FAR EASTERN UNIVERSITY

LAW ON HOSPITALITY & TOURISM

January 26, 2019 ║ Atty. Edwardo D. Parungao, CPA, MBA

INTRODUCTION TO LAW
In a nutshell, tourism law refers to either general government regulations or specific travel and
hospitality industry laws.

Why Do We Need Tourism Laws?

According to the United Nations’ World Tourism Organization (UNWTO), the purpose of travel
legislation is to provide a regulatory framework for the proper development and management of
tourism activities. Ideally, this will aid in the conservation of natural resources and the preservation
of cultural traditions. As an added benefit, travel consumers and organizations receive basic legal
protection.

However, creating and enforcing tourism laws is notably lax around the world. Certain developing
countries have not only a weak travel infrastructure, but offer zero resources or protection to non-
local visitors. Understandably, popular countries also struggle to monitor and enforce laws to
protect tourists because of the sheer number of visitors and unscrupulous business people who
target tourists.

Tourism laws refer to a combination of state and international laws that regulate various aspects
and functions of the travel industry. For instance, travel law may involve anything from hospitality
to employment to public health regulations.

Necessity and functions of law

1. What would life be without law?

If life without law would be the same as it is now, obviously law is not necessary.

Society comes into existence because its members could not live without it. The need for internal
order is as constant as the need for external defense. No society can be stable in which either of
these requirements fails to be provided for.

2. What does law do?

It has been said that law secures justice, resolves social conflict, orders society, protects interests,
control social relations. Life without basic laws against theft, violence, and destruction would be
solitary, nasty, brutish, and short. Life without other laws such as those regulating traffic,
sanitation, employment, business, redress of harm or broken agreements, etc. – would be less
orderly, less healthful, less wholesome, etc.

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3. What is our duty as members of society?
No society can last and continue without means of social control, without rules of social order
binding on its members. The sum of such rules as existing in a given society, under whatever
forms, is what, in common speech, we understand by law or is also referred to as the legal system.
Since we find law necessary, every citizen should have some understanding of law and observe
it for the common good.

What is law?

In its general and abstract sense (derecho), it is the science of moral laws founded on the rational
nature of man that governs his free activity for the realization of the individual and social ends
under an aspect of mutual conditional dependence.

There are many different definitions offered by legal writers, jurists, and authorities to simply
explain what law is, but perhaps the most accepted definition of law under the Philippine legal
system is the one proffered by the Spanish jurist Sanchez Roman.

In its specific and concrete sense (ley), the term has been defined as “a rule of conduct, just,
obligatory, promulgated by legitimate authority, and of common observance and benefit.”

Characteristics of law?

The characteristics of law in its specific sense are:

1. It is a rule of conduct – law tells us what shall be done and what shall not be done. As a
rule of human conduct, law takes cognizance of external acts only.
2. It is obligatory – law is considered a positive command imposing a duty to obey and
involving a sanction which forces obedience.
3. It is promulgated by legitimate authority – in a democratic country, like the Philippines, the
legitimate or competent authority is the legislature. Under the Constitution, laws called
“statutes” are enacted by Congress which is name of the legislative branch of our
government; local government units are also empowered to enact ordinances which have
the binding force of laws.
4. It is of common observance and benefit – law is intended by man to serve man. It regulates
the relations of men to maintain harmony in society and to make order and co-existence
possible. Law must, therefore, be observed by all for the benefit of all.

Sources of law
1. Constitution – With particular reference to the Constitution of the Philippines, it may be
defined as “the written instrument by which the fundamental powers of the government
are established, limited, and defined, and by which the powers are distributed among the
several departments for their safe and useful exercise for the benefit of the people.

It is often referred to as the fundamental law or supreme law or highest law of the land
because it is promulgated by the people themselves, binding on all individual citizens and
all agencies of the government. It is the law to which all other laws enacted by the
legislature (as well as the administrative or executive acts, orders and regulations having

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 the force of law) must conform. This means that laws which are declared by the courts to
be inconsistent with the Constitution shall be void and the latter shall govern.

2. Legislation (Statutes or Legislative Enactments) – it consists in the declaration of legal

rules by a competent authority (Legislative Department). It is the preponderant source of
law in the Philippines. Acts passed by the legislature are so-called enacted law or statute
law. Legislation includes ordinances enacted by local government units.

3. Administrative or executive orders, regulations and rulings – these are issued by

administrative officials under legislative authority. Administrative rules and regulations are
intended to clarify or explain the law and carry into effect its general provisions.
Administrative acts are valid only when they are not contrary to the laws and Constitution.

4. Judicial decisions or jurisprudence – the decisions of the courts, particularly the

Supreme Court, applying or interpreting the laws or the Constitution form part of the legal
system of the Philippines. (Article 8, Civil Code) The decisions of a superior court on a
point of view of law are binding on all subordinate courts. This is called the doctrine of
precedent or stare decisis.

