Tourism agency warns of infrastructure risks from travel tax removal

The Tourism Infrastructure and Enterprise Zone Authority (Tieza) has urged the government to implement a transition period before eliminating travel taxes, citing concerns about the impact on tourism development projects nationwide.

Tieza Chief Operating Officer Mark Lapid raised the concerns during the Department of Tourism's budget deliberations before the Senate finance subcommittee on Monday. The agency emphasized that travel-related levies form a substantial revenue source for funding tourism infrastructure initiatives across the country.

The request comes as lawmakers consider proposals to abolish or reduce travel taxes as part of broader efforts to boost the tourism sector and enhance the Philippines' competitiveness as a travel destination. However, Tieza has warned that the immediate removal of these revenue streams could compromise ongoing and planned infrastructure development projects.

The agency's position highlights a key tension in tourism policy: balancing efforts to make travel more affordable and attractive to visitors against the need to maintain adequate funding for the airports, roads, facilities, and other infrastructure that underpin the sector's growth. Officials did not specify the duration of the proposed transition period or alternative funding mechanisms being considered.