LEGAL ASPECTS IN TOURISM

AND HOSPITALITY
THM 107
Learning Objectives
At the end of this unit, the student is expected to:
1. Define the significant terminologies relating to the tourism and
hospitality industry;
2. Enumerate and explain the steps in the accreditation process;

3. Identify and explain the grounds for cancellation and/or

downgrading of accreditation; and
4. Identify the different regulatory agencies responsible in the
accreditation of hospitality and tourism establishments.
 Distinction Between a Tour Operator,
Tour Guide, and Professional Congress
Operator
 Tour Operator
Tour operator shall mean any person or entity engaged in
the business of inbound and/or local tour operation such
as organizing and/or conducting tours as well as making
online reservations , arranging and booking for
transportation and accommodation for a fee, commission,
or any form of remuneration.
REQUIREMENTS FOR ACCREDITATION OF TOUR
OPERATORS
Section 2. Who May Apply for Accreditation. The following may apply for accreditation as tour
operator:
a. A resident Filipino citizen;
b. A partnership organized under the laws of the Philippines, at least 60% of its capital being owned by
Filipino citizens; and
c. Corporations organized under the laws of the Philippines, at least 60% of the subscribed common or
voting shares of stocks of which is owned by Filipino citizens and the composition of its Board of
Directors being at least 60% Filipinos.
Section 3. For purposes of accreditation the following are the supporting documents to be submitted
with the applications ;
a. In case of a single proprietorship, a business name certificate and all amendments thereto; in the
case of partnership or corporations, a certified true copy of the articles of partnership/incorporation
and its by-laws and amendments thereto, duly registered with the Securities and Exchange
Commission;
REQUIREMENTS FOR ACCREDITATION OF TOUR
OPERATORS
b. Complete list of its executive officers and employees, tour guide and travel
representatives, if any, indicating therein their nationality, home address and
experience, including names and establishments previously or currently affiliated with,
position and length of service showing following:
1. In the case of the manager, proof that he has at least three (3) years managerial
experience in tour operations or has earned a degree in Bachelor of Science in Tourism
or has successfully completed a tour operator's course;
2. Proof that at least two (2) of the permanent staff have at least two (2) years
experience in tour operations;
c. For alien officers and employees, valid visa from the Bureau of Immigration and the
proper permit from the Department of Labor and Employment;
REQUIREMENTS FOR ACCREDITATION OF TOUR
OPERATORS
d. Contract of lease or contract to lease the office space intended for the use of the
agency, or in the absence, or in the absence thereof, a sworn statement by the lessor that
said agency is a lessee of his building stating the area thereof;
e. Mayor's permit/municipal license;
f. Latest Income Tax Return and Audited Financial Statements reflecting a minimum
working capital of FIVE HUNDRED THOUSAND (P500,000.00) PESOS;
g. An annual performance report on the sales production; and a tariff sheet detailing
services, rates validity, terms/conditions and responsibilities; and
h. Such other documents that the Department may require from time to time.
REQUIREMENTS FOR ACCREDITATION OF TOUR
OPERATORS
Section 4. Additional Requirements for Tour Operator Using a Motor Vehicle. No tour operator shall use any
motor vehicle while conducting tours or transporting tourists unless such motor vehicle is accredited with the
Department and sporting a tourist plate.
Section 5. Minimum Office Requirements. The tour operator shall comply with the following office requirements;
a. It shall be located in a commercial district and not in a residential district;
b. It must be easily identifiable and shall be used exclusively for the tour operation business.
Section 6. Accreditation Fee. After compliance with all the requirements under these Rules, a certificate of
accreditation shall be issued to the applicant upon payment of an accreditation fee of ONE THOUSAND ONE
HUNDRED (P1,100.00) PESOS per annum for main office and FIVE HUNDRED FIFTY (P550.00) PESOS for each
branch.
Section 7. Validity of Accreditation. The certificate of accreditation shall be valid for a period of one (1) year from
the date of issuance thereof.
Section 8. Access of Department Representatives to Agency's Records. The representatives of the Department
shall have access to agency's records for verification of compliance with the requirements of the Department.
 Tour Guide
Means an individual who guides tourists , both foreign
and domestic , for a fee, commission , or any other
form of lawful remuneration.
REQUIREMENTS FOR ACCREDITATION OF TOUR
GUIDES
Section 5. Eligibility for Accreditation. An applicant for accreditation
as a Tour Guide must comply with the following:
A. Nationality - Filipino citizen or a permanent resident alien

