Government Agencies Affecting Tourism and Hospitality Industry PDF

TH2016 Government Agencies Affecting the Tourism and Hospitality Industry In 1973, the Philippine government realized the need to realign government efforts towards trade promotion and tourism development for greater effectiveness; hence, the need for the government's immediate attention. This gave...

TH2016 Government Agencies Affecting the Tourism and Hospitality Industry In 1973, the Philippine government realized the need to realign government efforts towards trade promotion and tourism development for greater effectiveness; hence, the need for the government's immediate attention. This gave 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 towards accelerated national development. The following are the government agencies directly involved in the promotion of tourism in the Philippines (Cabulay & Carpio-Aldeguer, 2015): Department of Tourism (DOT). It is the primary policy-making, planning, programming, coordinating, and administrative entity of the executive branch of government in developing the tourism industry, both domestic and international. Under Section 6 of the Tourism Act of 2009, the following are the DOT's powers and functions: o Formulate tourism policies, plans, and projects for the development of tourism as an engine of socioeconomic and cultural growth; o Supervise and coordinate the implementation of tourism policies, plans, and projects; o Call upon all agencies of government to properly carry out their programs in relation to and in coordination with the policies, plans, and projects of the Department and to assist in the implementation thereof; o Communicate to the President, and the heads of departments, agencies, and instrumentalities of the government, the impact upon tourism and the economy of proposed governmental actions; o Provide an integrated market development program to attract people to visit the Philippines and enhance the prestige of the country and the Filipino people in the international community; o Represent the government in all domestic and international conferences and fora, and in all multilateral or bilateral treaties and international agreements concerning tourism, and ensure the government's implementation thereof and compliance with all obligations arising therefrom; o Request the President for representation in all government agencies, offices, boards, commissions, and committees that may affect tourism; o Call upon relevant government departments, agencies, and offices, in consultation with the private sector, to provide access to travel, to facilitate the process of obtaining and extending visas, to integrate and simplify travel regulations and immigration procedures, and to ensure their efficient, fair, and courteous enforcement to assure expeditious and hospitable reception of all visitors; o Support, advance, and promote the protection, maintenance, and preservation of historical, cultural, and natural endowments, in cooperation with appropriate government agencies and the private sector, and take appropriate measures against acts and omissions contrary to these objectives; o Monitor conditions of any community in the Philippines and, in consultation with the LGUs and law enforcers, issue timely advisories on the safety or viability of travel to particular places within the Philippines and on the patronage of entities engaged in tourism-related activities and of tourism products; o Evaluate tourism development projects for the issuance of permits and the grant of incentives by appropriate government agencies, establish a databank of tourism areas and projects for investment purposes, and encourage private sector investment and participation in tourism activities and projects; o Formulate and promulgate, in consultation with the LGUs, the private sector industries, and other tourism stakeholders, rules and regulations governing the operation and activities of all tourism enterprises including, but not limited to, a national standard for licensing, accreditation, and classification of tourism enterprises, prescribing therein minimum levels of operating quality and 02 Handout 1 *Property of STI  [email protected] Page 1 of 8  TH2016 efficiency for their operation in accordance with recognized international standards, impose reasonable penalties for violation of accreditation policies and recommend to the LGUs concerned the suspension or prohibition of operation of a tourism enterprise; o Monitor the LGUs' compliance to national standards in the licensing of tourism enterprises, receive and investigate complaints concerning these enterprises, and act on such complaints to properly implement the provisions of this Act; o Ensure the proper coordination, integration, prioritization, and implementation of local tourism development plans with that of the national government; o Provide technical assistance to LGUs in destination development, standard setting, and regulatory enforcement; o Undertake continuing research studies and survey to analyze economic conditions and trends relating to tourism and travel, and compile and integrate