LEGAL ASPECTS IN

TOURISM AND
HOSPITALITY
OBJECTIVE:

• Identify the various government agencies

involved in the development and promotion of the
tourism industry as well as their functions
• Describe the relationships of these agencies with
one another
• Explain the possibility of public service as a career
in the industry.
INTRODUCTION
• The order of any business specifically affecting the
tourism and hospitality is dependent on the
implementation and observance of a rule, policy,
standard, system and law.

• No business/enterprise entity can exploit the

environment and natural resources as incidences to their
very existence without being subjected to the
regulations of the local and national governing
authorities.
WHAT IS A
LAW?
DEFINITION OF LAW

• It is a rule of action or any system of

uniformity

• It is a system of rules that govern a society

with the intention of maintaining social order,
upholding justice and preventing harm to
individuals and property..
CLASSIFICATION OF LAW
As to its purpose:

1). Substantive Law

- creating, defining and regulating rights and duties.

2). Adjective law

- a law which provides the method of aiding and
protecting certain rights
CLASSIFICATION OF LAW
As to scope:

1. General or Public Law

- a law which applies to all the people of the
state or to all particular class of persons in a
state, with equal force and obligations.
CLASSIFICATION OF LAW
General or Public Law

a. Criminal Law – a law dealing with crimes and their

punishment.
b. International Law – a body of rules or principles of
actin governing the relations between states.
c. Political Law – law regulating the relations
sustained by the inhabitants of a territory to the
sovereign.
CLASSIFICATION OF LAW
As to scope:

2. Special or Private Law

- a law which relates to particular persons or
things of a class.
CLASSIFICATION OF LAW
Special or Private Law

a. Civil Law – the mass of percepts which

determines and regulates those relations of
assistance, authority, and obedience existing
among members of a family and those which
exist among members of a society for the
protection of private interests.
CLASSIFICATION OF LAW
Special or Private Law

b. Maritime Law – the law dealing with commerce by

sea, involving regulation of ships and harbors and
the status of seamen.
c. Mercantile Law – the law of commercial
transactions derived from the law of merchant which
includes, commercial paper, insurance, and other
types of agency.
 CONCEPT OF TOURISM LAW
Tourism is defined as the custom or practice of
traveling for pleasure, as well as the promotion by
the establishment of countries to attract tourist.

Tourism Law may be defined as a body of rules and

principles of action which deals with the regulation,
authority, relations, and obedience among members
of society involved in tourist travel and
accommodation.
 THE TOURISM
PUBLIC SECTOR
It was during the year 1973 when the Philippine
government realized that there is a need to
realign government efforts toward trade
promotion and tourism development for greater
effectiveness; hence, the need for the
government’s immediate and priority attention.
This gave the rise to Presidential Decree No.
189 (May 11, 1973) creating the Department
of Tourism which was enacted to make the
tourism industry a positive instrument toward
accelerated national development through
which more people from other countries may
visit and better appreciate the country and
through which the Filipino themselves may
learn more about the natural beauty, history,
and culture of the Philippines.
DEPARTMENT OF TOURISM
• It was created by virtue of Presidential Decree
no.189.
• It is the primary policy making, planning,
programming, coordinating and administrative
entity of the executive branch of the
government in the development of the tourism
industry, both domestic and international.
DISCUSSION OF THE LAW
The power to regulate, license, and supervise
tour operators and accommodations facilities has
now been devolved to the local government
units. However, it must be noted that the
“power to regulate” does not include the
“power to prohibit operation of these
establishments” without due process of the
law.
APPLICATION OF THE LAW
CASE:
The Malate Tourist Development Corporation
(MTDC), a corporation engaged in the business
of operating hotels, motels, hostels, and
lodging houses, built and opened Victoria Court
Malate which was licensed as a motel although
duly accredited with the DOT as a hotel.
On March 30, 1993, an ordinance was
passed prohibiting the establishment or
operation of business providing certain
forms of amusement, entertainment,
services and facilities in Ermita-Malate area
where women are used as tools for the
entertainment and which to tend to disturb
and affect the social and moral welfare of
the community.
On June 28,1993, MTDC question the
validity of the ordinance and prayed
that the same insofar as it includes
motels and inns among its prohibited
establishments, be declared invalid and
unconstitutional.
In its defense, the City of Manila alleged
that such Ordinance is a valid exercise
of the police power of the state as it has
a “power to regulate” such
establishments as mandated under the
Local Government Code of 1991. How
will you rule on the issues?
LEGAL OPINION
The ordinance should be declared
unconstitutional and invalid. The “power to
regulate” means the power to control, govern,
and to restrain places of exhibition and
amusement; but the power to regulate should
not to be construed as synonymous with the
“power to suppress” or “power to prohibit.”
LEGAL OPINION
The police power granted to local
government units must always be exercised
with utmost observance of the rights of the
people to due process and equal protection
of the law.
II. TOURISM INFRASTRUCTURE AND
ENTERPRISE ZONE AUTHORITY (TIEZA)
- is an agency of the Philippine national
government under the Department of
Tourism responsible for implementing
policies and programs of the department
pertaining to the development, promotion,
and supervision of tourism projects in the
Philippines.
II. TOURISM INFRASTRUCTURE AND
ENTERPRISE ZONE AUTHORITY (TIEZA)