B. Educational Background 1. Specialist Tour Guides - should have

completed a college degree. 2. Regional Tour Guides - should
have completed the Senior High Program, or prior to the
implementation of the K-12 Program, completed at least second
year college or a two-year vocational course. 3. Community Tour
Guides - Formal education is not required
C. At least eighteen (18) years of age
REQUIREMENTS FOR ACCREDITATION OF TOUR
GUIDES
D. Physically fit
E. Language Proficiency:
1. Specialist Tour Guides - proficient in English and preferably speaking another
foreign language.
2. Regional Tour Guides - proficient in English.

3. Community Tour Guides - conversant in English.

F. Must not have been found liable in any complaint filed with the DOT by a
stakeholder or tourist relative to tour guiding activities.
G. Must not have been convicted of a crime involving moral turpitude by a court of
law.
 Professional Congress Organizer
(PCO)
Any person, natural or juridical, who manages
conventions, either as an official of an organization,
consultant, volunteer, or as a retained professional.
 REQUIREMENTS FOR ACCREDITATION OF
PROFESSIONAL CONGRESS ORGANIZER
Section 11. Who May Apply for Accreditation. The following may apply for
accreditation as PCO:

a. A resident Filipino citizen;

b. Partnerships organized under the laws of the Philippines, at least 60% of the
capital of which is owned by Filipino citizens; and

c. Corporations organized under the laws of the Philippines, at least 60% of its
subscribed common or voting shares of stocks being owned by Filipino citizens
and the composition of its Board of Directors being at least 60% Filipinos.
REQUIREMENTS FOR ACCREDITATION OF PROFESSIONAL
CONGRESS ORGANIZER
Section 12. Requirements for Issuance of Accreditation. Any person applying for
accreditation as PCO shall file his application under oath, together with the following
supporting papers and/or documents;
a. In case of a single proprietorship, a business name certificate and all amendments
thereto; in the case of partnership or corporations, a certified true copy of the articles
of partnership/incorporation and its by-laws and amendments thereto, duly registered
with the Securities and Exchange Commission;
b. Complete list of its executive officers and employees, indicating therein their
nationality, home address and their positions;
c. Contract of least or contract to least the office space intended for the use of the PCO.
d. Mayor's permit/municipal license;
 REQUIREMENTS FOR ACCREDITATION OF
PROFESSIONAL CONGRESS ORGANIZER
e. Latest Income Tax Return and Audited Financial Statements reflecting a
minimum working capital of One Hundred Thousand Pesos (P100,000.00);and
f. Such other documents that the Department may require from time to time.
Section 13. Minimum Office Requirement. The PCO shall comply with the
following office requirements:
a. It shall be located in a business district; and
b. It must be easily identifiable.
 REQUIREMENTS FOR ACCREDITATION OF
PROFESSIONAL CONGRESS ORGANIZER
Section 14. Accreditation Fee. After compliance with all the requirements under
these Rules, a certificate of accreditation shall be issued to the applicant upon
payment of an accreditation fee of FIVE HUNDRED FIFTY (P550.00) PESOS per
annum.

