Grab drivers need LTFRB nod as tourist transport franchise prior to DOT accreditation

Project details

By Ma. Stella F. Arnaldo @akosistellaBM Special to the BusinessMirror

THE Department of Tourism (DOT) will be “recalibrating” its project with ride-hailing platform Grab Philippines, to reflect the inputs of tourism stakeholders, after meeting with major associations on Tuesday.

T he 1.5-hour meeting at the DOT was presided by Undersecretary for Legal and Special Concerns Mae Elaine T. Bathan, and was attended by officers of the Tourism Congress of the Philippines, the Philippine Hotel Owners Association, Philippine Tour Operators Association, National Association of Independent Travel Agencies, Rajah Travel Corp., Pacific Asia Travel Association, and an assortment of travel agencies associations.

I n her opening remarks at the meeting, Bathan said of the GrabTours Manila project, “The ondemand tours are not new. Other countries are also doing that…” adding, “We also want to follow suit, and we want to digitalize our way forward and with this new mode of digital assistance that will be introduced, we wish our visitors to explore more conveniently what tourism providers are able to present using this innovative tourist services.”

P articipants in the meeting separately shared with the BusinessMirror that the DOT failed to fully address the issue of accrediting Grab partner-drivers/vehicles as tourist transport services. “Grab didn’t seem to understand what kind of accreditation is needed to bring tourists around.

T hey then said they had partner-drivers who will form a cooperative, which can be accredited by the DOT,” said a source who spoke on background.

Accreditation issue

IN a Viber message, Bathan explained, “Grab drivers will not be accredited. Grab will serve as a platform for a new business model that will connect tour operators and travel agencies, thereby widening their market segments.”

S eparately, DOT Assistant Secretary for Tourism Regulation Coordination and Resource Generation Ma. Rica Bueno said, “DOT accredits vehicles with LTFRB [Land Transportation Franchising and Regulatory Board] tourist transport franchise.”

She added, however, “DOT can’t accredit Grab in general because it doesn’t have a franchise as a tourist transport. However, drivers/vehicle owners can form a transport cooperative and apply for a tourist transport franchise with LTFRB.” She said the cooperative has to have a minimum of 10 vehicles, similarly to the regular tourist transport companies which seek DOT accreditation.

ACCORDING to TCP President Roberto Zozobrado, “The meeting went very well,” but the project will still be finalized. “They [DOT] will call a meeting again, this time, with all the tour operators and we’re going to build it up step by step.”

F or her part, Rajah Travel president Aileen Clemente said, “Let’s wait and see what final business model will be adopted.

In the final partnership, they have to make sure the accredited tourism enterprises will not be displaced.”

Z ozobrado said, DOT officials claimed the project with Grab “was from the start” going to include professional tour guides, and acknowledged their mistake in posting on their Facebook page that the ride-hailing app’s partner-drivers will double as tour guides as well. This paper’s source, however, said Grab presented such a model because that was DOT’s parameters for the partnership. (See, “‘DOT invited Angkas for tour guide tieup,’” in the BusinessMirror , June 9, 2023.)

T he TCP official added, there will be no more pickups from hotels as earlier announced by the DOT in a news statement. “But if the tourist takes a Grab car and at the last minute wants to go on any tour, then the driver will offer the Grab app, and in the app, it will show the [accredited] tour operators. One click on the tour operator, then there’s a whole list of tour packages being offered. If the guest wants the tour right away, all the Grab driver has to do is deliver to wherever the tour will start. The pickup point will be decided by the tour operators.” (See, “DOT now says Grab project includes pro tour guides,” in the BusinessMirror , June 13, 2023.)