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PRESIDENTIAL DECREE NO. 564
PRESIDENTIAL DECREE NO. 564 -
REVISING THE CHARTER OF THE PHILIPPINE TOURISM AUTHORITY CREATED UNDER
PRESIDENTIAL DECREE NO. 189, DATED MAY 11, 1973
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chanroblesvirtualawlibrary
WHEREAS, it
is the avowedm of the government to promote Philippine tourism and work
for its accelerated and balanced growth as well as for the economy and
expediency in the development of the tourism plant of the country;chanroblesvirtualawlibrary
WHEREAS, in pursuit of thism the Department of Tourism was created
under the Presidential Decree No. 189 as the primary policy, planning,
programming, coordinating and administrative entity of the government
in the development of the tourism industry, with the Philippine Tourism
Authority attached to it to plan and implement specific tourism
developments projects; and
WHEREAS, there is urgent need to restructure and strengthen the
Philippine Tourism Authority to place it in a better position to
effectively unify and integrate related activities and services of both
government and private entities pertaining to tourism development
projects.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the following to be the Revised Charter of the
Philippine Tourism Authority:cralaw:red
CHAPTER I
Declaration of Policy and Creation of the Philippine Tourism Authority
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of the State to promote, encourage, and
develop Philippine tourism as an instrument in accelerating the
development of the country, of strengthening the country's foreign
exchange reserve position, and of protecting Philippine culture,
history, traditions and natural beauty, internationally as well as
domestically.
Section 2. Creation of Philippine Tourism Authority.
— To carry out the above policy, there is hereby created a corporate
body to be known as the Philippine Tourism Authority, hereinafter
called the Authority, which shall be attached to the Department of
Tourism.
Section 3. Principal Office. — The Authority shall
maintain its principal office in the Metropolitan Manila area, but it
may establish branches and agencies elsewhere within the Philippines as
may be necessary for the proper conduct of its business.
CHAPTER II
Purposes, Functions and Power
Section 4. General Purposes. — The Authority shall
have the following general purposes:cralaw:red
(a) Implementing arm. — As the implementing arm of
the Department of Tourism, to implement policies and programs of the
Department pertaining to the development, promotion and supervision of
tourism projects in the Philippines; chanroblesvirtualawlibrary
(b) Develop tourist zones. — To promote the
development into integrated resort complexes of selected and well
defined geographic areas with potential tourism value, known otherwise
as "tourist zones", wherein optimum use of natural assets and
attractions as well as existing facilities and concentration of efforts
and limited resources of both government and private sector may be
effected and realized in order to generate foreign exchange as well as
other tourist receipts. Such tourist zones shall consist of
substantially undeveloped areas the ownership of which may be partially
or wholly acquired by the Authority or whose existing owners may choose
to contribute their property into a consortium or in a new corporation
in which the Authority shall participate, which in any case shall be
under the control of the Authority as to the manner of development to
be undertaken within the zone.
(c) Assist private enterprise. — Whenever necessary,
to extend all forms of assistance to private enterprise in undertaking
tourism projects.
(d) Operate and maintain tourist facilities. — To
undertake for its own account or in joint venture with the private
sector the operation and maintenance of essential tourist facilities
which private enterprise alone is not prepared or willing to undertake;chanroblesvirtualawlibrary
(e) Assure land availability. — To assure
availability of land at reasonable prices or rental rates for private
investors in hotels and other tourist facilities;chanroblesvirtualawlibrary
(g) Coordinate all tourist project plans and
operations. — To coordinate and assist implement tourism related plans
or operations of local governments, governmental agencies, public
corporations and, where clearly necessary and feasible, those of
private entities so as to make possible to accelerated and balanced
growth and development of tourism in the Philippines which is
responsive to the needs of targetted travel markets here and
abroad. chanroblesvirtualawlibrary
Section 5. Specific Functions and Powers. — In the
furtherance of the aforestated purposes, the Authority shall be charged
and vested with the following functions and powers:cralaw:red
A. PLANNING AND DEVELOPMENT OF TOURISM PROJECTS
1. Tourist Zones. — To assist the Department of
Tourism make a comprehensive survey of the physical and natural tourism
resources and potentialities of the Philippines for purposes of
identifying specific geographic areas with potential tourism value
leading to the preparation of a national tourism development plan; to
establish the order of priority for the development of said areas; to
recommend to the President from time to time the proclamation of a
tourist zone of any area so identified according to the established
order of priority; and to define and fix the boundaries of the one so
proclaimed.
2. Zone Development Plan. — To formulate a
development plan for each zone in coordination with the Department of
Tourism and other government agencies and the local government(s)
exercising political jurisdiction over the area: Provided, That in case
the zone in question to be developed is not solely for tourism
purposes, the development plan shall cover specifically those aspects
pertaining to tourism; Provided, further, That the tourism development
plan is fully coordinated and integrated with other sectoral plans for
the area. chanroblesvirtualawlibrary
3. Submission of Plans for Tourism Projects. — Upon
confirmation of the Department of Tourism, to submit to the President
through the National Economic and Development Authority for review and
approval all aforementioned plans before the same are enforced and/or
implemented.
