Prohibition Against Construction of Condominium Units Intended for Tourist Accommodation

October 29, 1975

LETTER OF INSTRUCTIONS NO. 330

 

Pursuant to the provisions of Presidential Decree Nos. 189 and 381, and in order to protect legitimate investments in the tourist accommodation industry, particularly in hotels, pension houses, inns, etc., in response to the call of the government for the development of facilities for tourists, from the erosive effects of indirect and unauthorized competition coming from the operation of condominium buildings, condominium apartments, and other buildings and structures which were ostensibly established for office or residential purposes, but diverted, or still to be diverted, to the tourist accommodation industry, the Secretary of Tourism and all Municipal and City officials are hereby directed to see to it that the following rules and regulations are followed: acd

1. No person or entity shall construct a condominium building which is intended for tourist accommodation by design, by express provision, or by absence of any prohibition against such use in its Articles of Incorporation or Contracts to Sell, without prior authority of the Philippine Tourism Authority pursuant to Presidential Decree No. 381.

2. No owner, developer, operator, lessee, sub-lessee, or administrator of the above-described buildings or structures shall lease or rent out the same to any foreign tourist or visitor unless he shall have secured the requisite license from the Department of Tourism, and for periods of not less than 30 days.

3. Owners, developers, operators, lessees, sub-lessees, or administrators of the above-said buildings and structures shall not be entitled to register under Presidential Decree No. 535 for the availment of incentives: Provided, That in areas where shortage of tourist accommodations exists as determined by the Authority, this limitation shall not apply to said persons who want to convert said buildings and structures for tourism purposes. cd i

4. The records of operation of the above-said buildings or units, once used for tourist accommodations, shall always be made available for inspection by the Philippine Tourism Authority or the Department of Tourism to insure compliance with their rules and regulations.

Any person violating or causing another to violate the above shall suffer the penalties provided for in Presidential Decree No. 189, as amended by Presidential Decree No. 259.

DONE in the City of Manila, this 29th day of October, in the year of Our Lord, Nineteen Hundred and Seventy-Five. acd