Isabela State University

Cabagan, Campus

HM 321 LEGAL ASPECTS IN HOSPITALITY AND TOURISM

1.Title of the Module

Chapter 1: INTRODUCTION TO LAW ON TOURISM AND HOSPITALITY

2. Introduction

The tourism and hospitality industry operates within a comprehensive domestic and
international, legal and regulatory framework. This course examines this framework and covers key
principles of law applicable to hospitality, tourism and related industries. Various legislation on
business organization and several international law issues such as consumer protection, product and
service liability, employment and law access to the natural environment will be covered.

3. Learning Outcome:

• Explain the concept of tourism law, its sources, examples and its application.
• Identify vital provisions in the Philippine Constitution related to tourism and travel
• Enumerates the rights of travellers as well as entities engaged in tourism.
• Identify the different kinds of obligations and contracts.

4. Learning Content:

Chapter 1: INTRODUCTION TO LAW ON TOURISM AND HOSPITALITY

• Definition of Law

• Characteristics of Law

•Tourism Laws Vs. Hospitality Laws

•Three (3) Inherent Power of the Government

• Modes of acquiring Citizenship

• Classifications of Obligations

• Law on Corporation

Introduction to Law on Tourism and Hospitality

Prelim | Module 1

Law

According to Collins, law is a system of rules that a society or government develops in order to deal with
a crime, business agreements and social relationships. The law can be used to refer the people who work
in this system.

Webster (2018) Law is a binding custom or practice of community; a rule of conduct or action prescribed
or formally recognized as binding or enforced by community.

Characteristics of Law

1. Rule of human conduct

Law is to be taken as standards and norms that every that every member of the community should adhere
to. It should be taken seriously so that order in the community can be properly observed.

The passage of the law requires a careful deliberation from the law making authorities, considering the
impact it may have to the point in general. The welfare of the people should be taken a paramount
consideration “salus propuli est suprema lex” (The welfare of the people is the supreme law).

Tourism Law Vs. Hospitality Law

TOURISM LAW
Tourism Law is a unique area of law which involves general government regulations and specific travel
and hospitality industry rules. According to the United Nations’ World Tourism Organization (UNWTO),
the purpose of Tourism Law is to provide a legal and regulatory framework for the development and
management of tourism, preservation of cultural traditions, natural resources and facilitate the
involvement of the private sector & local communities in tourism development activities. 
Tourism Law also reflects not only the rights of international and local tourists, but also the legal
responsibilities of inbound-outbound tour operators, travel agents and other significant players in this
industry. The main concern in Tourism Law is to provide a fair and equitable environment for travel
consumers and organizations. For instance, Tourism Law comes into play when it involves goods and
services rendered and situations where laws are there to ensure restaurants are serving food which are safe
to consume and premises which are free from danger. 

Tourism Law also encompasses laws in movement of people and goods across the World. This includes
movements by air, sea, rail and road where each mode of transportation applies different sets of rules and
international conventions. 

Furthermore, Tourism Law also plays an important role in cases or situations involving terrorism, natural
disasters, protests, and disease break-outs where visitors and tourists should be aware of their rights and
the safety precaution measures that should or could be taken at the time. Tourism Law provides guides
and imposes responsibilities and liabilities to the players in the industry to ensure the safety and the well-
being of any tourists or visitors under their care in cases which are out of their control as listed above.

HOSPITALITY LAW
Hospitality industry is an industry which involves food service, travel, and lodging industries. Hospitality
Law is introduced to regulate hotels, restaurants, bars, country clubs and other public accommodations, so
as to provide safety measures within the law to protect the customers.

For example, every restaurant must abide by the food safety and regulations to ensure purity of food
being supplied to customers. Restaurants must practice safe food handling and violation can lead to legal
suit being initiated or fine being imposed.

On lodging industry, the hotel management has the responsibility to ensure that its buildings are safe to be
lived in and used. For example, Section 28 of the Fire Services Act 1988 states that every designated
premise including hotels shall require a fire certificate which are to be renewed annually. Section 29 of
the Fire Services Act 1988 further states that Fire and Rescue Department shall carry out an annual
inspection on the premises to certify that the premises comply with the life safety, fire prevention, fire
protection and fire-fighting requirements. For example, the hotel management must ensure that the sign
“KELUAR” (Exit) can indicate the escape route. This may inadvertently help to improve the reputation of
business as the customers can rest easy by knowing that the place is safe in the event fire breaks out.