- Presidential Decree 564 (October 2, 1974) was

enacted revising the charter of the Philippine
Tourism Authority (PTA) which was originally
created under Presidential Decree No. 189 dated
May 11, 1973
- Travel tax collection is PTA’s main source of
income.
 TOURISM ENTERPRISE ZONE (TEZ)
TEZs can be any geographical area in the
country that conforms to the following criteria:
• The area is capable of being into one
contiguous territory;
• It has historical and cultural significance,
environmental beauty, or exercising or
potential integrated leisure facilities within its
bound or reasonable distance from it;
 TOURISM ENTERPRISE ZONE (TEZ)
• It has, or it may have, strategic access through
transportation infrastructure, and reasonable
connection with utilities infrastructure system;
• It must be at least 5 hectares and sufficient in
size;
• It is in a strategic location;
• The area must be situated where controls can
easily be established to curtail illegal activities.
 TOURISM ENTERPRISE ZONE (TEZ)

a. Cultural Heritage Tourism Zone

- areas that will allow the tourist to experience
the places, artifacts, and activities that
authentically represent the stories of the people
living in the area, past or present.
 TOURISM ENTERPRISE ZONE (TEZ)

b. Health and Wellness Tourism Zone

- areas that will allow the visitors to avail of
quality but affordable mainstream, traditional, or
alternative healthcare services for treatment of
illness and health problems in order to maintain
one’s health and well-being.
 TOURISM ENTERPRISE ZONE (TEZ)

c. Eco-Tourism Zone
- areas that will allow the visitors to experience
a form of suitable tourism within a given natural
and/or cultural area.
 TOURISM ENTERPRISE ZONE (TEZ)
d. General Leisure Tourism Zone
- areas that may offer recreational facilities that
will have high visitor density.

e. Mixed-use Tourism Zone

- Areas that will allow a combination of some or
all of the features of the aforementioned zones
within one area.
 APPLICATION OF THE LAW
CASE:
the heirs of Juancho Ardona are challenging the
constitutionality of Presidential Decree No.564, the
Revised Charter of the Philippine Tourism Authority,
and Proclamation No.2052 declaring the barangays
of Sibugay, Malubog, Bagbag, and Sirao including he
prosed Lusaran Dam in Cebu City and in the
municipalities of Argao and Dalaguete in the
province of Cebu as tourist zones.
 APPLICATION OF THE LAW
The heirs of Mr. Ardona are also seeking
relief in order to restrain the PTA from
enforcing the expropriation of their lands
which have been declared as tourist zone
under Proclamation No.2052. the heirs of Mr.
Ardona are claiming that the property in
question has been previously declared a
land area,
 APPLICATION OF THE LAW
hence the implementation of the social
justice provision of the Constitution on
agrarian reform is paramount to the right of
the State to expropriate the lands.

