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HomeFreeports & EcozonesJohn Hay Special Economic Zone

John Hay Special Economic Zone


In 1992, RA 7227 was enacted conveying stewardship of Camp John Hay to the BCDA to facilitate its conversion into the country’s premier eco-tourist destination.  Through Presidential Proclamation No. 420 in 1994, 301.86 hectares of the 695-hectare Camp was designated as the John Hay Special Economic Zone (JHSEZ).


Today, the erstwhile military camp is a premiere eco-tourism haven with its panoramic vistas and crisp mountain air that show the classic charm of Baguio City. Among much loved places in the Camp are the world-class Manor Hotel, the Camp John Hay Historical Core, the Bell House Museum and Bell Amphitheater; and the Honeymoon Cottage.

Getting There

Nestled 5,000 feet above sea level in Northern Luzon, Camp John Hay is accessible from Manila via an hour -long airplane flight to the Loakan Airport or a four-hour drive via the NLEZ and SCTEX.   It is a gateway to the scenic beaches of La Union,  the historic landmarks of Ilocos Sur, among other popular tourist destinations.   

Investment Incentives

A milestone development in 2006 was the issuance of Proclamation No. 1191 which assigned the JHSEZ under the Philippine Economic Zone Authority (PEZA) as a Special Tourism Economic Zone.  On March 20, 2007, RA 9399 and RA 9400 were signed into law, according locators with tax amnesty and duty-free incentives.  New investors who wish to establish their businesses inside the zone can now enjoy the following benefits (under RA 7916—PEZA Law): a) exemption from taxes under the National Internal Revenue Code (NIRC); b) exemption from local taxes except real property taxes; c) zero-rated transactions; d) fiscal incentives provided under PD 66 and EO 226; and, e) 5 % preferential income tax treatment on gross income earned within the zone.

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