Airline exec: Scrap, reduce travel tax to spur tourism

MANILA, Philippines — Scrapping the travel tax — or at least halving it and applying it to foreigners as well—may help stimulate the local tourism sector as it reels from the impact of the 2019 coronavirus disease (COVID-19) outbreak, an airline industry leader told lawmakers on Wednesday.

“Our first position is it should be abolished,” said Roberto Lim, vice chair of the Air Carriers Association of the Philippines, referring to the tax which amounts to P1,620 for an economy class passenger and P2,700 for a first-class flyer.

“Or maybe it can be reduced to a smaller amount, maybe half,” he added.

The tax is imposed only on Filipino citizens, as well as permanent and nonimmigrant residents, who are departing the Philippines.

At a House hearing, Lim cited research showing a positive correlation between removing the tax and increasing tourism traffic.

Civil Aeronautics Board executive Carmelo Arvilla said the travel ban because of COVID-19 has resulted in a steep decline in flight traffic.

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