Core definitions and resort scope
- Section 1 defines a “Resort” as any place(s) with pleasant environment and atmosphere conducive to comfort, healthful relaxation, and rest, offering food, sleeping accommodations, and recreational facilities to the public for a fee or remuneration.
- Section 1 defines a “Hotel” as any lodging establishment as defined and classified in the Hotel Code of 1987.
- Section 1 defines a “Restaurant” as an establishment offering to the public regular and special meals or menu, cooked foods and short orders, beverages and drinks.
- Section 1 defines “Sports and Recreational Facilities” to include swimming pools, bowling lanes, tennis courts, pelota or squash courts, golf courses, riding range, archery range, aquatic/water sports arrangements, fishing, water skiing, and similar facilities forming part of the resort.
- Section 1 defines “License” as the privilege or authority granted by the Department of Tourism to own, operate, manage, and maintain a resort.
- Section 1 defines “Department” as the Department of Tourism.
- Resorts for registration and licensing are categorized by location type under Section 2: beach resort, inland resort, island resort, lakeside or riverside resort, and mountain resort.
Classification and minimum standards
- Resorts are classified for registration and licensing into Class “AAA”, Class “AA”, and Class “A” under Section 3.
- For a Class “AAA” resort, the minimum requirements include:
- A location suitable and free of noise, atmospheric pollution, and marine pollution under Section 4(1).
- Adequate parking space with parking security provided free to guests under Section 4(2).
- Rooms and facilities/amenities equivalent to those of a First Class Hotel under Section 4(3).
- Clean and adequate public toilet and bathroom for male and female with sufficient hot and cold running water, toilet paper, soap, and hand towel and/or hand dryer under Section 4(4).
- At least four (4) sports and recreational facilities under Section 4(5).
- Conference/convention facilities with attached toilets under Section 4(6).
- Adequate and well-maintained locker rooms and bathrooms for male and female employees including cafeteria under Section 4(7).
- For an “AA” class resort, the minimum requirements include:
- A location free of noise, atmospheric pollution, and marine pollution under Section 5(1).
- Adequate guest free parking space with parking security under Section 5(2).
- Rooms and amenities equivalent to those of a Standard Class Hotel under Section 5(3).
- Clean and adequate public toilet and bathrooms for male and female with sufficient running water, toilet paper, soap, and hand towel and/or hand dryer under Section 5(4).
- At least three (3) sports and recreational facilities under Section 5(5).
- Conference/convention facilities under Section 5(6).
- Adequate and well-maintained locker rooms and bathrooms for male and female employees under Section 5(7).
- For a Class “A” resort, the minimum requirements include:
- A location free of noise, atmospheric pollution, and marine pollution under Section 6(1).
- Adequate guest free parking space with parking security under Section 6(2).
- Rooms equivalent to those of an Economy Class Hotel under Section 6(3).
- Clean and adequate public toilet and bathroom for male and female with sufficient running water, toilet paper, and soap under Section 6(4).
- At least two (2) sports and recreational facilities under Section 6(5).
- At least one (1) food and beverage outlet under Section 6(6).
Operational duties and facility rules
- Resort maintenance and housekeeping must be of acceptable standard on a continuing basis, considering material quality and upkeep, and housekeeping must ensure well-kept, clean, and pollution-free premises under Section 7.
- A vermin control program must be regularly maintained in all resort areas under Section 7.
- A regular and hygienic garbage disposal system must be maintained under Section 7.
- Sanitation measures must be adopted in accordance with standards prescribed under PD 856 (Code on Sanitation of the Philippines) under Section 7.
- Resorts must provide a sufficient number of well-trained lifeguards duly accredited by either the Philippine National Red Cross, the Water Life Saving Association of the Philippines, or any recognized organization that trains or promotes safety objectives, and must provide adequate security whenever there are guests under Section 8.
- Resorts must provide the services of a physician, either on-call or full-time basis depending on volume of operation and accessibility to hospital or medical centers under Section 9.
- Resorts must employ adequate first-aid persons who completed a first aid course duly certified by the National Red Cross or another accredited organization under Section 9.
- Resorts must provide adequate first aid medicines and necessary life-saving equipment within the premises under Section 9.
- Resorts must provide fire-fighting facilities in accordance with the Fire Code of the Philippines under Section 10.
- Resorts must conspicuously display appropriate signboards outside the establishment showing clearly the name and classification of the resort as determined by the Department under Section 11.
- Beach and lakeside resorts must place an adequate number of buoys spread within an area determined by the resort owner/keeper as safe for swimming purposes, upon compliance with existing government regulations and/or local ordinances on placing buoys under Section 12.
