PHILIPPINE operators are cheering after the lifting of air safety concerns on the country by the International Civil Aviation Organization (ICAO) and the scrapping of the common carrier tax (CCT), both of which have vastly affected longhaul market growth.
For three years, the ICAO ban has been curtailing tour/beach programmes in the Philippines as its no-insurance cover on domestic flights keeps the big European tour operators at bay.
Marsman Drysdale Travel’s director of tourism services, Eleanor Ng, said: “European tour operators were most affected by the ban since it limited their programme to only one location, say, Luzon, and deterred them from combining it with a beach – Boracay, Cebu, Bohol – which meant flying domestically.
“I expect the combinations to start again, at least for the next winter season.”
Josefina Baena, general manager at New Era Travel & Tours, said: “We look forward to receiving more European passengers, who are long-stay visitors.”
John Paul Cabalza, executive vice president of the Philippine Travel Agencies Association (PTAA), said: “We hope (the lifting of security concerns) will act as a magnet for carriers to come to the Philippines.”
Philippine president Benigno Aquino III today also signed into law the rationalisation of carrier taxes, which have cost the Philippines direct European flights. The CCT together with the gross Philippine billings tax, result in foreign carriers being more heavily penalised than local ones.
PTAA’s outgoing president, Aileen Clemente, earlier noted that at least seven foreign airlines had expressed interest in flying to the Philippines should both taxes be removed.
Marciano Ragaza, president of Travel Enterprise, said: “Passing ICAO’s safety audit would mean a lot more if these airline taxes are removed and our airports rationalised.”
– Read more in the TTG Show Daily – ITB Berlin
Additional reporting by Marianne Carandang
