Group 1 ( Philippine Tourism Industry)

Chapter 1
Origin Of Travel Agency
-The modern travel agency first appeared in the second half of the 19th century.
-Thomas Cook, in addition to developing the package tour, established a chain of
agencies in the last quarter of the 19th century, in association with the Midland Railway.
-They not only sold their own tours to the public, but in addition, represented other tour
companies.
-Other British pioneer travel agencies were Dean & Dawson, the Polytechnic Touring
Association and the Co-operative Wholesale Society.
- The oldest travel agency in North America is Brownell Travel; on July 4, 1887, Walter
T. Brownell led ten travelers on a European tour, setting sail from New York on the SS
Devoni.
Operations of Travel Agency
-A travel agency's main function is to act as an agent, selling travel products and
services on behalf of a supplier.
- Consequently, unlike other retail businesses, they do not keep a stock in hand. A
package holiday or a ticket is not purchased from a supplier unless a customer
requests that purchase.
- The holiday or ticket is supplied to them at a discount. The profit is therefore the
difference between the advertised price which the customer pays and the
discounted price at which it is supplied to the agent. This is known as the
commission.
- In many countries, all individuals or companies that sell tickets are required to be
licensed as a travel agent. In some countries, airlines have stopped giving
commission to travel agencies. Therefore, travel agencies are now forced to
charge a percentage premium or a standard flat fee, per sale.
- However, some companies still give them a set percentage for selling their
product. Major tour companies can afford to do this, because if they were to sell
a thousand trips at a cheaper rate, they still come out better than if they sell a
hundred trips at a higher rate.
Organization Of Travel Agency
Travel Agents - is a person whose job it is to arrange travel for clients (individuals,
groups, and corporations) on behalf of suppliers (hotels, airlines, car rentals, cruise
lines, railways, travel insurance, package tours). His task is to simplify the travel
 planning process for their customers in addition to providing consultation services
and entire travel packages.
-An Agent can be self-employed, work for an independent travel agency, or be part
of a Travel Agency Consortia. Travel agents may specialize in leisure, business and/
or other travel markets. They may be generalists or specialists. The agents typically
receive a 10 to 15% commission from accommodations, transportation companies
and attractions for coordinating the booking of travel.
-Although booking a hotel or trip through a Travel Agent saves time, nowadays the
number of Travel Agencies is decreasing due to the strong online presence of the
suppliers (hotels, airlines) themselves.
OTAs are the (new) online form Agency.

-The businesses in this sector can be broadly split into the independent travel
agencies and the multiples that are owned and operated by tour operators and other
tourism concerns.
Four basic principles characterize success in each:
1. good quality customer service
2. good management
3. In terms of management, controlling costs, ensuring highly motivated staff are
employed and building upon a customer base through word of mouth are all
critical.
4. The independent agencies, which are manager-owned and typically employ
fewer than five staff, contrast with the larger chain agencies, located in prominent
high street or shopping mall locations, which have high passer-by traffic.
Philippines' Leading Travel Agency
-2GO Travel.
-Golden Sky Travel and Tours.
-Scorpio Travel & Tours.
-TravelOnline.
-WOW Philippines Travel Agency.

Tourism Industry – a composite industry and entities, both public and private,
involved in planning, development, marketing, sales, operation and evaluation of
destinations, products and services that cater the needs of the travelers both foreign
and domestic.
Planning and development of destinations - planning and development of a
specific tour product, often undertaken by individual private sector entities.
The Marketing of the Philippines and various destinations - primarily
undertaken by the government sector
Private entities - undertake the marketing and sale of specific products and
services.
Operation of tour products - primary role of the private sector
Delivery of tourism services - a joint function of both the government and private
sector.
The evaluation of tourism results - government and the private sector undertake
the evaluation of tourism results vis-a-vas predetermined specific objectives.
Philippine Tourism industry caters to the needs of foreign and domestic travelers.
(overnight stay, tourists, pilgrims, delegates, students etc.)
REPUBLIC ACT 9593 KNOWN AS TOURISM ACT OF 2009 IMPLEMENTING
RULES AND REGULATIONS

