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THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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F: 1 :'k,3 
First Regular Session 
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Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Tourism has been regarded as an important growth industry throughout the 
world. Travel and tourism is not the worlds largest industry and one of the fastest 
growing sectors of the service economy. Vibrant tourism activity is known to result to 
economic growth, as it serves as a major source of foreign exchange and domestic 
incomes, generating employment and government revenues, as well as serving as a 
medium for opening new markets abroad for domestic products. 
The Philippines, with its verdant forests, white sand beaches, rich culture and 
heritage, Scenic tourist attractions, and highly educated and hospitable service 
personnel, evidently has the potential to become a prime tourist destination in Asia. In 
previous years, the tourism industry has already proven to be a viable financial 
contributor to the Philippine economy, generating millions of jobs nationwide. 
In recognition of the continuing development of Philippine tourism, and its 
contributions to our economy, this bill seeks to establish a National Policy on Tourism to 
effectively direct the development, promotion and advancement of Philippine tourism as 
a major national activity, pursued in accordance with the policies, strategies and 
programs enunciated by the government. 
In particular, the proposed National Tourism Policy Act seeks to ensure that ours 
is a kind of tourism that ( I )  conserves and promotes our culture and heritage, national 
identity and unity; (2) receives appropriate attention and financial support; (3) promotes 
ecological sustainability by striking a balance between economic development on the 
one hand, and environment and natural resource protection and conservation on the 
other; (4) promotes culture and gender sensitivity while working for reciprocity between 


hosts and guests; and (5) creates a favorable image for our country in the international 
community, thus strengthening the country’s thrust to be a prime tourist destination. 
Thus, this policy outlines the parameters and sets the guidelines for Philippine 
tourism, and shall be the foundation from which a strategic and long-term framework on 
tourism shall be built. 
To carry out this mandate, the bill proposes the creation of a Tourism 
Development Advisory Council which shall institutionalize the participation and support 
of both the government and the private sector, with the Department of Tourism at the 
helm. 
This is in cognizance of the fact that effective tourism development is an 
undertaking that must be embarked on by all concerned agencies of government and 
interest groups, since it includes not just tourism promotion but environmental 
conservation and protection, infrastructure development, investment promotion, cultural 
preservation, peace and order, among others. 
The potential of the Philippines as a primary tourist destination is vast and full of 
promise. But the direction of its development and the key players that shall see this 
through must be forthright, and this is what the proposed National Tourism Policy Act 
seeks to ensure. For it is only with a clear policy of government that efforts to advance 
Philippine tourism can be guided accordingly. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
J)bJ6GT 
EJERCITO ESTRADA 
< 
J Senator 


First Regular Session 
S.B.’NO. 935 
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Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
ESTABLISHING A NATIONAL TOURISM POLICY, CREATING THE TOURISM 
DEVELOPMENT ADVISORY COUNCIL, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “National Tourism 
Policy Act of 2004.” 
SECTION 2. Objectives. - The development, promotion and advancement of 
tourism as a major national activity shall be pursued in accordance with the policies, 
strategies and programs enunciated by the government. The State shall seek to: 
Ensure the development of Philippine tourism that is for and by the Filipino 
people, conserving and promoting our culture and heritage, national 
identity and sense of unity; 
Recognize tourism development as integral to the national socio-economic 
development efforts to improve the quality of life of the Filipino people, 
receiving the appropriate attention and financial support necessary for the 
growth of this industk; 
Promote a tourism industry that is ecologically sustainable by maintaining 
a balance between economic development, and environment and natural 
resource protection and conservation; 
Promote a tourism industry that is culture and gender sensitive and will 
work for reciprocity between hosts and guests; and 
Create a favorable image of the Philippines within the international 
community of nations, thereby strengthening the country’s attraction as a 


