MANILA – The Philippine government is maximizing the use of the Higher Education Development Fund (HEDF) to finance more tourism education programs in the country, including immersions for students and teachers.

The Department of Tourism (DOT), its infrastructure arm, Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and the Commission on Higher Education (CHED), signed on March 24 a Joint Administrative Order (JAO) establishing the guidelines to ensure transparency in the HEDF utilization.

Under Section 10 of Republic Act 7722 or the Higher Education Act of 1994, the government will contribute to the HEDF from the 40 percent annual share on the total gross collections of the travel tax; 30 percent annual share of the collections from the professional registration fee; and 1 percent of the gross sale of the lotto operation of the Philippine Charity Sweepstakes Office.

TIEZA’s HEDF contribution, meanwhile, is only retained provided that tourism-related educational programs and courses are given priority by the CHED.

With the new JAO, the DOT said the three agencies will utilize the HEDF and prioritize the construction or improvement of facilities and/or demo laboratories 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; and support for start-up/incubation centers.

The JAO will also outline funding for research and development for enhancement of tourism-related programs and courses; and support to tourism education-related programs to be implemented in partnership with the DOT and Higher Education Institutions (HEIs).

In her speech during the ceremonial signing, Tourism Secretary Christina Frasco said that under the Marcos administration, the mandate of the DOT is not just to promote but to develop tourism.

“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,” she said.

Frasco said this investment in 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,” she said.

“With meaningful engagement with our stakeholders, particularly in the private sector, it is critical to bridge gaps."

The DOT, she said, will sustain a continuous conversation with the private sector to ensure that tourism education is always up to date with local trends.

CHED Chairperson J. Prospero De Vera III, for his part, lauded Frasco for being proactive in working alongside the institution to elevate the quality of education.

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,” 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."

Through this JAO, de Vera said CHED 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 said.

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

TIEZA assistant chief operating officer (COO) Karen Mae Sarinas-Baydo said TIEZA has remitted PHP17.3 billion to CHED over the past 10 years.

“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,” she said.

“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."

The DOT, TIEZA, and CHED signed the JAO during a ceremony at the National Museum of Natural History in Manila. (PNA)