Portal. All of these are meant to be collected for every arriving passenger with no exemptions or discounts. With the increase in the passengers paying the tax as well as the removal of the exemptions, the amount of the tax will be at a level that will be almost negligible for everyone. This will demonstrate that the tax can be around just 30% of the current tax.

This can all be managed by an entity that functions as a global collection agency equipped with an integrated invoicing, collection and settlement system that is recognized and acceptable to the Philippine Government and international organizations such as IATA and IATA/BSP (Billing Settlement Plan). The current facility may also manage rebookings and refunds as well as the timing of remittance to the government. This method also drives high invoice collection rates at low cost and achieves efficient data management and enhanced reporting. It also requires less audit as it is almost fully automated.

Yet, there may be a few airlines that are not enrolled in the IATA system, but these are a few that the old practice of audit and other processes with TIEZA may remain in place.

Further cost savings may be derived by having automated collections at the airports and reduce or eliminate TIEZA offices that serve this purpose. In the list in the TIEZA website, there are about 30 offices listed.

Removing exemptions also eliminate all the bureaucracy, red tape and processes in securing these exemptions. For travellers, it removes the queueing, as well as for OFWs to get the OECs. For the travel ecosystem including Travel Agents, this removes the Local Data Processing Center (LDPC) where attachments of the exemption have to be printed, photocopied, especially for rebookings, and other manual work that adds to the costs of everybody. And if these are not properly attached to the ticket, an airline also issues Agency Debit Memos (ADMs) which another layer of administrative task as these may be issued for a ticket issued a few months back.

Please note that putting any exemptions to this process, reverts us back to the current state and will not be efficient as no global collection agency will likely accept the processing of exemptions.

The availment of exemptions may be considered by some as a sticky situation. However, with the scheme

presented, it already lowers the current tax for everyone. Should exemptions still be considered, maybe just remove it from the collection process and offer direct refunds through TIEZA.

For the computation, allow this document to show a simple calculation of how the current Philippine Travel Tax can be reduced to a rate of an estimated PHP200- 400. If we take the Travel Tax collection in 2024 of PHP7,753,508,300 and divide this by PHP1,620 (amount of the Travel Tax), the amount must be collected for 4,786,116 paying people. Our international arrivals in 2024 is about 14.7M and this is more than enough people. Assuming 14.7M will be paying the tourism taxed at PHP400-500, the yield is around PHP 5.8B-7.3B. Please see Table below:

There are alternatives to what this paper is proposing. The Philippine Travel Tax can be on status quo but no efficiencies is gained and the cost burden per person remains. The law can be simply repealed, but the funding that goes to important institutions will have to be addressed. The last alternative that is being discussed is a joint project of TIEZA, Department of Information and Communications Technology (DICT) and the Bureau of Immigration (BI) where DICT develops a software that caters to the collection of the Travel Tax and that the BI is triggered to check the correctness of the applicability of exemption or not. The idea is for the travel tax will be collected at the airport separately from the ticket. Again, this becomes a pain point to travellers as each will have to add this step in their travel. This system also only ensures that the collection is removed from the responsibility of the airline and its supplier but does not improve much of anything else.

This paper offers an adoption of a possible tax with collection efficiencies. It is also consistent with anti-red tape initiatives. While it may take some time, this will hopefully address a lot of issues surrounding the current Philippine Travel Tax.

Since 2013, Rajah Travel began its project called, Lost Pieces of History. We wanted to find other sites in the Philippines that we can showcase, so that Filipinos and other nationalities may foster closer relationships and understanding. We also continuously hope that we work with local communities to uncover, preserve and appreciate these portions of our Filipino history and heritage. Luckily, the milestone of the end of World War II (WWII) was approaching in 2015 and there was enough time for the USAID Project Compete to facilitate this endeavor as the first taskforce was gathered together. The significant international, national and local stakeholders from both public and private sectors cooperated and involved themselves that led to the creation of the tourism circuit called Salute to Valor: Palawan Liberation.

