TMC111: Macro Perspective of Tourism and Hospitality

MODULE 3
TOURISM LAWS AND INTERNATIONAL
TRAVEL EXPERIENCE

LESSON 1- DEFINITIONS: TRAVEL LAWS

Module Learning Outcomes

At the end of this lesson, the students should be able to:

1. Define travel laws in the tourism and hospitality industry;

2. Identify the different hospitality laws and its difference to other existing international laws;
3. Familiarize the travel intermediaries; and
4. Discuss the Global Distribution System (GDS).

Time Frame

Week 10

Introduction

Good day students! Welcome to LESSON 1! Government across the globe recognize that
tourism is the world’s largest industry, turning over US$3.4 trillion annually. Tourism is also the
fastest-growing industry, and is the world’s most promising job creator. With manpower
deployment, there are issues on contracts and relationships with other organizations that should
be covered by legal guidelines. This lesson will cover the different travel laws and you will

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familiarize yourself with the use and importance of those laws to the total travel experience of
the tourists.

Activity

You will be grouped in three (3), each member of the group must film himself/herself acting
as a traveler on an airport, the videos must be compiled by the group leader and he/she should
make sure that all videos of the members must contain reenactment of different situations and
different kinds of travelers in an airport before/during/after boarding the plane.

Analysis

Imagine you are an employed Tourism Officer who is tasked to create and submit Travel
Laws. Without doing any research online, create at least 10 Travel Laws you think must be
promulgated and defend each of them.
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DEFINITIONS: TRAVEL LAWS

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Common Laws

These laws derived from historical

customs and usage of a society,
and the decisions of the courts
when interpreting those customs
and usages.

Civil Laws These laws, which

are usually in the form
of codes or statutes,
are created by
government entities
that are concerned
with private rights
and remedies, as
opposed to criminal
matters.
Civil laws are
usually applied in
cases where
individuals are done
wrongly by other
parties. Usually, case
arise out of breach of
contract, negligence
to provide reasonable
care, and fraud.

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Hospitality Laws

The laws related to the industry involve the

provision of food, lodging, travel, and
entertainment services to guests and clients.

Most provision of the hospitality laws actually

involve the laws on the contracts. As there are so
many tiers of transactions involving several points
of sales, the laws of contracts will resolve any claim
by the party.

Contracts have three important features that should always represent:

o Capacity: This refers to the authority of the parties entering into an agreement.
o Consent: All signing parties must agree on all provisions of a contract.
o Consideration: This includes the form of payment for the goods services being sought
out by the parties.

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Criminal Laws
Sometimes called penal laws, these laws refer to
any various bodies of rules in different jurisdictions
whose common characteristics is the potential for
unique and often severe impositions as
punishments for failure to comply.

Criminal punishments, defending on the offense

and jurisdiction, may include execution, loss of
liberty, government supervision, or fines. Criminal
laws are enforced by the government by the
private privates.

INTERMEDIARIES IN TRAVEL

The tourism industry is a classic case where they may be various business organizations or
businesspersons that are possible points of sale for many travel products and services.

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The Travel Agency/Agent

● A travel agency is a registered business, majority of which are corporations engaged in
the distribution/sale of airline tickets or tours as their primary products, also sell various
travel-related services as needed by their clients.

● A travel agent, on the other hand, is a trained travel

planner who knows about geography, history,
government rules, marketing, and lot of friends and
relatives with whom he/she can network.

● The travel agents/agencies are primarily

responsible to their clients first rather than to their
suppliers.

● The majority of airlines use the travel

agencies as das distribution outlets to sell
their seats. Airlines do this through the global
distribution system (GDS), which is a
reservation system operated by a third party.

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Application

Look for a short case study online about “TRAVEL AGENCY/TRAVEL AGENT”. Paste the short
case study on the box provided (NOTE: case study will NOT undergo Plagiarism Test), and do a
reflection paper on the space provided.

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Write your Reflection Paper here!