4. Annual Report. — To submit to the President an
Annual Report based upon the Authority's continuing assessment and
evaluation of the progress of its activities in the light of its
approved plans, including those done in collaboration with the various
government and private entities.
5. Tourism Priorities Plan. — To assist the
Department of Tourism determine from time to time the additional
capacity requirements for various tourist facilities and services
throughout the country, particularly within tourist zones; to prepare a
ten-year Tourism Priorities Plan enumerating specific investment which
the private sector shall be induced to make various tax and other
incentives as well as financialds provided by law and identifying the
specific infrastructure works and other activities that the government
or its agencies must discharge and accomplish to support or complement
the investments of the private sector; and to update annually said
Tourism Priorities Plan.
6. Gather, collate and analyze statistical data and
other pertinent information required for the effective implementation
of this Decree.
B. ACQUISITION AND DISPOSITION OF LANDS AND
OTHER ASSETS FOR TOURIST ZONE PURPOSES
1. Acquisition of Public Lands. — To acquire
possession and ownership of all lands transferred to it from other
government corporations and institutions by virtue of this Decree, and
any land having tourism potential and earmarked in the Tourism
Priorities Plan for intensive development into a tourist zone or as a
part thereof, subject to the approval of the President. The meaning of
the word "land" or "lands" as used herein and elsewhere in this Decree
shall be understood to include any interest in land, the bed of any
lake or river, and such structure, things or properties attached to
land or permanently fastened to anything attached to land. chanroblesvirtualawlibrary
2. Acquisition of Private Lands, Power of Eminent
Domain. — To acquire by purchase, by negotiation or by condemnation
proceedings any private land within and without the tourist zones for
any of the following reasons: (a) consolidation of lands for tourist
zone development purposes, (b) prevention of land speculation in areas
declared as tourist zones, (c) acquisition of right of way to the
zones, (d) protection of water shed areas and natural assets with
tourism value, and (e) for any other purpose expressly authorized under
this Decree and accordingly, to exercise the power of eminent domain
under his own name, which shall proceed in the manner prescribed by law
and/or the Rules of Court on condemnation proceedings. The Authority
may use any mode of payment which it may deem expedient and acceptable
to the land owners: Provided, That in case bonds are used as payment,
the conditions and restrictions set forth in Chapter III, Sections 8 to
13 inclusively, of this Decree shall apply.
3. Disposition of Lands. — For the purpose of
providing land acquisition assistance to registered tourism enterprise,
to sell, subdivide, resell, lease, sublease, rent out, or otherwise,
including improvements thereon, if any, to said registered tourism
enterprises under sufficiently soft terms for use specifically in the
development of hotels, recreational facilities, and other tourist
services: Provided, That the Authority shall reserve the right to
repossess in accordance with the law any land so sold or leased in
cases of insufficient use or misuse of land by said enterprise or their
possible assignees.
4. Development and Sale of Subdivisions and
Condominiums. — To develop and/or subdivide any land in its name or
undertake condominium projects thereon, and sell subdivided lots or
condominium units to private persons for investment purposes: Provided,
That such subdivision and/or condominium projects are undertaken within
the tourist zones and in conjunction with the development thereof;
Provided, further, That their use shall be within the guidelines set
forth by the Authority. chanroblesvirtualawlibrary
5. Transfer of Foreshore Leases. — To take over or
transfer to a registered enterprise in accordance with law any lease on
foreshore areas within a tourist zone or adjacent thereto, in cases
wherein said areas are not being utilized in accordance with the
Authority's approved zone development plan and wherein the lessee
concerned does not agree to conform accordingly after due consultation
with the local government having jurisdiction over the granting of said
leases.
6. Reclamation of Land. — To arrange for the
reclamation of any land adjacent to or adjoining a tourist zone in
coordination with appropriate government agencies.
C. INFRASTRUCTURE DEVELOPMENT FOR
TOURIST PURPOSES
1. Internal Infrastructure. — To contract, supervise
and pay for infrastructure works and civil works within a tourist zone
owned and operated by the Authority, or where necessary to construct,
acquire, own, lease, operate and/or maintain within said zone such
infrastructure facilities as dams, reservoirs, water distribution
systems, electric power systems, sewerage systems, telecommunications,
roads, transportation facilities or other services necessary or useful
for the conduct of business of the hotels, shops, restaurants and other
tourist facilities and services in the zone, in coordination with
appropriate government agencies.
2. External Infrastructure. — To coordinate with
appropriate government agencies the development of infrastructure
requirements supporting a tourist zone, such as but not limited to,
access roads to the zone, electric power brought to the property line
of the zone,rports, harbors, and other support facilities.
3. Other Related Powers. — In coordination with
appropriate government agencies, to take water from any public stream,
river, creek, lake, spring, or waterfall in the Philippines; and to
alter, straighten, obstruct or increase the flow of water in streams or
in water channels intersecting or connecting therewith or contiguous to
its works or any part thereof, for purposes of enhancing the
attractiveness of projects for tourism purposes.