JAPANESE WWII HOSHINO TUNNEL 1 DEFENSE
One of the series of tunnels of Hoshino Battalion.

This year, we are happy to announce our next project for WWII, Salute to Valor: Bamban Historic Fields of Battle. For this tourism circuit, we are partnering with the distinguished, Mr. Rhonie Dela Cruz, the founder of the Bamban WWII Museum and the Bamban Historical Society. He is a recognized local historian, researcher, and author.

JAPANESE WWII HOSHINO TUNNEL 1 DEFENSE
One of the series of tunnels of Hoshino Battalion.

Mr. Dela Cruz's passion for uncovering Bamban's past and preserving this for the future is one of the key elements for TKC to involve itself in this worthwhile endeavor.

This southernmost town of Tarlac, Bamban, is a strategic location for both the WWII Japanese and U.S. military forces. Firstly, it is near the primary base for the Imperial Japanese Army and Navy air services, Clark Airfield. Second, the town’s hilly landscape overlooks vital transportation gateways and even sits on Highway 3, the main supply and invasion corridor from Lingayen Gulf to Manila. The mountainous barriers and critical pathways and chokepoints became sites to some of the most brutal battles.

AERIAL VIEW OF THE DEVASTATED TOWN OF BAMBAN
40th Div. Photo, February 1945.

JAPANESE WWII HOSHINO TUNNEL 2
One of the biggest and longest war tunnels. One of the main highlights of this area is the 16-kilometer network of mountain tunnels and trenches. Mostly dug by the Japanese forces and other laborers, Allied prisoners, and Aeta communities, it is over 1,000 interconnected u-shaped parts designed for heavy static defense and troop shelter and sanctuary. It housed over 40,000 Japanese soldiers, safely stored logistical supplies, and held the command and communications networks for the Japanese. It is currently considered as one of the most extensive subterranean defense system, during WWII, built by the Imperial Japanese Army outside of Okinawa.

These tunnels were excavated using heavy-duty industrial hand-drills and dynamite to blast through and further hallowed out with hand tools, picks, and large drills. Their depths reach from 50 to 300 feet. The main tunnels average roughly 8 to 10 feet wide and 10 to 12 feet high. Most important Operations Section in the tunnel is the Japanese Naval Air Fleet Headquarters and communication center on the west.

More tactical combat preparedness was set up in the east such as gun and mortar emplacements, and defensive outposts along the entrances.

Some of the massive tunnels became supply depots and held months’ worth of heavy warfare materials, provisions, and ammunition,

Another section is the underground hospitals to treat the wounded. Then there are also the troop shelters, where each section vary greatly and can accommodate over a hundred.

This introduction alone is but a hollow echo of the real soul-stirring and heart-rending events of WWII. Yet, it brought the Japanese, Americans, and Filipino lives inextricably intertwined. The whole town, especially the Bamban WWII Museum serves as a sanctuary for the heritage of these collective heroism and sacrifices.

This extensive museum houses several indoor exhibit halls, outdoor memorial sites and even a research center. It has become the town’s main repository of military relics and wartime mementos, personal soldier accounts and combat clips and recordings, tactical and operations maps, and the like.

More than mere objects, the people of the museum breathed life into these silent memories of their owner’s wartime journey. These items were transformed into a living testament to the trials they endured during the conflict and became their voice today.

I dare not expound further and preempt the tour. But suffice it to say that there is a story for everyone who visits the museum.

Mr. Rhonie dela Cruz leading guests through the Bamban WWII Museum.

If the whole tour is not enough, these passionate group of people have even organized a dedicated reenactment group to help visualize the wartime reality.

Guests together with WWII reenactors visiting the historic battle sites around Bamban.

This group’s extensive contribution and outstanding dedication to historical preservation and restoration more than justifies our support in amplifying their impact and bring broader awareness to their mission.

We must preserve this rich piece of our heritage and enrich the lives of those who come after us… and so goes this tapestry of history.

