Tour and Travel

Management

Alexis Cromuel M. Arandia, MBA

Chapter 1
THE PHILIPPINE
TOURISM
INDUSTRY

 Department of Tourism
 Different Government Agencies
 Department of Tourism

The Department of Tourism (DOT) is the primary planning, implementing, and

regulatory government agency tasked to develop and promote the Philippine tourism
industry, both domestic and international. It is also the executive department of
the Philippine government responsible for the regulation of the Philippine tourism
industry and the promotion of the Philippines as a tourist destination.

The History

Started as a private initiative to promote the Philippines as a major travel

destination, the Philippine Tourist & Travel Association was organized in 1950. In 1956,
the Board of Travel and Tourist Industry was created by Congress As stipulated in the
Integrated Reorganization Plan in 1972 sanctioned as a law under Presidential Decree
No. 2, as amended, the Department of Trade and Tourism was established, reorganizing
the then Department of Commerce and Industry. A Philippine Tourism Commission was
created under the unified Trade and Tourism Department to oversee the growth of the
tourism industry as a source of economic benefit for the country.

In 1973, President Ferdinand Marcos created a new cabinet-level Department of

Tourism (DOT) by splitting the Department of Trade and Tourism into two separate
departments. Included in the new Department of Tourism, the agency Philippine Tourism
Authority (PTA) and the Philippine Convention Bureau (PCB) were created. The
Department of Tourism was then renamed Ministry of Tourism as a result of the shift in
the form of government pursuant to the enforcement of the 1973 Constitution.

In 1986, under Executive Order Nos. 120 and 120-A signed by President Corazon
Aquino, the Department of Tourism was reorganized and, correspondingly, the
Convention Bureau was renamed the Philippine Convention and Visitors Corporation,
and the Intramuros Administration was attached, previously being under the defunct
Ministry of Human Settlements. In 1998, the Department of Tourism assumed a prominent
role in culmination of centennial celebration of the country's independence from
the Spanish Empire in 1898.

In 2003, the Department of Tourism initiated one of its most successful tourism
promotion project, WOW Philippines', under Secretary (now Senator) Richard J. Gordon.
The latest improvements in the tourism industry in the country came about with the
passage of Republic Act No. 9593 or the "Tourism Act of 2009."
The Mission

The Department of Tourism (DOT) shall be the primary government agency charged
with the responsibility to encourage, promote, and develop tourism as a major socio-
economic activity to generate foreign currency and employment and to spread the
benefits of tourism to both the private and public sector.

Tourism Promotions Sector

The Tourism Promotion Sector has the primary function of promoting the Philippines as
a tourist destination domestically and internationally. It devises integrated marketing
and promotional activities such as information dissemination, public relations, special
events, and related tourism programs. It likewise supervises the overseas field offices
established to implement and enhance the tourism development and promotion
program of the Department in the international field.
 Different Government
Agencies

TIEZA

The Tourism Infrastructure and Enterprise Zone Authority (TIEZA), a government corporation, was
created by virtue of Republic Act No. 9593 or the Tourism Act of 2009 on May 12, 2009, replacing
the Philippine Tourism Authority (PTA). TIEZA is mandated to continue the functions previously
exercised by PTA under Presidential Declaration 564, unless otherwise inconsistent with the
provisions of RA 9593.

TIEZA acts as Department of Tourism’s implementing arm in providing support infrastructures and
facilitating investments in tourism enterprise zones (TEZ) nationwide. This is carried out through its
main functions — infrastructure development; designation, regulation and supervision of TEZs;
management of its existing assets or facilitation of their privatization; and administration of the
collection of the Philippine Travel Tax

Tourism Promotions Board (TPB) Philippines

The Tourism Promotions Board (TPB) is an attached agency of Department of Tourism (DOT)
responsible for marketing and promoting the Philippines domestically and internationally as a
major global tourism and MICE destination.
Its MICE Department provides comprehensive information, technical assistance and guidance
to business events and meeting planners and organizers. In addition, TPB offers its expertise
through the following range of complimentary services:
a. Set up linkages with government and private entities
b. Propose pre and post tour itineraries
c. Attendance promotion assistance
d. Welcome lei reception and other special arrangements upon arrival of delegates

Intramuros Administration
The Intramuros Administration (IA) is an agency of the Department of Tourism of
the Philippines that is mandated to orderly restore, administer, and develop the historic
walled area of Intramuros that is situated within the modern City of Manila as well as well
as to insure that the 16th- to 19th-century Philippine-Spanish architecture remains the
general architectural style of the walled area.
It operates autonomously from the municipal government, although the Mayor of Manila
is a member of its board. It was established on April 10, 1979 as under the now defunct
Ministry of Human Settlements by virtue of Presidential Decree 1616 issued by then
President Ferdinand Marcos. Executive Order No. 120 reorganized the Ministry of
Tourism which became the Department of Tourism (DOT) on January 30, 1987. The order
also designated the IA as an attached agency of the DOT.

