Daily TribuneBecause of this split, profit margins often become too thin unless a concert is nearly fully sold out. Industry insiders describe this as a high-risk scenario for promoters, which can lead to international tours deprioritizing Manila in favor of other cities in Southeast Asia.
HIGH local tax rates are heavily impacting the Philippine concert scene, causing ticket prices to skyrocket and major artists to skip Manila.
PHOTOGRAPH by sheila figueroa for DAILY TRIBUNE
Interest in BTS’ anticipated return to the Philippines has sparked renewed discussion on concert pricing, with Filipino ARMYs noting that ticket costs in Manila are higher compared to several neighboring markets in Asia.
A cross-country comparison of BTS tour stops in the region shows that fans in the Philippines are paying among the highest rates, especially for premium tiers.
In the Philippines, VIP tickets are priced at P25,000, while Tier 1 seats cost P20,000, Tier 2 tickets are sold for P13,500, and Tier 3 seats are available for P7,500. When converted to Philippine pesos, VIP tickets in neighboring countries are generally cheaper.
Tax it is
Fans have observed a growing trend of major K-pop and Western acts skipping the Philippines in favor of other tour stops. BigBang’s highly anticipated comeback tour, for instance, will not include a Manila stop. Similarly, Sandara Park, often dubbed the “Pambansang Krung Krung,” has confirmed that her comeback fan concert will also not be held in the Philippines, much to the disappointment of local fans. The Weeknd has also skipped the Philippines for his After Hours Til Dawn Tour.
This may be linked by industry observers and fans to the country’s tax structure, particularly the 30 percent amusement tax imposed on gross ticket sales. After it is deducted from gross revenues, only about 70 percent of ticket sales remain before other major costs are accounted for. This remaining amount is then divided among multiple stakeholders, including artists, agencies, production teams, and both international and local promoters.
Because of this split, profit margins often become too thin unless a concert is nearly fully sold out. Industry insiders describe this as a high-risk scenario for promoters, which can lead to international tours deprioritizing Manila in favor of other cities in Southeast Asia.
In contrast, Bangkok operates under a different tax system, typically applying a seven percent VAT without a comparable amusement tax on gross ticket sales, according to www.siam-legal.com. This allows approximately 93 percent of ticket revenue to remain before expenses are distributed across stakeholders. The wider margin is seen as a key factor in why more large-scale tours are staged in Thailand.
For example, on a hypothetical P100 million gross ticket sale, a Manila-based event would immediately lose P30 million to taxes, leaving P70 million to cover all remaining costs and revenue shares. In Bangkok, the same show would incur about P7 million in tax, leaving roughly P93 million for distribution.
Beyond taxes and talent fees, promoters also shoulder additional operational costs such as venue rental, security, logistics, marketing, equipment imports and production expenses. These layered costs further tighten margins in markets with higher upfront taxation.
Industry stakeholders argue that unless shows are nearly guaranteed sellouts — typically 90 to 100 percent capacity — the financial risk in Manila remains significant. This has contributed to a growing perception of the city being skipped in favor of more financially favorable destinations such as Bangkok, Singapore, Jakarta, and Kuala Lumpur.
So, the issue is not the lack of interest from artists, but rather our country’s tax system. Your favorite artists are not ignoring you; it is the Philippine tax system. And where does the revenue ultimately goes? We all know where.
