Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.____ 
--------------------------------------------------------------------------------------------------------------------- 
Introduced by Representative Geraldine B. Roman 
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EXPLANATORY NOTE 
The tourism industry is one of the main economic drivers of the Philippines. It is a diverse industry that 
includes hotels and accommodations, food and beverages, transportation, etc. This industry is linked to 
movement to various locations, based not only on leisure, but also on business and other travel 
motivators. 
According to Bangko Sentral ng Pilipinas (BSP), tourism, along with overseas Filipino (OF) 
remittances and business process outsourcing, is a key contributor to the Philippines' external payments 
position and overall economic development. As one of the country's largest employers, it offers 
numerous opportunities to businesses and individuals from all walks of life, and it facilitates long-term 
structural foreign exchange (FX) inflows. However, due to the contact-intensive nature of the tourism 
industry, the COVID-19 pandemic has had a significant adverse impact on it.1 Countries, particularly 
the Philippines, had imposed travel restrictions and community lockdowns to prevent the spread of the 
COVID-19. 
In addition to that, travel services totaled USD 9.8 billion in 2019, representing an 18.7 percent increase 
year on year. However, travel services fell 81.7 percent to US$1.8 billion in 2020, and another 66.5 
percent to US$600 million in 2021.2 
Per ILO report, employment losses and decreases in average working hours were among the highest in 
2020. The sector's employment fell by 28% (compared to an 8% drop in non-tourism related sectors), 
and average hours worked fell by 38%. Workers in the tourism industry who work zero hours per week 
have increased two thousandfold (affecting 775,000 workers).3 
Micro, Small, and Medium Enterprises (MSMEs) are the main engine of economic growth, particularly 
in the tourism industry, by encouraging job creation, output production, and commerce, lifting more 
Filipinos out of poverty and ensuring equal access to necessities for daily living. Without a doubt, the 
government must provide economic assistance and relief to those affected by the pandemic in order to 
assist them in rebuilding their lives and to increase the country's ability to produce more goods and 
services, create jobs, and engage in economic activity. 
_________________ 
1 Caynila, K. A., et. al. (May 2022). The Philippine Tourism Sector Amid the Pandemic: Developments and 
Prospects. Retrieved from https://www.bsp.gov.ph/Media_And_Research/Publications/EN22-02.pdf. 
] I.d. 
3 International Labor Organization (November 2021). ILO research highlights massive COVID-19 impact on 
tourism employment in Asia and the Pacific. Retrieved from https://www.ilo.org/asia/media-
centre/news/WCMS_827494/lang--en/index.htm.  
February 15, 2023
11:34 am
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As measured by the share of Tourism Direct Gross Value Added (TDGVA) to the Gross Domestic 
Product (GDP), the contribution of tourism industries to the Philippine economy was estimated at 
12.7 percent in 2018. TDGVA serves as the indicator to measure the value added of different industries 
in relation to tourism activities of both inbound and domestic visitors in the country. The TDGVA 
amounted to PhP 2.2 trillion in 2018, higher by 14.3 percent compared to previous year’s record of PhP 
1.9 trillion. In 2021, the TDGVA to the Philippine economy, as measured by the Gross Domestic 
Product (GDP), was at 5.2% or  PhP 1,001.30 billion in 2021, higher by 9.2 percent compared with the 
PhP 917.20 billion in 2020 
 
According to the Philippine Statistics Authority (PSA), the relaxation of travel restrictions has resulted 
in a further reopening of the economy, particularly the tourism industry. PSA recorded PhP 1.039 billion 
in Total Gross Value Added to Tourism Industries (TGVATI) in 2021, creating more than 43 million 
jobs in various tourism industries and 4.8 million tourism enterprises, and tourism investments totaled 
Php 338.4 billion in 2021.4 
 
To date, the tourism sector has not recovered. Before COVID-19 pandemic (2019), the country’s 
tourism sector recorded Php 3,272 Billion with 41.9 million jobs and 5.7 million businesses generated, 
as well as Php 596.2 billion worth of tourism investments.5 Clearly, Micro, Small, and Medium Tourism 
Enterprises (MSMTEs) require assistance in order to recover their businesses and employ more people 
to create opportunities and continue to attract more local and foreign tourists to visit and enjoy our 
country's finest tourist destinations. 
 
This bill aeeks to exempt MSMTEs from paying local and income taxes, as well as business permits 
and licenses, for three (3) fiscal years to give them breathing spell to recover from the pandemic. 
 
Approval of this measure is earnestly sought. 
 
