Philippines Tourism Leaders Urge Removal of Travel Tax to Boost Competitiveness

Philippines tourism leaders, including Department of Tourism DOT Secretary Christina Frasco and industry stakeholders, intensified calls on January 21, 2026, to remove the ₱1,620-₱2,700 travel tax on outbound Filipino travelers to enhance global competitiveness. In a Manila forum, Frasco put it on the legislators, but emphasized infrastructure backwardnesss, 69th of 117 countries, and other financing sources necessary to meet road needs and projects with 2026 budget cuts to ₱3 billion in tourism roads. The push aligns with ASEAN Tourism Agreement obligations and Senate Bill 424 by Alan Peter Cayetano, projecting ₱299 billion economic gains from boosted domestic spending and inbound tourism despite ₱4 billion revenue loss. As indicated by the numbers, DOT aims to have over 6.48 million visitors in 2025, and with the promotion and reduced barriers, exceeding that by 2026.

Travel Tax Structure Breakdown

Economy ( 1,620; business ( 2,700 since PD 1183 (1977), which funds TIEZA, CHED, NCCA. The seniors are referred to as PWDs, which is, by critics, discriminatory to the seniors.

Competitiveness Challenges Ahead

Philippines lags behind Vietnam in packages; Villar advocates budget raises on airports, runways. DOT envisions ASEAN phase- out regional mobility.

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