DOT, TIEZA, CHED collaborate to use HEDF to boost tourism-related courses

The Department of Tourism (DOT), its infrastructure arm, Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and the Commission on Higher Education (CHED), signed a Joint Administrative Order (JAO) that establishes guidelines to ensure efficient and proper execution of the laws, and transparency in the utilization of the Higher Education Development Fund (HEDF).

The ceremonial signing was led by Tourism Secretary Christina Garcia Frasco, Assistant Chief Operating Officer Karen Mae Sarinas-Baydo representing TIEZA Chief Operating Officer Mark Lapid, and CHED Chairperson J. Prospero De Vera III held at the National Museum of Natural History in the City of Manila.

Under Section 10 of Republic Act 7722 or the Higher Education Act of 1994, the law states that the continuing government’s contribution to the HEDF shall be taken from the 40% annual share on the total gross collections of the travel tax; 30% annual share of the collections from the Professional Registration Fee; and 1% of the gross sale of the lotto operation of the Philippine Charity Sweepstakes Office.

Further, Section 73 of the Republic Act 9593 or the Tourism Act of 2009, states that the contribution to the HEDF equivalent to forty percent (40%) from the total gross collections of the travel tax shall be retained, provided that tourism-related educational programs and courses is given priority by the CHED.

The newly signed JAO outlines how these funds will be utilized to advance tourism education and development. Priority areas for funding include: the construction, or improvement of facilities and/or demo labs for tourism and hospitality-related courses including the purchase of industry-grade equipment to support the facility; funding for industry immersion program and career development for teachers and students; support for technology innovations or digitalization in tourism and hospitality programs; support for start-up/incubation centers on tourism and hospitality; research and development for enhancement of tourism-related programs and courses; and support to tourism education-related programs and education tourism programs to be implemented in partnership with the DOT and Higher Education Institutions (HEIs).

In her speech during the ceremonial signing of the JAO, Secretary Frasco emphasized that, under the Marcos Administration, the mandate of the DOT is not just to promote but to develop tourism.

The tourism chief also reflected on the early steps taken to make the convergence effort possible. “At the onset of the Marcos Administration, when I was newly appointed Secretary as early as August of 2022, I wrote a formal communication to chair De Vera of CHED to request a utilization report of the funding that they had received from TIEZA and to determine whether the funds were used for tourism education. This conversation has stood for a couple of years, and it has since seen fruition with the signing of the Joint Administrative Order today.  It is our sincere hope that by way of instituting, clear, fair, as well as stakeholder-driven programs under the JAO, the funds that our fellow Filipinos pay in travel taxes are devoted in full to education programs that will further expand opportunities for young people to join the tourism industry and expand economic opportunities from our local destinations, who will inevitably benefit from a tourism workforce that is well educated, well capacitated and world-class in terms of skills,” she said.

As a former educator herself, who once taught international law before being hand-picked as secretary of tourism, the tourism chief said she felt a “deep sense of joy and gratitude” in the signing of the JAO.

“The investment that our national government is making in our students underscores the seriousness of the Marcos administration’s commitment to tourism education. This extends beyond new scholarships, for it encompasses groundbreaking research, targeted faculty development, and collaborative educational programs that directly align with the evolving demands of the global tourism landscape. With meaningful engagement with our stakeholders, particularly in the private sector, it is critical to bridge gaps. And so, we fully intend to have a continuous conversation with the private sector to ensure that tourism education is always up to date with local trends, and can increase the effectiveness of our tourism workers,” she noted.

CHED Chairperson De Vera lauded the leadership of Secretary Frasco for being proactive in working alongside the institution to elevate the quality of education in the country.

He said it was only during this administration that CHED and DOT sat down together for talks which translated into the JAO on the guidelines on the utilization of HEDF.

“I was talking to Secretary Frasco earlier, and she said, ‘This is history’ because, for the first time, the three agencies are talking to each other seriously. They tried in the past to reach out, but it never got very far. So, I thank Secretary Frasco and TIEZA for agreeing to sit down and put together a system that will ensure transparency and accountability,” he said.

“Now that we have clear guidelines and basis to provide support for higher education institutions, for the establishment of their facilities, the modernization of the equipment, the improvement of their curriculum, the development of their resources, we can now say that we can continue to produce graduates that match the standards and demands of the tourism and hospitality industry here and all over the world. We will also be able to provide more grants for research and development for the enhancement of tourism-related programs and courses. We can send more faculty members to top tourism universities and institutions abroad for upskilling and reskilling programs as instructed by the President so that our faculty members are addressed and upskilled as far as tourism promotion is concerned,” he noted.

He added that with the signing of the JAO, more tourism and hospitality development programs will be prioritized in the future.

For their part, TIEZA Assistant Chief Operating Officer (COO) Karen Mae Sarinas-Baydo, shared that over the past 10 years, the DOT’s infrastructure arm has remitted PHP17.3 billion to CHED.

“Our combined efforts will ensure that every peso from the Travel Tax goes to funding innovative programs while creating industry-immersion opportunities and capacity-building initiatives to develop future tourism professionals and leaders. So, by prioritizing tourism education, we are investing in our nation’s most valuable asset, its people, and setting a solid foundation for the sustainable growth and the future of Philippine tourism,” she said.

Delivering a statement of support at the event, Baguio City Representative Mark Go, chairperson of the House Committee on Higher Education, described the ceremony as more than just a formal act but a commitment to an impactful utilization of higher education.

“This one represents our dedication to investing in quality education, fostering innovation, and supporting research, and ensuring that our students, faculty, and institutions have the necessary resources to excel. It’s a symbol of our unwavering belief and commitment that education is the key to national development and global competitiveness. With this agreement, we reinforce principles of transparency, accountability, and efficiency in managing the fund. We ensure that every message directed to our programs and initiatives that will uplift the quality of higher education address rising challenges, particularly of the tourism industry and open new opportunities for learners across the country,” he said.