Opinion | Behind the High Costs of Philippine Tourism—and the Government’s Silent Role

Why Is Tourism in the Philippines So Expensive—and Why Isn’t the Government Doing More?

The Philippines is globally known for its natural beauty: white-sand beaches, world-class dive sites, rich culture, and warm hospitality. Yet for many Filipinos and foreign travelers alike, one question keeps coming up:

Why is it often more expensive to travel within the Philippines—such as to Boracay or Siargao—than to visit Vietnam or Thailand, despite our poorer infrastructure and services?

This situation raises serious concerns about pricing, governance, and long-term tourism competitiveness.

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The High Cost of Philippine Tourism

A trip to Boracay or Siargao can easily cost more than traveling to Da Nang or Bangkok. Airline tickets, hotel accommodations, food, and local transportation are often significantly higher, even when the quality of services and infrastructure does not match those of our Southeast Asian neighbors.

In countries like Thailand and Vietnam, tourists enjoy:

• Affordable and reliable flights

• Efficient public transportation

• Clean public restrooms and parks

• Stable power and water supply

• Fast and reliable internet connectivity

In contrast, many Philippine tourism destinations struggle with:

• Poor road networks

• Limited or poorly maintained public facilities

• Unreliable electricity and water supply

• Weak internet connectivity

• Inadequate sanitation systems

Despite these shortcomings, prices in the

Philippines remain high.

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Why Doesn’t the Government Regulate Tourism Prices?

One major reason is that most tourism-related prices are market-driven. Airlines, hotels, resorts, and restaurants operate as private businesses and set prices based on supply and demand, operating costs, and profit expectations. Unlike basic commodities, tourism services are rarely subject to strict price regulation.

However, this does not mean the government has no responsibility.

In neighboring countries, governments play a strong enabling role by:

• Investing heavily in infrastructure

• Improving airport and transport efficiency

• Ensuring stable utilities (power, water, internet)

• Supporting budget airlines and mass tourism

• Enforcing service quality and consumer protection standards

These actions naturally lower operating costs for businesses, allowing them to offer competitive prices without direct price controls.

The Philippine Government’s Missed Opportunity

Agencies such as the Department of Tourism (DOT), Department of Transportation (DOTr), DPWH, DICT, and local government units should be working in coordination to address these systemic issues.

Instead, what we often see are:

• Tourism promotions without matching infrastructure readiness

• World-class marketing for destinations with third-world facilities

• High tourism fees without visible improvements

• Slow and fragmented implementation of transport and digital projects

Without strong government intervention in infrastructure, utilities, and planning, private businesses pass high costs to consumers—resulting in expensive tourism that feels unjustified.

Why This Is a Serious Problem

High prices combined with poor services create long-term risks:

• Tourists choose cheaper and better-managed destinations abroad

• Local tourism suffers as Filipinos travel overseas instead

• Small local businesses lose competitiveness

• The country’s tourism brand is weakened

Tourism should be inclusive, affordable, and sustainable, not exclusive and overpriced.

What Needs to Be Done

The solution is not heavy-handed price control, but strong governance and smart intervention, including:

1. Massive investment in transport infrastructure (airports, roads, seaports)

2. Reliable power, water, and internet in tourism zones

3. Strict standards for public sanitation and facilities

4. Better regulation of fees and transparency in tourism charges

5. Support for budget airlines and regional connectivity

6. True coordination between DOT, DOTr, LGUs, and other agencies

If Thailand and Vietnam can do it, so can the Philippines.

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Conclusion

It is not wrong to question why tourism in the Philippines is more expensive than in neighboring countries despite weaker infrastructure and services. What is wrong is allowing this situation to persist.

If the Philippine government truly wants tourism to be a pillar of economic growth, it must go beyond marketing slogans and focus on real reforms, real infrastructure, and real accountability.

Only then can Philippine tourism become competitive, affordable, and worthy of its natural beauty.