Billion-peso income, travel tax can fund makeover of Asia's worst airport - Angara

Tuesday, 24 May 2011 09:42

The authority running what has been ranked by travelers as Asia's worst airport grossed P7.5 billion in 2009 which if added to the P1.4 billion income of the travel tax-collecting agency would form a cash cache that could finance an "emergency makeover."

"Poverty can never be an excuse for why the Ninoy Aquino International Airport continues to be beset by poor facilities because year in and year out it is turning in a tidy profit," Rep. Juan Edgardo Angara (Laban, Aurora) said.

Angara made the comment after the website, "The Guide to Sleeping in Airports," ranked the NAIA, particularly Terminal 1, which it described as a "bombed-out ruin" and a "cattle yard," not only Asia's worst but also the fifth worst in the world.

Angara said the Manila International Airport Authority, which operates the three NAIA terminals and the old domestic terminal, posted a before-tax net profit of P1.17 billion out of a gross income of 7.5 billion in 2009.

"Out of this amount, it remitted P838 million to the Treasury as the national government's share in addition to paying P419 million in income tax, bringing the total government share to P1.26 billion," he said.

"If this is what government earns, then I think it isn't asking too much if we request it to plow back some money for the repair of toilets, upholster some lounging chairs, and install additional
air-conditioners," Angara said.

"It is not the government who should receive dividends alone. All the more, the traveling public must too," he said.

Angara said MIAA's 2010 income was expected to increase on the back of the surge in the number of passengers lured by cheap fares offered by budget airlines, one of which, Cebu Pacific, saw its number of passengers jump 19 percent to 10.5 million last year.

The MAIA collects an airport fee of P200 and P750 fom each departing domestic and international passenger, respectively. In 2009, it handled 24.1 million passengers, ranking it 51st in the world.

On top of the airport fee, Filipino citizens and permanent residents in the country travelling abroad are required to pay a travel tax of P1,620, if flying economy or P2,700, if holding a first class ticket.

Overseas Filipino Workers, government employees on official travel, diplomats are however exempt from the levy, while dependents of OFWS can pay a discounted rate of P300 per passenger.

In 2009 , the agency which collects the tax , the Tourism Infrastructure and Enterprises Zone Authority (TIEZA), formerly the Philippine Tourism Authority, reported a gross income of P1.36
billion, and a net income before tax of P320 million.

Angara said the travel tax collections are also one source of funds for the upkeep of the Ninoy Aquino International Airport as almost 95 percent of what is collected in a year are paid by passengers exiting out of NAIA.

He urged the TIEZA to devote a larger chunk of its annual infrastructure fund, which it spends on tourism sites, to the country's main gateway "because the tourism experience starts the
moment the visitor steps out of the plane."

Angara said the MIAA's income and travel tax collections can combine to form a steady source of income to make the airport's facilities more comfortable. "We are not talking of a major makeover here. Just toilets that flush, clean restrooms, comfortable chairs, and free Internet, which are not big-ticket expenses."