D. ZONE ADMINISTRATION AND CONTROL
1. Zoning Regulations. — In coordination with the
Department of Local Government and Community Development and other
appropriate government agencies, to formulate and implement zoning
regulations, including building codes, hotel standards, and such other
restrictions as may be necessary within a tourist zone to control its
orderly development, to preserve such historical, cultural and/or
natural assets or relics giving the zone its tourism value and
significance, and to assure adherence to approved zone development
plans.
2. Determination and Regulation of Zone Enterprises.
— To determine and regulate the enterprises to be established within a
tourist zone.
3. Ecological Preservation and Maintenance. — To
ensure, through the proper authorities concerned, the
ecological preservation, maintenance and/or rehabilitation of the
common and the public areas within a tourist zone and the environment
thereof; and specifically, to control beach erosion and pollution to
preserve all aspects giving the zone its tourism value.
4. Preservation and Restoration of Tourist
Attractions. — In coordination with appropriate government agencies:
(a) to identify and recommend to the President the preservation and/or
restoration of national monuments or preserves; (b) arrange for the
preservation and/or restoration of the same with appropriate government
agencies or with the private sector or with the owners themselves of
said tourist attractions; and (c) identify and recommend to the
appropriate authorities concerned the declaration of tourist areas and
attractions as national monuments and preserves.
E. PROJECT AND INVESTMENT PROMOTIONS
1. Promotion of Own Projects. — To identify, develop,
invest in, own, manage and operate such projects as it may deem to be
vital for recreation and rest but which are not sufficiently attractive
economically for private investment.
2. Construction and Leasing of Tourist Facilities. —
To construct hotel buildings and other tourist facilities within a
tourist zone and in turn lease such facilities to registered tourism
enterprises for operation, management and maintenance.
3. Promotion of Wholly-Owned Subsidiary Corporations.
— To organize, finance, invest in, manage and operate wholly-owned
subsidiary corporations when such arrangement is clearly necessary to
implement the purposes, functions and powers conferred and granted to
it under this Decree, subject to the approval of the President for
each: Provided, That such corporations may declare dividends.
In the exercise of the above functions, the Authority shall avoid
competing against or discouraging the private sector in undertaking
similar projects and shall engage only in those activities as are in
the nature of pioneering ventures or are demonstrably beyond the scope,
capacity, or interest of purely private enterprises due to
considerations of geography, technical or capital requirements, returns
on investments and risks: Provided, That the Authority may choose to
engage private parties to provide the direct operating management of
these projects under terms and conditions beneficial to the Authority.
F. DIRECT ASSISTANCE TO REGISTERED
ENTERPRISES
1. Administration of Incentives. — To administer the
tax and other incentives granted to registered enterprises under
Presidential Decree No. 535 or under any law as may later be enacted:
Provided, That the Authority shall prescribe the procedure and manner
under which the incentives may be made available and the qualifications
that may be required of the registered tourism enterprises availing of
said incentives: Provided, further, That the Authority shall reserve
the prerogative to determine and select which of the authorized
incentives shall be granted to a particular type of registered
enterprise, or conversely, which types of registered enterprise may
avail of a particular incentive: Provided, finally, That the
administration of the collection of internal revenue taxes and customs
duties shall be left to the Bureau of Internal Revenue and the Bureau
of Customs, respectively, as the case may be
2. Approval and Registration of Tourism Projects. —
To evaluate, approve and register or reject any and all tourism
projects or enterprises established within the tourist zones, applying
for financial assistance, and/or availing of tax and other incentives
provided by law. chanroblesvirtualawlibrary
3. Granting of Loans; Re-lending of Borrowed Funds. —
To grant medium and long-term loans and/or re-lend any funds borrowed
for the purpose to duly qualified registered tourism enterprises
for the development, establishment expansion, rehabilitation and/or
encouragement of tourism projects owned, managed and/or encouragement
of tourism projects owned, managed and/or operated by said enterprises,
and/or for the acquisition or procurement of machinery, equipment and
other implements needed in the operations of registered tourism
enterprises.
4. Guarantee Loan and Foreign Currency Obligations of
Registered Enterprises. — Whenever deemed necessary for purposes of
enabling registered enterprises to secure financing at preferred and
competitive term to assure the viability and implementation of the
registered projects, the Authority may guarantee local and foreign
borrowings of registered enterprises under terms and conditions it
shall promulgate.
5. Provide Equity Investments. — In order to meet the
necessary local counterpart funds for specific projects where the
existing local equity is not adequate, the Authority may provide equity
investment in the form of cash and/or land under terms and conditions
it shall promulgate, and with the end in view that said equity
investments will be eventually sold to the public to provide dispersal
of ownership in the tourism industry.
6. Provide Technical, Management and Financial
Assistance. — In order to ensure the realization of projects deemed by
it to be viable and deserving, the Authority shall extend technical,
management and financial assistance to such tourism projects, subject
to policies and guidelines which the Board shall formulate; and in this
direction the Authority may prepare or contract for the preparation of
feasibility and other pre-investment studies upon its own initiative:
Provided, That any expenses so incurred by the Authority shall be
reimbursed by the tourism enterprise/s benefiting therefrom within five
years from their start of operations; and Provided, further, That the
reimbursement by the benefiting enterprises of the Authority's expenses
for such assistance shall be a condition for the grant of such
assistance.
