Airport fee increases need to go into upgraded facilities, analysts say

THE increased terminal fees for air passengers will need to be backed up by improved facilities, though the impact on traffic volume is expected to be minimal, analysts said.

“The price increases will only have a negligible effect on tourism. The proposed increases represent only a fraction of total overall travel spend for the traveler,” Alfred Lay, director for hotels, tourism, and leisure at Leechiu Property Consultants, said via Viber.

Improved facilities “significantly improve the perception of travelers for any destination and in turn, help keep the hotels and resorts full,” Mr. Lay said.

In April, the Civil Aviation Authority of the Philippines announced an increase in the passenger service charge and other fees at its airports.

For air passengers departing from international airports and principal class 1 and 2 airports, the terminal fee was raised to P900 ($17) for international flights from P550 previously.

Cyndy Tan Jarabata, president and chief executive officer of TAJARA Leisure & Hospitality Group, Inc., said increased fees may be needed to cover rising utilities, labor, and operating costs.

“However, if they’re going to increase the price, there’s an expectation among many that the services they offer will improve too,” Ms. Jarabata said in an e-mail.

Ninoy Aquino International Airport, the country’s main gateway, has been ranked among the world’s worst airports in terms of cleanliness, delays, and substandard facilities.

Ms. Jarabata said secondary airports need to raise their game.

“Terminals need to be well-kept and should provide efficient services to every traveler, especially in secondary destinations, which are beginning to get more traction.”

Visitor arrivals to the Philippines declined 0.5% to 1.65 million in the three months to March, the Department of Tourism reported.