THC 108

LEGAL ASPECTS IN TOURISM AND

HOSPITALITY
Objectives:
1. Define and state the characteristics of Law.
2. Explain the concept of tourism law, its sources and
examples of its application.
3. Identify vital provision in the Philippine Constitution related
to tourism and travel.
4. Determine the national economy and patrimony.
According to Felipe Sanchez Roman:
“Law is defined as a rule of conduct, just and obligatory promulgated by legitimate
authority and of common observance and benefits”.
From this definition, we can deduce the following characteristics of law, to wit:

1. It is a Rule of Conduct.
§ If there is no law in the society, there will be chaos or disorder. A society without
law can be likened to a forest full of very dangerous animals ready to kill us.
Because there is a law, order is established in such place. One may say then that
people conduct themselves accordingly.
2. It is Just and Obligatory
§ Laws must be applied to people similarly situated. The penalty imposed by law
must be commensurate to the wrongful act committed by a person. Thus, it would
be unjust if the penalty for violating the “no J-walking” ordinance is life
imprisonment.
§ The law is obligatory because of the penalty or legal consequence it provides.
3. It is Promulgated by Legitimate Authority
§ It is necessary that the person who creates the law must have the authority to do
so under the constitution otherwise that law shall not be valid. It is therefore
necessary to discuss the different branches of the government to put the subject
matter in its proper perspective.
 A. Executive Branch
B. Legislative Branch
C. Judicial Branch (Judiciary)
Each of these branches has its own functions and powers, and
thus, the function of one cannot be exercised or performed by the other
branch otherwise there will be encroachment or invasion of power, if that
would happen oppression may exist.
A. The Executive Power, (Power of Executive Branch), or the power to
execute, enforce, or implement the law. This power is vested to the
President of the Philippines.
§ The different departments such as, Department of Tourism, Department
of Transportation and Communications, Department of Foreign Affairs,
Philippines National Police, Department of Interior and Local
Government and other departments are under the Executive Branch.
B. The Legislative Power, (Power of the Legislative Branch), or the
power to make, revise, repeal or amend the law. This power is vested
to the Congress of the Philippines which is composed of the Senate
and House of Representatives; except to the extent reserved to the
people by the provision on initiative and referendum.

The law passed by the congress is called Statute. A Bill on the other
hand is not a law but it is just a proposal or a draft.
C. The Judicial Power, (Power of the Judicial Branch) is not only a power but also
the duty of the courts of justice to settle actual controversies involving rights which
are legally demandable and to determine whether or not there has been a grave
abuse of discretion amounting to lack or excess of jurisdiction on the part of the
government or any agency or instrumentality thereof (Article 8, Section 1, 1987
Constitution).
The different courts in the Philippines, such as the Municipal Trial Court,
Regional Trial Court, Court of Appeals, Sandiganbayan, Court of Tax Appeals and other
courts are under the judicial branch. The Supreme Court is the highest court of the land
headed by the Chief Justice who is also the head of the entire judiciary.
4. It is for Common Observance and Benefits
Laws are promulgated for the welfare of the people. This is based on the Latin
maxim “Salum Populi est Suprema Lex” (The welfare of the people is the Supreme Law).
No law therefore shall be passed to put the people at risk.
§ Tourism is defined as the custom or practice of travelling for pleasure, as well as the
promotion by the establishment of countries to attract tourist (The Lexicon- Webster
Dictionary, 1981 Encyclopedia Edition).
§ The World Tourism Organization defines tourism as the activities of persons travelling
to and staying in places outside their usual environment for not more than one
consecutive year for leisure, business, and other purposes (World Tourism
Organization, 2020).
§ Tourism law may be defined as a body of rules or principles of action which deals with
the regulation, authority, relations, and obedience among members of a society
involved in tourist travel and accommodation.
 The tourism and hospitality industry represents a broad range of
undertakings, including accommodations, restaurants, tourism destinations and
attractions, airlines and other transportation. Tourism Law provides guidelines and
imposes responsibilities and liabilities on industry participants to ensure the safety
and well-being of any tourists or visitors in their care in cases beyond their control.
1. The Philippine Constitution- It is the fundamental law of the land, to which all other
law must conform.
