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Sunday, March 29, 2026 Vol. 21 No. 168
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PHL TOURISM FACES HEADWINDS AS FUEL PRICES SURGE, FLIGHTS CUT
“The highest fuel surcharges are on long-haul flights, which will directly impact both inbound tourists and outbound Filipinos. This is expected to slow the projected growth of Philippine tourism for 2026, even if it doesn’t cause a total collapse.”— Jaime B. Bautista, Former Transportation Secretary and current Chair of SKAL International Makati
“We continue to see demand actually taking up the higher fares and we’re quite encouraged by both the domestic and international short-haul [routes]. So in terms of the international short haul, instead of people going to Europe, [they] would want to visit around Asia.”— Alexander Lao, President and Chief Commercial Officer of Cebu Pacific
“There is still a strong desire for travel, but travelers are looking more into domestic or short-to mediumhaul flights versus long-haul flights. This is also aligned with our findings on how travelers are more intentional now in their planning, opting for nearby destinations only an hour or two away to keep close to their families.”— Michelle Ho, General Manager for Klook Philippines
“This month alone, we’ve seen a clear softening of market confidence, particularly within our MICE (Meetings, Incentives, Conventions, Exhibitions) segment, with early cancellations and a more cautious approach to bookings as clients reassess budgets.”— Cleofe Albiso, Group General Manager at Megaworld Hotels and Resorts
“[We are] taking a more conservative and agile approach such as revisiting projections, focusing on resilient segments like long-stay and essential travel, and strengthening direct booking efforts. At the same time, we are implementing tighter cost controls, particularly on energy use, by optimizing operations and aligning manpower with actual demand.”— Ma. Celeste Romualdo, General Manager at The Linden Suites
By Ma. Stella F. Arnaldo
P
Special to the BusinessMirror
HILIPPINE tourism stakeholders are bracing for a possible impact on inbound tourists and domestic travelers as the conflict in the Middle East continues to create uncertainties in the cost of airfares and travel packages to their desired destinations.
Even hospitality establishments have sensed a cautiousness among would-be guests and corporate partners, who are now holding off on making bookings for their stays and events, respectively. Data from the International Air Transport Association (IATA) showed global jet fuel prices surging to $197 per barrel as of March 20, double the price from the end of February. Following this, the Civil Aeronautics Board (CAB) has announced a Level-8 fuel surcharge for April 1-15, 2026, allowing airlines to raise tack on up to P787 for domestic flights and as high as P6,209 for long-haul international flights. Major flag carriers such as Philippine Airlines and Cebu Pacific (CEB) have already suspended certain routes or canceled flights
to manage their fuel consumption and flight risks abroad. International carriers like Vietnam Airlines have also canceled their direct services to Manila and Cebu, from Hanoi and Ho Chi Minh, for the month of May. Travel experts said, however, that Filipinos still planning to push through with their vacations this year will likely take their holidays in nearby Asian destinations instead of going long-haul, or will be just doing local trips.
Slower tourism growth
FORMER Transportation Secretary and current chair of SKAL International Makati Jaime B. Bautista said: “The highest fuel surcharges are on long-haul flights, which will directly impact both inbound tourists and outbound
A CEBU Pacific aircraft is serviced by a fuel tanker from Petron Corporation, as rising global jet fuel prices drive higher airfares and prompt airlines to adjust routes amid uncertainties from the Middle East conflict. SPORTSTER883 | DREAMSTIME.COM
Filipinos. This is expected to slow the projected growth of Philippine tourism for 2026, even if it doesn’t cause a total collapse.” For the more price-sensitive domestic tourists, “they may reconsider trips if overall costs rise. A surge in transportation costs could lead to shorter stays or a shift to more affordable, nearer destinations.” SKAL is an association of travel and tourism professionals.
Prior to the Middle East crisis, the Department of Tourism (DOT) had projected 6.7 million inbound tourists this year, 14.13 percent up from 5.87 million who arrived in 2025. The agency has initially estimated tourism revenue at P694 billion, a figure largely affected by weak peso. Under the National Tourism Development Plan 2023-2028, domestic trips were forecast at 113.3 million this year, which was al-
ready exceeded in 2024, when domestic trips reached 134 million.
Aiming for bright skies
THE country’s largest carrier, however, sees bright skies despite the higher fuel prices, what with the second quarter of the year usually a peak season for travel. During their Investors’ Briefing on March 23, CEB President and Chief Commercial Officer Alexander Lao said: “We continue to
“Rather than broad discounting, our approach is focused on value-led strategies targeting regional and domestic markets with curated staycation packages, experience-driven inclusions and targeted tactical offers while protecting rate integrity and brand positioning.”— Samuel Gacos, Director of Sales and Marketing at The Peninsula Manila
see demand actually taking up the higher fares and we’re quite encouraged by both the domestic and international short-haul [routes]. So in terms of the international short haul, instead of people going to Europe, [they] would want to visit around Asia. Clearly there will be some uncertainty in the third quarter but right now, for the second quarter, people seem to continue to make bookings.” On Friday, the carrier boldly announced a new seat sale whereby from March 27 to 31, travelers may book domestic and international flights for as low as P88, “one-way base fare, exclusive of fees and charges.” The promo covers the travel period from July 1, 2026 to March 31, 2027. Other segments of the tourism industry are not as optimistic, even though they still see some desire to travel from Filipinos. Harold Atondo, president of ATD Experience, an inbound tour operator, echoes Bautistat’s forecast. “We are seeing that booking windows are getting shorter, and there’s a growing sense of caution among travelers . . . Overall, the outlook is still cautiously stable. Demand is still there especially for China and domestic travel. But we’re keeping a close watch and expecting possible shifts if energy costs continue to rise.” Continued on A2
PESO EXCHANGE RATES n US 60.2150 n JAPAN 0.3771 n UK 80.3027 n HK 7.6967 n CHINA 8.7141 n SINGAPORE 46.8563 n AUSTRALIA 41.4881 n EU 69.4580 n KOREA 0.0399 n SAUDI ARABIA 16.0513 Source: BSP (March 27, 2026)