The economic loss from the six-month closure of Boracay island could reach P1.96 billion, the country’s Socioeconomic Planning chief said, with the impact to be mitigated by tourists opting for other Philippine destinations.
National Economic and Development Authority (NEDA) Director General Ernesto Pernia estimated the overall impact to be limited to 0.1 percent of gross domestic product (GDP). This would be equivalent to “around P980 million” per quarter, which he described as a “small amount”.
President Rodrigo has ordered the complete shutdown of tourism operations on the island, known worldwide for its beautiful beaches, given widespread environmental violations. The six-month closure will begin on Thursday, April 26.
Pernia expressed confidence that the majority of affected tourists would adjust their travel plans but added that this would have to be supported by Tourism department efforts to highlight other destinations in the Philippines.
“It’s going to be a temporary shortfall in terms of tourism income,” he said.
With Boracay stakeholders worried about the impact on earnings and livelihoods, the government has said that it would be implementing safety nets for affected businesses and workers.