2. Statutes or legislative enactments- it is the written will of the legislative department
rendered authentic by certain prescribed forms and solemnities, prescribing rules of
action, or civil conduct with respect to persons, things, or both. Examples:
Dangerous Act, Public Service Act, Civil Code of the Philippines, Labor Code of the
Philippines, Revised Penal Code, Seatbelt Law, and local government ordinances.
3. Administrative or executive orders, regulations, and rulings- These
are issued by administrative officials under legislative authority.
Examples: (a) Rules and Regulations promulgated by the Secretary of
Tourism to Govern the Accreditation of Hotels, Tourist Inns, Motels,
Apartelles, Resorts, Pension Hoses, and other Accommodation
Establishments; (b) BIR circulars and rulings; (c) Administrative issuances
by the Department of Foreign Affairs; and (d) Omnibus Rules
Implementing the Labor Code of the Philippines.
4. Judicial decisions or jurisprudence- These refer to the decisions of the
Supreme Court in interpreting the laws of the Constitution
5. Custom - It is a rule of conduct which in a given place among given
groups of people has been followed for an appreciable time.
6. Other sources- These refer to decisions of foreign tribunals and opinions
of textbook writers.
 The Constitution is defined as the original and fundamental principles of law by
which a system of government is created and according to which a country is governed
(Barron’s Legal Dictionary, 5th Edition, p. 102).
It is the fundamental law of the land, to which all other laws must conform. It is a
written instrument by which the fundamental powers of the government are established,
limited, and defined, and by which those powers are distributed among several
departments for their safe and useful exercise for the benefits of the body politic
(Philippine legal Encyclopedia by Jose Agaton R. Sibal, Central Lawbook Publishing Co.,
Inc., p.169). Article III (Bill of Rights) and Article XII (National and Patrimony) are some
of the Constitutional provisions related to tourism may be given preferential attention.
 THE LAW
The Bill of Rights Section 1. No person shall be deprived of life, liberty and property
without due process of law, nor shall any person be denied the equal protection of the laws.
Discussion of the Law
§ Under the constitution, the term “life”, of which a person may not be deprived without due
process, means more than animal existence. With the emphasis on social and economic
rights at present, life includes at the very least the right to a decent living (Supra p. 520).
§ According to Justice Malcolm, “liberty”, means that measure of freedom which may be
enjoyed in a civilized community consistently with the peaceful enjoyment of life freedom
of others.
 Liberty includes the right to be free to use his facilities in all lawful ways; to live
and work where he wills; to earn his livelihood by any lawful calling, to pursue any
avocation; and for the purpose, to enter into all contracts which may be proper,
necessary, and essential to his carrying out these purposes to a successful conclusion.
Liberty is the freedom to do right and never wrong; it is guided by reason and the upright
and honorable conscience of the individual (Ibid., p. 518).
“Property” is defined as “anything which is or may be the object of
appropriation.” Anything which has money value and which is supposed to be within the
commerce of man is embraced in the term property. The right to earn one’s daily wage
and the right to engage in business are likewise property (Ibid., p.783).
§ “Equal protection of the law” means that persons similarity situated should be
similarly treated. There should be no favoritism. The benefits of membership of a
state as well as the burdens should be distributed in equal measure. Uniformity of
treatment should be the rule (Ibid., p. 282).
§ “Due process of law” is a law which hears before condemns; which proceeds upon
injury, and renders judgment after trial (Raquiza v. Bradford, 75 Phil. 50). Due process
of law does not necessarily mean a judicial proceeding in the regular courts. In effect, it
means a fair and impartial trial and reasonable opportunity for the preparation of the
defense (Aquino, Jr., v. Military Commission, G.R. No. 2, 63 SCRA 546).
The Law
In many instances, communication and correspondences are inevitable in the
tourism, travel, and hospitality industry. Because of its daily use, it is important to
understand what laws may be applied. Section 3. (1) The privacy of communication and
correspondence shall be inviolable except upon lawful order of the court, or when public
safety or order requires otherwise as prescribed by law. xxx (2) Any evidence obtained
in violation of this or the preceding section shall be inadmissible for any proceeding.
Discussion of the Law
§ The forms of correspondence and communication that are covered in the provision
include letters, telegrams, telephone calls, messages, and the like.
