Tourism Secretary Christina Frasco said on Wednesday that lawmakers should decide whether to abolish the country’s travel tax, while cautioning that removing the levy without a replacement source of funding could weaken tourism infrastructure development.
Speaking at Kapihan sa Manila Bay, Frasco noted that the travel tax was created under the Tourism Act of 2009 and that its repeal or retention ultimately lies with Congress of the Philippines. Her remarks came after House Majority Leader Sandro Marcos filed a bill seeking to stop the collection of the tax.
While respecting Congress’ authority, Frasco emphasized that tourism projects still require steady government funding. She explained that travel tax revenues currently support key initiatives: 50 percent goes to tourism infrastructure such as visitor centers and jetty ports, around 40 percent funds tourism education through the Commission on Higher Education, and 10 percent is allocated to the preservation of heritage structures.
Frasco also pointed out that there is no budget allocated for new tourism roads in 2026, prompting the Department of Tourism (DOT) to seek funding support in future budget cycles.
Beyond funding concerns, Frasco said the DOT is pursuing incentive programs and improved air connectivity to boost travel demand. This includes negotiations to reinstate the “Be My Guest” program for balikbayans, which previously enabled overseas Filipinos to invite foreign visitors, as well as continued coordination with international airlines to expand routes to Manila and Cebu.
She added that the DOT is working closely with the Department of Foreign Affairs and overseas tourism offices to address increasing travel advisories against the Philippines, assuring foreign partners of government efforts on safety and security.
Frasco also flagged misinformation as a major challenge for the tourism sector, warning that false or exaggerated claims about safety can hurt the country’s image. To address this, the DOT has pushed for airfare transparency and expanded training programs, including the Filipino Brand of Service Excellence and tourism skills development initiatives.
“These efforts are meant to sustain tourism growth while addressing funding, security, and perception challenges,” Frasco said.