It is not easy to look at all the components of transport connectivity. The presentation of choices of trips— of what city and airport to use—in both the Global Distribution System (GDS) or even in Online Booking Tool (OBT) is an example of this. The availability display including schedules, fare and availability, is aggregated from travel providers in real-time—largely depending on the airport or city code one has chosen. In short, our Aviation Authority must consider that in order to maximize airport visibility and inventory exposure in a booking system, we must analyze its availability logic and implement a more robust mapping of specific airport codes to overarching city codes.

International Air Transport Association (IATA) is both the creator and official registry of the 3-letter airport and city codes list that passengers see on boarding passes and baggage tags. More than this, these codes are deeply embedded in global aviation systems. Consequently, changes to these cannot easily be made on a whim.

At this point in time, most of the city and airport codes in the Philippines have also been set. And any effort to change the structure of the said display option is an uphill battle.

So, why go through this exercise if it is almost futile? First, there may still be some minor actions that can be done. Secondly, that we are conscious of encountering the same issue again. Hopefully, we do not experience this pitfall again.

What are the major issues?

Issue 1:

The Airport and City Codes Are The Same

Whether the decision to make the city and airport code to be deliberately the same or not, the implication is that the search will most likely limit the availability display to just the airport code.

As seen on the examples below. The City (C) and the Airport (A), being the same, almost always shows a one- to-one association. Under MNL, SGL will be explained later.

Manila

Clark

Cebu and Davao

One workaround solution done by Emirates (EK) that have flights from both Manila (MNL) and Clark (CRK) to Dubai (DXB) is to include in the airfare, the bus from MNL-CRK from Trinoma. This now displays the CRK departure when one searches availability under MNL. Pls see the the purple box below where MNL shows TRP.

MNL

This then shows in the availability as follows:

Availability Manila–Dubai on EK (note that CRK option is given due to the Trinoma Bus Station TRP located in MNL)

Issue 2:
The Airport and City Codes Seemed To Have Been Taken At Face Value and Not Integrated In The Larger Blueprint of Connectivity.

Set in the dawn of commercial aviation, these codes were designed as pragmatic operational tools. They were telegraphic abbreviations for pilots and operators to streamline navigation before airports evolved into the massive cultural and commercial hubs they are today. Whether some countries were just fortuitous in their decision, they treated certain city codes to identify major gateways. Some airport codes intended for smaller, regional cities were instead assigned to these hubs or gateway cities. These include, but not limited to:

MNL also has the potential to become a gateway and have CRK and the future Bulacan Airport under this Hub City Code. In doing so, CRK may have to be disassociated with the CRK city code, if permitted. Considering that Sangley is part of the MNL availability suggests that our authorities have an experience in moving an airport to a gateway. (Please see the green box below)

MNL

Cebu and Davao may also be considered as gateway cities.

On another note, for Boracay, Kalibo and Caticlan Airports do not currently belong to the same city code. And these city codes do not even pertain to Boracay, but rather the city/municipality where they actually belong. In fact, despite the efforts for global recognition for this destination, no city code was created for it. There is currently no clear visibility in booking this.

In moving forward, the Aviation Authority may need to revisit their aviation system management framework. The association of Airport and City Codes are vital not only in terms of tactical operations.

First, city and airport codes and their alignment translate to instant destination recognition and resonance, which is essential for fueling visitor growth to that gateway. Also, this seamless mapping can form part of the regional hub’s tourism and trade campaigns.

Second, establishing this tight connection between codes increases traveler movement efficiency and reduces possible painpoints

Lastly, more intuitive design for airport and city codes makes it simpler to expand system capacity and provides airlines, visitors and other stakeholders information on which regional gateway is being served.

Consulting IATA’s aviation experts is essential to provide definitive guidelines on using location identifiers and Metropolitan Area Codes (multi-airport cities) and to understand the exact parameters for coding flexibility. The goal together is to unleash the transformative and far-reaching ripple effect of this small element.