The Department of Tourism (DOT) on Monday said it has terminated its contract with the advertising agency, DDB Philippines due to its "failure to comply" with the obligations stated under the signed contract and for "direct contravention" to DOT's objectives for the enhanced tourism branding.

In a statement, DOT said the terms under the tourism branding campaign contract have clearly specified that all materials for the 'Love The Philippines' tourism campaign video must be "original" and "aligned" with the department's advocacies.

"As DDB Philippines has publicly apologized, taken full responsibility, and admitted in no uncertain terms, that non-original materials were used in their AVP, reflecting an abject failure to comply with their obligation/s under the contract and a direct contravention with the DOT’s objectives for the enhanced tourism branding, the DOT hereby exercises its right to proceed with termination proceedings against its contract with DDB," it said.

The statement was released after DDB Philippines admitted using stock footage of other countries in the campaign tourism video and apologized for the act.

The tourism department reiterated that no public funds were paid to the advertising agency.

"The DOT shall exercise its right to forfeit performance security as a result of default in obligations under the contract, as well to review standards of performance or lack thereof vis-a-vis any claims for payment and/or any other engagement," it said.

The tourism department said it will take other action against "inimical acts" that will go against the country's tourism interest.