GTBA urges travel tax reform, rejects abolition

The Global Tourism Business Association (GTBA) is calling for reforms to the Philippine travel tax instead of its outright abolition, proposing a lower rate and additional exemptions for certain travelers.

GTBA President Michelle Taylan said the organization is proposing a uniform P500 travel tax, down from the current P1,620 economy-class rate and P2,700 first-class rate.

The group also called for full exemptions for senior citizens, persons with disabilities and students, while retaining existing exemptions for overseas Filipino workers and other legally covered groups.

GTBA further proposed quarterly public reports detailing the collection and use of travel tax revenues.

Taylan said the tax generates an estimated P4 billion to P5 billion annually, which she said should continue to support tourism infrastructure, education, culture and communities.

“We ask every lawmaker and every Filipino: before we say ‘remove it,’ let us ask — what are we removing? We are removing P4 billion to P5 billion annually that by law belongs to our tourism infrastructure, our students, our culture, and our communities,” Taylan said.

Under the group’s proposal, travel tax revenues would continue to support programs implemented by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Commission on Higher Education (CHED), and cultural agencies, including the National Commission for Culture and the Arts (NCCA).

GTBA also wants a portion of the funds directed toward domestic tourism through subsidized tour packages, more affordable travel to destinations across the country, community tourism programs and promotional campaigns targeting Filipino travelers.

“Let us not make it cheaper to see the world before our own children have seen their own home,” Taylan said.

The group said the travel tax is a lawful measure under Presidential Decree 1183 and the Tourism Act of 2009, arguing that reforms should focus on reducing the burden while ensuring transparency and continued support for tourism-related programs.

“We do not defend the amount — we defend the purpose,” Taylan said.