TIEZA Chief Says Travel Tax Is a Standard Practice Across Asia

As the necessity for travel tax in the Philippines remains to be in question, Mark T. Lapid, Chief Operating Officer of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), noted that it's standard practice across Asia and the Pacific. They're just called by other names, he said, as governments increasingly utilize these fees to fund the infrastructure that keeps their tourism sectors competitive.

While the Philippines specifically labels its P1,620 (economy) and P2,700 (first class) charges as a "travel tax," neighboring nations use a variety of terms for similar collections. Australia charges A$60 as Passenger Movement Charge on all departing passengers, Japan has the International Tourist Tax of JPY 1,000 (rising to JPY 3,000 in July), Cambodia has a departure fee of US$25 already included in ticket, Bali (Indonesia) has the Mandatory Tourist Levy of IDR 150,000, and Thailand has the Foreign Entry Fee of 300 Baht (effective February 2026).

In the Philippines, overseas Filipino workers, students on government scholarships, and infants are exempted from paying the travel tax.

ALSO READ: The House Voted to Abolish the Travel Tax, But There's a Trade-off

TIEZA is a government-owned and -controlled corporation (GOCC) that oversees the creation of tourism enterprise zones. It utilizes these funds for critical infrastructure that the private sector may not cover.

Key projects funded by the levy include sanitation and utilities, such as drainage and clean water systems in Boracay and Coron; heritage preservation, especially in restoring earthquake-damaged historic churches in Cebu and Ilocos; and safety, specifically the provision of hyperbaric chambers for divers in Malapascua, Coron, and Negros Oriental. TIEZA funds also supported the national vaccination program and recent international sporting events like the Philippine Women’s Open.

President Ferdinand R. Marcos Jr. has signaled support for the abolition of the travel tax to reduce the financial burden on Filipino travelers. Legislative proposals in both the House and Senate suggest shifting the funding for tourism projects to the General Appropriations Act (GAA).

However, industry insiders express concern that relying on the annual national budget could hamper "fiscal flexibility." Currently, TIEZA can respond rapidly to emergencies or funding shortfalls—a speed that might be lost if every project must wait for a yearly legislative cycle.

Tourism Secretary Christina Garcia Frasco has maintained a diplomatic stance, stating that the Department of Tourism (DOT) respects the "wisdom of the President" and the legislative process, as the tax is a creation of law.

Still, the tax does not appear to be a deterrent for Filipino travelers. Despite the fees, outbound travel surged by 11.6 percent in 2025, with 7.65 million Filipinos heading abroad—significantly outnumbering the 5.9 million foreign tourists who visited the Philippines in the same period.

TIEZA is targeting to collect P9 billion in travel taxes for 2026. Of these funds, 50 percent is earmarked for TIEZA operations, while 40 percent supports the Commission on Higher Education (CHED) and 10 percent goes to the National Commission for Culture and the Arts (NCCA).

ALSO READ:

Visa Applications Surge as More Filipinos Travel Abroad

Philippine Tourism Is Still Stalling Below Pre-Pandemic Peaks