TOPIC: Define the role of the various sub-sectors of the private

sectors that comprise the tourism industry

(Russell)
INTRO
The Role of the Private Sector in the Tourism Industry
Tourism in the Philippines started through the initiative of the private sector
with the aim of promoting the country as a major travel destination. As a result of
this initiative, the government took an effort to put together all these private
entities catering to tourism. Thus, was created the Philippine Tourist and Travel
Association (PTTA) by then Pres. Elpidio Quirino through R.A No. 710 in 1952.
In 1958, Pres. Ramon Magsaysay created the Board of Travel and Tourism
Industry by virtue of Republic Act No.1478 which served as the policy-making
body for travel and tourism.
It is important that both government and private agencies join hands in
planning and implementing tourism projects of the country. Specifically, private
agencies and entities concerned with tourism can provide support in terms of:
 Establishing tourism enterprises in different parts of the country;
 Offering different tourist products and packages for local and foreign
tourists;
 Establishing links with tourist agencies/companies locally and
internationally;
 Developing places in the country as tourist destinations;
 Marketing the tourist destinations using different marketing strategies; and
 Supporting the government in its various tourism projects.

(Dhea)
The Philippine Tourist and Travel Association (PTTA) by then Pres. Elpidio
Quirino through R.A No. 710 in 1952
An Act Granting a Charter to the Philippine Tourist and Travel Association, Inc.
for the Development and Promotion of the Philippine Tourist Industry
Republic Act No. 710
Congress of the Philippines
6 June 1952
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

WHEREAS, it is most desirable that the Philippine tourist industry should be

developed and promoted as a means of bringing in dollar revenues so essential to
the economic stability and prosperity of the country and of enhancing the prestige
and foreign relations of the Republic;

WHEREAS, at a time when the Government, with its limited resources, is not in a
position to fully undertake by itself alone the necessary development and
promotion work, it is equally desirable that the public as a whole, particularly the
business community and the civic organizations, should be encouraged to
extensively participate in this important national undertaking;

WHEREAS, it is essential that there be unity of action and an integration of

activities and services of both Government and private entities, aiming at the same
objectives, for purposes of economy, concentration of effort and avoidance of
unnecessary duplications in facilities and expenditures; and

WHEREAS, the Philippine Tourist and Travel Association, a voluntary civic

organization of local business and civic leaders and Government representatives,
has proved itself desirous and adequately prepared to fully undertake tourist
development and promotion work, having maintained with its own funds for at
least a year now an office exclusively engaged in such work and a service for the
assistance and benefit of visiting tourists and travelers; Now, therefore:

Section 1. There is hereby created in the Republic of the Philippines a body

corporate and politic, to be the voluntary organization officially designated to
assist the Republic of the Philippines in the development and promotion of the
tourist industry; to develop and publicize Philippine tourist attractions and
opportunities for the world at large; to organize, maintain and operate such services
as may be necessary to attract and bring in tourists and travelers and to facilitate
their travel, reception, and accommodation within the country; to encourage
increased travel and greater intercourse as a means of promoting unity and love of
country among the various groups of inhabitants of the Philippines; and to
discharge any such obligations as may be set forth in any treaties or agreements to
which the Government is a signatory regarding tourism and travel. The
headquarters of this Corporation shall be located in the national capital of the
Philippines.

Section 2. The name of this Corporation shall be “The Philippine Tourist and
Travel Association, Inc., and by that name shall have the power to sue and be sued;
to own and hold such real and personal property as shall be deemed advisable, and
to accept bequests, donations and contributions of property of all classes for the
purposes of the said Corporation hereinafter set forth; to adopt a seal and to alter
and destroy the same at pleasure; and to have the right to adopt and to use, in
carrying out its purposes hereinafter designated, such emblem or badge as it may
see fit; to ordain and establish by-laws and regulations not inconsistent with the
laws of the Philippines; and generally to do all such acts and things as may be
necessary to carry into effect the provisions of this Act and promote its purposes.

