How to Start a Travel Agency in the Philippines

The Philippines travel industry is rapidly growing, with projections from the World Travel & Tourism Council (WTTC) indicating it could contribute up to USD 91.8 billion to the country’s economy and surpass pre-pandemic levels. This surge creates opportunities for foreign entrepreneurs looking to enter the market.

In this guide, we’ll cover the essentials of starting a travel agency in the Philippines, including ownership regulations, mandatory licenses, permitted activities, and tips for a smooth market entry.

Overview of the Philippine Travel Industry 

Can a Foreigner Own a Travel Agency in the Philippines?

Yes, foreigners can own a travel agency in the Philippines, but there are some limitations to consider. The Foreign Investments Act (FIA) restricts foreign ownership in certain businesses, including travel agencies. 

As a general rule, foreign nationals can own up to 40% of a business, with the remaining 60% owned by Filipino citizens. However, there are specific conditions that may allow for increased or full foreign ownership:

1. Export-Oriented Business: Travel agencies generating at least 60% of revenue from international clients may qualify for 100% foreign ownership.
2. Domestic Market Enterprise: Travel Agencies generating an income of more than 40% in the Philippines need to meet a paid-up capital requirement of USD 200,000.00.
3. Special Economic Zones: Businesses registered under the Philippine Economic Zone Authority (PEZA) enjoy various incentives, including potential exemptions from standard ownership limits.

Due to these restrictions, foreign entrepreneurs commonly form joint ventures with corporate service experts like Emerhub, allowing them to enter the market seamlessly while navigating complex Philippine regulatory requirements. Our local experts can guide you through maximizing your foreign ownership potential while ensuring full compliance with Philippine laws.

What Can a Foreign-Owned Travel Agency in the Philippines Do?

Your travel agency can offer a variety of services, provided you comply with local regulations. These services include:  

• Domestic and international tour packages– curating and selling tour packages, for local and international visitors.
• Airline ticketing services– acting as intermediaries for flight bookings and leveraging partnerships with international and domestic airlines.
• Hotel and accommodation bookings– securing lodging as part of travel packages or standalone bookings.
• Visa assistance– assisting travelers with visa applications for inbound and outbound journeys.
• Travel insurance– providing coverage plans to ensure traveler safety.
• Niche services– specializing in unique travel services, such as eco-tourism, adventure tourism, or luxury travel.

How to Start a Travel and Tours Business in the Philippines

Assessing and Meeting Capital Requirements 

Setting up your travel agency in the Philippines requires capital to cover costs for business registration, office setup, marketing, and operational expenses. Below is an estimated breakdown of costs for a typical travel agency setup: 

Expense	Estimated Cost (USD)
Business Registration	$170 – $340
DOT Accreditation	$100-$150
Office Setup (for small to medium sized office)	$1,700 – $8,500
Marketing and Advertising	$850 – $3,400
Staff Salaries	$300 – $510 per employee

Important: The Department of Tourism (DOT) also requires proof of ₱500,000 (approximately USD 10,000) working capital for you to qualify for travel agency accreditation.

It’s crucial to ensure that you have sufficient funds to cover these initial costs and operational expenses for at least six months. Emerhub’s team of experts can recommend cost-effective solutions (including a virtual office setup) that can help optimize costs while meeting capital requirements.

Mandatory Licenses for a Ticketing Travel Agency in the Philippines

Setting up a ticketing travel agency in the Philippines involves a detailed licensing process with multiple local government units (LGUs) and national agencies. To ensure your travel agency is legally recognized and eligible for mandatory licenses, you must first register your business:

• For corporations and partnerships– registration must be completed with the Securities and Exchange Commission (SEC).
• For sole proprietorships– registration is handled by the Department of Trade and Industry (DTI).

Once your travel agency is registered, you must obtain several key licenses and accreditations to legally operate:

• The Department of Tourism (DOT) accreditation– verifies compliance with Philippine tourism standards for safety, customer service, and operations.
• International Air Transport Association (IATA) membership– required for issuing airline tickets directly to customers.
• License from the Board of Travel and Tourist Industry– provides legal authority to conduct travel agency operations.
• Bureau of Internal Revenue (BIR) registration– for tax compliance and authorization to issue official tax invoices and receipts.
• Local government permits such as the Barangay Clearance and Mayor’s Permit.
• Employee registration– for compliance with labor and social welfare regulations by registering your company and employees with the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG).

Our experts in the Philippines specialize in guiding foreign entrepreneurs throughout this process. We can coordinate every step of the company registration and licensing process in your stead, streamlining all procedures and official communications with corresponding authorities or LGUs.

Ensuring ongoing Compliance for Your Philippines Travel Agency

Establishing and operating your travel agency in the Philippines can be a complex and layered process. Our team of experts can ensure compliance throughout your operations in the Philippines with end-to-end corporate services including:

• Visa assistance for foreign employees and market research visits. 
• Travel agency registration and documentation.
• License acquisition and compliance support.
• Market entry strategies tailored to your business goals.

Ready to start your travel agency in the Philippines? Fill out the form below to connect with one of our local experts!