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Assessment

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Worksheet: Identifying Business and Leisure Travelers

Let’s say you are a travel agent, answer the following questions by researching online (NOTE:
DO NOT COPY AND PASTE FROM GOOGLE) and then create a chart that compares the two
types of travelers.
1. What are the main needs and requirements of a business traveler – efficient service, data ports,
meeting rooms?
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2. What are the main needs and requirements of a person traveling for leisure – luxury
accommodation or personal security? Indicate other main needs.
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Your chart here!

"Optimism is the faith that leads to achievement. Nothing can be done

without hope and confidence."
Congratulations my dear student for completing Lesson 1! I hope you crave for more
learnings on the following lessons.

Love,

Ma’am Mecah

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MODULE 3
TOURISM LAWS AND INTERNATIONAL
TRAVEL EXPERIENCE

LESSON 2: Rules and Regulations Governing

Tourism in the Philippines

Module Learning Outcomes

At the end of this lesson, the students should be able to:

1. Discuss about DOT and its function in the tourism industry in the Philippines;
2. Identify the different rules and regulations governing tourism in the Philippines;
3. Familiarize the following topics:
a. Intermediaries
b. Laws on investment
c. Pertinent laws related to international and domestic travels
d. Visas
e. Association on Southeast Asian Nations (ASEAN)

Time Frame

Week 11-12

Introduction

Hi again students! You just arrived in Lesson 2! This lesson takes a look at the various business
entities on their pre-operating stages as well as the responsibilities of the said organizations to
their employees and the environments where they operate. The students will find it interesting to
know than an organization will need the support mechanism of the government and other private
groups in other related industries in order to survive the business.

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Activity

Think hard about the current situation of tourism industry today with the presence of
COVID-19. Watch some news updates about how our industry is coping up to survive, listen to
some radio broadcasts on the government’s plan for tourism’s recovery. Gather everything you
have perceived from either television or radio news or from both.

Analysis

Using your gathered information from the news, take a stand on the statement that follows.
“If you are given a chance to suggest a webinar topic for the Department of Tourism (DOT) that
will tackle on TOURISM against COVID-19, what Webinar Title will you suggest and make a
500-word essay describing your topic”.

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The government set aside the general policy for every business entity or group that wishes to
operate within the Philippines. Guidelines can be found from the bills (that are eventually
promulgated into laws) sponsored in the House of Representatives.

Department of Tourism: Policy

and Its Impact on Tourism
o The DOT is the lead government agency
tasked to set policies on tourism and all
establishments within its jurisdiction to upgrade
the country’s level of international

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competitiveness through a system of accreditation, standard setting, and

clarification.
o Under the Tourism Act of 2009 (RA 9593), the Philippine Convention and Visitors
Corporation (PCVC) will be reorganized to become the Tourism Promotion Board
(TPB) that will be responsible for the marketing and promotion of the Philippines
as a tourism destination.

Securities and
Exchange Commission:
Travel Agency Documents

● For every business entity registering

itself as a corporation in the Philippines, the
first step in the process is to register the
business under the guidelines of the SEC.
● This government agency oversees
that the activities of directors and officers of
a registered company are above board and
within the legal boundaries of the law.

Local Government Units: Policies,

Licensing, Taxes

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● Registration in a
location where a business
entity wishes to operate is a
mandatory requirement.
Local licenses and permits
from the mayor’s office are
secured by paying the fees.
● This will ensure that the business entity has complied with the local ordinances.
● The LGU’s are the real feelers for the government with regard to the polls of the
marketplace for they are directly in touch with the travelers and operators of the business
establishments.
● For the LGU’s to deliver the goods, they
must be in touch with the rest of the
stakeholders in the destination where
the attractions are located.

PERTINENT LAWS RELATED TO

INTERNATIONAL AND
DOMESTIC TRAVELS

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These are the laws relevant to

international and domestic
travels:

o Investment laws on tourism

o Liability insurance laws for
resorts, hotels, transportation
companies, and restaurants
o Visas
o ASEAN laws
o Bilateral agreements
o Laws on safety of life on seas
o Immigration laws
o Laws on retirement
incentives
o Employment of foreign and
local manpower

Investments
Multinational companies in
the Philippines have
several choices with
regard to investments.
The government has
provided them with
assistance by way of
competitive investment
incentives, long-term
development fund, or
financing schemes.
Various investment zones and tax-free are available throughout the country.