Is the claim of the heirs of Juancho

Ardona valid?
 LEGAL OPINION
No, it has been ruled that expropriating 282
hectares of land to establish a resort
complex and declaring certain municipalities
in the province of cebu as tourist zone is a
valid exercise of eminent domain by the PTA
notwithstanding the claim that certificates
of land transfer and emancipation had
already been issued.
 LEGAL OPINION
The constitution does not preclude nor limit
the exercise of the power of eminent domain
for such purposes like tourism and other
development programs. Tourism is also part
of the declared national objectives of the
framers of the Constitution as it is covered
in general terms such as social justice, local
autonomy
 LEGAL OPINION
Conversation and development of the
national patrimony, public interest, and
general welfare, among other.
 INTRAMUROS ADMINISTRATION
Intramuros administration (IA) shall be
responsible for the orderly restoration and
development of Intramuros as a monument to
the Hispanic period of the Philippine History. It
shall also ensure that the general appearance of
Intramuros shall conform to the Philippine-
Spanish architecture of the 16th to the 19th
century.
 INTRAMUROS ADMINISTRATION
-formulates, coordinates, and/or executes
policies on the implementation of all programs,
projects and activities of the government
affecting or relating to Intramuros.
- receives, takes and holds by bequest, device,
donation, gift, purchase or lease, from foreign or
domestic sources.
 INTRAMUROS ADMINISTRATION
- give grants, contributions, and donations for
the restoration, repair or maintenance of historic
structure in Intramuros.

- Prescribes and collects reasonable amounts to

be charged for the effective enforcement of its
laws and regulatory measures.
 OTHER
GOVERNMENT
AGENCIES
NATIONAL PARKS DEVELOPMENT
COMMITTEE (NPDC)

- Created originally as an
Executive Committee on
January 14, 1963, for the
development of the Quezon
Memorial, Luneta, and
other national parks.
 NATIONAL HISTORICAL INSTITUTE
(NHI)
Presidential Decree no. 260 dated
August 01, 1973 has declared certain
sites, churches and places as national
shrines, monuments, and/or
landmarks, and place their
preservation, restoration and/or
reconstruction under the supervision
and control of the NHI in collaboration
with the DOT.
 NATIONAL COMMISSION FOR
CULTURE AND ARTS (NCCA)

• R.A. NO.7356 has been enacted in order to

create the mandate of the NCCA.

• R.A. No.8492, the National Museum has

now been detached from the NCCA and
has now been placed solely for budgetary
purposes under the office of the President.
 TOURISM PROMOTIONS BOARD
(TPB)

Is an agency attached to the DOT tasked with

promoting the country as an ideal tourism,
convention and incentive travel destination.
NATIONAL ECONOMIC DEVELOPMENT
AUTHORITY (NEDA)

It was created in pursuance

of the goals pf promoting the
economic and social
development and stability of
the country.
 ANTI-MONEY LAUNDERING
COUNCIL (AMLC)
Is a government agency in the
Philippines responsible for
implementing the Anti-Money
Laundering Act of 2001. Its
primary goal is to prevent the use
of the Philippine financial system
for money laundering and other
financial crimes
 PHILIPPINE AMUSEMENT AND
GAMING CORPORATION (PAGCOR)