History
On October 30, 2015, the Association of UNESCO World Heritage Cities of
Spain awarded the IA the Heritage Prize 2015 for its efforts in preserving Spanish colonial
architecture in Intramuros. A, however, was flagged by the Commission on Audit for its
delayed implementation of a ₱18 million branding campaign that was awarded way back
in 2017. Only ₱450,000 has been used so far. None of the project components: events
and special projects, branding materials, online campaign, walking tour brochures and
maps, and other printed media, were completed at all.

Duty Free Philippines

Under this system the PTA has the exclusive authority to operate shops and stores that
would sell tax and duty free merchandise, goods and articles in international airports and
seaports throughout the country on its own or by contracting private parties through
public bidding.

History

The exclusive franchise to operate duty and tax free shops was originally granted to a
private corporation called Tourist Duty Free Shops, Inc. (TDFS) by virtue of Presidential
Decree No. 1193 (P.D. 1193) and Letter of Instruction No. 595 (LOI 595) both dated
September 6, 1977. TDFS was authorized to establish, operate and maintain duty and tax
free stores at all international airports and seaports, selected hotels, tourist resorts, and
commercial or trading centers throughout the country for a period of twenty-five (25)
years. This franchise was revoked by Executive Order No. 24 dated June 27, 1986.

Executive Order No. 46 (E.O. 46) dated September 4, 1986, authorized the Department
of Tourism (DOT), through the Philippine Tourism Authority (PTA), to establish and
operate a duty and tax free merchandising system in the Philippines for the purpose of
augmenting service facilities for tourists and generating foreign exchange and revenue
for the government. Under this system, PTA has the exclusive authority to operate shops
and stores that sell tax and duty free merchandise, goods, and articles in international
airports and sea ports throughout the country or to contract private parties through
public bidding to operate these stores.

On March 1, 1987, a twelve-man task force headed by Mr. Jose N. Esteban III, was created
to lay down Duty Free Philippines’ (DFP) initial operations. DFP’s capitalization was only
$91,000. On March 28, 1987, Customs Administrative Order No. 3-87 (CAO 3-87) was
issued, prescribing the rules, regulations, and procedures for the establishment,
operation, and control of duty and tax free stores and warehouses.

On May 2, 1987, the first duty free outlet, located at the Arrival area of the Ninoy Aquino
International Airport (NAIA), started its operations, initially offering liquor, tobacco,
fragrances, and confectionery. One month later, DFP stores with sleek and modern
designs opened at the Departure area of NAIA. A third outlet opened at the Mactan
International Airport in Cebu at the end of the year. The Manila Hotel and Manila Garden
order centers were established in 1988.

On April 2, 1989, DFP’s first off-airport shop and the country’s largest duty free outlet ---
the Fiesta Shopping Center (FSC) – was opened. FSC, a concept taken from DOT’s Fiesta
Islands Philippines promotion, was an 8,000 sq.m. facility located right across NAIA. More
new shops were opened in 1992: the DFP Arrival store at Fort Ilocandia in Laoag, Ilocos
Norte; Departure and Arrival outlets in the new terminal building of the Mactan
International Airport in Cebu; and an off-airport store at the Paskuhan Village in San
Fernando, Pampanga. A downtown shop opened in 1993 in Davao.

DFP’s flagship store opened on April 1997. Called Fiestamall, its building sits on a 5-
hectare lot built for duty free retailing and it boasts of a 24,000 sq.m. selling area and
state-of-the-art facilities.

In 2009, DFP was reorganized into Duty Free Philippines Corporation with the signing of
the Tourism Act of 2009 (Republic Act No. 9593). As a government corporation, DFPC is
tasked to operate the duty-and tax-free merchandising system in the Philippines to
augment the service facilities for tourists and to generate foreign exchange and revenue
for the government as mandated by E.O. No. 46.