Section 15. Validity of Accreditation. The certificate of accreditation shall be

valid for a period of one (1) year from the date of issuance thereof.
Land Transportation Vehicles, Water
Transport Vessels, and Tourist Air
Transport Distinguished
Land Transportation Vehicles
Land Transport Vehicles refers to conveyances of
tourist passengers over land.
Water Transport Vessels
Tourist Water Transport - Any watercraft catering to tourists.
Watercraft - every description of conveyance, except seaplane, used or being capable of
use as a means of transportation on water which shall include passenger ship, ferry,
yacht and other similar conveyances.
Passenger ship - Any vessel which is authorized to carry more than twelve (12)
passengers as further defined in the Philippine Merchant Marine Rules and Regulations.
Ferry - Any vessel having provision only for deck passengers as defined in the Philippine
Merchant Marine Rules and Regulations.
Pleasure Yacht - any vessel which is used for pleasure only as defined in the Philippine
Merchant Marine Rules and Regulations.
Tourist Air Transport

Any air conveyance catering to tourists.

 Group Work 5
Research and make a report on the
Standard Requirements for the
Accreditation of Land, Water, and Air
Tourist Transportation in the
Philippines.
Apartment, Hotel, and Resort
 Apartment Hotel Defined
Apartment Hotel” shall refer to serviced apartments
offering self-contained units that contain access to
kitchen and laundry facilities. A number of bedrooms
may share one bathroom in the unit.
 Hotel
“Hotel” shall refer to full service accommodation with
reception and guest rooms generally offering private
facilities with an onsite restaurant, room and bar
services available. Additional facilities such as business
centres and conference rooms are expected.
 Resort
“Resort” shall refer to full service accommodation
located in a more natural, relaxed environment, with
reception and guest rooms generally offering private
facilities with an onsite restaurant, room and bar
service available. Additional recreation facilities and
tour services are expected.
FIVE STAR GRADING SYSTEM
 FIVE STAR GRADING SYSTEM

Section 1. Five Star Grading System. There are five (5) levels
of accommodation standards ranging from one to five stars.
The star bands for Hotels, Resorts and Apartment Hotels
are as follows: a. One Star: 25-40% achievement (251 to
400 points) – These enterprises appeal to budget minded
travellers. There is a limited range of facilities and services.
 FIVE STAR GRADING SYSTEM

b. Two Star: 40-55% achievement (401 to 550 points) -

These enterprises appeal to the tourists seeking more
than basic accommodation. They offer expanded
facilities and higher level of comfort.
 FIVE STAR GRADING SYSTEM

c. Three Star: 55–70% achievement (551 to 700 points)

– These enterprises offer a very good level of
accommodation. There are more spacious public
areas, higher quality facilities and a greater range of
services.
 FIVE STAR GRADING SYSTEM

d. Four Star: 70–85% achievement (701 to 850 points)