Investment Incentives
Capital cost reduction includes the following investment issues:

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o Capital grants
o Soft loans
o Equity participation
o Provision of land concession terms
o Tariff exception on construction material
Operating cost reduction, includes the following investment issues:
o Direct and indirect tax exceptions/reductions
o Labor training subsidy
o Subsidized tariffs on key inputs such as energy
o Special depreciation allowances
o Double taxation and unilateral relief
Following are issues on investment security:
o Guarantees against nationalization and adverse legislation changes
o Repatriation of invested capital, profits, dividends, and interests
o Ensuring availability of trained staff
o Loan guarantees
o Provision of wok permits for “key” personnel
o Availability of technical advice

Tourism Act of 2009: RA 9593

● The law puts the central Philippine region on the spotlight as 55% of the tourism zone are
located in the area, including Boracay, Davao, Palawan, Laguna, and Cavite.

● The DOT will soon be endowed with additional power including returning the licensing of
travel-related establishments. The Philippine Retirement Authority, which used to be
under the Department of Trade and Industry (DTI), will now under the DOT.

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Low-Cost Carriers
The proliferation of low-cost carriers (LCCs) has given the public a lot more options to travel.

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The Asia/Pacific aviation has seen the entry of a new trend in traveling with the emergence of
LCCs. An offshoot of the major airlines wanting tap into unchartered territories, which the major
domestic airlines are ignoring. The major catalysts of these LCCs are as follows:

o Deregulation in the aviation industry

o Government support in terms of legislation and infrastructure through liberation
o Continued upswing in economic development
o The large disposal income of the big middle classes, particularly China and India
o Access to the online technology with the use of the mobile technology
o Creation of short-break holidays

The concept of LCC is simple – to operate at the least cost and be able to sell at the lowest
price possible, maximize seat revenue by operating at high seating occupancy per flight, and
provide new alternative routes by utilizing small airports or hubs.

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LCC in Asia: A Single ASEAN

Market
● The ASEAN member countries have a target of an open-skies agreement with eventual
aim to single ASEAN market, which will put Southeast Asia in a strong position to benefit
from the rapid growth in air travel around the Region.

● Japan, a nonmember of the ASEAN, has announced that it will “open up” its regional
airports to foreign airlines in an effort to increase tourist inflow from Asia and enhance
its local economies.

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Application

CASE STUDY: US AVIATION DOWNGRADE HITS

PHILIPPINE AIRLINES

On January 17, 2008, the U.S. Federal Aviation Administration (FAA) downgraded
the Philippines' rating to Category 2 from Category 1, since the Philippines Air
Transportation Office (ATO) did not follow international safety standards. As a result of the
move, Philippine Airlines (PAL), the only carrier that flies to the United States, can continue
flying to the United States but only "under heightened FAA surveillance," as declared the
U.S. Embassy in Manila.

Among the FAAS concerns were outdated aviation regulations, poor training
programs for safety inspectors, and substandard licensing for airframe and engine
inspectors. The FAA said it downgraded the Philippines to Category 2 rating, along with
countries such as Bangladesh, Ivory Coast, Ghana, and Indonesia because it lacked the
laws and regulations necessary tor the certification and oversight of air carriers according
to minimum international standards.

While the revision will not affect PAL's existing services to the United States, which
involve thirty-three flights a week, airline officials have expressed concern about their plans
to commence new services to San Diego, Chicago, New York and Saipan, if Category 2
remains in place.

The lower rating means that the Philippines ATO is not equipped to ensure the
safety of aircraft landing in and leaving the country. This adversely affects the Philippine
carrier's expanding air service to the United States. Since April 14, 2008, the United States-
based Hawaiian Airlines has been providing four direct weekly services to the Philippines
using wide-body Boeing 767 300ER jets. Each aircraft can carry 624 passengers and
hundreds of kilos of cargo on a one-way route from Honolulu to Manila. As travelers
become used to Hawaiian Airlines’ services, the airline could dramatically increase its
weekly flights. Hawaiian Airlines is not restricted from mounting unlimited flights between
the United States and the Philippines and beyond. Under the RP-US air transport
agreement, American carriers can mount "fifth freedom flights or flights beyond the two
destinations. Thus, Hawaiian Airlines can pick up passengers from Manila, make a stopover
and pick up traffic from Honolulu, and then fly onward to any U.S. state or third country. It
can also fly to any point in the Philippines without restrictions on frequency, capacity, and
aircraft type.

