Amending Part IX Of The Integrated Reorganization Plan By Renaming The Department Of Trade And Tourism As The Department Of Tourism, And Creating The Department Of Tourism With A Philippine

Case Overview and Summary

Summary of Presidential Decree No. 189

Declaration of Policy (Section 1):
- The government aims to make the tourist industry a positive instrument for accelerated national development.
- It aims to encourage more foreign visitors to appreciate the Philippines.
- It aims to help Filipinos learn more about their country's natural beauty, history, and culture to develop greater national pride.

Creation of Department of Tourism (Section 2):
- A Department of Tourism is created as the primary policy, planning, programming, coordinating, and administrative entity for developing the tourist industry, both domestic and international.

Authority and Responsibility (Section 3):
- The Secretary of Tourism, assisted by one Undersecretary, shall exercise the powers and discharge the functions of the Department.

Functions of the Department (Section 4):
- Supervise all government activities concerning tourism.
- Remove unnecessary barriers to travel, integrate and simplify travel regulations, and ensure efficient, fair, and courteous enforcement for expeditious and hospitable reception of visitors. (Section 4b)
- Formulate an integrated program of promotion and publicity to attract foreign visitors, enhance the prestige of Filipinos and the Republic, and promote Philippine products. (Section 4c)
- Review and approve tourism projects involving loans from government financial institutions and those applying for tax incentives under the Export Incentives Act, as amended by Presidential Decree No. 92, before the Board of Investments takes action. (Section 4d)
- Represent the government in conferences and meetings concerning tourism and travel, and discharge responsibilities arising from treaties, agreements, and commitments on tourism and travel. (Section 4e)
- License, regulate, and supervise travel agents, tour operators, and tour guides. (Section 4f)
- Classify, regulate, supervise, and license hotels, resorts, inns, motels, restaurants, and other related facilities and services catering to foreign and domestic tourists, and formulate standards to ensure high standards, reasonable fees and charges, and honest, courteous, and efficient service. (Section 4g)
- Perform other functions as provided by law. (Section 4h)

Administrative, Planning, and Financial and Management Services (Section 5):
- The Department shall have an Administrative Service, a Planning Service, and a Financial and Management Service in conformity with Part II of the Integrated Reorganization Plan.

Field Offices (Section 6):
- The Department shall have field offices in the Philippines and abroad as necessary for effective promotion of the tourist industry.

Bureau of Tourist Promotion (Section 7):
- A Bureau of Tourist Promotion is created to organize and support a program of public relations, promotion, and publicity to interest, attract, and encourage overseas travelers to visit the Philippines.
- It shall have the following divisions:
- Press and Publication Division (Section 7a)
- Publish, produce, and disseminate publicity materials on tourist attractions, Philippine history, progress, natural resources, culture, and art.
- Encourage educational and cultural tours to develop domestic tourism.
- Participate in fairs and exhibits to promote local goods and products, and disseminate information about the Philippines as a tourist spot.
- Research and Statistics Division (Section 7b)
- Compile, analyze, and integrate statistical data on the tourist industry.
- Develop, forecast, and prepare economic reports and reviews based on research.
- Undertake continuing analysis of economic conditions and trends related to the sector.
- Training and Evaluation Division (Section 7c)
- Conduct training courses and apprenticeship programs for tourist guides, hotel and restaurant personnel, and other personnel involved in the tourist industry.
- Organize and conduct promotional training seminars.

Bureau of Special Services (Section 8):
- A Bureau of Special Services is created with the following divisions:
- Tourist Reception Division (Section 8a)
- Coordinate with agencies, government or private, on procedures to ensure hospitable reception of tourists during their visit, including establishing efficiently-run information centers at strategic locations.
- Maintain a security force, where necessary, to provide security and assistance to tourists and travelers, and extend investigative services to tourists who require such assistance.
- Licensing and Inspection Division (Section 8b)
- Prepare and maintain a register of businesses and establishments offering transportation, accommodation, or services to tourists.
- Regulate and license the business of travel agencies, tour operators, and tour guides. (Section 8b2)
- Classify, regulate, and license hotels, resorts, restaurants, inns, motels, and hostels according to set standards and guidelines. (Section 8b3)
- Exercise supervision over the operation of all facilities and services catering to or related to travelers. (Section 8b4)

Creation of Philippine Tourism Authority (Section 9):
- A Philippine Tourism Authority is created and attached to the Department to implement its policies and programs.
- The functions of the Authority are declared governmental.

Purposes and Specific Powers of the Authority (Section 10):
- Implement all policies and programs of the Department on project development. (Section 10a)
- Collect taxes as provided by law. (Section 10b)
- Operate and/or contract to operate agencies, functional units, offices, and departments as necessary for furthering the purposes of this Decree. (Section 10c)
- Extend assistance to private enterprises undertaking tourist projects. (Section 10d)
- Undertake the development of tourist attractions, including conducting feasibility studies and recommending agreements for tourist plant and facilities development with private entities. (Section 10e)
- Provide and maintain essential facilities for tourists and travelers where private enterprise is not prepared to take care of them. (Section 10f)
- Adopt, alter, and use a corporate seal; make contracts; lease, own, or dispose of personal and real property; sue and be sued; and perform necessary acts to carry out the Authority's purposes. (Section 10g)

Capitalization of the Authority (Section 11):
- The capital of the Authority shall consist of:
- Existing assets transferred from the Board of Travel and Tourist Industry and the Philippine Tourist and Travel Association.
- Properties contributed by the government to form part of its capital.
- Taxes under Republic Act No. 1478 and Republic Act No. 6141.
- Hotel room taxes collected under existing laws.

