Travel Services: The Philippine Tourism

Industry
Tourism Concepts
Tourism: The commercial organization and operation of vacations and visits to places of
interest.
Visitor: A traveler taking a trip to a main destination outside his/her usual environment for
less than a year, for any main purpose (business, leisure, or other personal purpose) other
than to be employed by a resident entity in the country or place visited. These trips qualify as
tourism trips.
Tourist: Any individual who undertakes a journey that exceeds 24 hours (i.e., overnight)
outside their regular place of residence, for purposes other than earning a living.

The Philippine Tourism Industry

Definition: The composite industries and entities, both public and private, involved in the
planning, development, marketing, sales, operations, and evaluation of destinations, products,
and services that cater to the needs of travelers, both foreign and domestic.

The Government Sector's Role

Formulates tourism policies.
Provides guidelines for the development of destinations.
Regulates the industry in collaboration with other government industries.

Government Agencies Involved in Managing

Tourism
1. Department of Tourism (DOT)

Institutionalized in 1973 by virtue of Presidential Decree No. 189 and reorganized through
Executive Order No. 120.
Prime tourism agency mandated to:
Plan and set the fundamental policies involving the tourism sector.
Coordinate policy with other tourism agencies.
Act as an administrative entity for the executive branch of government.
Powers:
Hold meetings and conferences pertaining to tourism.
Amend travel regulations and guidelines.
Review all government projects concerning tourism.
Issue licenses to tourism personnel (tour guides, travel agents, operators).
Regulate, supervise, and license all tourism sub-sectors (hotels, motels, restaurants,
resorts).
 Organizational Structure:

1. Philippine Convention and Visitors Corporation (PCVC)

A non-profit corporation that aims to promote the Philippines as a prime tourist, convention,
and incentive travel destination.
Headed by the Secretary of Tourism (cabinet rank).
Assisted by four Undersecretaries and an Assistant Secretary.
Undersecretary for Planning, Product Development, and Coordination: Handles
research, surveys, recommendations for future plans and policies, coordination and
assistance in implementation of tourism-related projects, and formulation of tourism
statistics.
Undersecretary for Tourism Promotions: Deals with public relations, marketing of
tourism activities and projects, provides assistance to private sectors, organizes
events promoting the country's destinations, and disseminates tourism information.
Undersecretary for Tourism Services and Regional Offices: Formulates tourism
standards, approves the construction of tourism establishments and facilities,
accredits travel agencies, and coordinates and supervises all Regional Offices.
Assistant Secretary for Internal Services: Performs administrative services and
support (personnel information, communications, record keeping), financial and
management services (budgetary and accounting concerns), and legal services and
litigations.

Acts as the country's tourism arm in the domestic and international market.
Adopts an Integrated Tourist Marketing Plan to:
Strengthen promotional campaigns through marketing research.
Develop marketing representatives' skills.
Build mutual linkages among private sectors.
Reach tourism products to local and foreign consumers through travel trade expositions
and media advertisements.
Organizational Structure:

1. Philippine Tourism Authority (PTA)

A government-owned corporation established by Presidential Decree No. 189 (amended by

Presidential Decree No. 564).
Secretary of Tourism is the Executive Director.
Chairperson and nine (9) Board of Trustees from government and private sectors.
Structured into five distinct units:
The Office of the Travel Trade
The Office of Conventions and Incentive Travel
The Office of Corporate Affair.
The Office of the Foreign Offices
The Advertising and Publications Department

Acts as the policy-implementing body of the DOT to:

1. Local Government Units (LGU)

Republic Act No. 9593 (The Tourism Act of 2009) outlines shared responsibilities between
national and local governments.
Realize tourism standards.
Collect taxes as imposed by law.
 Provide and maintain tourism facilities and infrastructures.
Section 118 - Coordination between National and Local Government
The DOT and the Department of Interior and Local Government (DILG) shall integrate all
local tourism development plans by LGU in the formulation and annual updating of the
national tourism development plan
The Department shall provide assistance, training and other capacity-building measures to
the LGUs in the formulation, implementation and monitoring of national tourism
development plans, gathering of statistical data and enforcement of tourism laws and
regulations...
Section 119 - National Tourism Development Planning
The Department in coordination with its attached agencies, LGUs and the private sector
shall continuously update the national tourism development plan taking into consideration
the evolving needs and capabilities of LGUs, approved local tourism development plans as
well as domestic and global tourism market trends.
Section 120 - Local Tourism Development Planning

1. Other National Government Units

Securities and Exchange Commission (SEC): Registers, licenses, and regulates corporations
and partnership business entities.
Pursuant to Republic Act No. 7160, otherwise known as the Local Government Code of
1991, LGUs shall prepare, adopt, implement and monitor their local tourism development
plans, enforce standards for tourism enterprises and collect statistical data for tourism
purposes.
Board of Investments (BOI): Promotes investment in the Philippines (attached to the
Department of Trade and Industry).
Philippine Economic Zone Authority (PEZA): Ensures foreign investors find suitable strategic
business locations.
Bangko Sentral ng Pilipinas (BSP): Preserves monetary stability and convertibility of the
Peso.
Department of Transportation and Communication (DOTC): Regulates and supervises the
Philippine transportation and communication system.
Civil Aeronautics Board (CAB): Controls and supervises economic aspects of air
transportation.
Civil Aviation Authority of the Philippines (CAAP): Implements policies on aviation or air
travel to ensure traveler safety.
Maritime Industry Authority (MARINA): Creates policy for all means of water transportation.
Philippine Ports Authority (PPA): Manages the operations and financing of all public ports.
Land Transportation Franchising and Regulatory Board (LTFRB): Issues, suspends, and
cancels certificates of convenience to all public transportation services.
Department of Public Works and Highways (DPWH): Facilitates construction and
maintenance of transportation infrastructures (roads and bridges).
Department of Foreign Affairs (DFA): Coordinates and builds harmonious relationships
among countries.
Bureau of Immigration (BI): Monitors the entry and exit of foreign nationals.
Department of Finance (DOF): Facilitates the collection of revenues from the tourism
industry.
Department of Labor and Employment (DOLE): Promotes employment opportunities for
Filipinos in the tourism industry.
Department of Environment and Natural Resources (DENR): Oversees the preservation of the
natural environment.
Philippine National Police (PNP): Enforces peace and order in all tourist destinations.