7. Promote Joint Ventures. — The Authority shall
identify, contact and assist in negotiations suitable partners for both
local and foreign investors interested in investment or participation
in the tourism industry.
8. Provide Facilitation Services to Investors. — The
Authority shall assist registered enterprises and prospective investors
to have their papers processed with dispatch by all government offices,
agencies, instrumentalities and financial institutions.
G. OTHER POWERS AND FUNCTIONS
1. Services of Consultants. — To engage or retain and
pay for the services of financial, management, legal, technical and/or
project consultants from the private or government sector. Said
consultants shall exempt from the requirement set forth in Section 37
hereof.
2. Succession. — To have the power to succeed by its
corporate name.
3. Corporate Seal. — To adopt, alter, and use a
corporate seal which shall be judicially noticed.
4. Sue and Be Sued. — To sue and be sued under its
corporate name.
5. Contracts. — To enter into contracts of any kind
and description to enable it to discharge its functions and
powers under this Decree.
6. Ownership or Possession of Personal and/or Real
Property. — To acquire, lease, own or possess such personal and/or real
property as it deems necessary or convenient in the transaction of its
business and/or in relation with the carrying out of its purposes,
functions and objectives under this Decree; and to lease, mortgage,
sell, alienate, or otherwise incumber or dispose of any such personal
and real property held by it.
7. Rules and Regulations. — To make, adopt,
promulgate, and enforce such rules and regulations as are necessary to
execute the powers, duties and functions vested in it by this Decree
and by Presidential Decree No. 535, or to implement the policies and
programs of the Department of Tourism, subject to the programs,
policies and guidelines prescribed by the Department of Tourism. The
rules and regulations issued by the Authority shall take effect
immediately following their publication in two (2) national
newspapers of general circulation in the Philippines: Provided,
That in case of conflict between the Rules and Regulations promulgated
by the Authority and the policies, guidelines or rules and
regulations promulgated by the Department of Tourism, the latter shall
prevail.
8. Purchase, Hold, Alienate Stocks or Bonds. — To
purchase, hold, alienate, mortgage, pledge or otherwise dispose of, the
shares of the capital stock of, or any bond, security, or other
evidence of indebtedness created by any other corporation or
co-partnership of this or any other country, and while the owner of
said stock, to exercise all the rights of ownership, including the
right to vote thereon: Provided, That such stock or indebtedness arise
from projects or activities related to the promotion and development of
tourism unless such holdings were made purely for temporary investment
of unutilized funds.
9. Collection of Fees, Charges, etc. — To collect
such fees and charges as may be imposed and assigned to it under this
Decree or other laws: Provided, That all taxes accruing to the
Philippine Tourism Authority under this Decree and other laws, which
will be collected by the Bureau of Internal Revenue and the Bureau of
Customs, shall be remitted to the Authority quarterly.
10. Borrowing Power. — When essential to the proper
administration of its corporate affairs or when necessary for the
transaction of its business or for carrying out the purpose of this
Decree, to contact indebtedness and issue bonds, subject to the
conditions set forth in Section 8 to 13, inclusively, of Chapter III
hereof.
11. Fixing and Collection of Rentals, Fees and Other
Charges. — To fix and collect rentals for the lease, use or occupancy
of lands, buildings, structures, facilities and other properties owned
or administered by the Authority; to fix and collect fees for services
of utility systems owned or operated by it; and to fix and collect fees
and charges for the processing of registration application, issuance of
permits, and rendering of services not enumerated herein, the
provisions of any law, decree or rule to the contrary
notwithstanding. chanroblesvirtualawlibrary
12. Reservation of Power Necessary to Carry Out the
Authority's Purposes, Functions and Objectives. — To do any and all
acts and things necessary, convenient and expedient to be done to carry
out the purposes for which the Authority is created and organized and
not repugnant to law, it being hereby expressly provided that the
enumeration herein of specific purposes, objects, business, powers,
rights, and privileges shall not be construed as limiting or
restricting in any way the general purposes, powers, rights, and
privileges to be possessed and exercised by the Authority.
CHAPTER III
Capitalization and Financing
Section 6. Capitalization. — The Authority shall
have an authorized capital of Five Hundred Million Pesos
(P500,000,000.00) which shall be fully subscribed by the Republic of
the Philippines and other government institutions, corporations,
instrumentalities and agencies whether national or local within the
framework of their respective charter, and shall be paid out as follows:cralaw:red
(a) The sum of one hundred million pesos
(P100,000,000), which is hereby appropriated out of any general fund in
the National Treasury not otherwise appropriated, and from proceeds of
bond issues, loans and from any other sources of income of the National
Government, upon approval of this Act;chanroblesvirtualawlibrary
(b) The balance, from the same sources mentioned in
paragraph (a) hereof, upon approval of the President. The authorized
capital of five hundred million pesos shall constitute a revolving fund
for the purpose of financing the Authority's business transactions.