a statistical databank on the tourism industry; o Delegate to regional offices, in coordination with LGUs, specific powers and functions in the implementation of tourism policies, plans, and projects; o Collect necessary fees and charges for the proper implementation of tourism policies, plans, o and projects; and o Exercise such other powers and functions as are necessary for the implementation of this Act. The power to regulate, license, and supervise tour operators and accommodation facilities have been devolved to the local government units. However, it must be noted that the "power to regulate" does not include the "power to prohibit the operation of these establishments" without due process of law. By the enactment of the Tourism Act of 2009, certain tourism public sectors have been reorganized and renamed. Under this law, the DOT is reorganized and given considerable sources of funding to achieve its mandate and functions, which includes increasing tourist access. Certain areas are to be designed as Tourism Enterprise Zones (TEZ), and incentives are given to covered tourism enterprises. The Philippine Tourism Authority (PTA) is reorganized as the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). The Philippine Conventions and Visitors Corporation (PCVC) is reorganized as the Tourism Promotions Board (TPB). Under the Tourism Act of 2009, the DOT shall be the primary planning, programming, coordinating, implementing, and regulatory government agency in the development and promotion of the tourism industry, both domestic and international, in coordination with attached agencies and other government instrumentalities. The TIEZA shall be attached to the DOT for purposes of program and policy coordination. The TPB shall formulate and implement an integrated domestic and international promotions and marketing program for the DOT. The Intramuros Administration, the National Parks Development Committee, and the Nayong Pilipino Foundation shall continue to be attached to the DOT and shall operate under their respective charters. They may be authorized to operate TEZs, under the supervision of the TIEZA, within their respective jurisdiction. The Duty Free Philippines Corporation (DFPC) shall have the exclusive authority to operate and/or franchise out the operation of stores and shops that shall sell, among others, duty and tax-free merchandise, goods and articles in international airports and seaports, other ports of entry throughout the country and in Tourism Enterprise Zones. Tourism Infrastructure and Enterprise Zone Authority (TIEZA). It is formerly known as the Philippine Tourism Authority. Travel tax collection is PTA's main source of income. Travel tax is a levy imposed by the government on individuals (citizens of the Philippines, permanent resident aliens who have stayed in the country for more than a year) who are leaving the country irrespective of the place where the air ticket is issued. Payment of travel taxes is coursed through the Bureau of Internal Revenue. 02 Handout 1 *Property of STI  [email protected] Page 2 of 8  TH2016 The mandate of TIEZA under R.A. 9593 includes the following: o To designate, regulate, and supervise tourism enterprise zones established under R.A. 9593; o To develop, manage, and supervise tourism infrastructure projects nationwide; o To provide technical and financial assistance to qualified tourism projects, investors, and proponents (both government and private); o To generate revenues to fund both national and corporate developmental needs and/or undertakings; and o To exercise PTA functions under P.D. 564. A Tourism Enterprise Zone (TEZ) is defined as any entity duly incorporated under the Corporation Code and other relevant laws, or any local government unit (LGU), or any other instrumentality of government in the pursuit of their mandate may qualify as an applicant for the designation of an area as TEZ. A TEZ can be any geographical area in the country that conforms to the following: o The area is capable of being defined into one contiguous territory; o It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or reasonable distances from it; o It has, or it may have, strategic access through transportation infrastructure and reasonable connection with utility infrastructure systems; o It must be at least five (5) hectares and sufficient in size, such that it may be further utilized for bringing in new investments in tourism establishments and services; o It is in a strategic location such as to stimulate the sustainable socioeconomic development of neighboring communities; and o The area must be situated where controls can easily be established to curtail illegal activities. The TEZs to be created shall be classified as follows: o Cultural Heritage Tourism Zone. It includes 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. It may include but is not limited to cultural landscapes, historic sites and ruins, archaeological and maritime sites. o Health and Wellness Tourism Zone. It includes areas that will allow visitors to avail of quality but affordable mainstream, traditional, or alternative