Philippine Tourism Department Backs Airline Bid to Waive or Lower Airport Terminal Fees
Key Takeaways
- •The Philippine Department of Tourism supports an airline-led request to waive or reduce airport terminal fees at major gateways, including NAIA.
- •Passenger service charges have climbed to P950 from P550 for international travelers, a roughly 73% rise, and to P390 from P200 for domestic travelers, nearly double the previous rate.
- •The Air Carriers Association of the Philippines has petitioned the Department of Transportation, while the DoT has discussed the request with the DoTr and the Civil Aeronautics Board.
- •The DoT expects 6.7 million tourist arrivals this year, which would represent a 3% increase if achieved.
- •All commercial scheduled turboprop flights out of NAIA were discontinued on March 29 to decongest the gateway, with many services relocated to Clark, and officials are now working to restore them.
The Philippine Department of Tourism (DoT) has expressed support for an airline-led initiative to waive or reduce airport terminal fees, citing the need to lower the cost of air travel.
Tourism Secretary Maria Bernarditaara-Mathay told reporters last week that the department has discussed the proposed waiver with other government authorities, including the Department of Transportation (DoTr) and the Civil Aeronautics Board.
“We’ve been talking to them,” she said. “We’re going to give the big businesses voices, put in a united request, for the government authorities to help the businesses survive by giving more incentives and cutting out regulatory fees.”
The Air Carriers Association of the Philippines, the organization of major commercial airlines, has asked the DoTr to waive or lower airport fees at major gateways such as the Ninoy Aquino International Airport (NAIA), the country’s main gateway.
The appeal follows a sharp increase in passenger service charges, also known as terminal fees, which are paid by travelers. The charges have jumped to P950 from P550 for international guests — a rise of roughly 73% — and to P390 from P200 for domestic travelers, nearly double the previous rate.
The fee-reduction push comes as the DoT expects tourist arrivals of 6.7 million this year, which would represent a 3% increase if borne out.
In a separate move, the DoTr is also looking to restore turboprop flights at NAIA to ensure more transport options to provincial destinations. Turboprops are propeller-driven aircraft commonly used on shorter routes.
“We’re working to bring back the turboprops to NAIA because it’s hard to travel,” Ms. Angara-Mathay said.
All commercial scheduled turboprop flights out of NAIA were discontinued on March 29 to help decongest the main gateway and prioritize larger jets, with many turboprop services relocated to Clark.
“I hope they see that our own people who want to travel, cannot travel because you have made it more expensive and put more friction into aspirational travel,” Ms. Angara-Mathay said.
The next steps to watch are whether the DoTr and the Civil Aeronautics Board act on the fee request, and whether turboprop service returns to NAIA.
— Beatriz Marie D. Cruz, BusinessWorld