The Supreme Court, however, may, modify or reverse any of its previous rulings. Until
then, the decisions of the Supreme Court applying or interpreting the laws or the
Constitution are “laws” by their own right because the declare what the laws say or mean.
Unlike rulings of the lower courts, which bind the parties to specific cases alone, its [SC]
judgments are applied to all.

5. Custom – it consists of those habits and practices which through long and uninterrupted
usage have become acknowledged and approved by society as binding rules of conduct.
It has the force of law when recognized and enforced by the state.

6. Other sources – principles of justice and equity, decisions of foreign tribunals, opinions
or text writers, and religion. They are, however, only supplementary, that is, they are
resorted to by the courts in the absence of all other sources. They are, however, not
binding on the courts.

Classifications of law
1. As to purpose:
a. Substantive law – that portion of the body of law creating, defining, and regulating
rights and duties which may either public or private in character.
Example, law on obligations and contracts.

b. Adjective or procedural law – that portion of the body of law prescribing the
manner or procedure by which right may be enforced, or their violations redressed.
Sometimes called remedial law.
Example: the provision of law which says that actions for the recovery of real
property shall be filed with the Regional Trial Court of the region where the property
or any part thereof lies.

Rights and duties are useless they can be enforced. It is not enough, therefore, that the
state regulates the rights and duties of all who are subject to the law; it must also provide

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 legal remedies by which substantive law may be administered. Hence, the need for
adjective law.

2. As to subject matter or scope:

a. General or Public law – or the body of legal rules which regulates the rights
and duties arising from the relationship of the state of the people.
Examples:
Criminal law – the law which defines crimes and provides for their punishment.
International law – that law which governs the relations among nations or states.
Constitutional law – the law which governs the relations between the state and its
citizens.
Administrative law – law which governs the methods by which the functions of
administrative authorities are to be performed.
Criminal procedure – that branch of private law which governs the methods of trial
and punishment in criminal cases.

b. Private law – or the body of legal rules which regulates the relations of
individuals with one another for purely private ends. Included in private law
are civil law, commercial or mercantile law, and civil procedure. Civil procedure is
that branch of private law which provides for the means by which private rights
may be enforced.

BRANCHES OF PHILIPPINE GOVERNMENT

One basic corollary in a presidential system of government is the principle of separation of
powers wherein legislation belongs to Congress, execution to the Executive, and settlement of
legal controversies to the Judiciary.

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The Legislative branch is authorized to make laws, alter, and repeal them through the power
vested in the Philippine Congress. This institution is divided into the Senate and the House of
Representatives.

o Senate is composed of 24 members, elected at large by the qualified voters of the

Philippines.
o House of Representatives is composed of not more than 250 members, unless
otherwise fixed by law, consisting of:
▪ District representatives – elected from legislative districts apportioned
among the provinces, cities and the Metropolitan Manila are.
▪ Party-list representatives – constitutes 205 of the total number of the
members of the House of representatives including those under the party-
list.

• The Executive branch carries out laws. It is composed of the President and the Vice
President who are elected by direct popular vote and serve a term of six years. The
Constitution grants the President authority to appoint his Cabinet. These departments form
a large portion of the country’s bureaucracy.

• The Judicial branch applies or interprets laws. It holds the power to settle controversies
involving rights that are legally demandable and enforceable. This branch determines
whether or not there has been a grave abuse of discretion amounting to lack or excess of
jurisdiction on the part and instrumentality of the government. It is made up of a Supreme
Court and lower courts.

Principle of Separation of Powers

The principle of separation of power ordains that each of the three great branches of government
has exclusive cognizance of and is supreme in matters falling within its own constitutionally
allocated sphere. The purpose is to prevent the concentration of authority in one person or group
of persons that might lead to irreparable error or abuse in its exercise to the detriment of
republican institutions.

Principle of blending powers

Instances when powers are not confined exclusively within one department but are assigned to
or shared by several departments.

Examples:
1. The President prepares a budget and Congress enacts an appropriation bill pursuant to
that budget.
2. The President enters into a treaty with foreign countries and the Senate ratifies the same.
3. The grant of amnesty by the President is subjected to the concurrence of a majority of all
the members of the Congress.

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HIERARCHY OF PHILIPPINE COURTS

Under the Constitution, the judicial power or the power to decide actual cases and controversies
involving the interpretation and application of laws is vested in one Supreme Court and in such
lower courts as may be established by laws. (Article VIII, Sec. 1)

• Supreme Court (SC) - is the highest court in the Philippines. It is presided over by a Chief
Justice and is composed of fifteen (15) Justices, including the Chief Justice.

