MANILA, Philippines - With the law abolishing the gross
Philippine billings tax (GPBT) and the common carriers' tax (CCT)
nearing enactment, at least seven foreign airlines have signified
intention to fly into the country by early next year, travel industry
groups revealed.
Aileen Clemente, interim president of the Federation of Tourism
Industries of the Philippines (FTIP), said those that are keen on
designating flights to Manila by the first quarter of 2013 are Cathay
Pacific, Delta Airlines, Etihad, KLM, Kuwait Airlines, Lufthansa/Swiss
Airlines, Qatar Airlines and Singapore Airlines.
And once the GPBT and CCT have been removed, Clemente said these
carriers would surely increase the frequency of their flights to the
Philippines by the middle of the year. "It will signal to the world that
we are getting our act together and that all the components that will
boost Philippine tourism are being addressed," Clemente said.
John Paul Cabalza, Philippine Travel Agencies Association president,
said the group supported the calls of various local and foreign
associations, including the Board of Airline Representatives (BAR), to
fix the onerous taxation on airlines the last two years after foreign
airlines withdrew from the country one after another.
"We have seen the dwindling number of seats available to the Philippines
because of the GPBT and CCT and this is not good for us since the
different parts of the country are largely only reachable by air,"
Cabalza said.
Clemente added that more international airlines flying into the country means higher tourism numbers for the country.
The Senate has already voted for the passage of a Malacañang-backed bill
conditionally waiving P2.50 billion in combined revenues from the GPBT
and CCT; the House of Representatives has long passed its own version of
the bill.
The two houses of Congress will meet in a bicameral committee to
reconcile the differences of their bills and pass the final version of
the law.
With these positive developments on the policy front, Cabalza said all
the tourism-related subsectors should now start preparing for the entry
of more foreign tourists to the country. "We have to find the right
balance in terms of supply of hotels, seats, pricing, and airport
capacity. More training must also be provided to travel agencies and
tour operators. Our tour guides should also become multilingual,”"
Cabalza said.
According to data presented at the Senate hearings, about 3.5 million
tourists are expected to visit the country this year, higher by 9.18
percent compared to last year. The government’s target is to attract 10
million tourists by 2016.
To meet the target, 15 million seats should be made available.
Currently, the Philippines only has 6 million seats available with about
369 flights weekly, second lowest in Asia and just ahead of Cambodia.
One factor that is going against the Philippines is that it is the only
country levying taxes on airlines. GPBT would be replaced by 20 million
seats by 2016 and lower airfares by at least 8 percent.
There is also a projected strong growth in tourist arrivals from 5.54
million in 2013, 6.75 million in 2014, 8.21 million in 2015 and 10
million in 2016. Expected jobs to be created are currently being seen at
6 million, with revenues to be generated estimated to reach P455
billion by 2016.
Source: ABS-CBN News
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