Republic of the Philippines

Surigao del Sur State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph

COLLEGE OF BUSINESS AND MANAGEMENT

Department of Hospitality Management

THC 8 – Legal Aspects in Tourism and Hospitality

Lesson 1: Introduction to Law on Tourism and Hospitality

Topics: Law Defined

Characteristics of Law
Tourism Laws versus Hospitality Laws
Kinds of Laws
Constitution Defined
Treaty defined
Jurisprudence Explained
Customs and Traditions as Bases of Law
National Territory
Three Inherent Powers of the Government
Bill of Rights
Two-Fold Aspect of the Process
Search Warrant Distinguished from Warrant of Arrest
Instances Wherein Search and Seizure may be Made without Warrant
Instances Wherein Arrest may be Made without Warrant
Citizenship
Citizens of the Philippines
Natural-born Citizens Defined
Modes of Acquiring Citizenship
National Economy and Patrimony
Nationalized Industries through Capital Restriction

About Lesson 1

The order of any business especially affecting the tourism and hospitality is dependent on the
implementation and observance of a rule, policy, standard, system and law. No enterprise or any
business entity can exploit the environment and natural resources as incidences to their very existence
without being subjected to the regulations of the local and national governing authorities. Business
minded people cannot just simply put a hotel in a feasible place without considering the legal
repercussions that they may be confronting with prior to, during, and after the whole operations of their
business.
Given the complexities of law affecting the trade of tourism and hospitality, the authors have
decided to come up with this instructional material that would equip the students with basic knowledge or
understanding of the laws that they may deal with in their future industry. It is hoped that this material
could be instrumental to their success as managers, entrepreneurs or leaders in the future.

Intended Learning Outcomes of the Topic:

1. Discuss the meaning of Law
2. Discuss the Characteristics of Law
3. Differentiate Tourism Laws versus Hospitality Laws
4. Explain Different Kinds of Laws
5. Define Constitution and Treaty

Name Score
Course/Year/Block Date

Exercise 1: Case Study

Instruction: Discuss your answer briefly but comprehensively.

1. A City Mayor signed an ordinance prohibiting short time admission in hotels, motels, lodging
houses, pension houses and similar establishments in the City of Manila.
The operators aggrieved by the said ordinance questioned the constitutionality of the ordinance.
 The City Mayor contends police power as a defense, while operators contend violation of their
rights enshrined under the constitution as their defense. (10pts.)

Decide the case.

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2. In January 18, 1973, Janna (a Filipina) contracted a marriage with Janno (an American). They
decided to reside in the Philippines after the marriage celebration held at San Sebastian Parish
Church. A year after the momentous event in their lives, Janna and Janno went to the ancestral
home of the latter for a honeymoon. God had been so good to the couple that He gave Janna the
opportunity of experiencing the essence of being a woman. In America, Janna gave birth to a
healthy baby girl named Janana. What is the nationality of Janana? Explain your answer. (10pts.)

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3. Robert, being a business minded person decided to put up a business (KTV Bar) beside San
Sebastian College, Manila. As part of its promotion, live entertainment is being offered. Most of
its patrons are students. The operator of the business starts from 1pm and ends at 4am. Can the
municipal mayor order the foreclosure of business establishment on the ground that it is a
nuisance? If so, can the municipal mayor validly use the exercise of Power of Taxation as a
defense? (10pts.)
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4. Is there such a thing as absolute right? (5pts.)

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5. Discuss the nationality of Mark who was born in America by Filipino parents. (5pts.)
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6. What is the inherent power that can be used by the government in order to demolish a building
which is about to collapse and harmful to the public? (5pts.)
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7. Pursuant to the Proclamation 50, the GSIS decide to sell through public bidding 30% to 51% of
the issued and outstanding shares of respondent Manila Hotel. The winning bidder is to provide
management expertise and/ or an international marketing/reservation system, and financial
support to strengthen the profitability and performance of the Manila Hotel.

A Filipino corporation offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share,
and Renong Berhad, a Malaysian firm, with ITT-Sheraton as kits hotel operator, bid the same number of
shares at P44.00 per share, or P2.42 more than the bid of petitioner.

Pending the declaration on the Malaysian firm as the winning bidder/strategic partner and the
execution of the necessary contracts, petitioner in a letter to respondent GSIS dated 28 September 1995
matched the bid price of P44.00 per share tendered by Renong Berhad. The GSIS, however, has decided
to rule in favor of the Malaysian firm. (10pts.)

Decide on the merits of the case.

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Prepared by:

RUDYARD RYANN T. VERANO, MBA

Instructor, THC 8
Chair, Hospitality Management