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Representative Monico Puentevella, who was a member of the panel that negotiated
with FAA officials that visited the Philippines in December 2008, cited that the downgrade
would not affect the economy and the existing operations of Philippine carriers. He
acknowledged that the downgrade would prohibit Philippine carriers from expanding
operations the United States.

The system, and other security upgrade of 84 ATO-supervised national airports in the
country can take some time. Currently, there are also three international airports--Ninoy
Aquino International Airport (NAIA), Mactan Airport in Cebu, and Diosdado Macapagal in
Clark-with their own management authorities.

No Effect on Passengers
According to Federico D. Pascual, Jr.’s article "Postscript,” published in the Philippine
Star on February 12, 2008, the United States' move had no effect on PAL passengers entering
the United States, ruling out any additional immigration and security checks to be imposed on
Filipinos. With the Category2 rating along with countries such as Bangladesh, Ivory Coast,
Ghana, and Indonesia, Philippine carriers can continue flying to the United States but only
"under heightened FAA surveillance, said a U.S. Embassy statement.

On the other hand, PAL' presently mounts 33 Alights a week, but these are divided among five
U.S. points. It also has to compete with mega carriers like Northwest Airlines, Continental
Airlines, and other Asian carriers. As things stand, cabotage restrictions of the United States
also severely limit the access of Philippine carriers to the U.S. market (Cabotage is the
transport of goods between two points within the same country). The Philippine Congress'
approval of the bill creating the Civil Aeronautics Authority (CAA) and President Gloria
Macapagal-Arroyo's signing of this bill into law would win back for the local civil aviation the
Category 1 rating that was downgraded to Category 2. The passage of the law would give the
Answernew
the CAA
following
fiscalquestions:
autonomy to use the ATOS income of roughly Php3 billion a year and upgrade
facilities.
1. How will the enactment of a bill provide a solution to the downgrade issue?
2. Identify the issues of the local carriers against the open skies policy. Should other local
carriers be allowed to take over the slot that cannot be filled up by the primary national
carriers?
3. What role should the airlines have in the ASA negotiating panel? Name key officials who
should be part of the Philippine negotiating panel.
4. Identify the issues of the open skies policy. Will the country benefit from the open skies
policy?
5. How can the Philippines overcome its disadvantage under the open skies policy?

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Assessment

Investment Research

With a capitalization of Php10 million, ABC Leisure Group has decided to invest in a resort and spa
business on the Amwangan island in Bataan. The resort will have fifty rooms in three clusters around
the island and a central building to the reception, administration office, and restaurant facilities.
Visitors can get to the island through a thirty-minute boat ride from the town of Limay.

Please answer the following questions:

1. Identify the stages that ABC Leisure Group has to perform prior to its operation.
2. Identify the government agencies that are involved in the development of the leisure
business.
3. How will the investment impact the communities around the area?
4. Identify the various infrastructures needed to support the new property development.

“Empty pockets never held anyone back. Only empty

heads and empty hearts can do that."

Congratulations my dear student for completing Module 2! I hope you crave for more learnings on the
following Modules.

Love,

Ma’am Mecah

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MODULE 3
TOURISM LAWS AND INTERNATIONAL
TRAVEL EXPERIENCE

LESSON 3: The International Travel Experience

Module Learning Outcomes

At the end of this lesson, the students should be able to:

1. Discuss the documentation needed for the travel abroad;
2. Identify the health and safety concerns of travelers;
3. Explain customs regulations;
4. Describe the currency exchange procedures;
5. Discuss the international check-in procedure, security, and immigration regulations; and
6. Define jet lag

Time Frame

Week 13-14

Introduction

Hi my dear student, good job on the previous lesson. Now, it’s time to proceed to the last lesson
on this module. Are you ready? Each country in the world controls its land and maritime areas
near its shores and puts up certain entry barriers to protect its citizens. Controls take the form of
documentation such as passports, visas, and health forms needed to depart from and return to a
country.