The Department of Tourism (Kagawaran ng Turismo) - 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.
 Government Sectors-Its primary function is to impose allocation of resources that
will help in making effective economic decisions.
 The Philippine Tourism Office (PTO) is the primary planning, programming,
coordinating, implementing and regulatory government agency in the development
and promotion of the tourism industry both domestic and international. It shall instill
in the Filipino the industry's fundamental importance in the creation of employment,
investments and foreign exchange.
Summarized (from 19) stated powers and functions of DOT
● A. Formulate, coordinate, implement and supervise tourism policies, plans and
projects for the development of tourism as an engine of socio-economic and
cultural growth; and in consultation with LGU's, the private sector industries and
other industry stakeholders, rules and regulations governing the operation and
activities of all tourism enterprise.
● B. Support, advance and promote the protection, maintenance and
preservations of historical, cultural and natural endowments in cooperation with
the appropriate gov't agencies and private sector; and take appropriate measures
against acts or omissions contrary to these objectives.
● C. Provide an integral marketing program and represent the government in all
tourism conferences and enduring the gov'ts compliance and obligations arising
from these. 
● D. Evaluate tourism development projects for the issuance of permits and the
granting of incentives by the appropriate government agencies; and encourage
private sector investments and participation in tourism-related projects. 
● E. Provide technical issuance to the LGU's in destination development, standards
setting and regulatory enforcement; and monitor the LGU's compliance to
national standards in the licensing of tourism enterprises; and 
● F. Perform other public sector services to the tourism industry such as: tourism
research and studies, compilation and integration of data, facilitate the process of
obtaining travel documentation and monitor conditions on any destinations and
issue timely advisories on the safety or viability of travel.
Philippine Tourism Promotion Board (TPB)
Mandate
The TPB shall be responsible for marketing and promoting the Philippines
domestically and internationally as a major global tourism destination, highlighting
the uniqueness and assisting the development of its tourism products and services,
with the end in view of increasing tourist arrivals and tourism investment.
Specifically, it shall market the Philippines as a major convention destination in Asia.
 Functions
● The Tourism Board shall have the following powers and duties:
● Organize the PTPB in a manner most efficient and economical for the conduct of
its business and the implementation of its mandate;
● Develop and implement a plan to market the Philippines as a premier tourist
destination.
● Direct and coordinate the resources and efforts of the government and the
private sector in the tourism and allied fields for the full realization of the tourism
marketing plans and programs.
● Develop and promote the Philippines as a centre for international meetings,
incentive programs, conventions, exhibitions, sports and wellness, medical
tourism and other special events.
● Engage in the business of tourism and perform acts in consonance there with,
such as, but not limited to, creating subsidiaries in support of its marketing
functions in partnership with the private sector;
● Contract loans, indebtedness and credit, and issue commercial papers and
bonds, in any local or convertible foreign currency from international financial
institutions,
● Execute any deed of guarantee, mortgage, pledge, trust or assignment of any
property for the purpose of financing the programs.
● Receive donations, grants, bequests and assistance of all kinds from local and
foreign governments and private sectors and utilize the same.
● Extend loans through government banks and financial assistance for manpower
training, heritage preservation, infrastructure development and other programs of
the Department
● Obtain the services of local and foreign consultants and enter into contracts
locally and abroad in the performance of its functions; and
● Perform all other powers and functions of a corporation.

Branding Campaign
The operationalization of Philippine tourism’s new marketing branding campaign
“It’s More Fun in the Philippines” led TPB’s flagship projects during the period.
This branding exercise marked the start of a more focused and cohesive
approach to the promotion of Philippine tourism, internationally and domestically.

The ASEAN Tourism Forum (ATF) in Manado, Indonesia and the International
 Tourismus Borse (ITB) in Frankfurt served as the launching pads of the
Philippine tourism branding campaign for the Asia and European markets,
respectively.

Media Planning
• Transmitting the messages to the various target publics entails the review of the
available distribution channels. The following project proposals were evaluated
based on
• TPB’s mandate, Corporate plan/Strategic map, Market brief and the Media plan:
Digital Campaign
• With BBDO Proximity, in September 2012, the TPB launched the website
www.itsmorefuninthephilippines.com. The TPB’s intention is to develop this
website into a dynamic and fun site that will not only provide information on
destinations but will also be a site for Business to Business (B2B) and Business
to Consumers (B2C) transactions, social networking platforms such as
Facebook, Twitter and YouTube as well as fun-filled web-based promotional
activities. This project has a budget of 18 million pesos.
Special Promotions Projects
• TPB implemented nine (9) major programs and projects such as the Pinoy
Homecoming Program, Calendar of Events and the Philippine Heritage Capital.
The Philippines’ hosting of the PATA Travel Mart 2012 was one of the major
international events held in Manila that TPB handled.
The Tourism Infrastructure and Enterprise Zone Authority
Republic Act No. 9593 or “The Tourism Act of 2009” declares a national policy for
tourism as an engine of investment, employment, growth and national
development, and strengthening the Department of Tourism and its attached
agencies to effectively and efficiently implement that policy, and appropriating
fund thereof.
The Tourism Infrastructure and Enterprise Zone Authority or TIEZA (formerly
Philippine Tourism Authority), an attached agency to the Department of Tourism,
is mandated to:
• To designate, regulate, and supervise tourism enterprise zones established
under R.A. 9593
• To develop, manage and supervise tourism infrastructure projects nationwide
• To provide technical and financial assistance to qualified tourism projects,
investors and proponents (both government and private)
• To generate revenues to fund both national and corporate developmental needs
and/or undertakings.
• To exercise PTA functions under P.D. 564.
The TIEZA is governed and its powers exercised by a Board of Directors (TIEZA
Board) composed of The Department Secretary, The TIEZA Chief Operating
Officer, The Tourism Promotion Board Chief Operating Officer, the Department of
Public Work and Highways Secretary, the Department of Environmental and
Natural Resources Secretary, the Department of Internal and Local Government
Secretary, and five (5) representative directors that will be recommended by the
Tourism Congress.
Duty Free Philippines Corporation
Duty Free Philippines Corporation is a government corporation that operates the
duty ax-free merchandising system in the Philippines to augment the service
facilities for tourist and turning Filipino travellers to generate foreign exchange
and revenues for the government.
Power and Function of Duty Free
-Exclusive authority to operate and/or franchise out the operation of stores and
shops that sell duty and tax items in international air and seaports and in TEZ.
-Authority to operate stores within the international air and seaports
-Operate without any prejudice to any privatization in the future.
Tourism Coordinating Council
-Serves as the coordinating body for national tourism development effort.
Function of Tourism Coordinating Council
-Prepare a five-year (5) strategic plan to develop and enhance a culture of
tourism
-Approve the annual tourism infrastructure programs that shall promote access to
and from air and seaports, and TEZ and other tourism destinations
-Create committees and technical working groups in pursuit of its functions