healthcare services to treat illnesses and health problems to maintain one's health and well-being. It may include, but is not limited to, medical and allied services, spas, health farms, and counseling and rehabilitation services. o Eco-Tourism Zone. It includes areas that will allow visitors to experience a form of sustainable tourism within a given natural and/or cultural area where community participation, conservation, and management of biodiversity, respect for the culture and indigenous knowledge systems and practices, environmental education and ethics, as well as economic benefits are fostered and pursued for the enrichment of host communities and satisfaction of visitors. It may include, but is not limited to, sites of scenic natural or rural beauty, areas for observing wildlife, areas for low impact activities such as camping, trekking, and climbing, and sites for interacting with traditional or indigenous practices concerning the environment. o General Leisure Tourism Zone. It includes areas that may offer recreational facilities that will have a high visitor density. It may include but is not limited to golf parks/resorts, theme parks and amusement centers, convention and meeting centers, sports complexes, department stores/restaurants/shops, and zoos. o Mixed-use Tourism Zone. It includes areas that will allow a combination of some or all of the features of the aforementioned zones within one (1) area. 02 Handout 1 *Property of STI  [email protected] Page 3 of 8  TH2016 Retirement communities and facilities duly accredited by the Philippine Retirement Authority may be located in General Leisure Tourism Zones, Health and Wellness Tourism Zones, and Mix-use Tourism Zones. Intramuros Administration (IA). Intramuros has been a priceless heritage of the past for the City of Manila and a major historical landmark of the Philippines. To preserve and enhance the historical value of Intramuros, a national historical consciousness program demands the restoration, development, and maintenance of the area. Hence, Presidential Decree No. 1616 (April 10, 1979) was established, creating the Intramuros Administration, charged with such a role and responsibility. IA shall be responsible for the orderly restoration and development of Intramuros as a monument to the Hispanic period of Philippine history. It shall also ensure that the general appearance of Intramuros shall conform to Philippine-Spanish architecture of the Sixteenth to the Nineteenth Century. The following are allied government agencies that are not directly involved in the promotion of the tourism industry but provide a substantial contribution to its efficient operation (Cabulay & Carpio-Aldeguer, 2015): National Parks Development Committee (NPDC). It was created originally as an Executive Committee on January 14, 1963, for the development of the Quezon Memorial, Luneta, and other national parks. It was later designated as the National Parks Development Committee. National Historical Institute (NHI). Presidential Decree No. 260 dated August 1, 1973, has declared certain sites, churches, and place as national shrines, monuments, and/or landmarks, and placed their preservation, restoration, and/or reconstruction under the supervision and control of the National Historical Institute in collaboration with the DOT. Hence, the NHI was given the right to declare historical and cultural sites and edifices as national shrines, monuments, and/or landmarks. Under Presidential Decree No. 1 dated September 24, 1972, NHI has been given the authority for the preservation, restoration, and/or reconstruction of several historic sites and buildings. All monetary contributions and donations to the archives of NHI are tax-exempt and deductible from the taxable income of the donor. The nomenclature of the NHI was changed to National Historical Commission of the Philippines (NHCP) under Republic Act No. 10086, dated May 12, 2010. National Center for Culture and Arts (NCCA). Republic Act No. 7356 has been enacted to create the mandate of the National Center for Culture and Arts. Under this law, its general mandate includes the following: o To encourage the continuing and balanced development of a pluralistic culture by the people themselves; o To conserve and promote the nation's historical and cultural heritage; o To ensure the widest dissemination of artistic and cultural products among the greatest number across the country and overseas for their appreciation and enjoyment; o To preserve and integrate traditional culture and its various creative expressions as a dynamic part of the national cultural mainstream; and o To ensure that standards of excellence are pursued in programs and activities implementing policies herein stated, it shall encourage and support continuing discussion and debate, through symposia, workshops, publications, etc., on the highest norms available in the matrix of Philippine culture. Under Republic Act 8492, the National Museum has now been detached from NCCA and has now been placed under the Office of the President. The primary purpose of the National Museum is to acquire documents, preserve, exhibit, and foster scholarly study and appreciation of works of art specimens and cultural and historical artifacts. 