The increase in fuel surcharges for flights in the Philippines, effective from October 1, is anticipated to affect travel demand significantly, especially for international and long-haul trips. The Civil Aeronautics Board (CAB) has raised the allowable fuel surcharge to Level 17, which means airlines can charge between 559 to 1,635 pesos for domestic flights and 1,846.10 to 13,726.58 pesos for international flights, based on distance. This change can lead to higher travel costs as the applicable exchange rate is 62.71 pesos to the US dollar.
Industry players, like Marlene Insigne from Chase Wonder Travel Atelier, predict that fewer people will travel, particularly on longer routes where surcharges can greatly enhance overall trip costs. Corporate travel is also being impacted, with organizations like a Japan-based international group reconsidering their travel plans and opting for more regional events due to increased costs.
Concerns are rising within the travel industry regarding these surcharges at a time when Philippine tourism is already challenged by slower growth. Jojo Clemente from Rajah Tour expressed frustration over the continuous difficulties faced in the tourism sector, questioning the sustainability of their efforts.