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Activity

Go to google.com and search the steps/processes on how to obtain Philippine Passport. Let’s
say you are a YouTuber and you would like to help Filipinos who has difficulty in understanding
the steps in English. Make a creative video demonstrating the steps in acquiring the Philippine
Passport. Best informational video will be uploaded on our FB Group.

Analysis

Compare and contrast the advantages of obtaining Passport here in the Philippines and in the
United States of America.

Philippines USA

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PASSPORTS
The word passport is derived from the French word passer, which means to pass and port, which
means harbor. Passports are issued by a government to its own citizens. The passport establishes
a person’s identity and nationality and request protection for the traveler while away from home.

A. Types of Passports
1. Diplomatic – issued to diplomats going overseas on official business;
2. Official – for government employees traveling on government business; and
3. Regular – for people traveling for personal or business reasons.

B. How to Obtain a Passport

1. Proof of citizenship such as birth certificate with a
raised seal, a certificate of naturalization, a previous
passport, or any official certificate stating the place of
birth if a birth certificate is not available.
2. Two (2) recent, identical, 2x2 inch colored or black and
white photograph showing a full frontal view of the
applicant’s face. The applicant should dress in a decent
attire. Collarless T-shirts are not allowed; and
3. Passport fees and validity of passport vary from one
country to another.

VISA

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A visa is an endorsement or stamp placed in a passport by official of an intended country of visit.

The visa specifies the conditions under which a traveler may enter that country. The visa
requirements vary from country to country.

TRAVELER’S HEALTH AND

SAFETY

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Travelers need some type of medical assistance while away from home. Planning is necessary
to prevent illness and promote a speedy recovery. If travelers need special drugs or medications,
they should pack adequate quantities of their prescription medicine and make sure they have the
necessary documents to present to domestic and foreign customs officials to prove that the
medication is legal. Several countries have regulations about AIDS. The embassy or consulate of
a country is the best source of health information.

A. Vaccination Certificates

2 Types of Vaccinations

Required immunizations – are those legally

required by the destination to protect its citizens
from the importation of disease.

Recommended immunizations – protect travelers

from diseases found at the destination.

Recommended
immunizations – protect
travelers from diseases
found at the destination.

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B. Travel Advisories
Travel advisories – wan people going abroad about dangerous conditions in specific
countries.
3 Types of Advisories

Warnings –
recommend that
travelers avoid travel to
a particular country.
Public
announcements – may
cover a specific
country, a region or the
entire world.
Consular information
sheets – alert travelers
about health risks,
crime, entry laws,
security problems,
unusual currency
regulations, poor road
conditions, and driving
C. Customs Regulations laws.
Customs regulations – are restrictions imposed by a certain country on the value and
kind of items that can be brought into and taken out of its territory.

● Travelers must declare all articles acquired abroad and in their possession at the
time of their return.
● Customs declaration forms are distributed on ships and planes and are filled up in
advance for presentation to the immigration and custom inspectors upon arrival.

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FOREIGN EXCHANGE
Foreign exchange – refers to the fluctuating rate in which the money of one country can be
exchanged for the money of another.

The money used in a particular country is called its local currency.

A. Currency Exchange Rates

The currency exchange rate is what the currency of traveler is worth in the local
currency.

Buy rate – is the amount of foreign currency customer get an exchange for their dollar
when they buy the foreign currency.
Sell rate – is the amount customers get when they exchange leftover foreign currency
back to dollars.

(insert photo of Some International Currency Codes)

B. Where to Get Foreign Currency

● Big city banks do it as a service to their customers, but they usually handle only
the most popular currencies in limited quantities.

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● In a broad, banks are the best places to exchange money.

● Foreign currency can be bought at international airports that have currency
exchanges.
● Exchange firms and banks charge a fee for exchanging money.

WAYS TO CARRY MONEY

● Money can be carried as cash, traveler’s checks, personal checks and credit cards .
● Foreign currency is cash.
● Banks sell traveler’s checks for a fee or provide them free to their depositors.
● Major credit cards such as American Express, Master Card and Visa are accepted
throughout the world; gasoline company credit cards are not.

