Philippine Travel Tax Repeal Could Leave Tourism Funding Gap

A proposal to repeal the Philippines' travel tax could make international trips cheaper for Filipinos, but it threatens to strip the country's tourism infrastructure agency of its primary revenue stream. The tax, currently levied on citizens and residents departing the country, funds the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), which develops and maintains tourism facilities nationwide. Under the proposed 2027 national budget, no replacement funding has been allocated, raising concerns about a significant shortfall. Lawmakers backing the repeal argue it will ease the financial burden on travelers and boost outbound tourism, but critics warn that without an alternative source, TIEZA's projects—from airports to tourist roads—may stall. The debate highlights a tension between consumer relief and sustainable tourism development. If the repeal passes without a funding mechanism, the Philippines could see a slowdown in tourism infrastructure improvements just as international arrivals are recovering. The coming budget deliberations will be crucial in determining whether the sector can maintain its momentum.