Laws Regulating Travel and Tour Services Notes

Laws Regulating Travel and Tour Services

Republic Act No. 9593 (Tourism Act of 2009)

  • Classifies inbound travel agencies, tour operators, local tour operators, ecotour operators, and tour guides as Primary Tourism Enterprises.

  • Requires these enterprises to obtain accreditation from the Department of Tourism (DOT) to ensure quality facilities and service standards.

Definitions

  • Tour Operator: An entity (single proprietorship, partnership, or corporation) engaged in arranging transportation, accommodation, and inbound tours for individuals or groups, whether for a fee or compensation.

  • Tour Guide: An individual who guides tourists (foreign and domestic) for a fee or remuneration.

Travel Agencies

  • Act as agents for clients in making travel arrangements.

  • Provide services like procuring tickets, facilitating travel permits/visas, and booking tours.

  • Act as agents of common carriers.

Republic Act No. 8239 (Philippine Passport Act of 1996)

  • Allows licensed travel agencies accredited by the Department of Foreign Affairs to file passport renewal applications.

  • The travel agency is responsible for ensuring the authenticity of supporting documents.

Accreditation of Tour Operators (Revised Rules and Regulations)

Eligibility
  • Resident Filipino citizen registered as a single proprietorship.

  • Partnership organized under Philippine laws with at least 60% Filipino ownership.

  • Corporations organized under Philippine laws with at least 60% Filipino ownership of subscribed common or voting shares, and at least 60% Filipino composition of the Board of Directors. Foreign-owned corporations (over 40%) must have at least US200,000.00200,000.00 paid-in capital.

  • Cooperatives duly organized under Philippine laws.

Mandatory Documentary Requirements (New Applications)
  • Valid Mayor’s/Business Permit.

  • Proof of working capital of Php500,000.00500,000.00. (For Corporation/Partnership, Php500,000.00500,000.00 Paid- up/partners’ capital; for single proprietorship, original copy of bank certification with cheque writer).

  • For General Manager, documents proving a minimum of three (3) years managerial experience in travel and tour agency operations or proof of passing a Travel and Tour Agency Management Course or its equivalent.

  • Notarized List of Names of all Officials and Employees (with office designation and nationality).

Minimum Office Requirements
  • Located in a commercial area or building.

  • Used exclusively for travel and tour operations.

  • Adequately furnished with basic furniture and equipment (executive table, chairs, computer, printer, telephone).

  • Minimum office floor area of 18 square meters. (Branch offices are exempted from the minimum office size requirement).

  • Minimum of three (3) employees: General Manager, reservation officer, and tour/product development officer.

  • Offices should be ventilated or have temperature control, maintaining a temperature between 20-25 degrees Celsius year-round, except in areas above 2000 ft. above sea level.

Validity of Accreditation
  • Certificate of Accreditation is valid for two (2) years.

  • Requires renewal of Mayor’s/Business permit and submission to the Department upon expiration.

Online Travel and Tour Agencies
  • Must comply with all basic requirements of a regular travel and tour agency.

Accreditation of Tour Guides

Requirements
  • Valid Mayor’s/Occupational/Working Permit.

  • Certificate of Training from a DOT-conducted Tour Guiding Seminar.

  • Valid Health Certificate (from a licensed physician).

  • For Regional Guides: Valid NBI Clearance.

  • For Community Guides: Valid Police Clearance.

Responsibilities of Travel and Tour Services

  • Travel agencies must exercise prudence and due diligence.

  • Extraordinary diligence is not required, but strict accounting for contracted services is essential.

  • Tour guides should anticipate tourists' needs and arrange medical attention when necessary.

  • Failure to exercise prudence may result in liability for moral and exemplary damages.

Prohibition Against Engaging in Recruitment Activities (Labor Code of the Philippines, Article 26)

  • Travel agencies and sales agencies of airline companies are prohibited from engaging in recruitment and placement of workers for overseas employment.

  • Disqualified parties include travel agencies, their officers/board members, and related entities.

E-Ticketing and E-Commerce (Republic Act No. 8792, Electronic Commerce Act)

  • E-ticketing reduces costs, eliminates paper, and allows greater flexibility.

  • An