Senator Erwin Tulfo on Monday said the collection and use of the country’s travel tax should be closely examined, even as proposals to abolish the levy gain traction in the Senate and Malacañang.

Speaking in an exclusive interview on DZRH’s Dos Por Dos, Tulfo — who chairs the Senate Committee on Foreign Relations — said a hearing on pending bills seeking to remove the travel tax is expected to be scheduled by the Senate Committee on Tourism.

Tulfo noted that aside from his measure, Senator Juan Miguel “Migz” Zubiri has also filed a similar bill. He said the committee, which he believes is chaired by Senator JV Ejercito, will consolidate the proposals and study their features.

“I heard within the next few weeks, Magkakaroon na ng hearing ang Committee on Tourism under kay Sen. JV ata 'yan if I'm not mistaken,” Tulfo said, adding that the proposal has also been included in the President’s priority legislative agenda.

However, he expressed doubt that the measure could be passed before the Senate adjourns in March.

“Ang tandaan natin, 'yung isang bill, 'pag it involves money, magpopondo ang gobyerno, medyo hindi lumulusot 'yan. 'Yan ang technique 'yan. Pero kung 'yung mga kagayan 'yan, ang problema nga lang dyan, medyo papalag dyan ang Department of Finance dahil mababawasan ang kanilang kita.”

Tulfo acknowledged that the Department of Finance (DOF) may oppose the repeal due to the potential loss of revenue. Still, he argued that more Filipinos would benefit from lower travel costs if the tax is removed.

Currently, outbound Filipino travelers pay a travel tax of P1,620 for economy class tickets, with higher rates for first-class passengers.

Call for audit

Tulfo said lawmakers are also questioning where travel tax collections have gone over the years.

“Pinagpopondo natin yan, dapat yung travel tax yan, ang purpose talaga niya ay para pumunta sa mga ika nga tourism infrastructure, yung mga lugar na pinupuntahan ng mga turista tulad ng mga ika nga public toilet, transportation, terminal,” the senator said.

“Pero medyo nagtataas ng kilay ng ilang mga mambabatas na naghahanap saan ba napupunta talaga,” he added.

Tulfo further said any deliberation on the repeal should include a review or audit of past collections.

“That should definitely be included. We need to find out where the money went through the years. The travel tax has been there for decades, but we don’t see significant improvements in many tourist destinations,” Tulfo said.

Impact on travelers and tourism

Tulfo admitted that removing the travel tax would primarily benefit Filipinos traveling abroad, as domestic travelers do not pay the levy.

“Yung mga promo-promo na sinasabi ng mga eroplano na ang babayaran mo ay one thousand pesos, [pero] nasa 10,000 kasi may mga travel tax, may mga kung ano-anong tax. Doon na pupunta lahat yun,” he said.

He added that easing the cost of overseas travel would give more Filipinos the opportunity to see other countries and experience different cultures.

At the same time, Tulfo acknowledged longstanding issues affecting domestic tourism, particularly high airfare costs to local destinations.

He pointed out that flights to some Philippine tourist spots can be more expensive than trips to nearby foreign destinations such as Hong Kong or Vietnam.

“Eh ba't ka pa pupunta doon sa local destination kung mas mura doon sa ibang bansa?” he said.

Tulfo cited information from the Department of Tourism and the Department of Transportation that some domestic flights operate with low passenger loads on return trips, prompting airlines to raise fares to cover costs. In some areas, flights have even been discontinued due to low demand.

He said the government may consider redirecting funds to improve airports and runways in key tourist areas and strengthen promotional efforts for local destinations, possibly in partnership with local government units.

“Kung tourism na siguro, promotion, kailangan na talagang bigyan pansin ng Department of Tourism natin ang promotion sa local tourism kasi yun na nga, wala masyado mga kababayan natin,” Tulfo said, noting that many Filipinos now prefer destinations accessible by land due to the high cost of airfare.

As discussions on the proposed repeal move forward, Tulfo maintained that transparency in the use of travel tax funds and broader reforms in the tourism sector should go hand in hand.