How the Philippines Plans to Tackle Soaring Airfares and Boost Domestic Tourism: DOT’s Bold Strategy to Keep Travel Affordable for All!

In a bid to address rising concerns over escalating domestic airfare prices, the Department of Tourism (DOT) in the Philippines has called for stricter airline regulations and greater transparency in pricing. As the country’s tourism industry continues to recover, the DOT Secretary, Christina Garcia-Frasco, stressed that affordable travel is crucial to maintaining the sustainability of domestic tourism. The department’s call comes as airfares continue to rise, even as domestic tourism numbers soar, threatening to limit accessibility to popular destinations, especially in the country’s regional and island areas.

Rising Airfares Impacting Domestic Travel

The Philippines has witnessed a record-high level of domestic tourism with over 134 million local trips in 2024, cementing its status as a leader in Southeast Asia for domestic tourism. This boom in tourism demand has brought in over $70 billion in revenue, surpassing pre-pandemic levels. However, as the number of domestic travelers increases, so too have the costs of air travel, with high airfare prices now posing a potential barrier to accessibility.

Secretary Frasco voiced concerns during a Senate Committee on Tourism hearing, underscoring the need for greater oversight and transparency in airline pricing. She called on the Civil Aeronautics Board (CAB) to ensure that airfares remain just and reasonable, as required by law under Republic Act No. 11682. According to Frasco, while airlines are operating as private businesses, they must recognize their public responsibility to balance commercial interests with public service.

Tackling Accessibility Challenges: The Need for Transparency

Despite the continued success of the Philippine tourism sector, accessibility to regional destinations remains a growing issue. In particular, island destinations such as Siargao, Palawan, and Basco rely heavily on turboprop aircraft, which have limited seating capacity. This, coupled with higher airport fees, taxes, and restricted runway capacity at smaller airports, results in inflated airfare prices for these routes.

Senators and industry stakeholders have raised alarms over the lack of infrastructure at key domestic airports, particularly in smaller provinces. Sen. JV Ejercito, chair of the Senate Committee on Tourism, noted that expensive airfares are often a reflection of inadequate facilities and neglected infrastructure. He called for a long-term development plan that ensures airports, seaports, and transport hubs meet global standards and are equipped to handle the growing number of travelers.

Government Action: Improving Air Travel Accessibility

To address the rising airfare costs, the DOT has been working closely with several government agencies, including the CAB, Department of Transportation (DOTr), Department of Trade and Industry (DTI), and the Philippine Competition Commission (PCC), to develop a comprehensive strategy for regulation and consumer protection.

Frasco has pushed for the creation of a monthly airline ticket pricing index, which would provide the public with greater transparency regarding airfare trends. The index aims to monitor fare fluctuations, prevent sudden price hikes, and explore the possibility of fare ceilings to protect consumers. The DOT hopes that this initiative will bring accountability and stability to air travel pricing, especially as the sector continues to recover from the pandemic.

The Role of Foreign Investment and Infrastructure Development

Alongside airfare regulation, the DOT is also focused on improving infrastructure to ensure the sustainability of domestic travel. Sen. Loren Legarda stressed the need for a whole-of-government approach to address the challenges of airfares, infrastructure, and security. She highlighted that the DOT alone cannot tackle these challenges, as budget allocations for airport construction, maintenance, and expansion fall under other government departments.

The DOT also plays a crucial role in enhancing the domestic connectivity necessary for tourism dispersal. In 2025, the department supported the launch of 23 new international flights connecting Manila, Cebu, Clark, Iloilo, and Kalibo to key overseas cities. These new international routes help increase tourist arrivals from abroad, but affordable domestic flights are necessary to ensure that foreign visitors can travel within the country and experience multiple destinations.

Addressing the Tourism Infrastructure Gap

While the tourism sector is growing, airports and transportation hubs across the country continue to suffer from capacity constraints. The Air Carriers Association of the Philippines (ACAP) pointed to higher airport fees and taxes as contributors to rising ticket prices. Additionally, the limited capacity at small domestic airports means airlines are often restricted to smaller aircraft, which limits the number of seats and drives up costs.

Jose Enriquez Perez de Tagle, representative of the ACAP, explained that many of the country’s island destinations are served primarily by turboprop aircraft, which increases operational costs and ultimately results in higher airfare prices. To mitigate this issue, the DOT is working with the CAB and the DOTr to find solutions that would help increase flight frequency and accommodate larger aircraft at domestic airports.

The Way Forward: A Collaborative Effort for a Sustainable Tourism Industry

As the Philippine tourism sector continues to grow, it is crucial that affordable domestic air travel remains a priority. The DOT’s call for stricter regulations on airline pricing and improved infrastructure development is essential for sustaining growth in the domestic travel industry.

The department’s efforts to regulate ticket prices, promote consumer protection, and invest in tourism infrastructure will help ensure that air travel remains accessible and affordable for all Filipinos. At the same time, the ongoing coordination between government agencies will help create a seamless, efficient, and sustainable travel experience for both local and international travelers.

The government’s efforts to enhance domestic travel and tourism accessibility reflect a holistic approach that will benefit tourists and local communities alike. In the long run, these reforms will help the Philippines continue to build a thriving tourism economy, positioning the country as a leading destination in Southeast Asia.

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