Section 3. The purposes of the Philippine Tourist and Travel Association, Inc.,
hereinafter called as the Corporation, shall be as follows:

(1) To develop the tourist industry through the promotion of tourism and travel to
and within the Philippines;
(2) To formulate an integrated program of tourist promotion and development with
the active participation of Government agencies, private entities and individual
members of the community;

(3) To carry out an extensive publicity and promotion program abroad and within
the country, using all available methods and media, to attract, inform and assist
tourists and travelers to come to visit in the Philippines as well as travel bureaus,
tourist agencies and international carriers handling tourist and travel business, and
to acquaint the public with the benefits of increased tourism and travel in the
country;

(4) To maintain such services as may be necessary to facilitate travel, reception

and accommodation of tourists as well as to help organize programs and schedules
for group or guided tours, entertainment, enlightenment or amusement;

(5) To promote educational tours and increased travel within the country as a
means of bringing about more extensive intercourse and national unity among the
people and of developing pride and love of country through increased familiarity
with its historic and beauty spots and with its wealth of natural resources;

(6) To locate, develop and place appropriate markers and guides to tourist
attractions, resorts and other places of interest and to encourage and assist in the
establishment of adequate facilities for the transportation and accommodation of
tourists visiting them;

(7) To encourage, promote and assist all businesses and trades that would aid in
adequately servicing the requirements of tourists and travelers as well as those that
would develop and thrive with increased tourist traffic;
(8) To promote a spirit of service, mutual cooperation, efficiency, courtesy and
hospitality both among those that have anything to do with tourists and among the
public at large, with a view to giving the tourists the best goods and services at
uniformly attractive and reasonable rates and thus insure utmost satisfaction and
goodwill among them as they leave the country;

(9) To publish and circulate accurate and up-to-date information about the
Philippines: books, pamphlets, brochures, leaflets, circulars and other suitable
literature regarding tourist and travel opportunities and attractions as well as those
bearing upon the history of the country, its progress, it natural resources, and the
culture of the people;

(10) To employ public relations or advertising counselors and, if necessary, to

engage the services of corporations, firms or individuals for hire, on commission
basis or otherwise to undertake specific and specialized task;

(11) To represent the Government in all such conferences and meetings concerning
tourism and travel and may arise from treaties, agreements and other commitments
to discharge such responsibilities of the Government as on tourism and travel to
which it is a signatory; and

(12) To undertake any and all transactions and businesses as may be necessary,
proper and convenient in the accomplishment of the objectives of the Corporation
or as set forth in this Act.

Section 4. Membership in the Corporation shall be open to residents of the

Philippines. Contributions to it, in order to entitle the contributors to membership
in the Corporation, shall be according to such classifications and in such amounts
as are fixed by its by-laws.
Junior membership in the Corporation may be authorized under such rules,
regulations and policies as shall be prescribed by the Board of Supervisors.

Section 5. The governing powers and authority of the Corporation shall be vested
in the Board of Supervisors, a body composed of fifteen members, eight of whom
shall be appointed by the President of the Philippines and removable at his
pleasure. The remaining members shall be elected by the members of the
Corporation. The term of office of all members of the Board of Supervisors shall
be one year.

Vacancies in the Board of Supervisors caused by death or resignation shall be filed

by election by the Board of Supervisors at its next meeting, except that vacancies
among the Presidential appointees shall be filed by the President.

The power to ordain, adopt and amend by-laws and regulations shall be vested in
the Board of Supervisors. The Board may also provide rules to govern the
organization and functioning of local units of the Corporation, which shall be
known as provincial or city bureaus.

Section 6. The President of the Philippines shall be the honorary President of the
Corporation. Its principal officers shall be a Chairman of the Board, a President,
who shall be the Vice-Chairman of the Board, three Vice-Presidents and a
Treasurer, all of whom shall be elected by the Members of the Board from among
themselves. The principal officers of the Corporation shall be elected for the same
term as that of the Members of the Board. The Members of the Board of
Supervisors of the Corporation and its principal officers, except the Treasurer, shall
serve without compensation.