02 Handout 1 *Property of STI  [email protected] Page 4 of 8  TH2016 Tourism Promotions Board (TPB). This is an agency attached to the DOT, tasked with promoting the country as ideal tourism, convention, and incentive travel destination. It provides comprehensive information, assistance, and guidance to meeting planners and incentive travel organizers who seek an ideal venue for their meetings and incentive groups. Philippine Amusement and Gaming Corporation (PAGCOR). It is a government-owned and controlled corporation existing under Presidential Decree No. 1869 issued on July 11, 1983. The pertinent provisions of the said law are as follows: Section 1. Declaration of Policy. It is hereby declared to be the policy of the State to centralize and integrate all games of chance not heretofore authorized by existing franchise or permitted by law to attain the following objectives: xxx b) To establish and operate clubs and casinos for amusement and recreation, including sports, gaming pools (basketball, football, lotteries, etc.), and such other forms of amusement and recreation, including games of chances, which may be allowed by law within the territorial jurisdiction of the Philippines and which will: xxx (3) minimize, if not totally eradicate, the evils, malpractices, and corruptions that are normally prevalent in the conduct and operation of gambling clubs and casinos without direct government involvement. PAGCOR is granted the rights, privileges, and authority to operate and maintain gambling casinos, clubs, and other recreation or amusement places, sports, gaming pools, i.e., basketball, football, lotteries, etc., whether on land or sea, within the territorial jurisdiction of the Republic of the Philippines. Its original term expired on July 11, 2008, but was granted another 25 years, renewable for another 25 years, through Republic Act No. 9487. Department of Environment and Natural Resources (DENR). As provided under Section 4 of Executive Order 192, the DENR is mandated to be the primary government agency responsible for the conservation, management, development, and proper use of the country's environment and natural resources, including those in reservations, watershed areas, and lands of the public domain, as well as the licensing, utilization and regulation of all natural resources as may be provided by law to ensure equitable sharing of the benefits derived therefrom for the welfare of the present and future generations of Filipinos. Department of Labor and Employment (DOLE). This agency is mandated to formulate policies, implement programs, and serve as the policy-coordinating arm of the Executive Branch in the field of labor and employment. The DOLE promotes gainful employment opportunities and optimizes the development and utilization of the country's manpower resources. Department of Public Works and Highways (DPWH). This agency functions as the engineering and construction arm of the government tasked to continuously develop its technology to ensure the safety of all infrastructure facilities and secure all public works and highways with the highest efficiency and quality in construction. The DPWH is responsible for the planning, design, construction, and maintenance of infrastructure, especially the national highways, flood control, and water resources development system, and other public works following national development objectives. The work of DPWH is important, especially in providing access to tourist destinations, sites, and service facilities. Department of Transportation (DOTr). It 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, as well as in the fast, safe, efficient, and reliable postal, and transportation services. The following are the sectoral and attached agencies of the DOTr: o Land Transportation Office (LTO). It controls and registration and operation of motor vehicles and the licensing of owners, dealers, conductors, drivers, and similar matters. 02 Handout 1 *Property of STI  [email protected] Page 5 of 8  TH2016 o Land Transportation Franchising and Regulatory Board (LTFRB). It 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 prescribe the appropriate terms and conditions. o Maritime Industry Authority (MARINA). It integrates the development, promotion, and regulation of the maritime industry in the country. o The Philippine Coast Guard (PCG). It is an armed and uniformed service primarily tasked with enforcing all applicable laws within the Philippine waters, conducting maritime security operations, safeguarding life and property at sea, and protecting the marine environment and resources. o Civil Aviation Authority of the Philippines (CAAP). It is primarily charged with the technical and operational phases of civil aviation matters. Its primary function is to establish and enforce rules and regulations for the inspection and registration of all aircraft owned and operated in the Philippines and all air facilities. It establishes and prescribes the corresponding rules and