tourism destination and eventually paving the way for other benefits that 
may result from a positive global view of the country. 
SECTION 3. Nafional Tourism Poky. - In pursuance of the above objectives, 
the State hereby adopts the following policies: 
Encourage activities and programs which promote tourism awareness 
while at the same time encouraging the preservation of the country’s 
diverse cultures and heritage, and instilling a sense of history and pride 
among the youth and populace in general; 
Promote the preservation of traditional crafts, skills, products, and 
indigenous activities such as, but not limited to, sports and games, and the 
production of handicrafts and folk arts by private artisans in the regions; 
Encourage the use of indigenous architectural designs and materials in 
the construction of tourism facilities to the greatest extent possible; 
All things being equal, grant preferential treatment to the employment of 
Filipino nationals in tourism-related enterprises; 
Provide full government assistance by way of competitive tourism 
investment incentives, long-term development funds made available by 
government financing institutions and other financing schemes extended 
to the Filipino-owned enterprises; 
Ensure that tourism development protects and promotes the general well- 
being of the Filipino people, particularly in the area of investments, to 
include the monitoring and prevention of any act of profiteering or 
speculation to the detriment of local residents; 
Encourage competition in the tourism industry and maximize consumer 
choice by enhancing their continued viability and other tourism-oriented 
establishments; 
Enhance the collection, analysis, and dissemination of data which 
accurately measure the economic and social impact of tourism in the 
country to facilitate planning in the public and private sectors; 
Develop ecotourism as strategy for low-impact, environmentally-sound 
and community-participatory tourism programs enlisting the participation 
of local communities, including indigenous peoples, in conserving bio- 
physical and cultural diversity, promoting environmental understanding 
and education, and ensuring full enjoyment of the benefits thereof by the 
concerned communities; 


Rationalize existing civil aviation, land and sea transportation policies as 
they relate to tourism, inconsonance with existing bilateral agreements 
and interagency pronouncements; and 
As stated in the Manila Declaration on World Tourism, the right to use of 
leisure, and in particular the right to access to holidays and to freedom of 
travel and tourism, a natural consequence of the right to work, is 
recognized as an aspect of the fulfillment of the human being by the 
Universal Declaration of Human Rights as well as by the legislation of 
many States. Thus, it entails for society the duty of providing for its 
citizens the best practical, effective and non-discriminatory access to this 
type of activity. Such an effort must be in harmony with the priorities, 
institutions and traditions of each individual country. 
SECTION 4. Creation of a Tourism Development Advisory Council. - To 
carry out the provisions of this Act, the Tourism Development Advisory Council is 
hereby created, hereinafter referred to as the “Council” , to formulate programs in 
accordance with the provisions of this Act, and to review, integrate, and synchronize the 
policies, plans, programs and services of government and private agencies related to 
tourism. The Council shall serve as a recommendatory body to the Department of 
Tourism, which shall continue to be the primary government agency tasked with tourism 
program formulation and implementation, strategic and marketing planning, legislative 
liaison, inter-agency and intra-governmental coordipation, regulatory control of the 
tourism industry sectors, and delivery of support services for domestic and international 
tourism promotion. 
SECTION 5. Composition. - The Council shall be composed of the heads of 
the following agencies in their ex-officio capacity or those who they may designate to 
attend the meetings: 
Department of Tourism (DOT); 
Department of Environment and Natural Resources (DENR); 
Department of Transportation and Communications (DOTC); 
Department of Public Works and Highways (DPWH); 
Department of Trade and Industry (DTI); 
Department of the Interior and Local Government (DILG); 
Department of Agriculture (DA); 
Philippine Tourism Association (PTA); 
Philippine Convention and Visitors Corporation (PCVC); 
lntramuros Administration (IA); 
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(k) 
(I) 
National Parks Development Committee (PNDC); and 
University of the Philippines -Asian Institute of Tourism (UP-AIT). 
Three (3) members representing the respective heads of the following private 
I) 
2) 
3) 
sector organizations: 
Hotel and Restaurant Association of the Philippines (HFWP); 
Philippine Tour Operators Association (PHILTOA); and 
Philippine Travel Agencies Association (PTAA); 
Three (3) members representing the respective heads of the following transport 
organizations: 
I 
) 
2) 
3) 
The sea transport sector. 
Board of Airline Representatives; 
The land transport sector, and 
One (1) member representing the regional Tourism Councils, 
One (1) member representing the indigenous peoples, and 
One (1) member representing the women’s sector. 
The Secretary of Tourism shall be the Chairperson and shall appoint the 
respective representatives to the Council from the nominees of the land and sea 
transportation sector, the Regional Tourism councils, the indigenous peoples and the 
women’s sector. 
The council shall elect the Vice-Chairperson from among the 
representatives of the private sector. 
SECTION 6. Meetings. - The Council shall meet at least six (6) times a year. 
Special meetings shall be held upon the call of the Chairperson or a majority of its 
members. A member who is unable to attend a session of the Council may designate 
an alternate who must be of sufficient rank and properly authorized to make decisions 
on behalf of the agency that is represented. 
SECTION 7. Powers and Functions. - The Council shall have the following 
powers and functions: 
(a) 
To formulate programs in accordance with the provisions of this Act; 
(b) 
To determine, monitor and review the participation of all concerned 
agencies in tourism development and coordinate the policies and 
programs affecting tourism, national heritage, and environmental and 
natural resource preservation; 


