AN ACT TO CREATE A BOARD OF TRAVEL AND TOURIST INDUSTRY

Case Overview and Summary

Summary of Republic Act No. 1478

Creation of the Board of Travel and Tourist Industry
- The Board is created to regulate international travel and tourism for the development of the Philippine tourist industry. (Section 1)
- The Board is composed of the Secretary of Commerce as Chairman and representatives from various government agencies and private organizations as members. (Section 1)

Responsibilities and Duties of the Board
- Coordinate activities of government agencies related to international travel and tourism. (Section 2a)
- Promote the removal of unnecessary travel barriers, simplify travel regulations, and ensure efficient and hospitable treatment of tourists. (Section 2b)
- Develop tourist attractions and provide essential facilities where private enterprise is lacking. (Section 2c)
- Organize and support promotion and publicity programs to attract foreign tourists to the Philippines. (Section 2d)
- Regulate and license the business of travel agents. (Section 2e)
- Supervise the operation of facilities and services catering to foreign travelers and tourists to ensure high standards, reasonable charges, courtesy, honesty, and efficiency. (Section 2f)

Tourist Tax
- A tax shall be collected on fares of passengers leaving or entering the country, with rates ranging from 7.50 pesos to 100 pesos, depending on the fare cost. (Section 3)
- The tax shall be collected by carriers and travel agencies issuing foreign travel passenger tickets and remitted to the Board quarterly. (Section 4)
- 50% of the tax collections shall accrue to the Board's funds for developing tourist facilities and promoting tourism, while the other 50% shall go to the general funds of the government. (Section 5)

Regulation of Travel Agency Business
- The Board shall regulate the travel agency business, prescribing rules for their establishment and operation. (Section 6)
- The Board shall fix and collect an annual license fee from travel agencies, not exceeding 100 pesos per year. (Section 6)
- No individual or firm shall engage in the travel agency business without a license from the Board. (Section 6)

Supervisory Powers over Tourist Facilities and Services
- The Board shall prescribe rules and regulations for the operation and maintenance of facilities and services catering to foreign travelers and tourists. (Section 7)
- The Board may take steps to cancel or recommend the cancellation of permits or prosecution of offending parties for non-compliance with rules and regulations. (Section 7)

Presidential Powers for Strengthening Tourism
- The President may, upon the Board's recommendation:
- Suspend payment of visa and visa application fees for foreign tourists. (Section 8a)
- Exempt foreign tourists from taxes on food, drinks, cigars, cigarettes, and amusement taxes during their stay. (Section 8b)
- Allow foreign visitors to carry or ship locally purchased Philippine souvenir or gift goods up to 1,000 pesos in value, free of export licenses, taxes, or fees. (Section 8c)
- Transfer control and supervision of government facilities, services, rights, and properties helpful for tourism promotion to the Board. (Section 8d)

Role of the Philippine Tourist and Travel Association
- The Philippine Tourist and Travel Association, Inc. shall be the instrumentality of the Board in carrying out the objectives of this Act. (Section 9)
- The Board shall provide necessary funds to the Association from its revenues for carrying out its program of activities. (Section 10)

Reporting Requirements
- The Board shall submit a verified detailed report of its collections, disbursements, activities, accomplishments, and plantilla to Congress five days before the regular session. (Section 11)

Repealing Clause and Effectivity
- All provisions of law contrary or inconsistent with this Act are repealed. (Section 12)
- This Act shall take effect upon its approval. (Section 13)