regulations for the enforcement of laws governing air transportation. It is also in-charge in operation and maintenance of national airports, air navigation, and other similar facilities. o Manila International Airport Authority (MIAA). Created by Executive Order 778, it provides safe, efficient, and reliable airport facilities for international and domestic travel at the Ninoy Aquino International Airport (NAIA). It operates and manages the NAIA. It is also tasked with promoting NAIA as a center for international trade and tourism. o Clark International Airport Corporation (CIAC). CIAC is a non-chartered government-owned and controlled corporation (GOCC), duly registered with the Securities & Exchange Commission. It was created primarily to develop, operate, manage and maintain the Clark Civil Aviation Complex within the Clark Freeport Zone in Pampanga. o Mactan-Cebu International Airport Authority (MCIAA). It is in charge of operating and maintaining the Mactan International Airport, which is currently the premier gateway to the Central Visayas. The MCIAA provides airport safety and security and also implements airport rules and regulations. o Civil Aeronautics Board (CAB). It regulates the economic aspect of air transportation and has general supervision and regulation of and jurisdiction and control over air carriers and their property, property rights, equipment, facilities, and franchise. It also has the power to issue, deny, amend, revise, alter, modify, cancel, suspend, or revoke any issued temporary permit. o Light Rail Transit Authority (LRTA). This is a corporate body responsible for the construction, operation, maintenance, and/or lease of light rail transit systems in the Philippines, giving due regard to the reasonable requirements of the public transportation system of the country. o Metro Rail Transit Corporation (MRTC). The Metro Rail Transit Corporation, Limited undertook to build MRT 3, which it shall own for 25 years, after which, ownership shall be transferred to the Philippine government under Republic Act No. 6957 or the Build, Operate and Transfer Law. This allows MRTC, either by itself or through any estate developers, to develop commercial premises in the MRT 3 structure or obtain advertising income therefrom. o Philippine National Railways (PNR). It is a corporation to serve as the instrumentality of the government in providing a nationwide railroad transportation system. PNR shall not be subject to the authority and supervision of the Public Service Commission. o Philippine Ports Authority (PPA). It is the primary government agency concerned with the planning and development of the country's seaports. Established in 1974, the PPA's charter was 02 Handout 1 *Property of STI  [email protected] Page 6 of 8  TH2016 amended by Executive Order 857, which expanded its functions to include the integration and coordination of ports nationwide. o Cebu Ports Authority (CPA). It was created through the enactment of Republic Act No. 7621, signed on June 26, 1992. The CPA's mandate is to administer all ports located in Cebu Province, thus effectively separating these ports from the Philippine Ports Authority (PPA) system. The CPA began operations and officially took over all Cebu ports on January 1, 1996. Department of Trade and Industry (DTI). Under Executive Order 133, it serves as the primary coordinative, promoter, and facilitative arm for trade, industry, and investment activities. It acts as the catalyst for intensified private sector activity to accelerate and sustain economic growth. Its end goal is to grow and expand Philippine trade and industry to generate jobs and raise incomes so that Filipinos may enjoy a continuous improvement in their quality of life. Philippine Economic Zone Authority (PEZA). It grants fiscal and non-fiscal incentives to developers of economic zones, export producers, and Information Technology (IT) service exporters. It offers ready-to- occupy locations to foreign investors who are export producers or IT service exporters in world-class and environment-friendly economic zones and IT parks or buildings. For PEZA-registered enterprises, under Section 23 of Republic Act No. 7916, there are two (2) options for their tax burden. They could avail of an income tax holiday that exempts them from income taxes for several years but not from other internal revenue taxes such as Value-Added Tax (VAT); or they could avail of the tax exemptions on all taxes, including VAT, and pay only the preferential tax rate of 5%. However, the Supreme Court already pronounced that businesses registered in and operating from the Special Economic Zone are entities exempt from all internal revenue taxes and the implementing rules relevant thereto, including value-added taxes. The term "Special Economic Zones (SEZs)," referred to as the ecozones, are selected areas with highly developed or which have the potential to be developed into agro- industrial, industrial tourist/recreational, commercial, banking, investment, and financial centers. An ecozone may contain any or all of the following: Industrial Estates (Ies), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers. Department of Foreign Affairs (DFA). It is the agency of the government primarily responsible for the pursuit of the State's foreign policy and the nerve center for a Foreign Service worthy of the trust and pride of every Filipino. It is also the primary representative of the Philippine government overseas. Department of Interior and Local Government (DILG). It is responsible for promoting peace and order, ensuring public safety, and strengthening local government units' capability to effectively deliver basic services to the citizenry. Some of the objectives of the agency include reducing crime incidents and improve crime solution efficiency, improve fire protection services, and enhance local government unit capacities to improve their performance and enable them to effectively and efficiently deliver services to their constituents. Food and Drug Administration (FDA). It is a regulatory agency under the Department of Health (DOH) responsible for protecting public health by ensuring the safety, efficacy, and security of human and veterinary drugs, biological products, and medical devices; and by ensuring the safety of the nation's food supply, cosmetics, and products that emit radiation. Bureau of Customs (BOC). The general duties, powers, and jurisdiction of the bureau shall include: assessing and collecting lawful revenue, preventing smuggling and other frauds, controlling vessels/aircrafts doing foreign trade, enforcing tariff and customs law, controlling the handling of foreign mails for revenues, and prevention purposes, controlling import and export cargoes, and having jurisdiction over forfeiture (the permanent loss of rights to a seized property through a course order or judgment; occurs after seizure) and seizure (the act of taking property) cases. 02 Handout 1 *Property of STI  [email protected] Page 7 of 8  TH2016 The BOC shall, for customs purposes, have exclusive control, direction, and management of custom-house, warehouses, offices, wharves, and other premises in the respective ports of entry, in all cases without prejudice to the general police powers of the city or municipality wherein such premises are situated. Bureau of Immigration (BI). It is principally responsible for the administration and enforcement of immigration, citizenship, and alien admission and registration laws in accordance with the provisions of the Philippine Immigration Act of 1940. It also plays a role in the enforcement of RA 9208, also known as the Anti-Trafficking in Persons Act of 2003. Its general functions include: acting as the primary enforcement arm of the Department of Justice and the President of the Philippines in ensuring that all foreigners within its territorial jurisdiction comply with existing laws; assisting local and international law enforcement agencies in securing the tranquility of the state against foreigners whose presence or stay may be deemed threats to national security, public safety, public morals and public health; and acting as a chief repository of all immigration records pertaining to entry, temporary sojourn, admission, residence and departure of all foreigners in the country. Nayong Pilipino Foundation (NPF). It was created under P.D. No. 37 on November 16, 1972, to promote, encourage, and initiate research and development projects and activities in social sciences, humanities, social and amelioration, and allied fields. The Foundation is a non-stock, non-profit public corporation, organized, established, and operated in the public interest, and no portion of its funds and income shall take effect for the benefit of any of its members. Other government agencies that may influence tourism and hospitality operations include the Bangko Sentral ng Pilipinas (BSP), National Economic Development Authority (NEDA), Board of Investments (BOI), Philippine Coast Guard, and Professional Regulatory Board for Customs Brokers. References: Bureau of Immigration website. http://www.immigration.gov.ph/11-the-bureau Cabulay, D. A., & Carpio-Aldeguer, C. P. (2015). Philippine tourism laws: A comprehensive guide to studying laws relevant to the Philippine tourism industry (2nd ed.). Rex Printing Company, Inc. Department of Transportation. Sectoral and Attached Agencies. https://dotr.gov.ph/2014-09-02-05-01-41/2014-09-03- 06-32-04.html#attached-agencies Food and Drug Administration. Mandate. https://ww2.fda.gov.ph/index.php/mandate-functions-and-officials/mandate Institute for Justice. (September 22, 2016). Seizure vs. Forfeiture: A Crucial Distinction. https://ij.org/seizure-vs- forfeiture-crucial-distinction/ Offiial Gazette. (May 12, 2009). Republic Act No. 9593. https://www.officialgazette.gov.ph/2009/05/12/republic-act-no- 9593-s-2009/ Official Gazette. Department of Foreign Affairs. https://www.officialgazette.gov.ph/section/briefing-room/department- of-foreign-affairs-briefing-room/ Official Gazette. Department of Interior and Local Government. https://www.officialgazette.gov.ph/section/briefing- room/department-of-labor-and-employment/ 02 Handout 1 *Property of STI  [email protected] Page 8 of 8