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‘ISLAND IN CRISIS’

Boracay businesses dread lack of income during 6-month closure


As President Rodrigo Duterte gave Boracay's six-month closure the official greenlight, businesses, airline companies and tourists are facing the reality of expected losses and cancelled plans.

As recommended by three government departments, the world-famous tourist destination will not be receiving any tourists for six months starting April 26.

A 24 Oras report by Maki Pulido on Thursday notes that the closure covers the period when the most people visit the island, according to data from the Civil Aviation Authority of the Philippines (CAAP).

GMA News Research said airports in Caticlan and Kalibo saw as many as 3.4 million arrivals in 2016. Up to 628,374 of these passengers flew to the island in the month of May alone.

The closure traverses Labor Day weekend, during which the highly-anticipated LaBoracay is held. The event has attracted thousands of people to the island every year.

Aside from airline companies like Cebu Pacific and Philippine Airlines, the Tourism Congress of the Philippines (TCP) said resorts must also be ready to refund or make other rearrangements for bookings already made.

"The resorts will have to either refund or offset the amounts that have already been paid to them," TCP president Jojo Clemente told GMA News.

With no tourist arrivals, some establishments with pending dues will have no choice but to find other sources income during the closure.

"When you don't have any income and there's a lot of expenses, how are they gonna do this kung...walang income?" Annabella Wisniewski, president of the Raintree Hospitality Group, said.

The government plans to use the May to October window to complete the demolition of at least half of 900 establishments found to be operating illegally on the island's forestland.

Businesses constructed within the 30-meter easement zone from the shoreline are also set to be torn down, 190 of which are 5-star resorts.

The government was also tasked to see to it that all establishments are connected to Boracay's sewerage facility before closure expires in October.

Duterte had threatened to close the holiday hotspot in February, saying it has become a "cesspool" and issued an ultimatum to stakeholders allegedly violated and neglected the enforcement of environmental laws.

The impending closure of the prime tourist destination was also seen to result in at least P56 billion in foregone revenues and render 36,000 people jobless.

Business confused

In a statement issued Friday, Boracay Foundation, Inc. (BFI) called for a dialogue with government agencies concerned, saying there was an "absence of clear guidelines" and that the pronouncement "came too soon."

Asking for help and guidance, the BFI listed the following questions:

  • "What are the specific closure and rehabilitation plan and timeline?"
  • "The government is looking after the welfare of all the employees – formal or informal, who inevitably will be affected by the closure of Boracay, how will the government identify who are qualified to receive support? What identification or specific documentation do they need to present to avail of this? When will this support be made available? What will be the basis of the amount of support to be provided to each worker?"
  • "Will the government intervene for small or big businesses that have availed of loans by mandating banks to relax their terms/moratorium as businesses will be unable to pay their loans due to loss of income?"
  • "Regarding taxes, will the government temporarily suspend the collection of taxes of island tourism establishments due to the stoppage of commercial operations?"
  • "How will they regulate the entry and exit of residents to and from the island, which is home to more than fifty thousand (50,000) residents?"
  • "During the rehabilitation, will the utilities continue to service the community?"
  • "Are there safeguards in place to prevent any possible abuse in the distribution of assistance by the government?"
  • "With the limited access into and out of the island, will the residents be assured of a stable supply of basic necessities such as rice, food, toiletries, etc?"
  • "Once sanctions are applied to the LGUs, who will be in charge of Boracay? What is the extent of their authority?"
  • "It was mentioned that there is a chance of re-opening earlier than six months, what benchmark should be met so this can be achieved?"

According to Presidential Spokesperson Harry Roque on Wednesday, Duterte arrived at the decision during the 24th Cabinet meeting as the Office of the President received the detailed memorandum containing the justification of the three agencies pushing for the closure.
Details of the memorandum had yet to be released.

In its statement, the BFI responded to the Roque's announcement saying they were "just as confused as everyone else."

"The haze of uncertainty for the past weeks has now been replaced by a grim realization that closure is indeed happening; sooner than expected and with less than a month to prepare," their statement read.

"For too many members of the Boracay community, life has gone from confusing to disappointing, to despairing," they added.

Nevertheless, the BFI thanked the President "for listening and taking the lead in addressing decades-old problems."

Calamity funds

Reiterating that the closure was recommended for massive rehabilitation efforts to take place, the government has appealed to the parties affected to bear with the effects of the closure.

"The island is in crisis. So when an island is in crisis, we have to accept that fact otherwise, we cannot have the right solutions to this crisis," Department of the Interior and Local Government (DILG) Assistant Secretary Epimaco Densing said.

The government has set aside P2 billion in calamity funds to help workers who will be displaced by the closure for six months of beach resorts in Boracay, Malacañang said on Thursday.

Roque said the amount was disclosed by the Department of Finance during the Cabinet meeting on Wednesday when Duterte gave his approval to the recommendation of the three government agencies to temporarily close the island to tourists.

“There will be a declaration of a state of calamity. But the President was insistent that the funds that will be spent will go only to the workers who will be displaced. He will not let any resort owner benefit from any sort of calamity fund,” Roque said at a press briefing.

Roque said the would-be displaced workers may be tapped in the major rehabilitation works to be undertaken in the six months.

"They will just have to change jobs for the time being," he said. — Margaret Claire Layug/BM, GMA News

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