Philippines tourism department backs airport fee cuts for airlines

Philippines tourism department backs airport fee cuts for airlines
Tourism backs airport fee cuts

The Philippine tourism sector is pushing for lower air travel costs as passenger service charges at major airports have risen sharply. The Department of Tourism says it is coordinating with transport authorities and industry groups to support a waiver or reduction of terminal fees, while also seeking more flight options to provincial destinations.

Highlights

  • Department of Tourism supports reducing or waiving increased terminal fees, which rose to P950 for international and P390 for domestic travelers, to lower ticket costs.
  • Department of Tourism forecasts 6.7 million tourist arrivals in 2024, reflecting a 3% increase even as higher airport fees may pressure inbound traffic.
  • Tourism officials advocate restoring turboprop flights at Ninoy Aquino International Airport after March 29 suspension as current transfers to Clark drive up domestic travel costs.

Government talks on terminal fee relief

As reported by BusinessWorld Online, the Department of Tourism supports an airline industry proposal to waive or reduce airport terminal fees to help bring down ticket prices. Tourism Secretary Maria Bernardita Angara-Mathay said last week that the agency has been discussing the matter with the Department of Transportation and the Civil Aeronautics Board.

Angara-Mathay said the government is being asked to provide more incentives and trim regulatory charges to help businesses cope. The Air Carriers Association of the Philippines, which represents major commercial airlines, has asked the Department of Transportation to waive or lower airport fees at key gateways such as Ninoy Aquino International Airport.

Passenger service charges, also known as terminal fees, have increased to P950 from P550 for international passengers and to P390 from P200 for domestic travelers. The Department of Tourism expects 6.7 million tourist arrivals this year, which would represent a 3% increase.

Broader impact on domestic connectivity

Tourism officials are also backing efforts to restore turboprop flights at Ninoy Aquino International Airport to improve access to provincial destinations. Angara-Mathay said the return of these flights would give travelers more transport options and ease travel difficulties.

All commercial scheduled turboprop flights from NAIA were discontinued on March 29 as part of efforts to decongest the airport and prioritize larger jets. Many of those services were transferred to Clark, a change that the tourism department suggests has made travel more expensive and added friction for domestic passengers.

Our earlier coverage on the Philippines expanding access to Malaysia’s halal market explained how PhilUlama’s recognition by Malaysia’s JAKIM became the fourth Philippine-based certifier accepted for exports to Malaysia. We noted that a broader pool of recognized certifiers can improve service availability for exporters and support the country’s wider strategy to grow halal-linked trade, tourism, and investment beyond religious compliance.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.