The Department of Tourism (DOT) is calling for a formal review of airline regulations and stricter government oversight as surging domestic airfares begin to impact local travel demand.
During a Senate Committee on Tourism hearing on Tuesday, Feb. 3, Tourism Secretary Christina Garcia Frasco urged the Civil Aeronautics Board (CAB) to enforce greater transparency in ticket pricing.
Frasco argued that while airlines hold public franchises, they are legally obligated under Republic Act No. 11682 to balance commercial profit with public interest.
“The Department of Tourism proposes that there be clear and transparent publication of the just and reasonable rates as required by law,”
Frasco told lawmakers, noting that close scrutiny by the CAB is necessary to allay public concerns over rising costs.
Industry leaders and lawmakers noted that high ticket prices are often a symptom of systemic infrastructure failures.
Despite a record 134 million domestic trips in 2024, many popular destinations remain hindered by limited airport facilities.
Senator JV Ejercito, committee chairman, highlighted that short runways and a lack of night-rating capabilities at provincial airports prevent larger, more cost-efficient aircraft from landing.
This forces a reliance on smaller turboprop planes in destinations like Siargao and Basco, which restricts seat capacity and drives up costs.
Jose Enriquez Perez de Tagle of the Air Carriers Association of the Philippines confirmed that carriers are currently grappling with high airport fees, taxes, and significant routing limitations due to these infrastructure gaps.
To address these issues, Secretary Frasco suggested that the current deregulated state of the airline industry may need to be revisited to protect consumers.
She confirmed the DOT has requested the CAB to provide a monthly ticket pricing index to monitor market shocks and potentially implement price ceilings.
Frasco emphasized that the DOT is seeking “convergences” with other government agencies, as the department lacks the direct mandate to manage infrastructure or industry deregulation.
The hearing also touched on non-economic barriers to tourism. Senator Erwin Tulfo noted that peace and order concerns are deterring arrivals from sensitive source markets like South Korea, while Senator Loren Legarda emphasized that the DOT cannot solve the crisis alone.
Legarda pointed out that high costs—citing flights to Busuanga reaching ₱24,000—will continue to repel tourists unless the Department of Transportation (DOTr) and law enforcement agencies address airport maintenance and safety issues respectively.
The DOT continues to coordinate with the Philippine Competition Commission (PCC) and the Department of Trade and Industry (DTI) to align regulatory oversight and consumer protection.