Tourism Infrastructure and Enterprise Zone Authority (TIEZA) chief operating officer Pocholo Joselito de Dios Paragas said the agency wants to remove the US$32.40 (P1,620) travel tax on Filipino tourists travelling abroad and instead collect a $20 tourist development fund from inbound foreign visitors.
The Philippine government wants to tax foreign tourists to raise funds for tourism infrastructure but the private sector and the government’s own tax research centre is cool to the idea.
Tourism Infrastructure and Enterprise Zone Authority (TIEZA) chief operating officer Pocholo Joselito de Dios Paragas said the agency wants to remove the US$32.40 (P1,620) travel tax on Filipino tourists travelling abroad and instead collect a $20 tourist development fund from inbound foreign visitors.
The proposed tourist development fund would be included in airfare tickets.
“The tourist development fund is a fund that we get from the tourists coming in and it would be same fund that will make their next trip better,” Paragas said.
TIEZA is the state agency under the Department of Tourism tasked to develop tourism infrastructure. It is also the collection agency for travel taxes.
But the private sector is cool to the proposal. “The Philippines is not yet in a position to impose this kind of a tax considering we are still struggling to compete with our neighbours for tourist arrivals,” says Jojo Clemente, president of Rajah Tours and the newly elected president of the Tourism Congress of the Philippines (TCP).
“The Philippines is perceived to be one of the more expensive destinations in the region. To add another layer of fees may further hinder our efforts to get more tourists here,” Clemente added.
Even the government’s tax think tank, the National Tax Research Centre (NTRC), is opposing the move.
“Its imposition…. may need further study given the negative effect it may pose to the tourism industry and the administrative difficulty in identifying those who travel purely for leisure and/or vacation purposes who are the real target of the proposed tax, and those who visit the country for medical treatment, official trip/mission or a potential business venture,” the NTRC said in a report.