The Philippine Hotel Owners Association (PHOA) has raised concerns over proposals to abolish the national travel tax, warning that the move could undermine the recovery of the domestic tourism sector.
The proposal is intended to reduce travel costs for outbound passengers. However, PHOA said removing the tax at this stage could shift policy focus towards overseas travel at a time when local tourism businesses continue to rebuild. The association said it supports measures that enhance competitiveness but urged policymakers to ensure that domestic tourism recovery remains a priority.
PHOA said the potential impact on hotels and related tourism enterprises could be significant, particularly if outbound travel increases at the expense of domestic and inbound demand. The group argues that current priorities should centre on strengthening inbound tourism and supporting local accommodation providers, resorts and tourism workers.
According to the association, eliminating the travel tax without a clear replacement mechanism could reduce funding support linked to tourism development and promotion. PHOA said any decision to abolish the tax should be accompanied by a comprehensive plan outlining alternative measures to sustain industry growth.
The group maintains that the timing of the proposal is critical, as many operators are still stabilising operations and rebuilding international demand. It has called for broader industry consultation before any legislative changes are implemented.
PHOA president Arthur M Lopez said: “We should not be subsidising a ‘bon voyage’ at the expense of our own backyard. Before we cut the cord, we need a dialogue that prioritises Philippine jobs over foreign spending.
“We should be focusing on inbound and not outbound tourism. We do not want to encourage overseas spending that boosts the economies of our neighbours. Instead, we should support our own hotels, resorts, and other tourism establishments and help our local workers.”
The association said it supports measures that enhance competitiveness but urged policymakers to ensure that domestic tourism recovery remains a priority.
