Where Does Your P1,620 Actually Go? The Real Breakdown of the Philippine Travel Tax

For most Filipinos, an international trip comes with a mandatory P1,620 travel tax for economy passengers. While there is recent talk in the Senate about removing this extra fee for those on a budget, the Department of Tourism (DOT) says the money is currently used to fund projects across the country.

Breakdown of the 50-40-10 travel tax allocation

^{Image credit: Canva Pro}

Tourism Secretary Christina Frasco recently spoke about how these collections are spent during a forum in Cebu. She explained that the tax provides tangible benefits for the public rather than being a fee with no purpose. Currently, the money is split into three specific areas:

• Tourism infrastructure (50%). Half of your payment goes to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). This funds local projects like the building of tourist rest areas, information centres, jetty ports, and boardwalks in various provinces.

• Higher education (40%). A large portion is handed to the Commission on Higher Education (CHED). This money is used specifically for tourism-related educational programs and courses to train the next generation of hospitality workers.

• Heritage preservation (10%). The remaining bit goes to heritage agencies to help the government maintain cultural and historical sites.

Also read: What the Philippine Travel Tax Is and Why It Raises Eyebrows

Senate updates on travel tax exemptions for economy passengers

Senator Raffy Tulfo has raised the idea of removing this requirement for economy class passengers to help ease the financial burden on regular travellers. At the moment, the rates are set at P2,700 for first-class passengers and P1,620 for those in economy.

While the DOT recognises that the final decision rests with lawmakers, they are hopeful that the funding for infrastructure stays secure. They argue that these fees allow the government to build facilities in every corner of the Philippines, helping local government units grow their own tourism spots. Without this tax, projects like provincial boardwalks and visitor centres might lose their primary source of funding.

Also read: No More Travel Tax? New Senate Bills Push to Scrap ₱1,620 Fee for Economy Passengers

Current Philippine travel tax rates and payment rules

The travel tax is a mandatory fee for individuals leaving the Philippines. It applies regardless of where you bought your ticket or how you chose to pay for it. This is governed by a long-standing law known as Presidential Decree 1183. For families or frequent travellers, this extra cost can become quite significant, especially when added to the price of a standard airfare. For example, a family of four must set aside an extra P6,480 just to clear this requirement.

While we wait to see if lawmakers will eventually scrap this fee for economy flyers, it is important to remember that this P1,620 is a separate extra cost from your airline ticket. For now, it is best to check if your airline has already included the tax in your booking. If they have not, you can pay it at the terminal or online via the TIEZA website or the eGov PH app to avoid any last-minute stress at the airport.

^{Image credit: Manila International Airport Authority}