- The swimming area fronting the resort determined by buoys must be designated as the area for swimming purposes, and no boat, banca, or other crafts may enter the designated area under Section 13.
- The resort owner or duly authorized representative must enforce swimming-area restrictions under Section 13.
- The resort must designate a portion of the beach front exclusively for loading and unloading of resort guests unless otherwise designated elsewhere by rules and regulations specific to the area under Section 13.
Swimming precautions and conduct prohibitions
- Resort management must not allow swimming at the beach front beyond 10:00 P.M. and must post appropriate notices to inform resort guests of this regulation under Section 14(a).
- Night swimming at the pool is allowed only when there are adequate lifeguards on duty and when the pool premises are sufficiently lighted under Section 14(b).
- Management must post sufficient and visible signs in strategic areas in the resort or at the beach to warn guests/customers of artificial or natural hazards, danger areas, or occurrences threatening safety under Section 14(c).
- Beach resorts must prohibit pets or animals from bathing/swimming along beaches under Section 15(a).
- Beach resorts must strictly prohibit “pukot” fishing and washing of fishing nets along beaches under Section 15(a).
- Resort owners must prohibit ambulant vendors from peddling wares within resort premises under Section 15(b).
- Littering in resorts is strictly prohibited, and resort owners must keep premises clean and adopt anti-littering measures under Section 15(c).
- Resort keepers, managers, and operators must exert all efforts to prevent prohibited gambling of any form, drunkenness, or disorderly conduct in the resort and immediate premises under Section 15(d).
- Resort keepers, managers, or operators must exert all possible efforts to prevent any person they know or have reason to believe is a prostitute, a pedophile, or a bad character from occupying a room or frequenting the premises under Section 15(e).
- Resort keepers, managers, or operators must immediately report to the nearest police station the presence in the premises of any such person under Section 15(e).
Registration, licensing, and fees
- No person, natural or juridical, may keep, manage, or operate a building, edifice, premises, or a completely independent part thereof for the purpose of a resort, or engage in resort business, without first securing from the Department a certificate of registration and a valid license to operate under Section 16.
- Any person acting as owner or occupant who allows the premises to be used as a resort without the required certificate of registration and license is guilty of an offense under these Rules under Section 16.
- Applicants for registration and licensing must accomplish the required application in duplicate and file it with the Department under Section 17.
- Applications must be accompanied by the following supporting documents unless otherwise indicated in the form under Section 18:
- For corporations/partnerships: certified true copies of Articles of Incorporation, by-laws, or Articles of Partnership and amendments duly registered with the Securities and Exchange Commission, and Business Name Certificate under Section 18(a).
- For single proprietorships: Business Name Certificate and amendments, if any, under Section 18(a).
- Applicant’s latest income tax return and audited financial statements (profit and loss statement and balance sheet) for the preceding year of operation (not applicable for new resorts) under Section 18(b).
- A list of names of all officials and employees with designations, nationalities, and home addresses; for alien personnel, a valid visa from the Commission on Immigration and Deportation and the proper permit from the Department of Labor and Employment under Section 18(c).
- Annual General Liability Insurance for guests of not less than:
- Class “AAA”: P100,000.00
- Class “AA”: P50,000.00
- Class “A”: P20,000.00
under Section 18(d).
- A schedule of current room rates under Section 18(e).
- Proof of prior approval from the Philippine Tourism Authority or the Department where applicable for resorts constructed or established after the effectivity of Presidential Decree No. 381 on January 24, 1974 under Section 18(f).
- After filing the application form, the Department must create an inspection committee composed of two (2) members from the Department under Section 19.
- Upon receipt of its mission order, the inspection committee must conduct an ocular inspection of the resort and immediate premises to determine compliance with Department standards under Section 20.
- During ocular inspection, the committee must use a checklist of requirements and must note deficiencies found and requirements complied with under Section 21.
- Any observations of the applicant or duly authorized representative present during inspection on any adverse finding must be entered in the checklist and the applicant must be furnished a copy of the accomplished checklist under Section 22.
- Within five (5) days from the date of inspection, the committee must render a report of findings and/or recommendations under Section 23.
- If requirements are satisfactorily complied with, the Department must issue the Certificate of Registration and License under Section 24.
License duration, renewals, and annual fees
- The Certificate of Registration must be applied with the Department only once at the start of operation under Section 25.
- The certificate is reapplied only if the resort has ceased operations for at least six (6) months or if its license has been revoked under Section 25.
