The Philippine Hotel Owners Association (PHOA) has expressed concern over a proposal to abolish the travel tax, warning that the move could hamper the continued recovery of the country’s tourism industry.
While the proposal would make traveling abroad cheaper for Filipinos, the group, representing the country’s leading hotels and resorts, said it might also divert spending away from local tourism businesses, Bilyonaryo News Channel reported.
The association said eliminating the travel tax could encourage more outbound travel to neighboring Southeast Asian destinations, potentially reducing revenues for a domestic tourism sector still regaining its footing after the pandemic.
“We should not be bodily subsidizing a ‘bon voyage’ at the expense of our own backyard,” the association said in a statement, urging lawmakers to “prioritize Philippine jobs over foreign spending.”
Departing Filipino travelers currently pay a travel tax of ₱1,620 for economy class and ₱2,700 for first-class tickets. The levy serves as a major source of funding for the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).
Portions of the collections are also allocated to the Commission on Higher Education and the National Commission for Culture and the Arts to support scholarship and cultural programs.
Abolishing travel tax
On Feb. 23, the House Committee on Tourism approved in principle a consolidated measure seeking to remove the travel tax, provided lawmakers establish a reliable alternative funding source for programs that currently depend on it.
Romblon Rep. Eleandro Jesus Madrona said the proposal would be referred to the House Committees on Ways and Means and Appropriations for further review, particularly on how to offset the revenue that would be lost if the tax is scrapped.
The measure consolidates several proposals, including House Bill 7443 filed by House Majority Leader Sandro Marcos, who has argued that the tax limits mobility and increases travel costs for ordinary Filipinos.
