MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (Tieza) has asked lawmakers for a transition period before abolishing the travel tax, saying the levy provides most of the agency’s funding for tourism infrastructure projects.
Tieza Chief Operating Officer Mark Lapid made the request Monday during the Department of Tourism’s budget hearing before the Senate finance subcommittee.
Lapid said travel tax collections provide 94% to 95% of Tieza’s operating funds, making the levy a major source of financing for its programs.
He said half of the travel tax collections, or about P4.03 billion, funds Tieza-initiated projects, while the Commission on Higher Education and the National Commission for Culture and the Arts receive the other half.
Travel tax funds tourism projects
Lapid said Tieza uses the funds for projects that include improving water quality in El Nido, constructing a sewage treatment plant in Coron, and rehabilitating 10 domestic airports.
The agency also funds the rehabilitation of a sewage treatment plant in Baguio, Lapid said.
Tieza also oversees the restoration of at least four historic hotels and landmark properties and the revitalization of the Club Intramuros Golf Course and Zamboanga Golf Course.
Tieza seeks replacement funding
Lapid said the Department of Budget and Management did not allocate funding for Tieza’s projects in fiscal year 2027, making it more difficult for the agency to sustain its infrastructure programs.
He clarified that Tieza does not oppose abolishing the travel tax but wants the government to provide an alternative source of funding before removing the levy.
Lapid said the lack of replacement funding could affect Tieza and the broader tourism industry because the agency relies on travel tax collections to support tourism infrastructure.
He asked lawmakers to extend the travel tax while the government determines a replacement funding source.
Sen. Erwin Tulfo, vice chair of the Senate finance panel, said the committee would examine Tieza’s funding concerns and coordinate with the Department of Budget and Management on the lack of funds for tourism infrastructure.