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INTERNATIONAL TAXES
● Taxes of varying amounts add to the cost of travel. Throughout the world, every travel
expense costs 2% to 33% more than what is listed on the room rate, menu, or airline ticket.
● Value Added Tax (VAT) is a form of sales tax.
● Several countries have departure taxes.

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CHECK-IN PROCEDURES
A. Documentation
A documentation check for international departures is handled by an airline service
representative at check-in to see if a passenger has an up-to-date passport and the proper
visas.

B. Baggage
● For international travel, the baggage allowance is one piece of luggage not to
exceed 20 kilos for check-in and one (1) hand-carry not to exceed 7 kilos that
would fit in the overhead compartment or under the plane seat.
● International passengers are advised to travel light.

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C. Security
● International airports have electronic security devices.
● After the passengers have checked in themselves and their bags at the counter,
they proceed through passport control to the departure area near the plane. They
are asked to identify their suitcases again before the bags are loaded on the plane.
● Security officials want to make sure passengers and the bags they checked in fly
on the same plane.
● Before actual boarding, passengers may be subjected to more questions and body
search.

D. Passport Control
● When departing, travelers go to the host country’s passport control area.
● When they arrive home, they go through their own country’s passport control and
customs area.
● Citizens and aliens go through different lines and undergo different procedures.

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E. Customs
● International travelers are requested to open their bags by the customs agent to
prevent contraband from entering their country.
● Most travelers dislike the procedure but they have to accept it for security reasons.

F. Transit Lounges
● Passengers making connecting flights or refueling stops wait in transit lounges
between flights at the international airports.

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● If the passengers wish to leave the transit area, they must go through the country’s
immigration formalities.

G. Reconfirmation
● Calling the airline 48 hours before departure to reconfirm a reservation is
mandatory with most airlines abroad.
● Failure to reconfirm can be result in the cancellation of the passenger’s reservation
not only on the departure flight, but also on all subsequent flights on the particular
journey.

H. Amenities
● Airlines use their largest planes and most experienced crews on international
routes.
● Headphones and alcoholic beverages are free on international flights.
● Blankets and pillows are supplied.

MODULE 3 | Tourism Laws and International Travel Experience

 TMC111: Macro Perspective of Tourism and Hospitality

● Some airlines provide eyeshades.

I. In-Flight Shopping
● Flight attendants operate small in-flight, duty-free shops on international flights.
● It provides a traveler his last chance to buy a gift for someone at home.

J. Documentation
● Flight attendants distribute landing cards and customs immigration forms.
● There are different forms for citizens and international visitors.

MODULE 3 | Tourism Laws and International Travel Experience

 TMC111: Macro Perspective of Tourism and Hospitality

JET LAG
Jet lag – refers to the sleeping, walking,
and concentrating problems travelers
experience when they fly long distances.

Human beings have daily, weekly,

monthly, and seasonal biological rhythms,
which are parts of their biological clocks.
People become aware of this when
they fly to a different time zone.
The biological clock will reset itself
but it may take several days.
The rule is to allow 24 hours for each
time zone crossed.

Application

Conduct a research study on airport rules and regulations in NAIA. (minimum of 6 pages)

HOW TO CONDUCT A
RESEARCH STUDY?
Step 1: Identifying the
Subject
Step 2: Find the literature
Step 3: Clarify the Subject
Step 4: Definition of Terms
and Concepts
Step 5: What is your
audience?
Step 6: Concrete
Conclusion

MODULE 3 | Tourism Laws and International Travel Experience

 TMC111: Macro Perspective of Tourism and Hospitality

Step 1:

Step 2:

Step 3:

Step 4:

Step 5:

Step 6:

Assessment

Pre-Departure Items
Worksheet: Project Analysis
Post news clippings of current tourism projects in the country. Identify
the locations and give a background of the resources in the areas prior
to the development. Assess the current facilities of the projects. (limit
your Project Analysis to 2 projects only)

"Things may come to those who wait...but only the things left by
those who hustle."
Congratulations my dear student for completing Module 3! I hope you crave for more
learnings on the following modules.

Love,

Ma’am Mecah

MODULE 3 | Tourism Laws and International Travel Experience