The Local Government Units

-The LGU is empowered to regulate the establishment and operation of
travel agencies.
 Summary of Power of LGU Tourism

Responsibility of LGU Tourism officers

1. Preparing, implementing, coordinating, monitoring, and up-dating local tourism
and development plans.
2. Ensuring the enforcement of tourism standards, laws, rules and regulations.
3. Submission of regular tourism-related reports.
4. Coordination with the department and its attached agencies in the
development and promotions of tourism in the locality.

Other National Government Agencies

● Department of Transportation and Communications (DOTC)
● Civil Aeronautics Board (CAB)
● Civil Aviation Authority in the Philippines (CAAP)
● Air Transportation Office (ATO)
● Maritime Industry Authority (MARINA)
● Philippines Ports Authority (PPA)
● Land Transportation Franchise and Regulatory Board (LTFRB)
● Department of Public Works and Highways (DPWH)
● Department of Environment and Natural Resources (DENR)
● Department of Foreign Affairs (DFA)
● Department of Trade and Industry (DTI)
● Department of Interior and Local Governments (DILG)
● Philippines National Police (PNP)
● Department of Justice (DOJ)
● Department of Finance (DOF)
● Bureau of Internal Revenue (BIR)
● Bureau of Customs
Private Sectors in Tourism
Six Principal Industries directly involved in Tourism:
1. The Transportation Industry.
2. The lodging Industry or hostelry industry.
3. Food & Beverage.
4. The Activities and Attractions Industry or Entertainment Industry.
5. The Travel Trade.
6. Other Private Sector Entitles.
Industry Suppliers
Lodging Industry
-It features various kinds of luxurious hotels to lavish resorts and campgrounds.
Examples:
-Hotels
-Resorts
-Spa
-Motels
-All Suite Hotels
-Convention Hotels
-Space Hotels
Food and Beverage Industry
Examples:
-Restaurants
-Travel Food service
-Institutional Food Service
Form of service to the way food and beverage is presented to the guests.
Examples:
-Table Service
-Buffet Service
-Banquet Table Service
-Room Service
-Cafeteria service
-Quick Counter Service
-Take out Service
-Delivery Services
Attraction and Activities Industry
- Also referred to as the entertainment, recreation, and leisure sector.
Natural Attractions
Examples:
-Pangasinan’s hundred islands
-Albay’s Mayon volacano
-Palawan’s Underground River
-Bohol’s Chocolate hills

Manmade attractions
Examples:
-The walled City of Intramuros
-Cebu Sto. Nino cathedral
Ilo-Ilo’s Jaro Cathedral

Questions:
1. It is a person whose job it is to arrange travel for clients.
- Travel Agents
2. Give one basic principles characterize success
-good quality customer service
-good management
-In terms of management, controlling costs, ensuring highly motivated staff are
employed and building upon a customer base through word of mouth are all
critical.
-The independent agencies, which are manager-owned and typically employ
fewer than five staff, contrast with the larger chain agencies, located in prominent
high street or shopping mall locations, which have high passer-by traffic.
3. What is the composite industry and entities, both public and private, involved in
planning, development, marketing, sales, operation and evaluation of destinations,
products and services that cater the needs of the travelers both foreign and domestic?
---tourism industry
4. What is the primary role of the private sector?
-Operation of tour products
5. Its primary function is to impose allocation of resources that will help in making effective
economic decisions.
-government sectors.
6. Who is the responsible for marketing and promoting the Philippines domestically and
internationally?
- Philippine Tourism Promotion Board
7. This is assigned for transmitting the messages to the various target publics entails the
review of the available distribution channels.
- Media Planning
8.Government corporation that operates the duty ax-free merchandising system in the
Philippines.
- Duty Free Philippines Corporation
9.What does LGU stand for?
- Local Government Unit
10. It features various kinds of luxurious hotels to lavish resorts and campgrounds. -Lodging
Industry