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Rappler Business

Why a Siargao flight can cost more than Davao – or even a trip abroad

Tourist demand isn't the issue for Siargao, El Nido, and Busuanga; the bigger question is whether their airport infrastructure is too underinvested to keep fares affordable.

Context & Analysis

For many Filipinos, the sticker shock of island flights is less about travel fashion and more about how aviation economics work on thin routes. Siargao, El Nido, and Busuanga are attractive destinations, but they are also small-market endpoints where airlines must cover fixed costs with limited seats. When only one or two carriers operate a route, when schedules are seasonal, and when airport capacity restricts larger aircraft, fares can climb quickly. The result is that getting to a domestic beach resort may cost more than flying to another major Philippine city or even an overseas destination, especially during peak season.

This matters beyond leisure travel. High airfares raise the cost of living for residents, complicate staffing for tourism businesses, and make it harder for local suppliers to move goods quickly. For island economies, affordable connectivity is not a luxury; it affects hotel occupancy, resort pricing, event planning, and even the decision of whether entrepreneurs open branches or expand inventory. If travelers choose cheaper overseas options because domestic fares are too high, the country may lose tourism spending that would otherwise stay within its borders.

The broader lesson is that airport development and airline competition are inseparable from consumer prices. Smaller terminals, limited runway operations, constrained slots, and weak inter-island connectivity can all push fares upward even when demand is strong. Investors and policymakers should therefore watch whether the government expands capacity at these airports, improves maintenance, and creates conditions for more airlines to enter profitable but underserved routes. Watch also for changes in fuel costs, aircraft availability, and regulatory decisions that affect route licensing and competition. If infrastructure catches up with tourism interest, island destinations can become more accessible without relying on premium pricing.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: rappler.com

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