Policy intent and need to simplify
- Government must support the tourism industry as a rich source of dollar revenue by providing better transport facilities.
- Previously issued DOTC and LTFRB classifications for Tourist Transport Services created confusion and erroneous interpretations.
- The circular decrees a simplified, unified classification system to obviate confusion in franchising and regulation.
LTFRB legal basis and referenced issuances
- Department Order No. 97-1097 governs public transport conveyances and the classification of tourist transport services that the LTFRB is authorized to amend or modify.
- Department Order No. 2005-010 (titled “Policy Guidelines on the Executive Authority and Functions by the LTFRB”) grants authority to amend or modify DOTC Department Orders, including by prescribing and regulating routes and economically viable capacities (including classifications), zones, and areas of operation for public land transportation in accordance with approved development plans and programs.
- The circular implements changes by modifying and superseding inconsistent parts of multiple prior LTFRB/DOTC issuances, including MC No. 98-004, MC No. 2003-001, MC No. 2004-011, MC No. 2004-026, MC No. 2005-033, MC No. 2006-034, MC No. 2006-049, MC No. 2006-058, and related issuances.
Core classification: only three categories
- The circular decrees that Tourist Transport Service shall be retained as the general description of public utility vehicles providing transport services for tourists in various manners or modes (e.g., shuttle, tour bus service, taxi, rent-a-car).
- All tourist transport service CPC classifications henceforth fall under only three (3) main categories/classifications:
- Tourist Bus Transport Service
- Tourist Car Transport Service
- Tourist Air-conditioned Jeep Transport Service
- The circular retains the requirement that applications and franchises shall use only these three main categories while specifying the particular mode subsumed under them.
Tourist Bus Transport Service definition
- Tourist Bus Transport Service covers buses with a maximum capacity of sitting 60 passengers, and mini-coaches and coaches.
- Mini-coaches and coaches have a minimum seated capacity of 20 passengers, including coasters.
- Mini-coaches and coaches have a maximum sitting capacity of 42 passengers and upwards.
Tourist Car Transport Service definition
- Tourist Car Transport Service covers AUV, cars/four (4)-door sedans including taxi (metered or coupon), and Rent-A-Car Transport Service.
- Rent-A-Car Transport Service includes tourist cars under this Tourist Car Transport Service class and applies regardless of whether the model is high end/luxury or ordinary.
- For Rent-A-Car Transport Service, the minimum engine displacement for the unit is at least 1300cc.
- Metered taxi is a standard car of four (4) door sedans authorized to operate a taxi service with a duly calibrated meter issuing receipt.
- Metered taxi has a base of operation within Metro Manila or other established regions, or from Metro Manila to two (2) or more regions under a special rate approved by the LTFRB owing to tourist clientele.
- Metered taxi is not allowed to pick up and drop ordinary passengers on the return trip.
- Coupon taxi is a standard car of four (4) door sedans or an AUV authorized to operate a taxi service without a taximeter, under predetermined rates paid upon departure using coupons.
- Coupon taxi coupons must indicate the name of the operator, description of the unit, rate/fare, destination, among other items.
- Coupon taxi has a base of operation within Metro Manila or from Metro Manila to any point in the Island of Luzon or other established regions, or within two (2) or more regions under a special rate approved by the LTFRB owing to tourist clientele.
- Coupon taxi is not allowed to pick up and drop ordinary passengers on the return trip.
- Rent-A-Car Transport Service is a tourist transport class under Tourist Car Transport Service using a standard car of four (4) door sedan or AUV authorized to operate a rent-a-car service.
- Rent-A-Car vehicles are usually of the luxury type and are leased to tourists on an hourly or daily basis, or based on distance traveled.
- Rent-A-Car has a base of operation within Metro Manila or from Metro Manila to any point in the Island of Luzon or other established regions, or within two (2) or more regions under a special rate approved by the LTFRB.
Tourist Air-conditioned Jeep Transport Service
- Tourist Air-conditioned Jeep Transport Service covers jeep or PUJ body type vehicles with designs similar to vehicles that proliferate along roads and thoroughfares nationwide.
- Tourist Air-conditioned Jeep vehicles must be air-conditioned with well appointed interiors, and must have colorful interior and exterior paintings.
- The vehicles must have larger capacity accommodating between 12 to 21 passengers.
- This classification is intended to promote and take pride in a Filipino cultural symbol made from a motor vehicle fashioned from abandoned equipment of war.
- Tourist Air-conditioned Jeep vehicles are to be used preferably to and from hotels to various tourist spots under a special rate approved by the LTFRB.
- The LTFRB shall issue subsequent rules and regulations for this classification if necessary.
Mandatory conversion, amendments, and renewals
- All CPCs for Tourist Transport Services previously granted under prior denominations (including Tourist Bus, Tourist Car, Tourist Shuttle Service, Tourist Metered Taxi Service, Tourist Coupon Taxi Service, Tourist Chartered Service, Tourist Coupon Transport Service, Tourist Chartered Transport Service, Tourist Rent-A-Car Transport Service, City Tours Services, and Corporate Transport Leasing Services under Rent-A-Car subcategory) must file corresponding applications for conversion within six (6) months from the circular’s effectivity.
- All units with pending applications under denominations/types/modes of service subsumed under the three (3) main categories must file corresponding amendments of their applications to conform to the circular’s classification.
- Applications for renewal must be filed as either Tourist Bus Transport Service or Tourist Car Transport Service within the six (6) month conversion/re-filing period, stating the specific mode, manner, denomination, or category of service based on the type and size of motor vehicle.
- Applications for renewal and new franchises (should franchises be opened) must be filed only under one of the three (3) main categories—Tourist Bus Transport Service, Tourist Car Transport Service, or Tourist Air-conditioned Jeep Transport Service—while specifying the mode subsumed under the main category.
- Tourist Bus CPC applications must allege and specify operation using air-conditioned tourist buses with 60 passenger capacity to carry tourists from airports to hotels and to various tourist destinations and vice versa.
- Tourist Car CPC applications must allege and specify operation of air-conditioned metered taxi, coupon taxi, or rent-a-car service, or covered services depending on the case.
Vehicle age limits and acceptance rules
- To level the playing field and allow more participants, the LTFRB accepts units up to five (5) years old for cars/sedans/vans and up to ten (10) years old for buses, coaches, etc., measured from the date of manufacture at the time of filing applications for CPCs to operate Tourist Bus Transport Service or Tourist Car Transport Service.
- A brand new unit means a unit manufactured in the current year when the application is filed.
- For non-brand new units, the age is based on the year of manufacture at the time of filing.
- The LTFRB reserves the right to deny applications for defects, failure of non-brand new units to pass inspection that may be conducted, fraud or misrepresentation regarding unit age, and for other valid reasons.
Authority to modify, revoke, and effect compliance
- The circular modifies and supersedes or revokes all issuances or pertinent parts of Department Order No. 97-1097 and the listed memorandum circulars (MC No. 98-004, MC No. 2003-001, MC No. 2004-011, MC No. 2006-034, MC No. 2006-049, MC No. 2006-058, and related issuances) insofar as they are inconsistent with the circular’s unified classification scheme.
- The circular takes effect in the manner stated above after filing with the UP Law Center.