Furthermore, safety and security aspects play a very vital role in the hospitality industry. Hotel
management shall at all times ensure no uninvited guest in the premise of the hotel and provide adequate
measure of protection to their guests from any criminal harm such as robbery and theft of personal
belongings arising from their own negligence. On another aspect, it is essential for the hotel management
to educate their staffs to avoid or prevent any discrimination made against any guests based on their race
and religion. Receptionist and front desk staff shall welcome every guest with open arms because
customer service is important in providing a positive image of the hotel to the guests. Providing a safe and
crime free staying environment can lead to guest satisfaction resulting in improvement of rapport and
good will of the hotel.

Three (3) Inherent Power of the Government

The Inherent powers of the state are as follows:

2. Police Power

3. Power of Eminent Domain

Inherent defined:
As being inherent, it means that as long as the state exists, this power can never be taken away.

1. Power of Taxation – An inherent power of the state exercised through legislature, to impose
burdens upon subjects and objects within its jurisdiction, for the purpose of raising revenues to
carry out the legitimate objects of the government.

Nature:
An inherent power of the state exercised through the legislature.

Scope:
To impose burdens upon subjects and objects within its jurisdiction.

Purpose:
For raising revenue to carry out the legitimate objects of the government

Revenue Objective – To build a just and human society and the establishment of a government
under certain ideals and aspirations.

Sumptuary Objective – An implement of the police power of the state for regulatory purposes.
In this case, it is used in furtherance of any government objective either as an incentive or
deterrence. As an implement, the generation of revenue is merely incidental or in furtherance
thereof. (Lutz v. Araneta, 98 Phil 148).

Compensatory Objective – For social justice purposes or other purposes or other legitimate
objectives of the State, with a view to realize social justice, equitable distribution of wealth,
economic progress and other similar objectives (Southern Cross Cement Corp. v. Cement
Manufacturers Assoc. of the Phils, GR 158540)

2. Police Power – This is the power vested in the Legislature by the Constitution to make, ordain,
and establish all manner of wholesome and reasonable laws, statutes and ordinances, either with
penalties or without, not repugnant to the Constitution, for the good and welfare of the State and
its subjects.

Basis:
This power is based on the legal maxim “salus populi est suprema lex” (the voice of the people is
the supreme law). Every citizen of every community, in a civilized society must bear certain
burdens imposed for the good of all.
 Note:
No right is absolute in the face of the common good.

Nature:
Police power is an attribute of sovereignty and founded on the obligation of the State to provide
protection for its citizens and the safety and good order of society.

Scope:
Police power is founded on which our social system rests and has for its object the improvement
of social and economic conditions affecting the community. It depends on the security of the
social order, life and health of citizens, comfort and existence in a thickly populated community,
enjoyment of social life, and beneficial use of property.

Requisites:
1. Interest of the public is general, not that of pa particular class
2. means used are reasonably necessary for the purpose, and not unduly oppressive upon
individuals

3. Power of Eminent Domain – This is the right of the State to acquire private property for public
use upon payment of just compensation and observance of due process.

Basis:
It is based on genuine necessity and that necessity must be of public character. It must be
reasonable and practicable such that it would greatly benefit the public with the least
inconvenience and expense to the condemning party ad property owner consistent with such
benefit.

