Frasco leaves fate of travel tax to Congress, but warns of impact on tourism funding

Tourism Secretary Christina Frasco on Wednesday said she is leaving to lawmakers the decision on proposals to scrap the travel tax, even as she cautioned that removing the levy without a replacement funding mechanism could undermine tourism infrastructure development.

Speaking at Kapihan sa Manila Bay, Frasco noted that the travel tax was established under the Tourism Act of 2009 and that its future ultimately rests with Congress.

“I leave it to the wisdom of Congress,” she said, referring to calls to abolish the travel tax. 

Her statement followed the filing of a bill by House Majority Leader and Ilocos Norte 1st District Rep. Sandro Marcos seeking to stop the collection of the levy.

While respecting the legislative process, Frasco warned that scrapping the tax without a substitute fund could adversely affect the tourism sector.

“I will qualify, however, by saying that should they deem it necessary to remove the travel tax, we will continue to advocate that the government must fund tourism infrastructure,” she said.

Frasco explained that 50 percent of travel tax collections support tourism infrastructure such as tourist rest areas, visitor centers, and jetty ports.

About 40 percent of the tax funds tourism education through the Commission on Higher Education; and 10 percent are allocated for the preservation of heritage structures nationwide.

Frasco also highlighted funding gaps, noting that no budget has been allocated for new tourism roads in 2026, prompting the DOT to seek support in future budget cycles.

Balikbayan incentives, route development

Alongside funding concerns, Frasco said the DOT is pursuing incentive-based programs and air connectivity to stimulate travel demand.

The department is renegotiating the reinstatement of the Be My Guest program for balikbayans, which previously allowed overseas Filipinos to invite foreign visitors to the Philippines.

“We are currently renegotiating for the reinstitution of the Be My Guest program, which was able to attract over 10,000 sponsors—balikbayans who invited foreigners to come into the Philippines,” she said.

Frasco added that the DOT continues to work on route development with international airline partners, including maintaining and expanding flights with carriers such as United Airlines, as well as Middle Eastern and European airlines serving Manila and Cebu.

Travel alerts

Frasco said the DOT is also coordinating closely with the Department of Foreign Affairs (DFA) and tourism offices abroad to address travel advisories issued by foreign governments.

Travel alerts against the Philippines have increased from 31 to 34, prompting engagements with embassies and bilateral discussions during the ASEAN Tourism Forum.

“We’re actually working very closely with the DFA as well as our tourism agencies abroad,” Frasco said, adding that the government has provided assurances on safety and security measures.

While peace and order fall under the Department of the Interior and Local Government and the Philippine National Police, she emphasized that tourism development requires a “whole-of-government” approach.

As part of the DOT’s contribution, Frasco said more than 8,000 tourist police have been trained nationwide, including Korean-speaking officers deployed in key destinations in partnership with the Korean Embassy and the Korean Cultural Center. Korean-speaking agents are also available at the DOT’s Tourist Assistance Call Center.

'Misinformation'

Frasco identified misinformation as a growing challenge for Philippine tourism, noting that false claims about safety continue to circulate even after being debunked.

“One of the biggest challenges in Philippine tourism is misinformation,” she said, adding that inaccurate portrayals can negatively affect traveler perception.

She also said the DOT has pushed for greater airfare transparency, including publishing a market price index for domestic and international flights to prevent sudden price spikes and undisclosed add-ons by online travel agencies.

Frasco said the DOT continues to invest in human capital development to strengthen service quality and visitor safety.

Since 2022, more than 440,000 Filipinos have been trained under the Filipino Brand of Service Excellence program, while over 127,000 workers have received training under the Tourism Industry Skills Program in areas such as tour guiding, culinary arts, surf instruction, dive operations, and local goods production.

“These measures are aimed at sustaining tourism growth while addressing funding, security, and perception challenges facing the industry,” Frasco said.—MCG, GMA Integrated News