening of regular sessions.
- Report includes financial collections, disbursements, activities, accomplishments, and staffing.
Repealing Clause
- All laws inconsistent with or contrary to the Act’s provisions are repealed.
Effectivity
- The Act becomes effective immediately upon approval.