Section 7. Operating Expenses. — The operating
expenses of the Authority shall be funded from:cralaw:red
(a) The proceeds of taxes imposed under Republic Act
No. 1478 and Republic Act No. 6141;chanroblesvirtualawlibrary
(b) Proceeds from all fees and other charges, as well
as rentals and other incomes which the Authority is authorized to
impose, collect and/or earn under this Decree, and other existing or
future laws or decrees;chanroblesvirtualawlibrary
(c) Drawings upon the capital of the Authority if
necessary.
Section 8. Procedure in Incurring Indebtedness. —
Whenever the Board of Directors my deem it advisable and
necessary for the Authority to contract foreign and/or domestic loans,
credits and other indebtedness, or to issue bonds, notes,
debentures, securities and other instruments of indebtedness for the
development and/or operation of the tourist zones or to carry out
effectively the objectives of this Decree in the promotion and
development of Philippine tourism, it shall so declare by resolution
stating the purpose for which the proposed debt is to be incurred and
citing the project study devised for the purpose. In order for such
resolution to be valid, it shall be passed by the affirmative vote of
at least (3) members of the Board and approved by the President, upon
the recommendation of the Secretary of Finance in consultation with the
National Economic and Development Authority and Monetary Board.
Section 9. Limits on Indebtedness. — The total
principal domestic indebtedness of the Authority payable in Philippine
currency shall not at any one time exceed two hundred million pesos
(P200,000,000), while the total principal foreign indebtedness of the
Authority payable in foreign currencies qualified to form part of the
international reserves of the Central Bank shall not at any time exceed
two hundred million United States dollars (US$200,000,000) or the
equivalent thereof in other foreign currencies qualified to form part
of the international reserves of the Central Bank.
Section 10. Instruments of Indebtedness Made
Securities. — The instruments of indebtedness issued by the Authority
under and by virtue of this Decree are hereby made securities in which
all public offices, all political subdivisions, all commercial banks,
all insurance companies and associations, savings bank and saving
institutions, including savings and loan associations, executors,
administrators, guardians, trustees and all fiduciaries in the
Philippines may properly and legally invest their own funds or the
funds within their control, and the same shall be receivable as
security in any transaction with the government, its agencies and
instrumentalities, including government-owned or controlled
corporations and government banking and financial institutions in which
such security is required. Said instruments may be made payable both as
to principal and interest in Philippine currency or any readily
convertible currency.
Section 11. Instruments of Indebtedness Exempt from
Taxes. — The bonds and other instruments of indebtedness which the
Authority is authorized to issue under this Decree and any income
derived therefrom, including those contracted with private
international banking and financial institutions, may be exempt from
the payment of all taxes of whatever kind and nature, including
withholding taxes imposed by the Republic of the Philippines, its
agencies, instrumentalities or political subdivisions, upon the
recommendation of the Secretary of Finance and subject to the
provisions of Republic Act. No. 1000.
Section 12. Guarantee by the Government. — Any or all
loans or instruments of indebtedness which the Authority is authorized
to contract or issue under this Decree may be guaranteed, both as to
principal and interest, by the Government of the Republic of the
Philippines whenever the President of the Philippines, by himself or
through his duly authorized representatives, may deem such guarantee by
the Government of the Philippines to be advisable and necessary, in
which case, the President of the Philippines or his duly authorized
representative is hereby authorized to execute and deliver such
guarantee of the Government of the Republic of the Philippines. chanroblesvirtualawlibrary
Section 13. Sinking Fund; Means of Payment of
Indebtedness. — The Authority is hereby authorized to pay out of its
capital, operating income, proceeds from its borrowing or issuance of
bonds, and other instruments of indebtedness, and from all other
sources of funds, the amount necessary to meet its maturing obligations
on the loans, credits or indebtedness contracted by the Authority or on
the bonds, notes or other instruments of indebtedness issued by it. For
this purpose, a sinking fund may be established out of said sources of
funds of the Authority, in the Central Bank of the Philippines in such
manner that the total thereof at each due date of the bonds and other
instruments of indebtedness and the loans, credits or indebtedness
contracted by the Authority shall be equal to the aggregate maturing
obligations or amortizations as of that date. Such funds shall be under
the custody of the Central Bank of the Philippines under the special
account, which shall invest the same in such manner as the Monetary
Board may approve, charging all expenses of such investments to the
said sinking fund and crediting the same with interest on investments
and other income belonging to it. A standing appropriation is hereby
made out of any general fund in the National Treasury not otherwise
appropriated, of such sum as may be necessary to meet all obligations
of the Government of the Republic of the Philippines under all
guarantees which may be sufficient to fully pay the indebtedness of the
Authority guaranteed by the Government of the Republic of the
Philippines or in case the Authority fails to fully pay the same by
some other means.
CHAPTER IV
Managing and Personnel
Section 14. Board of Directors Composition. — The
corporate powers and functions of the Authority shall be vested in and
exercised by a Board of Directors, hereinafter referred to as the
Board, which shall be composed of: (a) the Secretary of Tourism as
Chairman; (b) the General Manager of the Authority as Vice Chairman;
and (c) three (3) part-time members who shall be appointed by the
President of the Philippines. The Chairman of the Board may at the same
time be appointed by the President as General Manager of the Authority.
