Travelers brace for surge in Caticlan airport fees

PHOTO BY DON LEJANO/INQUIRER.net

MANILA, Philippines—Terminal fees at Caticlan’s Godofredo P. Ramos Airport, the country’s gateway to tourism hotspot Boracay Island, are set to surge in January next year, the government announced this week.

In a notice published on Thursday, the Civil Aviation Authority of the Philippines (CAAP) said fees to be charged travellers would be increased to P200 per passenger, from the current P20.

The increase in fees will make it easier for the facility’s new operator, San Miguel Holdings Corp., to recoup money it has spent and will continue to spend to develop the airport.

San Miguel Holdings, a unit of conglomerate San Miguel Corp., owns 93 percent of Trans Aire Development Holdings Corp. (TAHDC), the company that holds the 25-year contract to rehabilitate and operate the Caticlan airport.

Proceeds from the collection will help pay for the $300 million the company is expected to spend in rehabilitating Caticlan Airport.

The first stage of airport improvements was unveiled last June.

San Miguel Holdings is in the process of improving terminal facilities and expanding the airport’s limited runway, which today can only accommodate small aircraft.

In a previous disclosure, San Miguel Holdings said its concession agreement would be valid until 2034.

The increase to P200 will only be the first of several adjustments.

By 2014, the company plans to hike fees to P500 per passenger.

“All fee increases are limited to a maximum equivalent to the terminal fees at Manila’s Ninoy Aquino International Airport,” the company said.

San Miguel earlier acquired the company that won the contract to develop the Caticlan airport from businessman George Yang.

Due to the increasing popularity of Boracay as a tourist destination, the Caticlan airport has experienced rapid growth in passenger volumes over the last decade.

About 700,000 tourists pass through Caticlan airport each year.

Boracay Island, which is less than an hour by boat from Caticlan, is considered to be one of the Philippines’ top tourist draws.