Is a government-owned and
controlled corporation existing
under Presidential Decree
No.189 issued on July 11,1983
by President Ferdinand
Marcos.
 DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES (DENR)
Section 4 of Executive Order 192,
the DENR is mandated to be the
primary government agency
responsible for the conversation,
management, development and
proper use of country’s
environment and natural
resources.
 DEPARTMENT OF
LABOR AND EMPLOYMENT
mandated to formulate policies,
implement programs and
services, and serve as the policy-
coordinating arm of the Executive
Branch in the field of labor and
employment. It is tasked with the
enforcement of the provisions of
the Labor Code.
 DEPARTMENT OF PUBLIC WORKS
AND HIGHWAYS (DPWH)
is the State's engineering and
construction arm and continuously
develops its technology, for the
purpose of ensuring the safety of all
infrastructure facilities and securing
for all public works and highways
the highest efficiency and the most
appropriate quality in construction.
DEPARTMENT OF TRANSPORTATION
AND COMMUNICATION (DOTC)
Is the primary policy, planning, programming,
coordinating, implementing, regulating, and
administrative entity of the executive branch of the
government in the promotion, development and
regulation of dependable and coordinated networks
of transportation and communication systems, as
well as the fast, safe, efficient and reliable postal,
transportation and communication services.
ATTACHED AGENCIES
OF THE DOTC
LAND TRANSPORTATION OFFICE (LTO)

Is the proper agency which

controls the registration and
operation of motor vehicles
and licensing of owners,
dealers, conductors, drivers,
and similar matters.
LAND TRANSPORTATION FRANCHISING AND
REGULATORY BOARD (LTFRB)

Is the agency which issues, amends,

revises, suspends or cancels
Certificates of Public Convenience or
permits authorizing the operation of
public land transportation services
provided by motorized vehicles, and
to prescribe the appropriate terms
and conditions.
MARITIME INDUSTRY AUTHORITY
(MARINA)

Integrates the development,

promotion, and regulation of
the maritime industry in the
country. It was originally
placed under the Office of
the President
AIR TRANSPORTATION OFFICE (ATO)

Its primary function is to establish and

enforce rules and regulations for the
inspections and registration of all
aircraft owned and operated in the
Philippines and all air facilities.
CIVIL AERONAUTICS BOARD
(CAB)

It regulates the economic aspects of air

transportation and has general
supervision and regulation of and
jurisdiction and control over air carriers
as well as their property, property rights,
equipment, facilities and franchise.
LIGHT RAIL TRANSIT AUTHORITY(LRTA)

Responsible for the

construction, operation,
maintenance, and or lease of
light rail transit system in
the Philippines.
METRO RAIL TRANSIT
CORPORATION (MRTC)

The MRTC undertook to build MRT3

which it shall own for 25 years, after
which ownership shall be transferred
to the Philippine government in
accordance with R.A. No. 6957 or the
Build, Operate and Transfer Law.
PHILIPPINE NATIONAL
RAILWAY (PNR)

It is a corporation to serve as the

instrumentality of the Government of
the Philippines in providing a
nationwide railroad transportation
system.
 BORACAY SHUTDOWN
Boracay Island was closed for 6 months in 2018 by
the government due to excessive pollution and
degradation of the environment. All flights and boat
trips to and from the island carrying tourists were
suspended. An inter-agency task force comprised of
the DOT, DENR, and DILG spearheaded the
rehabilitation of the island. Thousands of workers
were displaced as a result of the closure of over 400
tourist establishments.
 BORACAY SHUTDOWN
1. Was the government right in pursuing
the total shutdown of the Island for 6
months?
2. What are the advantages and dis-
advantages of such actions?
3. What law supports the action of the
government?
 QUIRINO GRANDSTAND SHOOTING

1. Was the travel and tour agency

liable for the deaths of its tourist
clients?

2. Were the government authorities

liable for the alleged incompetence?
 GUIMARAS OIL SPILL
1. What are the liabilities of the shipping
line that owns the oil tanker?

2. What is the impact of such a massive

oil to tourism and the economy?
References:

• Legal aspects in Tourism and Hospitality by Danny Araneta

Cabulay and Christine Palafox Carpio-Aldeguer