| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$111.45 |
10 |
|
Percentage of total item cost: |
10.49% |
13 |
|
Overall tax index: |
97 |
8 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Manila. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Manila compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Manila currently has an
overall Tax Barometer index of 97,
indicating a
3% decrease in
travel-related taxes since June 15, 1994,
the 8th largest decrease among all surveyed destinations.
This change can be attributed to a decrease
in the lodging tax rate; tax rates in the air passenger and restaurant
sectors have increased, while tax rates on car rentals remain at their
base index level. For a five-day, four-night trip to
Manila, travelers
can expect to pay approximately $111.00 in tourism-related taxes, a
total that ranks as the 10th lowest among all
52 surveyed destinations.
|
 |
Rank |
|
Average price for 5-day rental (mid-size) without taxes: |
$210.00 |
- |
|
Value added tax (VAT): |
10.00% |
- |
|
Total charges for 5-day rental with taxes: |
$231.00 |
- |
|
Total tax $ for five-day rental: |
$21.00 |
13 |
|
Percentage of total car rental cost: |
9.09% |
12 |
|
Car rental tax index: |
100 |
1 |
|
Summary:
Car rental taxes in remain at their 1994 base index level, and Manila
is one of only 14 destinations to not have increased car rental taxes
over this period. Tax charges on a four-day mid-sized car rental
total approximately $21.00, an amount that ranks as the 13th lowest
among all 52 surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$536.04 |
- |
|
Value added tax (VAT): |
10.00% |
- |
|
Local lodging tax: |
0.50% |
- |
| Total
charges for 4-nights lodging with taxes: |
$592.32 |
- |
|
Total tax $ for four-nights: |
$56.28 |
27 |
|
Percentage of total hotel room cost: |
9.50% |
23 |
|
Hotel
tax index: |
71 |
7 |
Summary: Tax rates have declined 29%
in Manila since 1994, the result of a decrease in the lodging VAT.
Tax charges on four nights lodging total approximately $56.00, the
26th highest total among all 52 surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$216.00 |
- |
|
Value added tax (VAT): |
10.00% |
- |
|
Local food tax: |
0.75% |
- |
|
Total charges for 12 meals with taxes: |
$239.22 |
- |
|
Total tax $ for 12 meals: |
$23.22 |
22 |
|
Percentage of total restaurant meals cost: |
9.71% |
28 |
|
Restaurant tax index: |
269 |
49 |
Summary:
Tax rates have increased 169% in Manila since 1994,
the result of a increase in the restaurant VAT. Visitors can
expect to pay around $23.00 in taxes for 12 restaurant meals, the 22nd
lowest total among all 52 surveyed destinations. |
 |
Rank |
|
International passenger terminal fee: |
PHP 550.00 |
- |
|
Total tax $ for international arrival and departure: |
$10.95 |
11 |
|
Percentage of total trip cost: |
1.03% |
16 |
|
Air passenger tax index: |
183 |
28 |
Summary:
Taxes on international air passengers have increased 83% since 1994,
the 25th highest increase among all 52 surveyed destinations.
This change can be attributed to two increases in the passenger
terminal fee. The most recent increase occurred in 2000 when the
fee was raised from PHP 500.00 to PHP 550.00. The $10.95 in
applicable air passenger taxes ranks as the 11th lowest among all
destinations. |
 |
|
Barometer No. 1:
The inaugural barometer increase was attributed to a slight increase
in the sales tax charged on restaurant meals.
Barometer No. 2:
The Philippine
Government shifted from a sales tax to a 10.0%
value added tax.
A 0.5% tax on hotel rooms was also introduced.
Barometer No. 3:
The passenger terminal fee was increased from PHP 300.00 to PHP 500.00
for all departing international passengers.
Barometer No. 9:
The passenger terminal fee was increased to PHP 550.00.
Barometer No. 10:
A
correction was made to the restaurant meals index, resulting in
a significant increase in that index.
|
|
