In a series of meetings with the Department of Tourism (DOT), the LTFRB was informed that according to a study and assessment of tourism requirements in priority tourism areas including Metro Manila and with the forthcoming Asia Pacific Economic Conference, there is a need for additional tourist buses, coaches and mini buses. The need for such tourist transport facilities has been quantified by the DOT as follows:

For Luzon

1,290 units

  For Visayas

360 units

  For Mindanao

480 units

   

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Total

2,130 units

 

To upgrade present tourist transportation facilities and pursuant to the Memorandum of Agreement entered into among the LTFRB, DOT and LTO dated 20 June 1996, the following shall be entitled to franchising by the LTFRB:

1. New and expanding operators who must be Filipino citizens if they are individuals and 60% Filipino owned if partnerships and corporations;

2. They must operate a minimum of three (3) units per tourist transport operator;

3. They should be endorsed by the DOT and before being issued their corresponding certificates of public convenience by the LTFRB, they should have existing garages with equipment for maintenance and repairs in areas not covered by existing prohibitions identified by the Metro Manila Development Authority and the LTFRB, with pictures of the said garages attached to the applications, subject to inspection by this Board.

All units duly franchised by this board shall have the following marks inscribed conspicuously there on: œACQUIRED WITH INCENTIVES PURSUANT TO THE PROVISIONS OF E.O. 226 SERIES OF 1987.  Units to be franchised for tourism purposes shall not exceed the maximum allowable age of ten (10) years for buses, coaches and mini-buses reckoned from the year of manufacture to be determined by the DOT.

Operators who are found operating their units in violation of the terms and conditions of their certificates of public convenience, particularly the prohibition against operating them as regular first class air-conditioned buses on a fixed route catering to the general riding public, or whose accreditation by the DOT has been revoked and upon recommendation of the DOT, shall be penalized with the cancellation of their franchises after hearing.

Premises considered, the Board will start accepting applications for Certificate of Public Convenience to operate tourist buses, coaches and mini-buses. Once the total number of units indicated by the DOT has been reached, which is 2,130, the Board will close the acceptance for filing of further applications until further notice.

This Memorandum Circular shall take effect fifteen (15) days after the filing of three (3) copies hereof with the U.P. Law Center, in accordance with Presidential Memorandum Circular No. 11, dated 09 October 1992.

Adopted: 28 June 1996

(SGD.) DANTE M. LANTIN
Chairman

(SGD.) NABOR C. GAVIOLA
Board Member

(SGD.) MAURO F. VERZOSA, JR.
Board Member