 
 
 
GERALDINE B. ROMAN 
          Representative 
       1st District, Bataan 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
__________________________ 
4 Philippine Statistics Authority (June 2022). 2021 Philippine Tourism Satellite Accounts (PTSA) Report. Tables 5.1, 
7.1, and 8.1.  Retrieved from https://psa.gov.ph/tourism/satellite-accounts/id/167572.  
5      I.d. 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _____ 
--------------------------------------------------------------------------------------------------------------------- 
Introduced by Representative Geraldine B. Roman 
--------------------------------------------------------------------------------------------------------------------- 
AN ACT  
GRANTING TAX EXEMPTIONS TO MICRO, SMALL, AND MEDIUM TOURISM 
ENTERPRISES (MSMTEs) TO ENSURE THEIR BUSINESS RECOVERY IN A POST-
COVID-19 ECONOMY 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
SECTION 1. Short Title. This Act shall be known and cited as the “Bangon Turismo Act of 
2023”. 
SEC 2. Declaration of Policy. It is hereby declared the policy of the State to boost the business 
competitiveness of tourism related Micro, Small, and Medium Tourism Enterprises (MSMTEs) that 
were affected by the COVID-19 pandemic, through tax exemptions in order to help them rebuild their 
businesses, prevent their closures, and continually contribute to the Philippine economy. 
The State further recognizes the tourism industry’s multiplier effect to the country's economic 
development by acting as a driver of socioeconomic and cultural growth through generating 
investments, employment opportunities and foreign exchange, as well as fostering a greater sense of 
national pride amongst Filipinos.  
SEC 3. Micro, Small, and Medium Tourism Enterprises Defined. For purposes of this Act, 
“Micro, Small, and Medium Tourism Enterprises” shall be defined in accordance with Section 4 (p) of 
Republic Act No. 9593, otherwise known as the “Tourism Act of 2009”, in relation to Section 3 of 
Republic Act No. 9501, otherwise known as the “Magna Carta for Micro, Small, and Medium 
Enterprises (MSMEs).“ 
SEC 4. Eligibility for Economic Relief. This Act shall apply to all Micro, Small, and Medium 
Tourism Enterprises (MSMTEs) as defined hereof: Provided, That any MSMTEs that are currently 
enrolled in other government fiscal incentives and/or benefits shall not be eligible for the tax exemptions 
provided in this Act. 
SEC 5. Grant of Relief from Payment of Local Taxes. MSMTEs shall be exempt from 
payment of taxes assessed and collected by the Local Government Units (LGUs):  Provided, That the 
exemption from payment of local taxes shall only be within the period of effectivity as provided under 
Section 11 of this Act. 
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SEC 6. Grant of Relief from Payment of Income Tax. Employees working in tourism 
enterprises shall be exempt from payment of income tax within the effectivity period of this Act: 
Provided, That employees classified as “Minimum Wage Earners” as defined in Section 22(HH) of the 
National Internal Revenue Code shall be exempt from the payment of income tax on their taxable 
income: Provided, further, That the holiday pay, overtime pay, night shift differential pay and hazard 
pay received by such minimum wage earners shall likewise be exempt from income tax within the 
prescribed period provided herein. 
 
SEC 7. Grant of Relief from Payment of Business Permits and Licenses. Within the 
effectivity period as provided under Section 11 of this Act, MSMTEs are exempt from paying the 
business permits and licenses fees collected by LGUs. Provided, That the MSMTEs shall fully comply 
with all applicable laws, ordinances, rules, and regulations of all governing agencies and LGUs 
regarding occupational, environmental, safety, and health protocols. 
 
SEC 8. Implementing Rules and Regulations. Within sixty (60) days after the effectivity of 
this Act, the Department of Finance (DOF), in consultation with Department of Tourism (DOT), 
Department of Interior and Local Government (DILG), and Department of Trade and Industry (DTI), 
shall issue the necessary implementing rules and regulation (IRR).  
 
SEC 9. Separability Clause.  If any provision of this Act or the application thereof is declared 
unconstitutional or invalid for any reason, the same shall not affect the validity of the other provisions. 
 
SEC 10. Repealing Clause. All laws, parts of laws, decrees, orders, letters of instructions and 
ordinances, or regulations in conflict with the provisions hereof, are hereby repealed or modified 
accordingly. 
 
SEC 11. Effectivity. This Act shall take effect on the fiscal year immediately following its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation, and shall 
remain in full force and effect for three (3) fiscal years, unless otherwise extended through an act of 
Congress. 
 
Approved,