The President of the Corporation shall appoint a secretary and such other officers
and employees as may be necessary, subject to the approval of the Board which
shall also fix their salaries.
Section 7. As a national voluntary organization, the Corporation shall be financed
primarily by such funds as it shall raise from the annual dues of its members, by
contributions obtained through personal solicitation campaigns to be organized
annually by the Board of Supervisors and by bequests, grants and donations.

Whenever the Government contributes any amount for tourist promotion and
development work, the Corporation shall raise at least an equivalent sum and not
more than fifty per cent of the said Government contribution shall be made
available for expenditure to the Corporation until the Board of Supervisors certifies
that the Corporation has in its treasury in cash or in valid pledges the full
equivalent of the sum herein required as counterpart to such Government
contribution.

Section 8. Upon the approval of this Act, the Philippine Tourist and Travel
Association, Inc., as now organized, shall immediately advise the President of the
Philippines that it is ready to enter upon its functions and request him to appoint
eight members to its Board of Supervisors. When fully constituted, the new Board
shall proceed to the election of the officers of the Corporation and take all
necessary steps to conform to and carry out the provisions of this Act, taking over
such agencies and activities of the Government as are intended for tourist
promotion and development work or as may now be engaged in it and as provided
for in existing laws.

Section 9. There is appropriated annually the sum of seventy-five thousand pesos,

out of any funds in the National Treasury not otherwise appropriated, which shall
be the Government’s annual contribution to the work of the Association. In order
that this sum may be fully available for expenditure by the Corporation, it shall
raise an equal amount annually as counterpart contribution for the operation of the
Corporation: Provided, that not less than seventy-five per cent of the annual
contribution of the Government shall be spent for publicity, advertising and public
relations work abroad.
Section 10. The Corporation shall, at the end of every calendar year, submit to the
President of the Philippines and to the Congress an annual report containing its
activities and showing clearly its exact financial condition, the sources of all its
receipts and the purposes of all its disbursements.

Section 11. This Act shall take effect upon its approval.

(Jacklyn)
In 1958, Pres. Ramon Magsaysay created the Board of Travel and Tourism
Industry by virtue of Republic Act No.1478
REPUBLIC ACT No. 1478

AN ACT TO CREATE A BOARD OF TRAVEL AND TOURIST INDUSTRY,

DEFINING ITS POWERS, DUTIES AND RESPONSIBILITIES, AND FOR
OTHER PURPOSES.

Section 1. There is hereby created a Board of Travel and Tourist Industry to

regulate international travel and tourism with a view to the development of a
prosperous Philippine tourist industry. The Board shall be composed of the
Secretary of Commerce as Chairman and the undersecretaries of Foreign Affairs,
Finance, Justice and Public Works and Communications, the President of the
Philippines Chamber of Commerce and the President of the Philippine Tourist and
Travel Association, as members.

Section 2. The Board shall have the following responsibilities and duties:

(a) It shall coordinate the activities of all agencies of the government which
concern international travel and tourism;
(b) It shall promote the removal of unnecessary barriers to travel and the
integration and simplification of travel regulations and requirements as well as
their efficient, fair and courteous enforcement to assure expeditious, pleasant and
hospitable reception of all tourists and visitors and utmost satisfaction on their part
during their stay in the country and upon their departure;

(c) It shall undertake the development of tourist attractions and provide and
maintain essential facilities for tourists and travelers where private enterprise is not
prepared to take care of them;

(d) It shall organize and support a program of promotion and publicity calculated
to interest, attract and induce people abroad to visit the Philippines and patronize
things Philippine and to enhance the prestige of the Filipino people and the
Republic;

(e) It shall regulate and license the business of travel agents; and

(f) It shall exercise supervision over the operation of all facilities and services that
cater to or have anything to do with foreign travelers and tourists with a view to
insuring the maintenance of the highest possible standards, reasonable charges,
courtesy, honesty and efficiency.

