Turning Challenges into Growth: TIEZA achieves ₱7.8B in travel tax income and expands nationwide projects
Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Chief Operating Officer Mark T. Lapid emphasized the important role of the agency in restoring and upgrading the country’s tourism infrastructure during his speech at the Visayas Regional Consultative Meeting of the Tourism Congress of the Philippines (TCP) on June 26, 2025, at BAI Hotel in Cebu.
Addressing industry stakeholders, Lapid shared how TIEZA has grown more resilient despite the harsh effects of the COVID-19 pandemic. When he returned to his position in 2021, the agency faced a severe financial setback—an almost complete depletion of its ₱12 billion reserve, which had been used to support the government’s pandemic efforts. With international travel halted and tourism facilities closed, the agency’s income sources dried up. Nevertheless, through quick reforms, strategic collaborations, and the adoption of digital tools like an online travel tax payment system, TIEZA managed to recover. By the end of 2024, it had collected over ₱7.8 billion in travel taxes, surpassing pre-pandemic revenue levels.
Major Projects and Initiatives
As of 2025, TIEZA has supported over 230 projects across the country. This includes the completion and ongoing development of 41 Tourist Rest Areas (TRAs), with a target to complete more than 100 in upcoming phases. Lapid pointed out that these facilities—often dismissed as simple restrooms—are essential support hubs, providing clean sanitation, tourist information centers, and retail spaces that showcase local products. These establishments are strategically placed from Batanes to Tawi-Tawi, following priorities identified by the Department of Tourism and regional officials.
The agency maintains its commitment to dive tourism by installing ten hyperbaric chambers at popular diving sites such as Cebu, Bohol, Palawan, and Mindoro. These chambers are crucial for diver safety and can also be used for wellness treatments, broadening their benefits to both locals and visitors. An additional five units are planned for installation within the year.
TIEZA has also strengthened environmental initiatives, notably in Boracay and Puerto Galera, by expanding sewage and water treatment systems. In Boracay alone, sewer connections increased from 970 to over 2,350, helping to prevent ecological degradation. The agency has also engaged the University of the Philippines Visayas to research and propose solutions for the seasonal algae blooms affecting Boracay’s beaches.
Furthermore, TIEZA actively supports Local Government Units (LGUs) through programs like the Tourism Champions Challenge (TCC), which provides funding to LGUs developing their areas for tourism. To date, fifteen LGUs have received awards, with more expected. Notable infrastructure projects include lighting the San Juanico Bridge—now a tourism draw with boat tours and a viewing deck—along with the renovation of historic sites such as Mount Data Hotel, Banaue Hotel, and Club Intramuros.
Fostering Investment and Promoting Opportunities
As the main promoter of tourism investments, TIEZA recognizes the importance of private sector involvement. To date, the agency has approved investments totaling PHP 229 billion for the development of tourism enterprise zones and related projects, which are projected to create approximately 134,000 jobs. Focus areas include accommodations, farm tourism, sports and recreation facilities, health and wellness, and sports tourism. Notable investments include the Fairfield by Marriott in Cebu, the expansion of Belo Medical Group, Hotel Elizabeth Resorts and Villas in Palawan, Bukid Amara farm in Davao, and popular theme parks like Enchanted Kingdom and JCastles.
TIEZA also offers technical support in tourism planning and feasibility studies. It has completed masterplans for destinations such as Cavite, Leyte, Siargao, Corregidor Island, Mt. Samat, Rizal Park, San Vicente in Palawan, and islands in Cebu like Camotes and Bantayan.
The agency stays active in key international and national events—including the FIBA Basketball World Cup 2023, UNWTO 2024, the Asia-Pacific Ministerial Conference on Disaster Risk Reduction 2024, and FIVB Volleyball 2025—to promote opportunities in the country’s tourism sector. It continues to participate in various investment forums to attract interest and support growth.
Transparency and Future Directions
Lapid clarified the use of the ₱1,620 travel tax collected from outbound passengers, a major source of funding for TIEZA. He explained that 50% of the tax directly benefits the agency, while 40% goes to the Commission on Higher Education (CHED), and 10% is allocated to the National Commission for Culture and the Arts (NCCA). He called for increased transparency and awareness, and expressed support for amendments to the Tourism Act of 2009 to ensure that the funds assigned to CHED truly serve tourism scholars as originally intended.
Looking ahead, TIEZA plans to intensify its efforts to educate the public and stakeholders about its contributions. Lapid acknowledged that many Filipinos remain unaware of the agency’s full scope of work, with only a small percentage—about 1% of outbound travelers—using its online services. He appealed to stakeholders, media outlets, and partners to help spread the message that the ₱1,620 travel tax “goes directly into real, tangible infrastructure that benefits arts, culture, education, travelers, communities, and the tourism industry as a whole.”
Summarizing his message, Lapid emphasized: “We are not just a government agency — we are your partner in growth. Together, as one Tourism Family, we are building a future where Philippine tourism thrives sustainably and inclusively.”
Learn More
For additional information and updates, visit http://www.tieza.gov.ph and follow TIEZA on social media:
- Facebook: https://www.facebook.com/TIEZAOfficial/
- Instagram: https://www.instagram.com/tiezagovph/
