In the Philippines, the travel and tourism industry is a vital economic pillar. To safeguard the public and maintain industry standards, the regulatory framework divides oversight between the Department of Tourism (DOT) and Local Government Units (LGUs). While the DOT provides national accreditation, the LGU holds the primary "police power" to sanction, close, and prosecute travel agencies operating without the necessary legal clearances.
Operating a travel agency without proper accreditation—specifically the Mayor’s Permit/Business Permit and, by extension, the DOT Accreditation—is not merely an administrative lapse; it is a violation of Republic Act No. 9593 (The Tourism Act of 2009) and various local ordinances.
I. The Legal Basis of LGU Authority
Under the Local Government Code of 1991 (R.A. 7160), LGUs are empowered to regulate businesses within their jurisdiction. This power is exercised through:
- Section 16 (General Welfare Clause): Empowers LGUs to implement measures that ensure the safety and convenience of their constituents.
- Section 447/458: Grants the Sangguniang Bayan/Panlungsod the authority to enact ordinances, issue licenses, and levy fees.
- R.A. 9593 (The Tourism Act): Explicitly mandates that LGUs must ensure all primary tourism enterprises (PTEs), such as travel agencies, obtain DOT accreditation before the issuance or renewal of local business permits.
II. Sanctions for Non-Accredited Operations
When an agency operates without a valid business permit or fails to secure mandatory accreditation, the LGU can impose a progressive series of sanctions:
- Cease and Desist Orders (CDO): The LGU, through the Business Permits and Licensing Office (BPLO), can issue an order to immediately stop operations.
- Closure Orders and Physical Sealing: If the agency continues to operate, the LGU—often in coordination with the local police—may physically padlocked the establishment and post "Closed" notices.
- Fines and Penalties: Local ordinances typically prescribe daily fines for every day of unauthorized operation.
- Permanent Disqualification: Habitual offenders may be blacklisted from ever securing a business permit within that specific city or municipality.
- Revocation of Existing Permits: If an agency has a general business permit but lacks the specific tourism accreditation required for its nature of work, the LGU can revoke the overarching permit for "misrepresentation."
III. Criminal and Civil Liabilities
Beyond administrative sanctions, "fly-by-night" or non-accredited agencies face severe legal consequences under Philippine law:
1. Illegal Recruitment (R.A. 8042 as amended by R.A. 10022)
If a non-accredited travel agency facilitates overseas travel for work purposes under the guise of "tourist visas," they can be prosecuted for Illegal Recruitment. If committed by a syndicate or in a large scale, the penalty is Life Imprisonment and a fine ranging from ₱2,000,000 to ₱5,000,000.
2. Estafa (Article 315, Revised Penal Code)
Agencies that collect payments for bookings they cannot fulfill or for which they have no legal authority to facilitate are often charged with Estafa (Deceit/Fraud). This is common in cases of "fake" flight tickets or hotel vouchers.
3. Violation of the Consumer Act (R.A. 7394)
The LGU, in coordination with the DTI, can file charges for deceptive, unfair, and unconscionable sales acts.
IV. The Role of the Department of Tourism (DOT)
While the LGU handles the physical closure, the DOT provides the legal teeth. Under the Joint Memorandum Circular (JMC) between the DOT and the DILG, LGUs are strictly encouraged to:
- Require DOT accreditation as a prerequisite for business permits.
- Conduct joint inspections of travel agencies.
- Provide a list of "Blacklisted" or "Non-Accredited" entities to the public.
V. Legal Recourse for the Public
Victims of non-accredited travel agencies can take the following steps:
- File a Complaint with the BPLO: Report the illegal operation to the city/municipal hall where the agency is located.
- DOT Legal Affairs Office: File a formal administrative complaint to ensure the agency is blacklisted nationwide.
- Criminal Complaint: Approach the National Bureau of Investigation (NBI) or the PNP-CIDG if fraud or large-scale scams are involved.
Summary Table: Risks of Non-Accreditation
| Category | Consequences |
|---|---|
| Administrative | Immediate closure, forfeiture of bonds, blacklisting by the LGU. |
| Financial | Heavy surcharges, daily fines, and potential civil suits for damages by clients. |
| Criminal | Imprisonment for Estafa or Illegal Recruitment. |
| Reputational | Public "shaming" via LGU and DOT advisories. |
The message from the Philippine government is clear: Accreditation is not optional. For the LGU, the regulation of travel agencies is a matter of public order; for the agency, it is the only path to legal legitimacy.