Section 3. To carry out the aims and purposes of this Act, a tax shall be collected
on all fares of passengers leaving the country as well as fares for those returning or
coming in, if payable here, at the following rates:

(a) If said passage costs not more than sixty pesos, seven pesos and fifty
centavos.
(b) If said passage costs not more than sixty pesos and not more than one
hundred twenty pesos, twelve pesos.

(c) If said passage costs more than one hundred twenty pesos and not more than
two hundred and fifty pesos, fifteen pesos.

(d) If said passage costs more than two hundred and fifty pesos and not more
than five hundred pesos, thirty pesos.

(e) If said passage costs more than five hundred pesos, and not more than one
thousand pesos, fifty pesos.

(f) If said passage costs more than one thousand pesos, one hundred pesos.

Section two hundred and twenty-eight of Commonwealth Act Numbered Four

hundred and sixty-six, as amended, is repealed.

Section 4. This tax shall be collected from the passengers by the carriers and travel
agencies issuing foreign travel passenger tickets and they, in turn, shall remit their
collections within the first ten days of every succeeding quarter to the Board of
Travel and Tourist Industry.

Section 5. An amount not in excess of 50 per cent of such collections and all those
which may be affected under section six shall accrue to the funds of the Board to
be spent under its authority exclusively for the development of tourist facilities and
the promotion of tourism both within the country and abroad, through all well-
known media but especially through foreign publicity and advertising. The other
fifty per cent shall accrue to the general funds of the Government and shall be
accounted for and delivered by the Board of Travel and Tourist Industry to the
Treasurer of the Philippines.
Section 6. The Board shall regulate travel agency business, prescribing the
necessary rules to be govern their establishment and operation. It shall fix and
collect an annual license fee from every individual or group engaged in the travel
agency business in an amount not in excess of one hundred pesos a year. No
individual or firm shall engage in the travel agency business without being licensed
by the Board of Travel and Tourist Industry.

Section 7. In the exercise of its supervisory powers over facilities and services
catering to or having anything to do with foreign travelers and tourists, the Board
shall prescribe rules and regulations for their operation and maintenance. In case of
non-compliance with such rules and regulations, it shall take the necessary steps to
cancel or recommend the cancellation of the permits of the offending parties or
their prosecution, if warranted.

Section 8. For the purpose of strengthening the competitive position of the

Philippines in the field of international tourism, the President of the Philippines,
upon recommendation of the Board, may:

(a) Suspend the payment of visa and visa application fees for foreign tourists
and travelers coming to the Philippines;

(b) Exempt foreign tourists and travelers from payment of taxes on food, drinks,
cigars and cigarettes consumed by them, as well as amusement taxes during their
stay in the country;

(c) Allow foreign visitors and travelers leaving the country to carry with them
or have mailed or shipped for them within sixty days of their departure, free of
export licenses, taxes or fees, any quantity of locally purchased Philippine souvenir
or gift goods when the value thereof shall not exceed one thousand pesos;
(d) Transfer to the Board the control and supervision of any such facilities,
services, rights and properties, real or personal, as may now be owned, operated or
maintained by other government agencies or instrumentalities which may be
helpful in the effective promotion and development of the tourist industry.

Section 9. The Philippine Tourist and Travel Association, Inc., which under its
charter, Republic Act Numbered Seven hundred and ten is the exclusive agency of
the government in the promotion of the tourist industry, shall be the instrumentality
of the Board in carrying out the objectives of this Act.

Section 10. The Board shall pass upon the requirements of the said Association and
make available out of its revenues as provided for in sections five and six above
such sums may be necessary for carrying out its program of activities.

Section 11. The Board of Travel and Tourist Industry shall, five days before the
opening of the regular sessions of Congress, submit to Congress a verified detailed
report of its collections, disbursements, and activities including those of the
Philippine Tourist and Travel Association, Inc. and of its accomplishments and a
copy of the plantilla as of December thirty-first of the year immediately preceding.

Section 12. All provisions of law contrary to the provisions of this Act or are
inconsistent with its aims and objectives are hereby repealed.

Section 13. This Act shall take effect upon its approval.

Approved: June 15, 1956