The local travel trade is hoping that the Philippine lawmakers
will approve the abolishment of an airline tax, which has been roundly
criticised for its detrimental effect on the destination.
KLM – the last carrier to operate direct flights from Europe to the
Philippines – recently announced it would add an intermediate stop in
either Hong Kong or Taipei to its Amsterdam-Manila route from April.
Cees Ursem, Air France-KLM general manager South China Sea,
attributed the decision to the financial burden dealt by two taxes – the
common carrier tax (CCT), a three per cent business tax on gross
receipts, and a 2.5 per cent gross Philippine billings tax.
Stephen Crowdey, first vice chairman of the Board of Airline
Representatives, said that “less non-stop capacity significantly reduces
the appeal of the Philippines for the trade and tourists alike,” a
concern shared by inbound travel companies.
Philippine Travel Agencies Association president, Aileen Clemente,
explained: “The Philippines will be reliant on flights connecting
through other Asian cities, which may be the deciding factor for
tourists from Europe, (who may) just conclude their trip in an Asian hub
of their chosen airline.”
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Thursday, 26 January 2012
More Airline Pull-outs Could Hurt the Philippines
Labels:
France,
Hong Kong,
Philippines
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