 Republic Act No.4200, otherwise known as the Anti-Wiretapping Law,
provides penalties for specific violations of the privacy of communication. Under Section
3 of the Act, the court will authorize wiretaps in certain crimes, such as treason,
intelligence, provoking war and disloyalty in case of war, piracy, mutiny in the high seas,
rebellion, conspiracy and proposal to commit rebellion, inciting to rebellion, sedition,
conspiracy to commit sedition, inciting to sedition, kidnapping, and other offenses
against national security. Any evidence obtained in violation of the above shall be
considered “fruit from the poisonous tree” and shall not be admitted as evidence in
any administrative or criminal proceeding.
Application of the Law Case:
The National Bureau of Investigation (NBI) received a tip on a very important
case the bureau has been working on. It deals with massive drug dealing using hotel
suites as meeting places of high-profile drug dealers. The bureau sought the
cooperation of the hotel management for an entrapment operation. Wiretapping devices
were installed. The adjacent suite was reserved for NBI agents on a stakeout. Was the
operation legal and justified?
Legal Opinion:
The operation is considered illegal in violation of R.A. No. 4200, and any
evidence obtained by virtue of such wiretapping devices shall not be admissible as
evidence in any administrative or criminal proceedings. The massive drug dealing in
violation of the Dangerous Drugs Act is not one of the offences which authorizes
wiretaps under the law (Section 3 paragraph 1, R.A. 4200). It is a rule of salutary
construction that laws must be strictly construed, and what the law excludes must not
include.
The Law
Once again, the labor-intensive nature of the tourism industry elicits the
possibility of unions and associations being formed to protect the rights of employees.
While there is a provision in the constitution on this matter, a lengthier discussion is
covered by the chapter on Labor Law. Section 8. The right of the people, including those
employed in the public and private sectors, to form unions, associations or societies for
purposes not contrary to law shall not be abridged.
Discussion of the Law
Government employees are now given the right to form unions. However, their
right to strike is not included in the right to form unions. Unlike those employed in the
private sector, government employees do not have the constitutional right to strike as a
mandate under civil service rules and regulations prohibiting them to strike. (See Social
Security System Employees Association (SSSEA) et.al. v. The Court of Appeals et.al., G.
R. No. 85279, July 28, 1989).
 Application of the Law
Case: Junie Bustillos, a room attendant, has been employed at a Quezon City hotel for
five years. In his twenties, Junie was a hardworking and very idealistic employee. He
has seen many cases of abuse by management especially in the past three years in the
hotel. Approximately 70% of the employees feel low morale because of these abuses
and they would readily support any move to form a union. Junie took the initiative in
talking to some potential leaders who will form the core group of a possible union. He
believed that this was the only way they can protect the rights of the hotel workers.
Upon learning of Junie’s plans, top management gradually worked on a plan on how to
get rid of Junie. After three months, Junie was convicted of serious charges resulting in
his dismissal from the hotel. Did the hotel management do the right thing? Did the hotel
management violate the law?
Legal Opinion:
Yes, the hotel management violated the Labor Code of the Philippines and the 1987
Constitution. By terminating Junie because of his initiative to form a possible union constitutes
unfair labor practice in violation of Section 8, Article III of the Philippine Constitution. This may be
construed as union-busting. In the case of Lopez Sugar Corporation v. Franco et.al., G.R. No.
148195, May 16, 2005, four (4) employees of Lopez Sugar Corporation formed a union and
became officers as such. Thereafter, these four (4) employees received notices informing them
that they were included in the “special retirement program” for a supervisor and middle-level
managers; hence, their employment with the Corporation was to be terminated. The Supreme
Court ruled in favor of the four (4) employees and further declared that it would not hesitate to
strike down a redundancy program structured by a corporation to downsize its personnel, solely for
the purpose of weakening the union leadership, thereby preventing it from securing reasonable
terms and conditions of employment in their collected bargaining agreement (CBA) with the
employer.
National Economy and Patrimony
The Law
It is important to be informed of some of the constitutional provisions on National
Economy and Patrimony because some are applicable to tourism. Section 10. The
Congress shall, upon recommendation of the economic and planning agency, when the
national interest dictates, reserve to citizens of the Philippines or to corporations or
associations at least sixty per centum of whose capital is owned by such citizens, or
such higher percentage as Congress may prescribe, certain areas of investments.
In the grant of rights, privileges and concessions covering national economy and
patrimony, the State shall give preference to qualified Filipinos. The State shall regulate
and exercise authority over foreign investments within its national jurisdiction and in
accordance with its national goals and priorities.