- These properties are upscale in all areas.
Accommodation is refined and stylish. Service is
responsive, often including an extensive array of
facilities.
 FIVE STAR GRADING SYSTEM
e. Five Star: 85-100% achievement (851 to 1,000 points) -
These properties reflect the characteristics of luxury and
sophistication. The facilities are world class in every manner
and the meticulous service exceeds all guest expectations.
The criteria are divided into seven (7) dimensions that are common to the
abovementioned categories except for the lounge area and the kitchen area which
are applicable only to apartment hotels. The percentage that these dimensions
contribute to the total score is shown in the table below:
 FIVE STAR GRADING SYSTEM
• Each dimension consists of a number of indicators which describe
either the existence or availability, quality and condition of the
facility as well as the service. Every indicator is allotted points. A
maximum of 196 indicators are evaluated. Quality judgment is used
to determine whether a facility or service is either Unacceptable,
Acceptable, Good, Very Good, Excellent or Outstanding. Mandatory
and minimum requirements have also been established both for
entry into the grading scheme and at the different star levels.
 FIVE STAR GRADING SYSTEM
Mandatory requirements, marked M shall refer to those requirements
that are prescribed by existing laws, without which, no accreditation
shall be issued to the enterprise until such time that it rectifies said
deficiencies. On the other hand, minimum requirements, marked m
shall refer to those requirements which are minimum to a certain
classification, without which the establishment will not be awarded
such classification but instead be downgraded to a lower
classification, regardless of the total points accumulated.
 Accreditation Process
Section 1. Filing of Application. Any person, partnership,
corporation or other entity desiring to operate a primary tourism
enterprise as defined herein shall secure an accreditation from
the Department. Application for accreditation shall be
accomplished online.
Section 2. Documentary Requirements. The Department shall
issue a List of Documentary Requirements to be complied with by
applicants as part of the accreditation process.
 Accreditation Process
Section 3. Inspection. An Inspection team shall conduct an audit of the
establishment to determine its classification. An oversight committee
from the Department shall conduct periodic inspection of the classified
establishment.
Section 4. Validity of Accreditation. The Certificate of Accreditation shall
be valid for a period of two (2) years, unless sooner revoked by the
Department.
Section 5. Schedule of Fees. The Department shall issue a schedule of
accreditation fees to be implemented by these Rules.
 Cancellation and/or Downgrading of
Accreditation
Section 1. Grounds for Cancellation. Any of the following
acts, omissions shall be sufficient grounds for the
cancellation of accreditation:
a. Making any false declaration or statement or making use
of any such declaration or statement or any document
containing the same or committing fraud or any act of
misrepresentation for the purpose of obtaining the
issuance of accreditation;
 Cancellation and/or Downgrading of
Accreditation
b. Failure to comply with or contravene any of the
conditions set forth in the certificate of accreditation;
c. Failure to meet the standards and requirements for
the operation of the establishment as prescribed in
these Rules and Regulations;
 Cancellation and/or Downgrading of
Accreditation
d. Allowing or permitting the establishment or its facilities
to be used for prostitution particularly those involving
children or any illegal, immoral or illicit activities; and
e. Violation of or non-compliance with any of the
provisions of these Rules, promulgated orders, decisions
and circulars issued by the Department and other
concerned government agencies.
 Section 2. Procedure for Cancellation and/or
Downgrading of Accreditation.
Assessors shall submit a report with recommendations based on the
inspection findings to the Office of Tourism Standards and Regulation
(OTSR). The OTSR shall then send a letter to the concerned enterprise
regarding its deficiencies, specifying a grace period of a minimum of 3
months within which to rectify such findings. Non-compliance within
the allotted grace period may result in the cancellation and/or
downgrading of accreditation of the concerned enterprise. The
Department shall likewise inform the concerned local government
unit regarding the accreditation status of the enterprise.
 RULE VI. Supervision of Accredited
Establishments
Section 1. Display of DOT Accreditation Seal. The valid DOT accreditation seal
shall be displayed in a conspicuous place of the establishment.
Section 2. Non-Transferability of DOT Accreditation Seal. The rights and
privileges over the accreditation shall be non-transferable.
Section 3. Periodic Inspection. The Department may send an inspection team
to the establishment for the purpose of finding out whether it is being kept
and/or managed in a manner conformable to the standards set by the
Department. The inspection shall be conducted at a reasonable time of the
day with due regard and respect accorded to the right to privacy of parties
concerned.
 RULE VI. Supervision of Accredited
Establishments
Section 4. Defects and Deficiencies Found During the
Inspection. Where certain defects and deficiencies have been
found in the course of inspection, the Department shall give
direction to the keeper, manager or operator to rectify the
defects or deficiencies within a reasonable period of time.
Section 5. Penalty for Failure to Remedy the Defects, etc. If the
management fails to remedy the defects or deficiencies, the
Department may withdraw the certificate of accreditation of
the establishment.
 RULE VI. Supervision of Accredited
Establishments

Section 6. Advertisements. All DOT accredited hotels,

resorts and apartment hotels which shall advertise its
business or services through print media must specify
in the advertisement item itself the DOT accreditation
number.
Post-Assessment Activity

QUIZ 10
 References
DOT Memorandum Circular No. 2012-02: RULES AND REGULATIONS TO GOVERN
THE ACCREDITATION OF ACCOMMODATION ESTABLISHMENTS – HOTELS,
RESORTS AND APARTMENT HOTELS
DOT Memorandum Circular No. 2015-06: Revised Rules and Regulations to
Govern Accreditation of Travel and Tour Agencies
DOT Memorandum Circular No. 2021-002: Rules and Regulations Governing the
Accreditation of Tour Guides
END OF PRESENTATION