JAMMIE FRITZ C.

CASTILLO | INSTRUCTOR
 Composed of industries and entities,
both public and private, involved in
the planning, development,
marketing, sales, operation and
evaluation of destinations, products
and services that cater to the needs
of the travelers, both foreign and
domestic.
 common link is to provide services to
travelers
The Government Sector The Private Sector
Department of Tourism Transportation
Companies
PHILIPPINE Convention Hotel Industry
and Visitors Corporation
Tourism Infrastructure Entertainment industry
and Enterprise Zone
Authority

Local Government Units The Travel Trade

Other National Other Private Sector
Government Units Entities
 The tourism industry is recognized by the
government as an important contributor to the
generation of foreign exchange earnings,
investments, revenue, and employment and to the
growth of the country be output.
 The inclusion of tourism as a major pillar in the
Medium Term Philippine Development Plan (MTPDP)
has given priority to the tourism sector by promoting
the Philippines as a premier tourist destination and
investment site.
 If developed in a sustainable manner, indeed it can
be a powerful economic growth engine for the
country.
It deserves to be a top priority for national
development because of the following reasons:
 It is a powerful and efficient industry;
 Its impact on social development are broad
and deep;
 It creates strong peripheral benefits;
 The Philippines can compete and win; and
 It helps maintains cultural integrity,
essential ecological processes, biological
diversity and life support systems.
The industry is powerful and efficient because:
 It is global in size
 It has a strong potential for growth;
 It can accommodate large levels of
investments
 it has a very high value retention rate, i.e.,
relatively low import component;
 It generates direct and indirect jobs;
 It generates huge foreign exchange
movements; and
 It can be developed quickly;
Its impacts on social development are
broad and deep because:
 It is both labor and capital intensive;
 It promotes skills and vocational
development that can be exported;
and
 It promotes a ‘culture of tourism’
through a safer and cleaner
environment that benefits not only
tourists but also the entire
community.
It promotes and creates strong
peripheral benefits to other
economic sectors and society as a
whole through:
Tourism infrastructure spending;
Catalyzing entrepreneurship; and
Improving the image of the
country in international trade and
investment
The Philippines can compete and win in developing its
tourism sector because:
 It possesses ‘timeless’ competitive advantage of
proximity to North-East Asia, especially China,
Japan, and Korea, and it has also world class
natural attractions;
 It is relatively free of restrictions unlike the other
sectors of the economy; and
 It can create sizeable niche markets.
 To harness growth in the tourism industry, focus,
execution and coordinated leadership against
priority tourist markets and destinations are
required.
 responsible for the formulation of
tourism policies in the tourism
industry
 It provides guidelines for the
development of destinations, and
regulates the industry, in collaboration
with the government agencies.
 Subdivided into the national
government entities, and the local
government units.
 Four (4) government agencies that
are directly involved in the tourism
industry: the Department of Tourism
(DOT), the Tourism Infrastructure
and Enterprise Zone Authority
(TIEZA), the Philippine Convention &
Visitors Corporation (PCVC), and
municipal, city and provincial Local
Government Units (LGUs).
 Established by virtue of Presidential
Decree No 189 in 1973 and
reorganized by Executive Order No.
120 in accordance with Article II,
Section 1 (a) and Article III of the
Freedom Constitution of 1986.
 It is the national government’s
organization overseeing the
country’s tourism industry
 Secretary Of
Tourism

Undersecretary Undersecretary
Assistant Undersecretary
Secretary for Tourism Services Planning Product
Tourism
internal Services & Regional Development &
promotions
Offices Coordination
 Secretary Of
Department of Tourism