Section 15. Term of Office. — The term of office of
the part-time members of the Board shall be six years. Of the part-time
members first appointed, one shall hold office for six years, one for
four years, and the last one for two years. A successor to a member
whose term has expired shall be appointed for the full term of six
years from the date of expiration of the term for which his predecessor
was appointed.
Section 16. Vacancy Before Expiration of Term. — Any
member appointed to fill a vacancy in the Board occurring prior to the
expiration of the term for which his predecessor was appointed shall
serve only for the unexpired portion of the term of his
predecessor. chanroblesvirtualawlibrary
Section 17. Per Diems. — Unless otherwise fixed by
the President of the Philippines, the members of the Board shall
receive for every meeting attended as per diem of not to exceed two
hundred pesos (P200); Provided, That such per diems shall not exceed
one thousand pesos (P1,000) during any month for each member. Members
of the Board shall be reimbursed by the Authority for actual
expenses (including traveling and subsistence expenses) incurred by
them in the performance of their duties for the Authority as may be
specifically authorized by the Board.
Section 18. Quorum; Effect of Vacancies. — The
presence of three members of the Board, including the Chairman or the
Vice Chairman, shall constitute a quorum for the transactions of the
business of the Board.
Vacancies in the Board, as long as there shall be three members in the
office, shall not impair the powers of the Board to execute the
functions of the Authority.
Section 19. Withdrawal from the Meeting of a Member
Having Prohibited Interest. — Whenever a member of the Board has a
personal interest of any sort on a matter before the Board, or any of
his business associates, or any of his relatives within the fourth
civil degree or consanguinity or second degree of affinity has such
interest, he shall not participate in the discussion or resolution of
the matter and must retire from the meeting during the deliberations
thereon. After the Board has resolved the matter, the fact that the
member concerned or any of his business associates, or his relatives
within the prohibited degrees has a personal interest in it, is to be
made available to the public and the minutes of the meeting shall note
the withdrawal of the member concerned.
Section 20. Removal or Suspension for Cause. — A
member of the Board may be suspended or removed by the President for
cause, such as: mismanagement, grave abuse of discretion, infidelity in
the conduct of fiduciary relations, gross negligence in the performance
of duties, dishonesty, corruption, or any act involving moral turpitude.
Section 21. Meetings of the Board. — The Board shall
meet as frequently as necessary to discharge its duties and
responsibilities properly, but shall meet regularly at least once a
month. The Board shall be convoked by the Chairman or upon the written
request of a majority of its members. Except when otherwise provided
for in this Decree, the vote of a majority of the members constituting
a quorum shall be sufficient for the adoption of any rule, resolution,
decision or any act of the Board.
Section 22. Powers and Duties of the Board. — The
powers and duties of the Board shall be as follows:cralaw:red
(a) Promulgate and enforce such rules and regulations
as may be necessary to implement the intent and provisions of this
Decree, Presidential Decree No. 535, or any law or Decree that may be
passed pertaining to the Authority, which rules and regulations shall
take effect immediately following their publication in two (2) national
newspapers of general circulation in the Philippines.
(b) Appoint the annual budget and implemental budgets
of the Authority.
(c) Appoint, discipline and remove, fix the
compensation of, and define the duties of the Authority's key personnel
subject to the provisions of Section 28 to 30 thereof.
(d) Authorize any contract or agreement as may be
necessary for the proper, efficient and stable administration of the
Authority and for the attainment of the purposes and objectives of this
Decree;chanroblesvirtualawlibrary
(e) Render annual reports to the President and such
special reports as may be requested; Decree and of Presidential Decree
No. 535.
Section 23. General Manager; Powers and Duties. — The
General Manager of the Authority shall be the chief executive of the
Authority. As such, he shall have the following powers and duties:cralaw:red
(a) To execute and or administer the policies and
measures approved by the Board;chanroblesvirtualawlibrary
(b) To direct, manage and supervise the day to day
operations and internal administration of the Authority, in accordance
with the policies laid down by the Board. The General Manager may
delegate any of his administrative responsibilities to other officials
or employees of the Authority, subject to the rules and regulations of
the Board;chanroblesvirtualawlibrary
(c) To sign all acts, memorials and resolutions of
the Board;chanroblesvirtualawlibrary
(d) To establish the internal organization of the
Authority under such conditions that the Board may prescribe: Provided,
That any major reorganization shall be subject to the approval of the
Board; chanroblesvirtualawlibrary
(e) To prepare the agenda for the meetings of the
Board and to submit for the consideration of the Board, the policies
and measures which he believes to be necessary to carry out the
purposes and provisions of this Decree and of Presidential Decree No.
535;chanroblesvirtualawlibrary
(f) To submit within thirty (30) days after the close
of each fiscal year an annual report to the Board and such other
reports as may be required;chanroblesvirtualawlibrary
(g) To submit an annual budget and necessary
supplemental budgets to the Board for its approval; and
(h) To exercise such powers and perform such other
duties as may be vested in or assigned to him by the Board.