- The registration fee is paid only once unless a reapplication is filed for those reasons under Section 25.
- The license to operate is valid for one (1) year from the date of issue or until the 28th of February following the year of issue, unless sooner revoked by the Department under Section 25.
- The following registration and license fee schedule applies to applicants that comply with registration and licensing requirements under Section 26:
- Class “AAA”: Registration Fee P5,000.00; License Fee P2,000.00
- Class “AA”: Registration Fee P3,000.00; License Fee P1,000.00
- Class “A”: Registration Fee P1,500.00; License Fee P500.00
under Section 26.
Renewal process and renewal documents
- License renewal applications must start on February 1 and extend up to February 28 of the year of expiry under Section 27.
- A surcharge of fifty percent (50%) of the license fees due is imposed on those who fail to file renewal applications on time under Section 27.
- Delay in filing may be excused upon showing that the failure to file on time was due to fraud, accident, or excusable neglect under Section 27.
- Failure to file renewal without just cause may be a sufficient ground for cancellation of the license under Section 27.
- Failure to submit all requirements within sixty (60) days from the date of filing is a ground for imposition of fine and/or non-renewal of license under Section 27.
- Renewal applications must be supported by the following documents under Section 28:
- Copy of amended Articles of Incorporation or Articles of Partnership and By-laws, if applicable
- List and information sheets of additional personnel, if any, or any change in manpower complement
- Latest Income Tax Return and Audited Financial Statements
- Proof of renewal of General Liability Insurance
- A resolution of the Board of Directors authorizing continuation of business
under Section 28.
Automatic coverage of facilities and services
- Registration and licensing of the resort automatically include all facilities and services in the resort under Section 29.
- The automatic inclusion applies to facilities and services owned and operated by the resort itself under Section 29.
Fines, suspension, cancellation, non-renewal grounds
- Fine, suspension/cancellation of license, and/or non-renewal may be imposed for any of the following grounds under Section 30:
- False declaration/statement, use of such declaration/statement, or document containing it, or fraud or misrepresentation to obtain issuance, grant, or renewal of certificate of registration or license under Section 30(a).
- Failure to comply with or contravene conditions set forth in the license under Section 30(b).
- Failure to meet standards and requirements for operation of a resort under these Rules under Section 30(c).
- Serious physical injury or loss of life of any guest due to fault or negligence of any resort official or employee under Section 30(d).
- Allowing or permitting the resort, including its facilities, to be used for illegal, immoral, or illicit activities under Section 30(e).
- Violation of or non-compliance with provisions of these Rules and Department circulars under Section 30(f).
Transfer limits and resort recordkeeping
- The issuance of certificate of registration and license is a matter of privilege and may be issued only to qualified applicants; therefore, no resort owner or operator may transfer or alienate the certificate of registration and license without prior approval of the Department under Section 31.
- Any transfer of shares in the resort must be reported to the Department within ten (10) working days under Section 32.
- The certificate of registration and license must be displayed in a conspicuous place in the resort under Section 33.
- All resorts must keep a Registry Book under Section 34.
- Guests seeking room accommodations must register the following particulars in the Registry Book under Section 34:
- Full name
- Address
- Residence certificate or driver’s license or passport indicating the number, date, and place of issue
under Section 34.
Foreign nationals and resort IDs
- Employment of foreign nationals by a resort must be in accordance with the revised joint circular of 1987 among the Departments of Tourism, Labor and Employment, and the Commission on Immigration and Deportation enunciating policy guidelines for employment in the hotel/resort industry under Section 35.
- Resort employees must be issued the Department’s Identification Cards upon request subject to payment of a nominal fee, provided employees are included in the resort’s personnel list under Section 36.
- Resort managers/officers and staff who have ceased to be such must immediately surrender their ID cards to the Department under Section 37.
Periodic inspections and deficiency penalties
- Two (2) Department inspectors must conduct periodic inspections of resorts and immediate premises to determine whether the resort is kept and managed according to Department standards for the class and whether the resort complies with these Rules and Department circulars under Section 38.
- All inspections must be covered by mission orders stating scope of authority and other matters necessary under Section 38.
- Inspections must be conducted at reasonable hours of the day with due regard to the right of privacy of resort guests under Section 39.
- Inspectors must have access to resort records and premises and the right to copy from them, question employees, and investigate any fact, condition, or matter necessary to determine compliance and to aid enforcement under Section 40.
- When defects or deficiencies are found, the Department must direct the resort operator/manager to rectify defects or complete deficiencies within one (1) week from notice under Section 41.
- The Department may extend the period for just cause, but in no case may the extended period exceed two (2) months under Section 42.
