The first day of October arrived with a big bang, as social media platforms erupted with discussions about the increase in parking fees, particularly the overnight rate at Terminal 3 (T3).
In this piece, we won’t delve into the rationale behind the fee increase—something already reported by a select number of colleagues. Instead, we will share key insights that contribute to the ongoing parking fee narrative.
To contextualize the parking fee increase, it is important to clarify that this decision was not made out of desire by New NAIA Infrastructure Corp. (NNIC). Rather, it stems from the need to raise funds, as a substantial portion of the revenue from increased parking fees is allocated to the national government, which is currently facing financial challenges. Under the concession agreement, over 82 percent of the revenue goes to the national government, leaving NNIC with the remainder.
Additionally, there is a need to adjust the parking rates as the fees have remained unchanged despite movements in macro-economic variables such as the inflation rate.
Despite "benchmarking" against regional peers, comparative analysis showed that the new parking fee of P50 for the first two hours is more economical than those imposed by other airports in the region.
For instance, vehicle owners at Hong Kong International Airport must pay HK$35 for the first hour of parking and HK$50 for each subsequent hour. The hourly fee amounts to P253, while the incremental cost thereafter is P361.66, based on an exchange rate of 0.13 HK$ to a peso.
On a daily basis, the parking fee totals HK$470, or P3,399.55, with an additional charge of HK$224, or P1,620.25 thereafter.
In comparison, Changi Airport offers a generous 10-minute grace period for pick-ups and drop-offs at all car parks, but full parking charges apply for vehicles, including motorcycles, that remain beyond this time limit.
Short-term parking at Changi costs S$0.65 per 15 minutes, equating to P28.33 at an exchange rate of P43.713 to S$1. Notably, their charges are based on minutes, while at T3, the fee covers the first two hours.
Singapore also has various schemes like Park and Work and deep discounts for advance parking coupon purchases. For example, under the Night Parking Scheme, short-term parking fees are capped at S$5 per night from 10:30 p.m. to 7:00 a.m. the following day.
Another important point to consider is the April fire incident in the T3 open parking area, which resulted in damage to several vehicles due to a grass fire.
There are reports that NNIC has now taken over management of this five-hectare open parking area, previously operated by the concessionaire Philippine Skylanders International, Inc. This change is crucial for streamlining parking conditions and improving traffic flow.
As a traveler, I fully support NNIC's rationalization efforts and I'm willing to accept the consequences of these changes for the greater good.
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