MANILA, Philippines - The tourism industry sees more foreign tourists coming to the country in 2013 with the passage of the measure removing taxes imposed on foreign carriers.
Aileen Clemente, Philippine Travel Agencies Association (PTAA) president and Tourism Congress member, said the removal of the common carriers tax would encourage more foreign airlines to fly back to the country and bring in more travelers.
“We are excited about the development because those airlines that have reduced flights or not flying anymore to the Philippines may be interested to fly in again,” Clemente told The STAR.
Clemente noted that the PTAA and other tourism stakeholders as well as the Department of Tourism (DOT) have long been pushing for the cancellation of the common carriers tax that has discouraged foreign airlines from flying into the country.
“We have seen the dwindling number of seats available to the Philippines, especially considering the fact that as an archipelago, we are only reachable by air, because of this onerous taxation,” she said.
But Clemente said the common carriers tax is just one of the many challenges facing the tourism industry, expressing hope that other problems such as the lack of hotel rooms and other tourism infrastructure would be addressed.
According to Clemente, the implementation of the National Tourism Development Plan (NTDP) would hopefully improve tourism infrastructure and airport facilities and address other problems affecting the tourism industry.
“As the government has claimed, we have found the sweet spot and we really have to make sure that we capitalize on the momentum as we cannot afford to miss out on this opportunity,” Clemente said.
Last Dec. 19, the Senate approved on third and final reading the proposed bill seeking to exempt international carriers and shippers from paying the three percent common carriers tax and the 2.5 percent gross Philippine billings tax on condition of reciprocity.
The House of Representatives approved a similar bill several months earlier. A bicameral committee will meet this year to reconcile the two versions.
Tourism Assistant Secretary Benito Bengzon said they expect to lure at least 5.5 million foreign tourists to the different destinations in the country in 2013 and as much as 10 million travelers by 2016.