Power to Issue Bonds or Incur Indebtedness (Section 12):
- The Authority may contract loans, credits, and other indebtedness, or issue bonds, notes, debentures, securities, and other instruments of indebtedness for developing and/or operating the tourist industry, subject to certain conditions.

Administration of the Authority (Section 13):
- The Authority shall be administered by a General Manager appointed by the President from among persons of proven executive competence and experience in tourist development.

Board of Directors (Section 14):
- The corporate powers of the Authority shall be vested in and exercised by a Board of Directors composed of:
- The Secretary of Tourism as Chairman
- The General Manager as Vice Chairman
- Three part-time members appointed by the President for their expertise

Tenure of Office (Section 15):
- The tenure of office of the members shall be six years.
- In the first appointments, the terms shall be:
- One member for six years
- One member for four years
- One member for two years
- No vacancy shall be filled except for the unexpired portion of the term.

Meetings and Quorum (Section 16):
- The Board shall meet regularly once a month and as often as necessary.
- The presence of at least three members shall constitute a quorum.
- The vote of three members shall be necessary for adopting any rule, resolution, decision, or other act of the Board.

Compensation of Chairman and Members (Section 17):
- The members of the Board shall receive per diems and allowances as fixed by the President.

Powers and Duties of the Board (Section 18):
- Promulgate policies and prescribe necessary rules and regulations to implement the Decree, which shall take effect 30 days after publication in two newspapers of general circulation. (Section 18a)
- Approve the annual budget and implemental budgets submitted by the Chairman. (Section 18b)
- Upon the recommendation of the General Manager, organize, reorganize, and determine the Authority's staffing pattern, fix salaries, and define powers and duties. (Section 18c)
- Enter into necessary contracts or agreements for proper, efficient, and stable administration of the Authority and attainment of the Decree's purposes and objectives, notwithstanding contrary provisions of law, rules, and regulations. (Section 18d)
- Render annual reports to the President and special reports as requested. (Section 18e)
- Exercise all powers necessary or incidental to attain the purposes of this Decree. (Section 18f)

General Manager: Powers and Duties (Section 19):
- Direct and manage the affairs of the Authority in accordance with the Board's policies. (Section 19a)
- Prepare the agenda for Board meetings and submit policies and measures deemed necessary to carry out the Decree's provisions for the Board's consideration and approval. (Section 19b)
- Submit an annual report to the Board within 30 days after the close of each fiscal year, and other reports as required. (Section 19c)
- Submit an annual budget and necessary supplemental budgets to the Board for approval. (Section 19d)
- Establish the internal organization of the Authority under conditions prescribed by the Board, subject to Board approval for major reorganizations. (Section 19e)
- Perform other duties assigned by the Board. (Section 19f)

Tourism Advisory Council (Section 20):
- The Secretary of Tourism may establish a Tourism Advisory Council composed of representatives from trade organizations such as hotels, restaurants, air carriers, travel agencies, cottage industry producers and/or distributors, sea carriers, land transportation operators, and bankers association.
- Members shall be entitled to per diems and allowances as authorized.
- The Secretary may designate representatives from other trade organizations as necessary.
- Members shall be exempt from conflict-of-interest provisions of the Anti-Graft and Corrupt Practices Act.

Applicability of Civil Service Law (Section 21):
- All officials and employees of the Authority, except technical and professional personnel, shall be subject to Civil Service Law, rules and regulations, and the coverage of the Wage and Position Classification Office.

Appointment by the Board (Section 22):
- Employees of the Authority shall be appointed by the Board, upon the recommendation of the General Manager, to positions in the approved budget, using the standards set forth in the Civil Service Law and rules as a guide.

Transitory Provisions (Section 23):
- The properties, monies, assets, rights, choses in action, obligations, liabilities, records, and contracts of the defunct Board of Travel and Tourist Industry shall continue to be vested in and assumed by the Authority.
- The Board of Directors shall determine which personnel of the Board of Travel and Tourist Industry shall be absorbed by the Authority.

Rescission of the Charter of the Philippine Tourist and Travel Association (Section 24):
- The Charter of the Philippine Tourist and Travel Association granted under Republic Act No. 710 is rescinded, without prejudice to its continuing as a duly registered private corporation.
- Any assets derived from the government subsidy under the aforementioned charter shall be transferred to the Authority.

Staffing Requirements of the Department (Section 25):
- The staffing requirements of the Department shall be provided for in the General Appropriation Act.

Reconstitution of the Civil Aeronautics Board (Section 26):
- The Civil Aeronautics Board is reconstituted and attached to the Department.
- It shall be composed of:
- The Secretary of Tourism as Chairman
- The Civil Aeronautics Administrator
- The Commander Officer of the Philippine Air Force
- The Assistant Director for Air Transportation of the Bureau of Transportation
- Two other members appointed by the President of the Philippines

Attachment of Other Entities (Section 27):
- The Hundred Islands Conservation and Development Authority, the San Juanico Tourist Development Authority, the Looc Estate, and other entities organized to promote tourism are attached to the Department.

Functions of the Department of Trade (Section 28):
- The Department of Trade shall perform all functions, except those on tourism, of the Department of Trade and Tourism pursuant to the applicable provisions of the Integrated Reorganization Plan.

Repeal (Section 29):
- Presidential Decree No. 132, dated February 19, 1973, and any other acts, statutes, decrees, rules, and regulations inconsistent with this Decree are repealed or modified accordingly.

Effectivity (Section 30):
- This Decree shall take effect immediately.