House Majority Leader Sandro Marcos has filed a bill seeking to abolish the Philippines’ long-standing travel tax. He argues that the levy places an unnecessary financial burden on Filipino families and restricts tourism growth.
In comments reported by The Philippine Star, Marcos said the tax reduces household spending power and limits mobility for work, family visits, and other economic opportunities. He added that higher travel costs weaken overall economic activity. This happens by reducing movement and consumer spending.
“When travel becomes more expensive, fewer people move, fewer people spend, and fewer opportunities circulate through the economy,” Marcos said, arguing that lowering costs would allow families to prioritize essential expenses. He added it would also support broader economic circulation.
Bill Targets Marcos-Era Decree and Tourism Act Provisions
The proposed legislation would repeal Presidential Decree 1183, introduced under former president Ferdinand Marcos Sr. It would also remove provisions of the Tourism Act of 2009 that mandate fixed travel taxes.
Marcos also referenced the 2022 ASEAN Tourism Agreement, which encourages member states to phase out travel-related levies. This aims to promote regional mobility and cross-border travel within Southeast Asia.
Under current rules, Filipino travelers are charged PHP1,620 ($27.46) or PHP2,700 ($45.76), depending on travel class. The Philippines is currently the only Southeast Asian country that imposes a separate travel tax on its own citizens.
Funding and Tourism Impact
The travel tax is collected by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and is allocated to tourism infrastructure projects. It also funds tourism education through the Commission on Higher Education. Additionally, it supports cultural programs via the National Commission for Culture and the Arts.
Marcos said tourism initiatives should instead be funded through the General Appropriations Act. He argues this would improve transparency and ensure stable, long-term funding.
Policy Shift Aimed at Stimulating Travel
The proposal comes as the Philippines recently introduced visa-free entry for visitors from China. This is part of a broader effort to strengthen inbound tourism.
According to the Department of Tourism, the country recorded 6.48 million visitor arrivals in 2025, a 0.76% year-on-year increase. Marcos said removing the travel tax could further stimulate tourism-related sectors and encourage domestic and outbound travel. He added that it would also support job creation, as rising travel costs continue to draw public criticism.