Discussion of the Law
The provision allowing the nationalization of certain businesses covering national
economy and patrimony has not been considered a new doctrine. In the case of Ichong
v. Hernandez, No. L-7995,101 Phil. 1155 (May 31, 1957), Filipinization of business may
be done without violating the equal protection clause. The patrimony of the nation that
should be conserved and developed refers not only to our rich natural resources but
also to the cultural heritage of our race. It also refers to our intelligence in arts, sciences,
and letters. Therefore, we should develop not only our lands, forests, mines, and other
natural resources but also the mental ability or faculty of our people (Jose N. Nolledo,
The New Constitution of the Philippines Annotated, 1990 ed., p.72).
 In its plain and ordinary meaning, the term patrimony pertains to heritage. When
the Constitution speaks of national patrimony, it refers not only to the natural resources
of the Philippines, but also to the cultural heritage of the Filipinos (Webster’s Third New
International Dictionary, 1986 ed., p. 1656, as cited in Manila Prince Hotel v. GSIS, G.R.
No. 122156, February 3, 1997). The term “qualified Filipinos” simply means that
preference shall be given to those citizens who can make a viable contribution to the
common good, because of credible competence and efficiency.
It certainly does not mandate the pampering and preferential treatment to Filipino
citizens or organizations that are incompetent or efficient, since such an indiscriminate
preference would be counterproductive and inimical to the common good. In the
granting of economic rights, privileges and concessions, when a choice has to be made
between a “qualified foreigner” and a “qualified Filipino”, the latter shall be chosen over
the former (Ibid., pp.930-931)
Application of the Law
Case: During a bid for the purchase of the majority shares in Manila Hotel, a Malaysian
corporation was the highest bidder. However, instead of awarding the sale to the
Malaysian corporation, the same was awarded to a Filipino corporation. Is the awarding
of the sale in favor of the Filipino corporation valid?
Legal Opinion: Yes, Article XII Section 10 of the 1987 Constitution explicitly states that
the granting of privileges involving national patrimony shall preference to qualified
Filipinos
The Law
The country takes pride in developing a skilled workforce ranging from blue collar to
white collar jobs, from managerial to entrepreneurial talents, from scientist to artist.
There is the reciprocity especially when certain agreements in the World Trade
Organization covering movement of people and services will be implemented globally.
Section 14. The sustained development of reservoir of national talents consisting of
Filipino scientists, entrepreneurs, professionals, managers, high-level technical
manpower and skilled workers and craftsmen in all fields shall be promoted by the State.
The State shall encourage appropriate technology and regulate its transfer for the
national benefit. The practice of all professions in the Philippines shall be limited to
Filipino citizens, save in cases prescribed by law.
Discussion of the Law
This constitutional provision mandates that the practice of a profession is reserved
exclusively to citizens of the Philippines. The Foreign Investment Negative List specially
provides that foreign investors are prohibited in engaging in much undertaking. In
addition, the State shall prioritize Filipino talents for employment in the country. Aliens
may be employed but must obtain a working visa from the Bureau of Immigration and a
working permit at the Department of Labor and Employment (DOLE).
Application of the Law
Case: John Tan is looking for a chief executive officer who will manage his five-star
hotel in the Roxas Boulevard area. He is also looking for legal counsel who will take
charge of legal matters of his hotel business. Discuss the qualification of the people he
wants to hire for his hotel business.
Legal Opinion:
Mr. John Tan must get a Filipino citizen, to handle the legal matters in managing
his hotel business. The practice of law is a profession where foreigners are not allowed
to practice in the Philippines. However, in choosing a chief executive officer, Mr. Tan
may or may not employ a Filipino citizen. It is true that priority should be given to Filipino
citizens in Mr. Tan’s choice for a chief executive officer. However, this will hold true only
if there are enough qualified Filipinos in the country who can vie for the position. In case
there are no skilled Filipino citizens who will qualify for the position, Mr. Tan may employ
a foreigner or an alien provided the latter obtains a work
(Blind Fold/ Eyes Close). Memorize the given topic below.
A. Definition and Characteristics of Law
Answer the following questions. Use separate sheet for your answers.
1. What is tourism law? Why is it important?
2. If the tourism industry did not have any tourism law, what could possibly happen to
the industry? Identify some possible scenarios in the industry without tourism law?
3. Why is “due process” and the “equal protection” clause important in the tourism
industry?