National Tourism
Philippine Infrastructure Nayong
Parks Pilipino Intramuros
Convention & and
Development Enterprise Foundation Administration
Committee Visitors
Corporation Zone , Inc
(NPDC) Authority
 Created to undertake development
of new parks, upgrade and maintain
park facilities, develop and operate
cultural and educational programs,
and facilitate private sector
participation in appropriate aspects
of parks development and
maintenance
 Marketing arm of the Department of
Tourism
 Its main task is to promote the
Philippines as a tourist and
convention and incentive travel
destination.
 Actsas the implementing arm of the
Department of Tourism in the
development and supervision of
tourism facilities and infrastructure
 Its
purpose is to faithfully represent
the various cultures, arts and
industries of the Filipino people; it is
the replica of the various regions in
the Philippines
 Mandated to undertake the
restoration, development,
preservation and promotion of the
Walled City as a priceless heritage
and historical landmark of the
Philippines.
 Empowered to regulate the
establishment, operation and
maintenance of cafes, restaurants,
beerhouses, hotels, motels, inns,
pension houses, lodging houses, and
other similar establishments,
including tourist guides and
transports.
 Government offices that indirectly
participate in the tourism industry in the
course of day-to-day activities.
 Department of Transportation and
Communications (DOTC), Civil aeronautics
Board (CAB), Air Transportation Office (ATO),
Maritime Industry Authority (MARINA), the
Philippine Ports Authority (PPA), Land
Transportation Franchise and Regulatory
Board (LTFRB)
 Department of Foreign Affairs (DFA),
Dept. of Public Works and Highways
(DPWH), Department of Finance,
Dept. of Justice, Dept of
Environment and Natural Resource
(DENR), Local Government Units
(LGU) and the Philippine National
police (PNP), Department of Labor
and Employment (DOLE)
DEPARTMENT OF FOREIGN
AFFAIRS- The Philippine
agency responsible for the
issuance of passport to its
citizens., develops and
maintains friendly relations
with other countries
DEPARTMENT OF TRADE AND
INDUSTRY- The Philippine
government agency charged with
creating a business-friendly
environment that is conducive to
the growth of enterprises and
supportive of fair and robust
trade in goods and services, both
within and outside the
Philippines.
DEPARTMENT OF HEALTH-
The Philippine government
agency responsible for
ensuring access to basic
public health services to all
Filipinos through the
provision of quality health
care and regulation of
providers of health goods and
services.
DEPARTMENT OF
TRANSPORTATION AND
COMMUNICATIONS (DOTC)-
responsible for the regulation
and supervision of the
transportation and
communications industries.
DEPARTMENT OF
FINANCE- responsible
for revenues collections
through the Bureau of
internal revenue and
Bureau of Customs
DEPARTMENT OF
JUSTICE-
under which the Bureau of
Immigration regulates the
entry and exit of foreign
nationals.
DEPT. OF
ENVIRONMENT AND
NATURAL RESOURCE
(DENR)- oversees the
protection of the
natural environment
DEPARTMENT OF LABOR
AND EMPLOYMENT- The
Philippine government
agency responsible for the
protection of the
employee’s rights and
welfare.
DEPARTMENT OF INTERIOR AND
LOCAL GOVERNMENT- The
Department responsible for the
promotion of peace and order, to
ensure public safety, strengthen
capability of local government units
through active people participation
and a professionalized corps of civil
servants- which supervises the local
Government Units and the Philippine
National Police
 Five (5) principal industries directly involved
in tourism:
1. The transportation industry (air, sea, land)
2. The Hospitality Industry (hotels, resorts,
inns, motels, lodging/pension houses,
apartment-hotels)
3. The Activities and Attractions Industry or
entertainment industry (restaurants,
discos, museums, theaters, theme parks,
adventure clubs, dive shops)
4. The Travel Trade (travel agents, tour
operators and tour guides)
5. Other private sector entities
 Made up of all those involved in the
movement of people and goods from
point to point, or points beyond,
within a specific area by air, sea or
land, including all required and
necessary infrastructure, such as
airports, piers, roads, bridges and
the like.
 Plays the most important role in
tourism- without travel, there is no
tourism.
 Includes all establishments that
provide board and lodging to people.
 These are the highly sophisticated
seven to five-star hotels in the urban
centers of the country, or boarding
houses in the remote locations.
 Made up of all involved in providing
board and lodging to travelers
regardless of location in city hotels,
seaside resorts or home-stays, and
category, including amenities and
facilities available.
 Also referred to as the entertainment,
recreation or leisure sector which is best
exemplified by theme parks, shopping
malls, night clubs, restaurants and the
like.
 It comprises all sites, destinations and
organizations that offer attractions and
provide entertainment to the travelers.
 These also include museums, cultural
villages, fast food centers, disco houses,
experiences, events and the like.
 Made up of travel agents, tour operators,
also referred to as intermediaries or
middle men, and the tour guides.
 Travel Guide
 An individual who, either as an
employee or an affiliate of a licensed
tour operator, accompanies tourists,
both foreign and domestic, for a fee,
commission or any other form of lawful
remuneration on local sightseeing
excursion to provide pertinent
commentaries, and look after the
general well-being of the travelers.
TRAVELAGENTS
1. Retailers. Normally transact
business and sell directly to the
travelers.
2. Act as counselor to the traveler, Act as the conduit to, and
and are agents for the supplier.
3. Have fixes income in
predetermined commission
schemes.
4. Charge fees for ancillary
services.
5. Are limited to direct dealings
with traveler.
TOUR OPERATORS
1. Wholesalers. Deal primarily
with the retailers 9travel agents)
and only occasionally with the
travelers.
middlemen of the suppliers.
3. Have variable but limited
income and profit margins.
Capitalize on cost-savers.
4. Sell optional tours, excursions,
and extensions. Make use of
deposits and cancellation fees.
5. Can, but should not by-pass the
retailers, and sell direct to the
travelers.
 The members of the media
 Print, broadcast, audio-visual or
electronic
 Plays an important role in the
tourism industry as they perform
the task of “image making”, in
addition to the marketing aspects
of media.
 Educational and training institutions