REVISING THE CHARTER OF THE PHILIPPINE TOURISM AUTHORITY CREATED UNDER PRESIDENTIAL DECREE NO. 189, DATED MAY 11, 1973.

WHEREAS, it is the avowed aim of the government to promote
Philippine Tourism and work for its accelerated and balanced growth as
well as for economy and expediency in the development of the tourism
plant of the country;

WHEREAS, in pursuit of this aim the Department of Tourism
was created under 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 development 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 in me vested by the Constitution,
de hereby decree and order the following to be the Revised Charter of
the Philippine Tourism Authority:

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 projecting- Philippine culture,
history, traditions and natural beauty, internationally as well as
domestically.

SEC. 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.

SEC. 3. Principal Office. — The Authority shall
maintain its principal office in the Metropolitan Manila area, but it
may established branches and agencies elsewhere within the Philippines
as may be necessary for the proper conduct of its business.

Chapter II

PURPOSES, FUNCTIONS AND POWER

SEC. 4. General Purposes. — The Authority
shall have the following general purposes:

1. 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;
2. Develop tourist zones. — To promote the development into
   integrated resort complexes of selected and well denned geographic
   areas with potential tourism value, known otherwise as “tourist
   zones”, wherein optimum use of natural assests 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.
3. Assist private enterprise. — Whenever necessary, to
   extend all forms of assistance to private enterprise in undertaking
   tourism projects.
4. 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;
5. Assure land availability. — To assure availability of
   land at reasonable prices or rental rates for private investors in
   hotels and other tourist facilities;
6. Coordinate all tourism project plans and operation. — To
   coordinate and assist implement tourism related project 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 the accelerated and balanced growth and
   development of tourism in the Philippines which is responsive to the
   needs of targeted travel markets here and abroad.

SEC. 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:

B. ACQUISITION AND DISPOSITION OF LANDS 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 Plans
   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.
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
   its 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,
   Section 8 to 13 inclusively, of this Decree shall apply.
3. Disposition of Lands. — For the purpose of providing land
   acquisition assistance to registered tourism enterprises, to sell,
   subdivide, resell, lease, subless, 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: Provide,
   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.
5. Transfer of Foreshore Leases. — To take over or transfer
   to a registered tourism 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 ZONE
PURPOSES

1. Interned 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 and facilities
   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,
   airports, 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

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 hereby necessary
   to implement the purposes, functions and powers conferred or
   granted to it under this Decree, subject to the approval of the
   President for each: Provided, That such corporations may not
   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

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 be 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 contract 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 encumber 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 contract indebtedness and issue bonds, subject to the
    conditions set forth in Sections 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 provision of any law, decree or rule to the contrary
    notwithstanding.
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 is limiting or restricting
    in any way the general purposes, powers, rights, and privileges to be
    possessed and exercise by the Authority.

Chapter II

CAPITALIZATION AND FINANCING

SEC. 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:

1. 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;
2. 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.

SEC. 7. Operating Expenses. — The operating expenses
of the Authority shall funded from:

1. The proceeds of taxes imposed under Republic Act No. 1478 and
   Republic Act No. 6141;
2. 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:
3. Drawings upon the capital of the Authority if necessary.

SEC. 8. Procedure in Incurring Indebtedness. —
Whenever the Board of Directors may 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 three (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
the Monetary Board.

SEC. 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 one 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.

SEC. 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, all savings banks and savings institutions,
including savings and loan association, 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.

SEC. 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.

SEC. 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, ‘n
which case, the President of the Philippines or his duly authorized
representative is hereby authorized to execute and deliver said
guarantee of the Government of the Republic of the Philippines.

SEC. 13. Sinking Funds Means of Payment of
Indebtedness. — The Authority is hereby authorized to pay out of its
capital, operating income, proceeds from its borrowings or issuance of
bonds, and other instruments of indebtedness, and from all other sources
of funds, the amounts 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. Said fund shall be under
the custody of the Central Bank of the Philippines under a 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

MANAGEMENT AND PERSONNEL

SEC. 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.

SEC 15. Term of Office. — The term of office of the
part-time members 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.

SEC. 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.

SEC. 17. Per Diems. — Unless otherwise fixed by
‘the President of the Philippines, the members of the Board shall
receive for every meeting attended a 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.