Section 24. Representation of the Authority. — The
General Manager shall be the principal representative of the Authority,
and in such capacity and in accordance with the instructions of the
Board, he shall be empowered:cralaw:red
(a) To represent the Authority in all dealings with
other offices, agencies, and instrumentalities of the government and
with all other persons and entities, whether public or private,
domestic, foreign or international;chanroblesvirtualawlibrary
(b) To authorize, with his signature, contracts
concluded by the Authority, notes and securities issued by the
Authority and the annual reports, balance sheets, profit and loss
statements, correspondence and other documents and of the Authority.
The signature of the General Manager may be in facsimile whenever
appropriate;chanroblesvirtualawlibrary
(c) To represent the Authority, either personally or
through counsel, in any legal proceedings or actions; and
(d) To delegate his power to represent the Authority
as provided for in Subsections (a), (b), and (c) of this section, to
other offices of the Authority upon his own responsibility.
Section 25. Authority of the General Manager in
Emergencies. — In the event of extraordinary emergencies which require
immediate action and which there is insufficient time to call a meeting
of the Board, the General Manager, with the concurrence of the Chairman
of the Board, or in his absence, with the concurrence of any other two
members of the Board, may decide any matter or take any action within
the authority of the Board itself and may suspend any resolution or
decision of the Board to meet such emergencies.
In such cases, the General Manager shall request that the meeting of
the Board be held immediately, and for him to explain his action and
the reasons for departing from the normal procedures. The Board may
then confirm, revoke or modify such action as the circumstances may
warrant. chanroblesvirtualawlibrary
Section 26. Remuneration of the General Manager. —
The salary of the General Manager shall be fixed by the Board and
approved by the President of the Philippines.
Section 27. Departments of the Authority. — The
Authority shall establish and maintain such departments as it may deem
necessary for the proper and efficient transaction and/or operation of
its business. The powers and duties of the departments shall be
determined by the Board, within the authority granted to the Board and
the Authority under this Decree.
The office of the Corporate Legal Counsel of the Authority, which shall
be separate and distinct from and independent of the Office of the
Government Corporate Counsel, shall advise and represent the Authority
on any legal matters, procedures and actions.
Section 28. Merit System. — Upon its organization,
the Authority shall establish a comprehensive and progressive merit
system in accordance with the Civil SERVICE Rules and Regulations. The
recruitment, transfer, promotion, and dismissal of all Authority
personnel, including temporary workers, shall be governed by such merit
system.
Section 29. Applicability of the Civil Service Law,
Rules and Regulations. — All officials and employees of the Authority
are subject to the Civil Service Law, Rules and Regulations.
Section 30. Exemption from Coverage of Wage and
Position Classification Office. — The regular professional and
technical personnel of the Authority shall be exempted from WAPCO rules
and regulations.
Section 31. Training of Technical and/or Professional
Personnel. — The Authority shall establish, promote and sponsor
training programs for its professional and/or technical personnel that
would allow maximum flexibilities, specially with respect to
qualifications, transfer, duties, assignments and promotions. Towards
this end, the Authority is hereby authorized to defray the costs of
study, at home or abroad, of employees or officials of the Authority or
any other qualified persons which shall be determined, as far as
practicable, by proper competitive examination. chanroblesvirtualawlibrary
Section 32. Auditing. — The Authority shall have its
auditing department which shall be headed by the duly-appointed
representative of the Commission on Audit whose salary shall be
determined and paid according to law. All personnel of the auditing
department shall be appointed, and their number and salaries fixed, by
the Commission on Audit. The personnel expenses and operating costs of
the auditing department shall be determined and paid by the Authority.
Such salaries and number of auditing personnel may only thereafter be
increased, diminished or altered by the Commission on Audit, subject to
the approval of the Authority, and said representative and his
subordinate personnel may receive such allowances and privileges as may
be authorized and approved by the Authority upon recommendation of the
Commission on Audit.
Section 33. Tourism Advisory Board. — The Chairman of
the Board of Directors of the Authority shall establish for purposes of
consultations with the private sector a Tourism Advisory Board,
hereinafter referred to as Advisory Board, which shall be composed or
representatives from trade organizations for hotels, restaurants,r
carriers, land transportation operators, travel agencies, tour
operators, resort operators, cottage industry producers and/or
distributors, sea carriers, foreign currency changers, bankers
associations, and representatives from other trade organizations as may
be designated by the Chairman of the Board of the Authority.
The members of the Advisory Board shall be exempt from the
conflict-of-interest provisions of the Anti-Graft and Corrupt Practices
Act.
CHAPTER V
General Provisions
Section 34. Investigations, Inquiries or Hearings. —
To facilitate the determination of the economic practicability or
feasibility of any step in any of its plans, supplements or amendments
thereto, or of any other fact or matter which the Authority is
authorized and empowered to decide or determine, the Authority may
conduct investigations, inquiries or hearings at such place or places
and at such times as it shall appoint. Such investigation, inquiries or
hearings may be held by or before the Board or by or before any person
or persons duly designated by the Board as the Authority's
representative.