To closely coordinate and work with all government agencies concerned, 
local government units (LGUs) and the private sector to ensure the 
smooth implementation of tourism plans and programs; 
To encourage the maximum participation of the private sector in tourism 
development and to support the activities of local tourism councils; 
To formulate and enforce a system of accountability for the short and long 
term adverse environmental impact of tourism projects; programs or 
activities, which shall include the setting up of a funding of guarantee 
mechanism for 
clean-up 
and 
environmental 
rehabilitation 
and 
compensation for personal damages; 
To prepare a national ecotourism strategy or program which shall guide 
the development, promotion and management of sustainable ecotourism 
in the country, incorporating as among its main features the identification 
of ecotourism sites, involvement of local communities, protection of the 
rights of indigenous peoples, environmental education and information 
campaign, and provision of technical and financial assistance to 
communities which are included in the network of tourism sites; 
To call upon any government or private entity for assistance or support 
whenever deemed necessary to carry out the provision of this Act; 
Whenever necessary, to create such committees to conduct studies for 
the formulation of plans, programs and activities for the attainment of the 
purpose of this Act; 
To organize an Annual National Tourism Summit through the auspices of 
the Department of Tourism, as a means of ensuring wide and collective 
participation of all sectors involved in the sustainable development of 
tourism, as well as to carry out the provisions of this Act; 
To exercise or perform such other powers and functions as may be 
deemed necessary, proper or incidental to the attainment of its objectives. 
SECTION 8. Annual Reports. - The Council shall submit an annual report for 
the preceding fiscal year to the President of the Philippines for transmittal to Congress 
on or before the thirty-first day of December of each year, which shall include a 
comprehensive and detailed report of the activities and accomplishment of the Council 
and its committees, results of efforts to coordinate the plans, programs, and projects of 
member agencies affecting tourism and recreation. 
SECTION 9. Secrefariat. - The Secretariat of the Council shall be composed of 
the support staff from the DOT, as appointid by the Secretary. 


SECTION I O .  
Rules and Regulations. - The Secretary of Tourism, in 
collaboration with other government agencies concerned, shall promulgate the rules 
and regulations necessary for the effective implementation of this Act. 
SECTION 11. 
Appropriations. - 
The amount of Five Million Pesos 
(P5,000,000.00) necessary for the implementation of this Act shall be included in the 
General Appropriations Act of the year following it s enactment into law. Thereafter, the 
annual funding of Five Million Pesos (P5,000,000.00) shall be charged against the travel 
tax collections accruing to the national government. 
SECTION 12. Repealing Clause. - All laws, decrees and executive order 
inconsistent with this provisions of this Act are hereby repealed or modified accordingly. 
SECTION 13, €flectivity. - This Act shall take effect fifteen (15) days after its 
publication in the official Gazette or in at least two (2) national newspapers of general 
lation, whichever comes earlier. 
circ 
Approved.