Travel tax abolition could hurt tourism infra – Tieza

MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (Tieza) on Monday sought a transition period before travel taxes are abolished, saying the levy funds the majority of tourism-related infrastructure.

Tieza Chief Operating Officer Mark Lapid made the request during the Department of Tourism’s budget hearing before the Senate finance subcommittee.

“Regarding the issue of travel tax, definitely we will be deeply affected because 94 percent to 95 percent of our operation is coming from travel tax… We humbly request that maybe we can first have a transition period for the travel tax,” Lapid told the panel.

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He explained that half of the collected travel tax, or around P4.03 billion, funds Tieza-initiated projects, while the other half goes to the Commission on Higher Education and the National Commission for Culture and the Arts.

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According to Lapid, Tieza’s main projects include addressing water quality in El Nido, constructing a sewage plant in Coron, and rehabilitating 10 domestic airports and the sewage treatment plant in Baguio.

READ: Travel tax abolition bill hurdles House

Tieza is also in charge of restoring at least four historical hotels and landmark properties, as well as revitalizing the Club Intramuros Golf Course and Zamboanga Golf Course.

Lapid lamented that the Department of Budget and Management did not allocate funding for Tieza’s projects in fiscal year 2027, making it more difficult for the agency to continue its projects.

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However, he clarified that Tieza is not against the abolition of the travel tax and is instead requesting a budget allocation.

“We don’t object with any notion of the abolition but as of now, with the current fiscal situation, our agency will have a little difficulty not only us but also the tourism industry when it comes to the infra support, maybe there will be a little consideration to expand it,” Lapid said.

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“We humbly seek requesting that perhaps there be an extension while there is no money to replace the travel tax,” he added.

Finance panel vice chair Sen. Erwin Tulfo vowed that the committee will look into Tieza’s dilemma, saying it would sit down with DBM to address the lack of funds for tourism infrastructure. /mcm