SEC. 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 transaction of the
business of the Board.

Vacancies in the Board, as long as there shall be three members in
office, shall not impair the powers of the Board to execute the
functions of the Authority.

SEC. 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 of 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.

SEC. 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.

SEC. 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.

SEC. 22. Powers and Duties of the Board. — The
powers and duties of the Board shall be as follows:

1. 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.
2. Approve the annual budget and implemental budgets of the
   Authority.
3. 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 hereof.
4. 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;
5. Render annual reports to the President and such special
   reports as may be requested.
6. Process and approve, imposing such terms and conditions as it
   may deem necessary to promote the objectives of Presidential Decree No.
   535, including refund of incentives availed of or to be availed of by
   an enterprise in amounts to be determined by the Board, applications for
   registration under Presidential Decree No. 535, and issue the proper
   certificate of registration upon payment of the necessary fees;
7. After due hearing, decide controversies that may arise
   concerning the implementation of this Decree and of Presidential Decree
   No. 535 within thirty (30) days after the controversy has been
   submitted for decision;
8. Periodically check and verify, either by inspection of the
   books or by requiring regular reports, the proportion of the
   participation of Philippine Nationals in a registered enterprise to
   ascertain compliance with its qualification to retain registration under
   Presidential Decree No. 535;
9. After notice and hearing, cancel the registration or suspend
   the enjoyment of incentive benefits of any registered enterprise
   including interests and monetary penalties, for (1) failure to maintain
   the qualifications required by Presidential Decree No. 535 for
   registration or (2) for willful or grossly negligent violation of any
   provision of that Decree, of the rules and regulations issued under this
   Decree and the aforementioned Presidential Decree No. 535, or the terms
   and conditions of registration, or of laws for the protection of labor
   or of the consuming public;
10. Generally, exercise all the powers necessary or incidental to
    attain the purposes of this Decree.

SEC. 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:

1. To execute and or administer the policies and measures
   approved by the Board;
2. 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;
3. To sign all acts, memorials and resolutions of the Board;
4. To establish the internal organization of the Authority under
   such conditions that the Board may prescribed: Provided, That
   any major reorganization shall be subject to the approval of the Board;
5. 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;
6. To submit within thirty (33) days after the close of each
   fiscal year an annual report to the Board and such other reports as may
   be required;
7. 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.

SEC. 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:

1. 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;
2. 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 of the
   Authority. The signature of the General Manager may be in facsimile
   whenever appropriate;
3. To represent the Authority, either personally or through
   counsel, in any legal proceedings or actions; and
4. To delegate his power to represent the Authority as provided
   for in Subsections (a), (b) and (c) of this section, to other officers
   of the Authority upon his own responsibility.

SEC. 25. Authority of the General Manager in Emergencies.
— In the event of extraordinary emergencies which require immediate
action and in 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 a 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.

SEC.
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.

SEC. 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 all legal matters, procedures and actions.

SEC.
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.

SEC. 29. Applicability of the Civil Service Law,
Rules and Regulations. — All officials and employees of the
Authority shall be subject to the Civil Service Law, Rules and
Regulations.

SEC. 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.

SEC. 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 person which shall be determined, as far as
practicable, by proper competitive examination.

SEC. 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.

SEC. 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 the Advisory Board, which shall be composed
of representatives from trade organizations for hotels, restaurants, air
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 RROVISIONS

SEC. 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 investigations, 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.

SEC. 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:

1. Hundred Islands Conservation and Development
   Authority;
2. 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.

SEC. 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
potentials such as, but not limited to, hotels, resorts, islands, real
estates that have been fore-closed 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.

SEC. 37. Equipment, Supplies and Services Other than
Personnel. — All purchases of equipment and supplies or contracts
for services, except for personnel 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.

Charter VI

MISCELLANEOUS PROVISIONS

SEC. 38. Definition of Terms. — Whenever used or cited
in this Decree:

1. Authority — shall mean the Philippine Tourism
   Authority;
2. 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;
3. 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;
4. 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;
5. 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.

SEC. 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 officer 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.

SEC. 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
affect the validity of other provisions.

SEC. 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.

SEC. 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.