AN ACT TO AMEND CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED FOURTEEN HUNDRED SEVENTY-EIGHT

Case Overview and Summary

Summary of Republic Act No. 2627

Creation of the Board of Travel and Tourist Industry (Section 1)
- Composed of the Secretary of Commerce (Chairman), Undersecretaries of Foreign Affairs, Finance, Justice, and Public Works and Communications, President of the Philippine Chamber of Commerce, President of the Philippine Tourist and Travel Association, and the Commissioner of Tourism (Executive Vice Chairman).

Powers and Duties of the Board (Sections 2, 5, and 8)
- Coordinate activities of government agencies related to travel and tourism. (Section 2a)
- Develop tourist attractions and provide essential facilities for tourists where private enterprise is not prepared to do so. Assistance to private enterprises in the form of loans with 3% yearly interest, payable in not more than 10-year installments, with collateral and counterpart funding from the recipient. (Section 2c)
- Up to 50% of collections and those from Section 6 shall accrue to the Board's funds for developing tourist facilities and promoting tourism. (Section 5)
- The remaining balance shall be used for restoring, rehabilitating, acquiring, or developing historical or cultural tourist attractions, and for foreign publicity, advertising, and sales promotion. Not less than one-third but not more than one-half of the balance shall be used for foreign operations, with the Central Bank providing the necessary foreign exchange. (Section 5)
- Effect other measures necessary to carry out the objectives of the Act. (Section 8e)

Regulation of Travel Agency Business (Section 6)
- The Board has exclusive authority to regulate the travel agency business in any form.
- The Board shall prescribe rules for establishing and operating travel agencies.
- The Board shall fix and collect an annual license fee from individuals or groups engaged in the travel agency business, not exceeding 100 pesos per year.
- No individual or firm shall engage in the travel agency business without a license from the Board.