THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B. No. 
7
%
 
Introduced by Senator 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 Asianmneighbors. 
There is still a need to embark qn 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 their areas of interest in the country, nor do we have enough brochures and 
maps of our country’s prime destinations for dissemination to both foreign and local 
tourists. 


As such, there is a need to tap alternative sources of funding to finance the 
above, as well as other projects that are necessary to further enhance our many tourist 
attractions. 
This proposed measure -seeks to institute the collection of a Tourism 
Development Fee of US $10.00 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 a 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 provides 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. 
ClTO ESTRADA 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
~ -4- 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE COLLECTION OF A TOURISM DEVELOPMENT FEE AND 
THE ESTABLISHMENT OF A NATIONAL TOURISM DEVELOPMENT COUNCIL, 
AND FOR OTHERiPURPOSES 
Be it enacted by the Senate and I the House of 1 Representatives of the Philippines in 
Congress assembled: 
SECTION I. Title. - This Act shall be known as the "National Tourism 
Development Fund Act of 2004. 
SECTION 2. Declaration of Policy. - It is the declared policy of the State to 
recognize tourism as a primary national endeavor that shall be actively pursued. 
Hence, the State must take positive steps to promote tourism development in the 
country, actively seeking the participation of the private sector in the development of 
tourism-related projects, as it takes cognizance of the debilitating financial resources of 
the country's tourism industry. 
SECTION 3. National Tourism Development Fee. - A National Tourism 
Development Fee of Ten United State 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. 
SECTION 4. Nafional 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 . 
. . . . . .  
SECTION 5. National Tourism Development Council. - The National Tourism 
Development Council, herein after referred to as the Council, is hereby crated. The 
Council shall be mandated to be the primary body in charge of overseeing and 
managing the Fund. 
SECTION 6. Composition ofthe Council. - The Council shall be composed of 
the Secretary of the Department of Tourism as Chairperson and the following ex-officio 
mern bers: 
(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
(9) 
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; 
Hotel and RestauranttAssociation of the Philippines (HRAP); 
Philippine Travel Agencies Association (PTAA); and 
A Representative from the Regional Tourism Councils. 
The Secretary of the Department of Budget and Management; 
The Secretary of the Department of Environment and Natural Resources; 
The Secretary of the Department of Transportation and Communications; 
The Secretary of the Department of Public Works and Highways; 
The Secretary of the Department of Interior and Local Government; 
The Commissioner of the Commission on Immigration and Deportation; 
The Commissioner of the Bureau of Customs; and 
(a) 
(b) 
Philippine Tour Operators (PHILTOA); 
(c) 
(d) 
SECTION 7. Terms ofi 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 (P10,OOO.OO) a month, and shall be 
reimbursed 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. 
SECTION 8. Powers and Functions of the Council. - The Council shall have 
the following powers and functions: 


I 
-- 
a) 
b) 
c) 
Devise an appropriate collection and remittance scheme for the Fund; 
Oversee the collection and remittance of fees that will constitute the Fund; 
Establish a list of priority tourism-related projects that shall be financed by 
the Fund; 
SECTION 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 the 
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 approval of the Act. 
SECTION I O .  Separability Clause. - If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions thereof. 
SECTION 11. €ffecfivify. - This Act shall take effect fifteen (15) days following 
its complete publication in at least two (2) newspapers of general circulation. 
Approved,