Requisites:
1. There must be taking of public property
2. It must be for public use
3. There must be just compensation
4. Due process of law must be observed in taking of the of property

Art. 1156- An obligation is a juridical necessity to give, to do or not to do

ELEMENTS:

1. Active subject (obligee/creditor ) – the one in whose favor the obligation is constituted

2. Passive subject (obligor/debtor ) – the one who has the duty of giving, doing or not doing

3. Object – prestation; the conduct which has to be observed by the debtor/obligor

4. Vinculum Juris – juridical/legal tie

a. licit - if illicit, it is void

b. possible - if impossible, it is void

c. determinate or determinable - or else, void

d. pecuniary value

SOURCES OF OBLIGATION:

1. LAW (OBLIGATION EX LEGE ) - Must be expressly or impliedly set forth and cannot be presumed

2. CONTRACT (OBLIGATION EX CONTRACTU ) - Must be complied with in good faith because it is the
“law” between parties; neither party may unilaterally evade his obligation in the contract, unless:

a) contract authorizes it

b) other party assents

Parties may freely enter into any stipulations, provided they are not contrary to law, morals, good customs, public
order or public policy

3. QUASI-CONTRACT (OBLIGATION EX QUASI-CONTRACTU ) - That juridical relation resulting from a

2 kinds :

a. Negotiorum gestio - unauthorized management; This takes place when a person voluntarily takes charge of
another’s abandoned business or property without the owner’s authority

b. Solutio indebiti - undue payment ; This takes place when something is received when there is no right to demand
it, and it was unduly delivered thru mistake

4. DELICTS (OBLIGATION EX MALEFICIO OR EX DELICTO )

Governing rules:

1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code • Art 100, RPC – Every
person criminally liable for a felony is also civilly liable

2. Chapter 2, Preliminary title, on Human Relations ( Civil Code ) 3. Title 18 of Book IV of the Civil Code – on
damages
5. QUASI-DELICT/TORTS ( OBLIGATION EX QUASI-DELICTO or EX QUASI MALEFICIO ) - It is a
fault or act of negligence ( or omission of care ) which causes damage to another, there being no pre-existing
contractual relations between the parties

Elements:

a) There must be fault or negligence attributable to the person charged

b) There must be damage or injury

c) There must be a direct relation of cause and effect between the fault or negligence on the one hand and the
damage or injury on the other hand ( proximate cause )

5. Teaching and Learning Activities

These are activities related to the concepts and thinking skills that were covered in the
module. It also includes questions or an activity that integrates the idea, help learners to connect to
the module question, assess progress, and look ahead. Likewise, this may contain additional
problems that could be used for homework or tests, or additional readings that allow students to
apply new knowledge and skills in a different context.

Activity1: What is tourism law? Why is it important

Activity 2: What are different kinds f obligations

Enumerate atleast 5.

6. Recommended learning materials and resources for supplementary reading.

Books:
Mindshapers Co. Inc.
Legal Aspects in Tourism and Hospitality by:
Atty. Kenneth Lloyd G. Dela Cruz
Mario H. Maranan, DPA, LLB
Jovid Maricar D. Maranan
Cristina N. Caluza, MBA

Websites:

7. Flexible Teaching Learning Modality (FTLM) adopted

Online (synchronous)
 Facebook page, google classroom, google meet, zoom meeting, Sedi

//module, case study, exercises, problems sets, etc

8. Assessment Task

This allows the students to pull together what they have learned and the skills they have
developed in order to answer the module question. In this part, students are given Self-
assessment Questions (SAQs) and asked to consider broader aspects of the question, such as
social and economic.

Case: (30 points)

A and his paramour B entered in SUGOD MOTEL located along Cabagan, Isabela without them knowing
that C the legal wife of A has been spying on them. Upon their entry in Room No. 69, C approached the
Front Desk officer in order to get some necessary information about A and B. If you are the front desk
officer would you give C her desired information about A and B? Explain. Cite your legal basis.

9. References (at least 3 references preferably copyrighted within the last 5 years, alphabetically
arranged)

First Edition 2020 Edition Legal Aspects in Tourism and Hospitality

Danny Araneta Cabulay, Christine Palaflox Carpio- Aldeguer

https://www.imoa.ph/civil-code-common-carriers/

http://junvillegas.blogspot.com/2013/01/laws-of-transportationtravel-in.html

https://lawphil.net/judjuris/juri2015/oct2015/gr_208802_2015.html

https://www.moneymax.ph/car-insurance/articles/driving-laws

10. Learning Resources

Key readings and other learning materials for students to study, to learn the key concepts covered
in the module.

Learning resources are texts, videos, software, and other materials that the teacher.

ISUE__ __ Syl ___

Effectivity: August 1, 2020