Legal Aspects in Tourism and Hospitality
This lesson provides an overview of the key laws and policies governing the tourism and hospitality industry, with a focus on both Philippine and international frameworks.
Introduction
Hospitality law is a specialized field that encompasses the legal framework governing hotels, restaurants, bars, and other establishments that serve guests. It is a broad and multidisciplinary field, designed to protect both the business and its patrons. Understanding these laws is critical for maintaining professional integrity, resolving disputes, and enhancing guest satisfaction.
Business Laws
This section covers the legalities of business formation, registration, and licensing for tourism and hospitality enterprises, including partnerships, corporations, and franchising agreements.
Relevant Laws & Policies
- Philippine Law: Securities and Exchange Commission (SEC) – Governs the registration and regulation of corporations and partnerships.
- Philippine Law: Department of Trade and Industry (DTI) – Handles the registration of sole proprietorships and business names.
Contract Law
This topic deals with the formation and enforcement of contracts, such as those for room reservations, event management, and agreements with suppliers, as well as remedies for a breach of contract.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 386 (The Civil Code of the Philippines) – Articles 1305 to 1422 cover the general principles and rules of contracts.
Consumer Protection
This area of law ensures the rights of travelers, guests, and consumers are protected, covering truth in advertising, fair pricing, and effective complaint procedures.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 7394 (The Consumer Act of the Philippines) – Provides protection for consumers against deceptive, unfair, and unconscionable sales acts and practices, as well as false advertising.
- International: UNWTO Global Code of Ethics for Tourism – Recommends standards for responsible tourism, including the rights of tourists and guests.
Tort and Liability Laws
This area focuses on the duty of care owed by service providers to guests. It covers negligence, personal injury claims (e.g., guest accidents or food poisoning), and the legal liability of hotel owners and tour operators.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 386 (The Civil Code of the Philippines) – Articles 2176 and 2180 on Quasi-Delicts establish liability for damages caused by negligence.
Honoring Agreements and Fair Marketing
This section emphasizes the importance of fair business practices, particularly in marketing and advertising. It highlights the need to honor agreements with employees and unions, and to avoid deceptive practices like “bait and switch” advertising.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 7394 (The Consumer Act of the Philippines) – Article 50 explicitly prohibits deceptive sales acts or practices.
Duty to Guests and Keeping Customers Safe
Businesses are expected to act cautiously and use reasonable care to ensure their premises are free of risk. This includes protecting guests from criminal harm, fire, and other foreseeable risks.
Relevant Laws & Policies
- Philippine Law: Presidential Decree No. 1096 (National Building Code of the Philippines) – Mandates structural and fire safety requirements for buildings.
- Philippine Law: Republic Act No. 9514 (Fire Code of the Philippines) – Enforces fire prevention and safety measures.
Employment and Labor Laws
These laws define the rights and responsibilities of employers and employees, covering employment contracts, wages, occupational safety, and labor standards.
Relevant Laws & Policies
- Philippine Law: Presidential Decree No. 442 (Labor Code of the Philippines) – The fundamental law governing employment practices in the country.
- International: International Labour Organization (ILO) Conventions – Sets international labor standards and rights.
Environmental and Sustainability Laws
These laws ensure that tourism and hospitality developments are managed with minimal environmental impact, promoting waste management, pollution control, and the protection of natural and cultural heritage sites.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 9275 (Philippine Clean Water Act) – Aims to protect the country’s water bodies from pollution.
- Philippine Law: Republic Act No. 8749 (Philippine Clean Air Act) – Focuses on protecting and preserving the environment from air pollution.
Food Safety and Sanitation Laws
These laws mandate compliance with health and sanitation codes in food preparation and handling, as well as the proper licensing of food and beverage establishments.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 10611 (Food Safety Act of 2013) – Aims to strengthen the food safety regulatory system in the Philippines.
- International: WHO Food Safety Fact Sheets – Provides global guidelines and information on food safety.
Data Privacy and Cybersecurity
This area protects guest and tourist information, covering online booking security and consent in data collection and marketing.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 10173 (Data Privacy Act of 2012) – Protects personal information in government and private sectors.
- International: General Data Protection Regulation (GDPR) – A European Union regulation on data protection and privacy for all individuals within the EU and the European Economic Area.
Transportation and Travel Regulations
This topic covers the regulations for common carriers (airlines, buses, ferries), liability for lost or delayed luggage, and the licensing of travel agencies and guides.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 386 (The Civil Code of the Philippines) – Articles 1732-1766 discuss the laws on common carriers.
Intellectual Property Rights
This section focuses on protecting trademarks and copyrights for branding, as well as the use of proprietary content in marketing and entertainment. It also includes licensing agreements for software and other creative materials.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 8293 (Intellectual Property Code of the Philippines) – The main law governing intellectual property in the country.
- International: World Intellectual Property Organization (WIPO) – A global forum for intellectual property services, policy, information, and cooperation.
Crisis and Risk Management
This area covers legal obligations during emergencies (e.g., pandemics, natural disasters), insurance and liability coverage, and the importance of risk assessment and compliance planning.
Relevant Laws & Policies
- International: UNWTO Risk and Crisis Management – Provides guidance and resources for the tourism sector on preparing for and managing crises.
International and Local Regulations
This section highlights the need for compliance with international tourism standards (e.g., UNWTO), government ordinances affecting tourism zones, and cross-border legal issues.
Relevant Laws & Policies
- International: World Tourism Organization (UNWTO) – The leading international body for tourism policy.
Record-Keeping for Hospitality Laws
Proper record-keeping is essential for hospitality businesses to maintain accurate records, track employee payroll, and handle tax deductions. Failure to do so can lead to legal issues with government agencies.
Relevant Laws & Policies
- Philippine Law: Bureau of Internal Revenue (BIR) – The government agency responsible for tax collection and enforcement of tax laws.
Protecting Your Reputation
Hospitality regulations can affect a business’s reputation. It is important to avoid discriminatory practices based on factors like sex, race, or religion, and to maintain an awareness of what constitutes discrimination.
Relevant Laws & Policies
- Philippine Law: Republic Act No. 10911 (Anti-Age Discrimination in Employment Act) – Prohibits discrimination in employment based on age.
- Philippine Law: Republic Act No. 7877 (Anti-Sexual Harassment Act of 1995) – Aims to prevent and penalize sexual harassment in the workplace and in educational or training environments.
