The Palace marching order for Transportation Secretary Jaime J. Bautista “JJB” Tuesday is to prioritize improving the country’s gateway facilities and services to enhance travelers’ experiences and increase tourism.
As a traveler, I look forward to the long-overdue transformation of Ninoy Aquino International Airport (NAIA), considered one of the world’s worst airports, to be undertaken by SMC-SAP & Co. Consortium.
The $3 billion NAIA improvement is no less but necessary. And, there’ll be no delays in the San Miguel-led rehabilitation of the country’s premier gateway and the construction of the alternative, Bulacan International Airport, also a project of San Miguel.
“That’s the commitment of RSA,” shared JJB at the Circle Forum held Monday at Westin Hotel while underpinning the importance of Bulacan gateway to the operations of NAIA.
Since it is well positioned to serve neighboring provinces, the alternative airport will not only decongest but also complement NAIA’s operations. The first phase of construction covers two runways and the terminal buildings, which will be finished by 2027.
While we’re all zealously enthusiastic about the improvements of our airports, there seems to be an unwelcome issue relative to the NAIA rehab. Yes, Virginia, there’s much ado about the concession/terminal fee, which is the current buzzword in the industry.
From what I’ve gathered, some industry players are opposing the proposed adjustments in terminal fee. They were actually bidders to the NAIA rehab project but unfortunately lost to the SMC-SAP & Co. Consortium.
To clear the clouds of doubt and put things in their proper perspective, the winning consortium has nothing to do with the upward adjustment, as allegedly insinuated by some news reports that “passengers” will soon have “to pay” or shoulder the modernization project.
My research showed that the Department of Transportation was forthright about the impending uptick in concession or terminal fees. Such was spelled out in the terms of reference of the concession agreement farmed out to the interested bidders.
So, it is not as if the decision to increase was plucked out of thin air.
The 72.72 percent increase will bring the terminal fee for international travel to P950 from the existing P550 and will take effect sometime in 2025. It, too, covers domestic travel, which is now at P200.
Out of the total proposed increase, only P171, or 18 percent, goes to the SMC-SAP consortium. The majority of the fee, or 82 percent or P779 in absolute amount, goes to the national government in the form of fees and charges. This accounts for approximately 13 percent of the total revenue collection."
This is the first time in a little over two decades that an uptick in terminal fee will be enforced. The last time was in 2002. And, the Philippines is not alone in imposing an increase.
In April 2024, an outbound passenger from Changi Airport paid a $65.20 departure fee, an additional $3 from $62.20 in November 2023. Unlike the Philippines, Changi’s departure fee has been on an uphill climb, going up by $6.90 from $52.30 to $59.20 in September 2022.
My lion’s ears heard that airline industry players are requesting the Palace reconsider the increase, citing “so short a time” for its imposition.
Also gathered along the airport alleys is an industry player allegedly backed by an insider who is proposing a rebate to be taken from the P779 share of the national government, which is just over P350.
From this side of the business corridor and as a traveler, I long to see our premier gateway be close to, if not altogether at par with, South Korea’s Incheon Airport.
I can’t fully comprehend the proposed rebate, taking a portion of the estimated millions of pesos additional earnings, shoring up the national coffers. For the life of me, it’s synonymous with curbing the financial muscle of the authorities to bankroll much needed infrastructure projects to attract more business and improve tourism in the country.
True, I believe that we, as passengers, may have to incur higher terminal fees, which could lead to an increase in ticket prices, as airlines typically pass on any additional costs to passengers. But don't get me wrong here. I'm not taking sides. It's a matter of quid pro quo—we do our share, and as travelers, we expect good service, comfort, and convenience in return. Consequently, this supports the tourism industry, which is one of the major pillars of economic growth.
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