Where does the ₱1,620 we fork over to pay travel tax before flying off go to?

It’s a common feeling of disdain that most travelers might have, finding it another added expense to go through before enjoying their vacation. So, where do these taxes go, and why do we have to pay them?

Most are aware of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), only through its acronym. Some might have mistaken TIEZA as a person, often asking, “Who is Tieza and why do I pay them to travel?” TIEZA, through the travel tax funds, is responsible for handling the upkeep and development of various tourism infrastructure throughout the country. Some projects handled by TIEZA include the redevelopment of Boracay’s water drainage system, aesthetic projects for enticing tourism, such as the lighting of the San Juanico Bridge, and the construction of Tourist Rest Areas throughout tourism hotspots around the country. There is also final assistance provided to qualified tourism projects, investors, and proponents for both government and private businesses.

TIEZA chief operating officer Mark Lapid explained how the agency operates during a recent press briefing held at the Golden Phoenix Hotel in Pasay City. Based on the data provided, the travel tax collected from 2019 to 2024 amounts to ₱24.8 billion. From this, 50 percent (₱12.4B) goes to TIEZA for its various infrastructure projects, 40 percent (₱9.9B) goes to the Commission on Higher Education (CHED) for funding tourism-related education, and 10 percent to the National Commission for Culture and the Arts (NCCA) for preserving heritage sites. This year, TIEZA has implemented over 129 projects in partnership with local government units.

While the travel tax can be paid at the airport, you can also pay using the eGov PH Super App. Simply open the eGov app, select the National Government Services option on the main page, search for TIEZA, and select the TIEZA travel tax option. From there, your details will automatically be filled out, and you can select which payment method you prefer. There are over 100,000 payment channels available for your convenience. Some payment channels add a transfer fee on top of the travel tax payment, but TIEZA is currently working on a way to waive these added fees.

Some might be exempt from the travel tax or can pay a reduced amount. Here is the list of those exempted from the travel tax by law:

- Non-immigrant aliens with non-taxable immigration status whose stay in the Philippines is less than one year.

- United Nations officials, consultants, experts, and employees

- Philippine Sports Commission and its delegation or representatives to any international sports convention, conference, and meeting, and athletes, coaches, and other officials to any international competition

- US military personnel and their dependents, and other US nationals with fares paid for by the US government or on US government-owned or chartered transport facilities

- Balik Scientist awardees, including the spouse and dependents of a Balik Scientist under long-term engagement

- Balikbayan, who is a Filipino citizen, whose stay in the country is not more than one year

- Balikbayan, who is a former Filipino citizen naturalized in a foreign country, who travels to the Philippines and stays for not more than one year

- Filipinos in the US military service and their dependents

- Filipino employees of the US government traveling on US government business

- US State Department visitor-grantees traveling on US government business

- Overseas Filipino Workers (OFWs)

- Crewmembers of planes flying international routes

- Filipino permanent residents abroad whose stay in the Philippines is less than one year

- Philippine Foreign Service personnel officially assigned abroad and their dependents

- Officials and employees of the Philippine government traveling on official business

- Grantees of foreign government-funded trips

- Bona fide students with approved scholarships by the appropriate Philippine government agency.

- Infants who are two years old and below

- Personnel, and their dependents, of multinational companies with regional headquarters, but not engaged in business, in the Philippines

- Those authorized by the President of the Philippines for reasons of national interest

- Muslim-Filipinos attending the annual Muslim pilgrimage to Mecca, Jeddah, and Medina, Saudi Arabia

- Exporters joining international trade fairs, exhibitions, and selling missions endorsed by the Export Development Council.