THE proposed abolition of the Philippine travel tax—now included among the Marcos administration’s priority measures for the 20th Congress—is drawing attention from business and tourism stakeholders who see the move as a potential catalyst for economic expansion.
Senate Minority Leader Alan Peter Cayetano’s Senate Bill No. 424 seeks to remove the decades-old levy imposed under Presidential Decree No. 1183, arguing that the tax has become outdated and counterproductive to the country’s modern tourism and regional integration goals.
Economic projections cited by Cayetano suggest the government could forgo around ₱4 billion annually in travel tax revenue. However, industry estimates indicate the broader economy may gain up to ₱299 billion through increased outbound and inbound travel, higher airline demand, tourism spending, and expanded business mobility across ASEAN markets.
Business groups say lower travel costs could stimulate more frequent travel among Filipino professionals and entrepreneurs, strengthening trade ties and encouraging investments in hospitality, aviation, and related services. The measure’s proposal to exempt ASEAN nationals from the tax also aligns with regional tourism cooperation agreements and may improve the Philippines’ competitiveness as a travel hub.
The administration’s inclusion of the bill in LEDAC’s priority list signals strong policy backing, which industry players believe could accelerate legislative approval and market confidence.
Cayetano emphasized that the measure aims not only to reduce costs for travelers but also to unlock broader economic activity through tourism growth, job creation, and improved regional connectivity—key drivers for post-pandemic economic recovery.
If enacted, the policy could reshape the country’s travel landscape by encouraging mobility, stimulating domestic tourism infrastructure, and reinforcing the Philippines’ position within the ASEAN economic corridor.|
