Lesson 2

Understanding the Philippine Tourism

Industry
• The government sector plays an important role in the
Philippine Tourism Industry. It is responsible for the
formulation of tourism policies and provides guidelines
for the development of different destinations. It also
regulates the industry, helps and works with other
government agencies.
• The sector has two(2) subdivisions and these are the
national government entities and the local government
units.
Government agencies that are directly
involved in the tourism industry:

a. Department of Tourism (DOT)

b. Philippine Convention and Visitors Corporation (PCVC)
c. Philippine Tourism Authority (PTA)
d. Local Government Units (LGUs)
Department of Tourism

• National government organization with a primary

role of overseeing the tourism industry of the
country.
• Established in 1973 by the virtue of Presidential
Decree No. 189 and reorganized by Executive
Order No. 120 in accordance with Article II,
Section I and Article III of the Freedom
Constitution of 1986.
Department of Tourism

• It has the following primary obligations:

a. To help in coordinating with other agencies the plans and
actions of different government means in tourism matters;
b. To perform the government’s responsibilities arising from
treaties, agreements, and other commitments on tourism and
travel; and
c. To provide public sector services to the tourism industry and
in creating standards and collection of statistics in tourism
matters.
• Headed by a secretary, three undersecretaries, and one assistant
secretary. They perform specific function.
The Internal Services is the responsibility of the assistant
secretary which provides staff advice and assistance on
the following:

1. Financial and Management Service – budgetary, financial, and

management matters which may be assigned or delegated by the
secretary.
2. Administrative Service – personnel information, records
communications, supplies, equipment security, and other
custodial work which may be assigned or delegated by the
secretary.
3. Legal Service – legal matters which may be assigned or delegated
by the secretary.
Undersecretary for Tourism Promotions

• Bureau of Domestic Tourism Promotions

• Bureau of Internal Promotions
• Bureau of Tourism Information
Tourism Services and Regional Offices

• The undersecretary for these offices is responsible for the

office of Tourism Standards and all Regional Offices.
• The main function of the following offices are:
1. Office of Tourism Standards – approve the construction
standards of tourism-oriented establishments including
hotels, resorts, inns, motels, and other related facilities
and services, prescribe information reporting on purchase ,
sale or lease of accredited tourism-oriented facilities and
ensure a harmonious, positive and constructive
development of the tourism industry.
Tourism Services and Regional Offices

2. Regional Offices – Implement laws, policies,

plans, programs, rules, and regulations of the
department, and coordinate with other
departments, bureaus, agencies, including the
local government units.
Planning Product Development and
Coordination
• Just like other offices and agencies, the Undersecretary is
responsible for the following:
1. Office of Tourism Development Planning whose main function
is to formulate plans and policies for the development of the
tourism industry, including, but not limited to national
tourism plans and the identification of master physical plans
for tourism zones within the country.
2. Office of Product Development whose function is to develop
and conceptualize new products which can lead to the
enhancement of tourist sites and facilities.
3. Office Of Tourism Coordination who usually initiates and
coordinates with all sectors, both government and private,
the development of the national tourism plans and policies.
The Philippine Convention and Visitor’s Corporation (PCVC) serves as
the marketing arm of the Department of Tourism. It has the
following functions:

• To promote the Philippines as a tourist and a convention

and incentive travel destination
• To coordinate and provide assistance to tourist
associations, local government units, local tourist
councils and nongovernmental organizations with respect
to tourism marketing and promotions
• To work with the private sector in the planning and
implementation of its marketing activities
• To support socio-cultural oriented products that help
increase employment, promote environmental
consciousness, and heighten cultural awareness
Board Membership

1. Secretary of Tourism – Chairman

2. The Head of Office, United Nations and International Organizations,
Department of Foreign Affairs
3. The Governor of the Central Bank of the Philippines, or his duly authorized
representative
4. The President of the Philippine Airlines, or his duly authorized representative
5. The elected representative of the paying members belonging to the travel
trade sector
6. The elected representative of the paying members belonging to the
congresses and conventions sector
7. The Undersecretary for Tourism Promotions, Department of Tourism
8. The General Manager, Philippine Tourism Authority
9. The PCVC Executive Director (ex-officio member)
The PCVC has distinct units namely:

1. The Travel Trade Units who takes charge of the marketing activities
to promote the Philippines as a tourist destination among travel
agents, tour operators and other travel-related institutions.
2. The Conventions and Incentive Travel Unit deals with marketing
activities on event planners, meeting organizers and other entities
that provide travel incentives to their constituents.
3. The Corporate Affairs Unit provides support service to the
management and marketing units of PCVC.
4. The Foreign Offices Unit oversees and monitors the operations of the
offices maintained by PCVC in selected markets abroad.
Two PTA offices which are directly involved in the
provision of tourism products and services are:

1. Planning Product Development and

Coordination Office
2. Tourism Sales, Marketing, and Promotions
• The Local Government Unis regulates the establishment, operation
and maintenance of cafes, restaurants, beerhouses, and other
similar establishments including tourist guides and transports.
Municipality Province City
1. Development of Tourism Tourism development All municipality and
facilities and promotion province powers
2. Development of Tourist programs
attractions
3. Acquisition of tourism
equipments and facilities
4. Regulation of tourism
business concessions and
security service
The Private Sector

• The private sector has six principal industries which are directly
involved in tourism:
1. The Transportation Industry
2. The Hospitality Industry
3. Food and Beverage
4. The Activities and Attraction Industry
5. The Travel Trade
6. Other Private Sector Entities