Section 35. Abolition of Existing Tourism Agencies
or Authorities. — To integrate all the functions and activities
of the government, as well as minimize duplication of work and
thus achieve economy, efficiency and effectiveness of operation
in the conservation and development of tourist attractions,
the following agencies or authorities are hereby abolished and
their powers, functions, assets and liabilities, together
with applicable appropriations, records, equipment, obligations
and contracts, rights, choses in action, etc., are hereby
transferred to and shall continue to be vested in and assumed by
the Authority;chanroblesvirtualawlibrary
(a) Hundred Islands Conservation and Development
Authority;chanroblesvirtualawlibrary
(b) San Juanico Strait Tourist Development Authority.
Provided, That the Board shall determine what personnel of the
abolished agencies shall be absorbed by the Authority: Provided,
further, That the Authority shall maintain contact and consult
with the private operators in each area affected.
Section 36. Properties Transferred to the
Authority. — The Looc Estate is hereby transferred to the
Authority for development, management, administration or
disposition; other properties with tourism potential such as, but
not limited to, hotels, resorts, islands, real estate that have
been foreclosed by the GSIS, DBP, SSS and other financial
institutions shall be transferred to the Authority under such
terms and conditions which may be mutually agreed upon
between the Authority and the financial institutions concerned.
Section 37. Equipment, Supplies and Services
Other than Personnel. — All purchases of equipment and supplies
or contracts for services, except of personal services,
entered into by the Authority, shall be done through competitive
public bidding: Provided, That bidding shall not be required when
(1) an emergency, as certified by the General Manager,
requires immediate delivery of the supplies or performance of
the services, and (2) the aggregate amount involved in any
one purchase of supplies or procurement of services does not
exceed fifty thousand pesos (P50,000), in which case, such
purchase or procurement may be made in the usual course of
business: Provided, further, That the Authority's emergency
purchase of supplies and services shall not exceed the amount of
five hundred thousand pesos (P500,000) for any one month:
Provided, finally, That in comparing bids and in making awards,
the Authority shall consider such factors as the cost and
relative quality and adaptability of supplies or services; the
bidder's financial responsibility, skill, experience, integrity,
and ability to furnish repairs and maintenance services;
the time of delivery or performance offered; and the bidder's
compliance with the specifications desired.
CHAPTER VI
Miscellaneous Provisions
Section 38. Definition of Terms. — Whenever used
or cited in this Decree:cralaw:red
(a) Authority — shall mean the Philippine
Tourism Authority;chanroblesvirtualawlibrary
(b) President — shall mean the President of the
Philippines and upon the transition from the presidential to the
parliamentary system of government, shall mean the Prime
Minister;chanroblesvirtualawlibrary
(c) Registered Tourism Enterprise — shall mean
a person, corporation, partnership or other entity organized
and existing under the Philippine Constitution registered with
the Authority in accordance with and as defined by
Presidential Decree No. 535, and engaged in or proposing to
engage in rendering services to foreign tourists and travelers
covered by the Tourism Priorities Plan and subject to the
guidelines prepared by the Department of Tourism;chanroblesvirtualawlibrary
(d) Tourist Zone — shall mean a geographic area
with well-defined boundaries proclaimed as such by the President,
upon the recommendation of the Authority, and placed under the
administration and control of the Authority;chanroblesvirtualawlibrary
(e) Wholly-Owned Subsidiary Corporation — shall
mean a corporation that is organized or a corporation already
in existence wherein one hundred per cent (100%) of its shares
of stock are owned or controlled by the organizing or
subscribing Authority, in this case, the Philippine Tourism
Authority, to carry out or accomplish its purpose. chanroblesvirtualawlibrary
Section 39. Penalties. — Any person violating
or causing another to violate any provision of this Decree or
the rules and regulations of the Authority pursuant to this
Decree shall, upon conviction by a Court of competent
jurisdiction, suffer the penalty of imprisonment of not less than
two (2) years nor more than five (5) years or a fine of not less
than two thousand pesos nor more than twenty thousand pesos, or
both, at the discretion of the Court. In addition, thereto, such
violation shall constitute a valid ground for the revocation of
all privileges, permits and authorization granted to such person
or entity under this Decree by the Philippine Tourism
Authority: Provided, however, That if the offender is a
corporation, firm, partnership, or association, the penalty shall
be imposed upon the guilty officers or officers, as the case may
be, of the corporation, firm or association, and if such guilty
officer or officers is an alien, in addition to the penalties
herein prescribed, he or they shall be deported without
further proceedings on the part of the Commission on Immigration
and Deportation.
Section 40. Separability Clause. — The provisions
of this Decree are hereby declared to be separable, and in the
event any one or more of such provisions are held
unconstitutional, they shall not effect the validity of other
provisions.
Section 41. Repealing Clause. — Sections 9, 10, 11,
12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 27, and such other
provisions of Presidential Decree No. 189 dated May 11, 1973,
pertaining to the Philippine Tourism Authority, which are
inconsistent with the provisions of this Decree, are hereby
superseded, amended or modified accordingly. All other acts,
statutes, decrees, orders, instructions, rules and regulations or
parts thereof that are inconsistent with the provisions of this
Decree are hereby either repealed or modified accordingly.
Section 42. Effectivity. — This Decree shall take
effect immediately.
DONE in the City of Manila,
this 2nd day of October, in the year of Our Lord, nineteen
hundred and seventy-four.
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