Establishing the Surfing Tourism Integrated Program Under the Supervision of the Secretary of Tourism

March 31, 2005

MEMORANDUM ORDER NO. 168

ESTABLISHING THE SURFING TOURISM INTEGRATED PROGRAM UNDER THE SUPERVISION OF THE SECRETARY OF TOURISM

WHEREAS, the Macapagal-Arroyo administration has put forward a series of sweeping reform packages that, taken together, will fundamentally capitalize on the country's strengths and develop areas which need improvement; aCITEH

WHEREAS, tourism in the Philippines is a sector with strong growth potential;

WHEREAS, to foster further the country's growth, the Macapagal-Arroyo administration will expand infrastructure development and encourage greater investments all over the country such as tourism investments in tourists-attractive areas in Central Philippines;

WHEREAS, Central Philippines consists of the Visayan provinces and Palawan, Bicol, and the northern Mindanao islands of Siargao, Camiguin and Dapitan;

WHEREAS, from an analysis of the estimated spending of tourists, Philippine market share, and its ability to meet market segment needs, the priorities in the Medium-Term Tourism Development Plan are the following:

• Priority 1: The aggressive multi-channel promotion of the short-haul beachgoer and sightseeing/shopper, and domestic market segments, related products, and destinations. These markets shall receive between 60 and 70 percent of the promotional budget.

• Priority 2: The niche based tailored promotion of the short-haul recreation travelers and ecotourists; and the strategic "ambassadors" — backpacker and balikbayan segments, and related products. These shall receive between 20 and 30 percent of the promotional budget based focusing on 'rifle shot' promotions aimed at specific niches such as golf, diving, surfing, and the like.

NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Surfing Tourism Integrated Program. — The Surfing Tourism Integrated Program (STIP) for the development of the transport infrastructure in Siargao Island, Eastern Samar and Bicol is hereby established to ensure the competitiveness and marketability of Siargao, Eastern Samar and Bicol as premier and world class surfing destinations. The STIP shall include:

(a) the upgrading of the airports of Siargao Island, Guiuan in Eastern Samar, and Naga City in Bicol consistent with the standards of international surfing destinations; and IEAacT

(b) the establishment and/or improvement of other related infrastructures and equipment complementing the intended transport system in the area.

SECTION 2. Supervisory Function. — The Secretary of Tourism is hereby directed to supervise the STIP and to ensure that the projects and programs implemented are consistent with the objectives for which the STIP was created.

SECTION 3. STIP Manager. — The Secretary of Tourism shall assign a senior official of the Philippine Tourism Authority (PTA) to be the STIP Manager.

The STIP Manager shall perform the following functions:

(a) Plan, implement and oversee the operational details and administrative arrangements necessary for the effective and efficient implementation of the STIP consistent with the principles of transparency and accountability;

(b) Prepare and finalize details and administrative arrangements, and secure appropriate clearances, permits and licenses necessary for the implementation of the Siargao, Guiuan, and Naga airport development;

(c) Implement and/or coordinate with various components of the development program, including financing, physical implementation and supervision thereof;

(d) Conduct meetings, coordinate, and request for support and assistance from concerned agencies, government-owned or controlled corporations, local government units, regional development councils, private organizations, and individuals for the attainment of the Program's objectives;

(e) Prepare Monthly Accomplishment Reports to the Senior Deputy Executive Secretary for Management and Local Governments, the Secretary of Tourism, and the Secretary of Transportation and Communication on the status of the projects under the STIP; and

(f) Perform and execute such other duties as the President of the Philippines or the Secretary of Tourism may direct from time to time.

SECTION 4. Funding. — The project components of STIP shall be funded primarily from the resources of and available to the Philippine Tourism Authority. AScTaD

SECTION 5. Assistance. — The Secretary of Tourism and the STIP Manager may, however, call upon the Department of Transportation and Communications and its attached agencies, the Department of Finance, the Department of Budget and Management, the National Economic and Development Authority and any other agency of the Government for such assistance as may be necessary in the performance of their functions. All heads of departments, agencies, bureaus, offices, including government-owned and controlled corporations, are hereby enjoined to assist and cooperate with the Secretary of Tourism and the STIP Project Office and provide such information and data as may be required to carry out their functions pursuant to this Order.

SECTION 6. Liaison with Regional and Local Governments. — The STIP Manager shall liaise with the regional and local government units in connection with the implementation of the program by the STIP.

SECTION 7. Internal Audit. — An internal auditor for the PTA shall be designated by the Senior Deputy Executive Secretary for Management and Local Governments. Such internal auditor shall have the duty, among others, of reviewing and checking the disbursements made from PTA internal funds and the proceeds of applicable loan agreements to ensure that priority is given to STIP and other projects as may be identified by the President of the Philippines. The internal auditor shall report to and shall be under the supervision of the Office of the President.

SECTION 8. Repealing Clause. — All executive issuances, rules and regulations or parts thereof which are inconsistent with this Memorandum Order are hereby repealed, amended, or modified accordingly.

SECTION 9. Effectivity. — This Memorandum Order shall take effect immediately.

DONE in the City of Manila, this 31st day of March, in the year of Our Lord, Two Thousand Five.