Cleaning up Boracay

The rehabilitation of Boracay Island, an internationally famous tourist destination, is in order given the many long outstanding ecological and sanitation problems, as well as building violations.

Over the last two decades, problems about the water quality in Boracay have persisted, posing long-term damage to the viability of the island and its underwater environment as a preferred rest and recreation venue by foreign and local tourists.

The culprit – from day one when the island’s popularity started growing, first by word of mouth, and later through travel agencies and advertisements – has always been the ineffective governance at the local and national levels.

For such a small place (you can circle the island in less than a day), it is difficult to comprehend why there are more than 50, or about a quarter of the business establishments in Boracay, that continue to operate in violation of water treatment laws.

The continued illegal dumping of wastewater in the island has created what the President had called a cesspool that contaminates the shores and corrodes coral reefs, while posing a health hazard to tourists that pay to enjoy the famous sun, sand, and sea.

Government has been slow to introduce a comprehensive land use policy in Boracay. It has also failed to enforce sanitation and sewerage regulations, and has been incompetent in managing the flow of residents and tourists in the area, as well as the entry of more business establishments.

State of calamity

Boracay has been under a state of calamity for years, and while the brash threat of the President to shut down the island had taken the nation by surprise, there were not a few who gave their support, even if many added qualifiers in consideration for lost jobs and revenues.

Closing down Boracay Island to tourism, even if temporarily, needs careful planning. The repercussions not just on daily wage earners employed in the many establishments catering to the tourist community, but also on the island hotels and restaurants, airline operators and the Philippine economy are too big to ignore.

Knee-jerk decisions to clamp down on the tourism business in Boracay over a one-year period is estimated at P56 billion, which would be about 20 percent of total tourism revenues of the country in a year. Considering that tourism accounts for a third of our GDP, the damage to the national economy could be quite extensive.

The biggest hit, however, would be the credibility of the country to foreign tourists who had already booked transportation and accommodation months in advance, but would have to be refunded because of a force majeure when the Philippine government declared the island in a state of calamity.

This simply demonstrates the Philippine government’s lack of foresight and weakness in planning, and the whole brouhaha about breaches on operating regulations by businesses and households based in Boracay adds to the perception of the Philippines as afflicted by “small town” incompetence.

Phasing

Instead, the suggestion forwarded by the Philippine Chamber of Commerce and Industry is to schedule the rehabilitation of Boracay by phases or by geographical areas, offers a less radical solution to the island’s problem and limits business losses to manageable levels.

Another view is to postpone any phased rehabilitation until after the tourist season ends, which is in May. Again, this would mitigate huge losses in tourism revenues and business operations by avoiding lost revenues during the peak season.

This could also be an opportunity to promote other tourist destinations in the Philippines, like Panglao Island, that could reasonably compete with the charm that Boracay exudes.

Master plan

The idea of executing an approved master plan for Boracay will need time, starting with an agreement on what will be the new face of the island, leading with how the master plan will be financed.

Closing down Boracay with no definite plan and source of funding is a big risk. It would only reinforce the perception that the Philippine government operates with a myopic perspective.

Based on the initial plan that Architect Jun Palaflox released, Boracay will be transformed to something like the Maldives, which is regarded as a luxury tourist destination that gives premium on ecological preservation.

The development of the Maldives, however, has been the subject of several tourism master plans that started 25 years ago, and funded by international funding institutions like the Asian Development Bank and the World Bank.

The proposed Palafox master plan will need oodles of money, even if just to finance the basic cures of the Boracay’s garbage, sewerage, transportation, land zoning, and waste management problems. When finished, this will definitely raise the standards – and cost – of staying in Boracay.

This could, of course, threaten the financial viability of a paradise Boracay, similar to what the Maldives had encountered. Tourists love Boracay not just because of the clear seas, white sands, and plentiful sunshine, but also its relatively affordable cost.

Aside

President Duterte issued his threat to close Boracay in early February this year. In December 2017, the President met with top officials of Galaxy Entertainment Group Ltd., and accompanied by Philippine Amusement and Gaming Corp. Chair Andrea Domingo, Tourism Secretary Wanda Teo and Socioeconomic Planning Secretary Ernesto Pernia.

The President was briefed on Galaxy’s plan to open a $300-million casino complex in Boracay, which will be built within the year, whether or not there is a shutdown of all tourism-related operations in the island. Galaxy is led by Chinese tycoon Dr. Lui Che Woo, ranked 106 by Forbes magazine as among the richest men in the world.

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