FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
First Regular Session 
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S E N A T E  
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??Y: 
Senate Bill No. 4 8 1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Tourism has been regarded as an important growth industry in many 
countries. Travel and tourism is now the world's largest industry and one of the 
fastest-growing sectors of the service economy. 
Vibrant tourism activity in any country has resulted to economic growth, as 
tourism serves as a major source of foreign exchange and domestic incomes by 
generating employment and government revenues, as well as serving as a 
medium' for opening new markets abroad for domestic products. 
However, the relatively smaller growth rate of the Philippines tourism 
sector is a clear manifestation of the inadequate maximization of the country's 
tourism potential compared to that of our Asian neighbors. 
There is still a need to embark on tourism-related projects in order to 
make the Philippines a viable tourist destination for travelers. World-class 
accommodations in identified destination areas of the Department of Tourism 
must be developed, and support facilities and accessibility through the local 
transport system must still be improved. 
Furthermore, there is a need to engage in more aggressive marketing and 
sales blitzes to better promote the Philippines as a viable tourist destination in 
Asia. 
However, constraints in funding have kept our country's tourism industry 
from fully taking off and from realizing its optimal growth. It is unfortunate to note 
that to this day, we do not even have a comprehensive Philippine handbook to 
guide prospective tourists to our country's prime destinations for dissemination to 
both foreign and local tourists. 
This proposed measure seeks to institute the collection of a Tourism 
Development Fee of US $1 0.00 for all international tickets issued that are bound 
for or originating from the Philippines. The fund generated from the collection of 
such fees shall be administered by the National Tourism Development Council, 
composed of representatives from both the government and the private sector. 
This body shall likewise oversee the allocation of funds for qualified tourism- 
related projects. 


The approval of this measure will greatly help in attracting more tourists to 
the country, as it provided the tourism sector the capacity to develop the 
Philippines in becoming more competitive, thereby paving the way for the country 
to be a viable tourist destination in the world. 
In view of the foregoing, approval of this bill is strongly urged. 


S E N A T E  
Senate Bill No. 4 8 1. 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE CREATION OF A TOURISM DEVELOPMENT FUND 
AND THE ESTABLISHMENT OF A NATIONAL TOURISM DEVELOPMENT 
COUNCIL, AND FOR OTHER PURPOSES 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. This Act shall be known.as the "National Tourism 
Development Fund Act of 2007" 
SEC 2. Declaration of Policy. It is the declared policy of the State to 
recognize as a primary national endeavor that shall be actively pursued. Hence, 
the State must tale positive steps to promote tourism development in the country, 
actively seeking the participation of the private sector in the development of 
tourism-related project, as it takes cognizance of the debilitating financial 
resources of he country's tourism industry. 
SEC 3. National Tourism Development Fee. - A National 
Tourism 
Development Fee of Ten United States Dollars (US $10.00), herein after referred 
to as the Fee, is hereby mandated to be collected from all international 
passengers, except traveling overseas Filipino workers, who have been issued a 
ticket bound for or originating from the Philippines. 
Such fee shall be 
incorporated in the amount of airfare charged by any carrier or any agency 
accredited by the International Association of Travel Agencies (IATA) and shall 
be remitted to the National Tourism Development Fund. 
SEC 4. National Tourism Development Fund. - There is hereby created 
a National Tourism Development Fund, herein after referred to as the Fund. The 
Fund shall constitute all the remittances from the National Tourism Development 
Fee and shall be used for financing qualified projects for tourism as determined 
by the National Tourism Development Council. 
SEC 5. National Tourism Development Council. - The National 
Tourism Development Council, herein referred to as the Council, is hereby 
created. The Council shall be mandated to be the primary body in charge of 
overseeing and managing the Fund. 


SEC 6. Composition of fbe Council. - The Council shall be composed 
of the Secretary of the Department of Tourism as Chairperson and the following 
ex-officio members: 
(a) The Secretary of the Department of Budget and Management 
(b) The Secretary of the Department of Environment and Natural 
(c) The 
Secretary 
of 
the 
Department 
of 
Transportation and 
(d) The Secretary of the Department of Public Works and Highways 
(e) The Secretary of the Department of Interior and Local Government 
(q Th e Commissioner of the Bureau of Immigration and Deportation 
(9) The Commissioner of the Bureau of Customs; and 
In addition, four (4) members to be appointed by the President shall come 
from the private sector, the three (3) shall be the heads of the following duly- 
recognized national organizations involved in the tourism industry: 
Resources 
Communications 
(a) Hotel and Restaurant Association of the Philippines (HRAP) 
(b) Philippine Tour Operators (PHILTOA) 
(c) Philippine Travel Agencies Association (PTAA); and 
(d) A Representative from the Regional Tourism Councils. 
SEC 7. 
Terms of Office and Compensation. - The non ex-officio 
members of the Council shall serve for a term of three (3) years, and shall not 
serve for more than two (2) successive terms. Non ex-officio members shall 
each receive a per diem of Two Thousand Pesos (P2,OOO.OO) for actual 
attendance in the meetings of the Council but not to exceed Ten Thousand 
pesos (PlO,OOO.OO) a month, and shall be reimbursed as travel expenses 
incurred for actual attendance of meetings. 
Ex-officio members of the Council shall receive representations and travel 
allowances (RATA) in accordance with rates allowed by existing laws. 
SEC 8. Powers and Functions of the Council. - The Council shall have 
the following powers and functions: 
(a) Devise an appropriate collection and remittance scheme for Fund; 
(b) Oversee the collection and remittance of fees that will constitute the 
(c) Establish a list of priority tourism-related projects that shall be financed 
Fund; 
by the Fund; 
SEC 9. Secretariat -The Council shall organize a Secretariat headed by 
an Executive Director to be appointed by the President. The Council shall fix its 
staffing pattern, determine the duties, qualifications, responsibilities and functions 
as well as compensation scheme for the positions to be created upon the 
recommendation of the Executive Director. 
The staffing pattern shall be 
approved and prescribed by the Council within one hundred twenty (120) days 
from the approval of this Act. 


SEC IO. Separability Clause. - If any provision of this Act shall be held to 
be unconstitutional, the remainder of the Act not otherwise affected shall remain 
in full force and effect. 
SEC 11. Repealing Clause. - All laws, orders, rules and regulations, 
parts thereof, inconsistent with this Acts are hereby repealed or modified 
accordingly. 
SEC 12. Effectivity Clause. This Act shall take effect 30 days after its 
complete publication in two (2) national newspapers of general circulation or in 
the Official gazette. 
Approved,