Starting this April, flight tickets to local and international destinations will become cheaper as the Civil Aeronautics Board (CAB) cut down fuel surcharges that local airlines can acquire, according to the report from the Inquirer.
The CAB marked down the surcharge to Level 6 from the current Level 7.
Domestic flight fuel surcharges under Level 6 range from Php 185 to Php 665 while passengers of international flights can be charged from Php 610.37 to Php 4,538.40.
AirAsia Philippines communications and public affairs head Steve Dailisan shared: “Any form of reduction in ticket value will not only motivate people to travel but also spur economic activity in the destinations where we fly to.”
On the other hand, Cebu Pacific president and chief commercial officer Xander Lao said the airline company welcomes the “recent development” to make flying accessible to everyone.
“We will faithfully comply with the CAB’s fuel surcharge matrix which applies to tickets that will be purchased in April,” Philippine Airlines spokesperson Cielo Villaluna said.
With the acceleration of visitors entering the Philippines, the new one-stop electronic travel declaration system, e-Travel, was launched last year to streamline the process of obtaining travel requirements.
What’s in it for the Real Estate Industry?
As more local and international travelers visit the country, the hospitality real estate market is also revving up to welcome and cater to tourists.
The Department of Tourism (DOT) revealed that the Philippines recorded 2.65 million international visitor arrivals, surpassing its 1.7 million international tourist target for 2022.
“[W]e welcome 2023 with gratitude and excitement for Philippine Tourism to bounce back stronger than ever. We shall welcome with warmth and that distinct Filipino smile visitors from all over the world as they visit our award-winning beaches, experience the richness of our culture, and enjoy our world-renowned Filipino Brand of service excellence,” DOT secretary Christina Frasco said during her New Year’s Eve speech.
The Tourism department posted a 4.8 million international visitors goal this 2023 and remains hopeful to once again surpass its target.
In a recent report by Colliers, the average hotel occupancy during the second half of 2022 in the capital region reached 55%, an increase from 47% in the first half of 2022. This is attributed to the holiday season and the return of Overseas Filipino Workers (OFW) to celebrate festivities.
In addition, Meetings, Incentives, Conferences and Exhibitions (MICE) activities also contributed to the increasing demand for hotel occupancies during the latter half of 2022.
Colliers also noted that 606 hotel rooms were completed during the second half of 2022, ramping the total up to 1,449 rooms for the same year. They predict a whopping increase to 4,140 hotel rooms by the end of 2023.
A Closer Look at the Local Lens
There are over 7,000 islands in the country and some of them are considered key destinations for local and foreign tourists alike.
In a Lamudi report of real estate hotspots in 2022, Tagaytay, one of the top destinations in the country, regained its rental demand last year.
In addition, the summer capital of the Philippines, Baguio, received the most inquiries for cities in Luzon outside Metro Manila in the same year.
Located in Central Visayas, Lapu-Lapu garnered significant leads because of the city’s residential-resort developments and industrial spaces. It is the most viewed location for affordable rentals in 2022 on the Lamudi platform.
Travel and leisure are slowly returning to pre-pandemic levels with cheaper flights and more open destinations.
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