The powers of the Supreme Court are defined in Article VIII of the 1987 Constitution.
These functions may be generally divided into two – judicial functions and administrative
functions. The administrative functions of the Court pertain to the supervision and control

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 over the Philippine judiciary and its employees, as well as over members of the Philippine
bar. Pursuant to these functions, the Court is empowered to order a change of venue of
trial in order to avoid a miscarriage of justice and to appoint all officials and employees of
the judiciary. The Court is further authorized to promulgate the rules for admission to the
practice of law, for legal assistance to the underprivileged, and the procedural rules to be
observed in all courts.

The more prominent role of the Court is located in the exercise of its judicial functions.
Section 1 of Article VIII contains definition of judicial power that had not been found in
previous constitutions. The judicial power is vested in “one Supreme Court and in such
lower courts as may be established by law.” This judicial power is exercised through the
judiciary’s primary role of adjudication, which includes the “duty of the courts of justice to
settle actual controversies involving rights which are legally demandable and enforceable,
and to determine whether or not there has been a grave abuse of discretion amounting to
lack or excess of jurisdiction on the part of any branch or instrumentality of the
government.”

Present Chief Justice – Hon. Lucas Bersamin

• Court of Appeals (CA) - is the second-highest judicial court in the Philippines, next to the
Supreme Court. The Court of Appeals consists of 1 Presiding Justice and 68 Associate
Justices.

Pursuant to the Constitution, the Court of Appeals "reviews not only the decisions and
orders of the Regional Trial Courts nationwide but also those of the Court of Tax Appeals,
as well as the awards, judgments, final orders or resolutions of, or authorized by twenty-
one (21) quasi-judicial agencies exercising quasi-judicial functions mentioned in Rule 43
of the 1997 Rules of Civil Procedure, plus the National Amnesty Commission and the
Office of the Ombudsman. Under Republic Act No. 9282, which elevated the Court of Tax
Appeals to the same level of the Court of Appeals, en banc decisions of the Court of Tax
Appeals are now subject to review by the Supreme Court instead of the Court of Appeals
(as opposed to what is currently provided in Section 1, Rule 43 of the Rules of Court).
Added to the formidable list are the decisions and resolutions of the National Labor
Relations Commission which are now initially reviewable by the Court of Appeals, instead
of a direct recourse to the Supreme Court, via petition for certiorari under Rule 65.

• Court of Tax Appeals (CTA) - is the special court of limited jurisdiction, and has the same
level with the Court of Appeals. The court consists of 8 Associate Justices and 1 Presiding
Justice.

Previously, only decision, judgment, ruling or inaction of the Commissioner of Internal

Revenue, the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade
and Industry, or the Secretary of Agriculture, involving the National Internal Revenue Code
and the Tariff and Customs Code on civil matters are appealable to the Court of Tax
Appeals. The expanded jurisdiction transferred to the CTA the jurisdiction of the Regional
Trial Courts and the Court of Appeals over matters involving criminal violation and
collection of revenues under the National Internal Revenue Code and Tariff and Customs
Code. In addition, it also acquired jurisdiction over cases involving local and real property
taxes which used to be with the Regional Trial Court and the Court of Appeals.

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 • Sandiganbayan (SB) – is a special appellate collegial court in the Philippines that has
jurisdiction over criminal and civil cases involving graft and corrupt practices and other
offenses committed by public officers and employees, including those in government-
owned or government-controlled corporations. It is equal in rank to the Court of Appeals,
and consists of fourteen Associate Justices and one Presiding Justice.

• Regional Trial Court (RTC) – Pursuant to Batas Pambansa Blg. 129 or Judicial
Reorganization Act of 1980, each province or city (in case of Metro Manila cities and other
Philippine cities, chartered by law) should have a Regional Trial Court (RTC) branch.

Regional Trial Courts were established among the thirteen regions in the Philippines
consisting of Regions I to XII and the National Capital Region (NCR). There are as many
Regional Trial Courts in each region as the law mandates.

• Metropolitan Trial Court – Municipal Trial Courts in the towns and cities in the
Metropolitan Manila area, as distinguished from the other political subdivisions in the
Philippines, are referred to as Metropolitan Trial Courts.

In cities outside Metropolitan Manila, the equivalent of the Municipal Trial Courts are
referred to as Municipal Trial Courts in Cities.

• Municipal Trial Court / Municipal Circuit Trial Court – Every municipality in the
Philippines has its own Municipal Trial Court. It is referred to as such if it covers only one
municipality; otherwise, it is called Municipal Circuit Trial Court if it covers two or more
municipalities.

• Shari’a District Court – Equivalent to the Regional Trial Courts in rank are the Shari'a
District Courts which were established in certain specified provinces in Mindanao where
the Code of Muslim Personal Laws of the Philippines is being enforced.

