Reclassification of Tourist Transport Services

The law reclassifies tourist transport services into four distinct categories:
1. Tourist Shuttle Service: Heavy duty passenger vans or runners with fronts-facing seats, luggage compartments, and a franchise. These operate in key locations such as airports, seaports, and hotels. They require a minimum of 3 units, with vehicle age not exceeding 10 years.
2. Tourist Metered Taxi Service: 4-door sedans or Asian Utility Vehicles (AUV) with franchises, operating in similar locations and charging fares by meter with official receipts. Requires at least 10 units, maximum vehicle age of 10 years, and must have 2-way radios.
3. Tourist Coupon Taxi Service: 4-door sedans with franchises operating in the same key locations. Fares are predetermined by the Board. Requires minimum 10 units, maximum vehicle age 10 years.
4. Tourist Chartered Service: Includes buses, coasters, vans (excluding AUVs), and 4-door sedans with franchises catering primarily to tourists. Fares are fixed by the Board. Requires minimum 3 units; for buses and coasters, vehicles may be up to 15 years old; vans and cars, maximum of 10 years.

To regulate the issuance of Certificates of Public Convenience (CPCs) for tourist services, the law mandates the following steps:
1. Applicant must secure an endorsement from the Department of Tourism (DOT) for the particular tourist transport category.
2. The DOT endorsement is then evaluated by the DOTC Planning Division for consistency with transportation policies and guidelines.
3. Upon approval, the DOTC forwards the endorsement to the Land Transportation Franchising and Regulatory Board (LTFRB) for franchise application processing.
These procedures supplement existing application requirements of the LTFRB for CPC issuance.

The Memorandum Circular applies not only to new applications but also to extensions of the validity of existing CPCs covering tourist transport services.
It supersedes and amends any previous Memorandum Circulars inconsistent with its provisions.

The law becomes effective fifteen (15) days after its publication either in the Official Gazette or in a widely circulated newspaper.
Alternatively, effectivity may be triggered by filing three copies with the University of the Philippines Law Center, pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.

Emphasis is placed on inter-agency cooperation between tourism and transportation bodies to meet national tourism objectives.
Classifications ensure standardization, quality control, and regulatory clarity for tourist transport services.
Use of franchise agreements, vehicle eligibility criteria, and minimum fleet sizes promote reliable and efficient service delivery.
The licensing process incorporates thorough evaluation steps to align with broader transportation policies and tourism needs.
The law encourages transparency and compliance through metered fares with receipts and Board-fixed rates where applicable.