- If management fails to remedy defects or deficiencies, the Department must impose a fine of at least P50.00 for every day of delay, but the fine may not exceed P5,000.00 under Section 43.
- If the maximum fine has been reached and management continuously fails to rectify/completion, the Department may revoke or suspend the certificate of registration and license for such period as justified under the circumstances under Section 43.
Reclassification and discipline of staff
- Resorts may be promoted or demoted from one classification to another as facts warrant under Section 44.
- If, after due investigation, a resort is not kept or managed conformably to standards for its current classification, the Department must notify the owner/keeper/manager/operator and grant a period stated in the notice to comply under Section 45.
- If the resort fails to comply within the granted period, the Department must remove registration from that classification and place it in a lower classification, or exclude it from resort classification if warranted under Section 45.
- Resort keepers/managers and their assistants are administratively liable for acts or omissions of resort staff committed against any guest, subject to exemption if they prove diligence of a good father of a family in supervision, or if acts/omissions are beyond control due to fortuitous event or force majeure under Section 46.
- Acts committed by the resort manager/operator or any member of resort staff that work against the interest of the tourism industry are grounds for disciplinary action under Section 47.
- Resort owners/keepers/managers and/or the resort association, if any, must draft, with assistance of the Department, a Code of Ethics and/or Conduct governing dealings among resort owners/keepers/managers and conduct of staff toward each other and toward guests/tenants under Section 48.
- The Code of Ethics and/or Conduct must include administrative penalties for violation such as fine, suspension or dismissal, suspension or revocation of license or permit or certificate of registration, and other related sanctions under Section 48.
- Once promulgated by the Department, the Code becomes part of these Rules under Section 48.
- If there is a conflict between these Rules and the Code, these Rules prevail under Section 48.
Complaints and quasi-judicial powers
- The Department must exercise quasi-judicial powers in resolving cases filed against resorts and/or their employees according to the Department’s rules and procedures governing complaints under Section 49.
Confidentiality and mandatory keeping of copies
- Information and documents received by or filed with the Department under these Rules must be treated as confidential and must not be divulged to any private party without consent of the party concerned or upon order of the Secretary of Tourism under Section 50.
- Any Department official or employee, including those temporarily assigned, who violates confidentiality must be guilty of an offense under Section 50.
- Every resort must keep a copy of these Rules open to inspection whenever any guest or employee requests to see a copy under Section 55.
Criminal penalties and administrative fines
Violation by a licensee or holder of authority results in criminal penalty upon conviction by a competent court of imprisonment of not less than six (6) months nor more than two (2) years or a fine of not less than TWO THOUSAND PESOS (P2,000.00) nor more than TEN THOUSAND PESOS (P10,000.00), or both, at the court’s discretion under Section 51(a).
For licensee/holder violations, the license issued by the Department is automatically deemed withdrawn and revoked, and the surety bond of the offender is forfeited in favor of the Department under Section 51(a).
Violation by a non-holder of authority upon conviction by a competent court results in imprisonment of not less than one (1) year nor more than four (4) years or a fine of not less than FOUR THOUSAND PESOS (P4,000.00) nor more than TWENTY THOUSAND PESOS (P20,000.00), or both, at the court’s discretion under Section 51(b).
If the offender is a corporation, partnership, firm, or association, the penalty is imposed upon the officer or officers responsible for the violation under Section 51(c).
If the responsible officer(s) is/are an alien, the officer(s) is/are, in addition, subject to deportation under Section 51(c).
In addition to penal sanctions, the Department may impose administrative fine of not less than ONE THOUSAND PESOS (P1,000.00) nor more than TEN THOUSAND PESOS (P10,000.00) against any person who violates or causes another to violate these Rules and circulars, or suspend or revoke the license of a person under the Department’s regulatory jurisdiction under Section 52.
Implementation rules, government support, separability, and repeal
- Where a procedure is not specifically provided, the Department must adopt any suitable procedure and mode of proceeding conformable to the purposes, intent, and spirit of these Rules under Section 53.
- The Department may enlist the aid, assistance, and support of any and all government agencies, whether civil or military, in implementing these provisions, circulars, and enforcement of orders or decisions under Section 54.
- The provisions are separable, and invalidation of one or more provisions does not affect the validity of all other provisions under Section 57.
- All existing rules and regulations or circulars issued by the defunct Board of Travel and Tourist Industry or previously issued by the Department or other government agencies or entities on the operation of resorts, and municipal or city ordinances or part or parts inconsistent with these Rules, are repealed or modified accordingly under Section 58.