There are five Shari'a District Courts and fifty one Shari'a Circuit Courts in existence. A
Shari'a District Court is of limited jurisdiction. It was created under Presidential Decree
No. 1083. Cases falling within the exclusive jurisdiction of the Shari'a District Courts
primarily pertain to family rights and duties as well as contractual relations of Filipino
Muslims in the Mindanao.

• Shari’a Circuit Court – Equivalent to the Municipal Circuit Trial Courts are the Shari'a
Circuit Courts which were established in certain municipalities in Mindanao where the
Code of Muslim Personal Laws of the Philippines is being enforced.

THE PHILIPPINE CONSTITUTION

Constitution – that body of rules and maxims in accordance with which the powers of
sovereignty are habitually exercised.

Philippine Constitution – that written instrument enacted by direct action of the people by
which the

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fundamental powers of the government are established, limited and defined, and by which those
powers are distributed among the several departments for their safe and useful exercise for the
benefit of the body politic.

Purpose: To prescribe the permanent framework of a system of government, to assign to the

several departments their respective powers and duties, and to establish certain first principles
on which the government is founded.

Provisions relevant to hospitality and tourism

ARTICLE II

DECLARATION OF PRINCIPLES AND STATE POLICIES

PRINCIPLES

Section 2. The Philippines renounces war as an instrument of national policy, adopts the
generally accepted principles of international law as part of the law of the land and adheres to the
policy of peace, equality, justice, freedom, cooperation, and amity with all nations.

Section 5. The maintenance of peace and order, the protection of life, liberty, and property, and
promotion of the general welfare are essential for the enjoyment by all the people of the blessings
of democracy.

STATE POLICIES

Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity
and independence of the nation and free the people from poverty through policies that provide
adequate social services, promote full employment, a rising standard of living, and an improved
quality of life for all.

Section 10. The State shall promote social justice in all phases of national development.

Section 11. The State values the dignity of every human person and guarantees full respect for
human rights.

Section 16. The State shall protect and advance the right of the people to a balanced and
healthful ecology in accord with the rhythm and harmony of nature.

Section 17. The State shall give priority to education, science and technology, arts, culture, and
sports to foster patriotism and nationalism, accelerate social progress, and promote total human
liberation and development.

Section 18. The State affirms labor as a primary social economic force. It shall protect the rights
of workers and promote their welfare.

Section 19. The State shall develop a self-reliant and independent national economy effectively
controlled by Filipinos.

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Section 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.

Section 22. The State recognizes and promotes the rights of indigenous cultural communities
within the framework of national unity and development.

Section 23. The State shall encourage non-governmental, community-based, or sectoral

organizations that promote the welfare of the nation.

Section 27. The State shall maintain honesty and integrity in the public service and take positive
and effective measures against graft and corruption.

Section 28. Subject to reasonable conditions prescribed by law, the State adopts and implements
a policy of full public disclosure of all its transactions involving public interest.

ARTICLE III

BILL OF RIGHTS

Section 1. No person shall be deprived of life, liberty, or property without due process of law, nor
shall any person be denied the equal protection of the laws.

• Equal protection of the law – means person similarly situated should be similarly treated.
The benefits of membership in a state as well as the burdens should be distributed in
equal measure. Uniformity of treatment should be the rule.
• Due process of law – a law which hears before it condemns; which proceeds upon
inquiry, and renders judgment after trial.

Section 3. (1) The privacy of communication and correspondence shall be inviolable except upon
lawful order of the court, or when public safety or order requires otherwise, as prescribed by law.

(2) Any evidence obtained in violation of this or the preceding section shall be inadmissible
for any purpose in any proceeding.

• The forms of correspondence and communication that are covered in this provision
include letters, telegrams, telephone calls, messages, and the like.
• Any evidence obtained of the above shall be considered “fruit from the poisonous tree”
and shall not be admitted as evidence in any administrative or criminal proceeding.

Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the
press, or the right of the people peaceably to assemble and petition the government for redress
of grievances.

• Speech, expression, and press include every form of expression, whether oral, tape, CD,
or DVD recorded.

Section 6. The liberty of abode and of changing the same within the limits prescribed by law shall
not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired

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except in the interest of national security, public safety, or public health, as may be provided by
law.

• The constitutional provision guarantees: (a) freedom to choose and change one’s place
of residence and dwelling place; and (b) freedom to travel within or outside the country.
• These constitutional guarantees are not absolute rights for they can be regulated by a
lawful order of the court.

Section 8. The right of the people, including those employed in the public and private sectors, to
form unions, associations, or societies for purposes not contrary to law shall not be abridged.

Section 10. No law impairing the obligation of contracts shall be passed.

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