Economic sabotage.

That, in effect, is what the Duterte administration is committing if it pushes through with the planned closure of Boracay Island, which attracts over a million foreign tourists, and earns some P56 billion in revenue for the economy.

More tourism associations, resort managers, former tourism officials and a lawmaker spoke out on Friday against the recommendation of Task Force Boracay, headed by Environment Secretary Roy A. Cimatu, to declare a state of calamity for six months on Boracay, then close it starting April 26, 2018, for a maximum of one year, to complete the government’s rehabilitation plan for the island. The task force is composed of the Departments of Environment and Natural Resources, Interior and Local Government, and of Tourism. (See “Cimatu’s decision: Close Boracay for up to 1 year,” in the BusinessMirror, March 16, 2018.)

Annabella Wiesnewski, president of the Raintree Hospitality Group and Jojo Clemente, president of the Tourism Congress of the Philippines decry the lack of private sector involvement in the decision-making process for Boracay’s rehabilitation. ‘No one has consulted us!’ Wiesnewski said, when the resorts owners and their employees are the ones substantially affected by the closure. (Photo by Alysa Salen)

“We’re not against the rehabilitation of Boracay Island,” said Jojo Clemente, president of the Tourism Congress of the Philippines, and Annabella Wiesnewski, president of the Raintree Hospitality Group, “but what we want to see are the specific plans and programs, so we can help the government implement these.”

In an interview with the BusinessMirror, Clemente, who is also president of Rajah Tours Corp., pointed out that it took one year to have Boracay included in the tour programs of foreign travel agencies and tour operators for 2018-2019. On that basis, tourists booked their tours and stay on Boracay about a year in advance.  “What will you tell them? Go to Cebu? Davao? What if they don’t like to go to these places because the contract between the guests and the travel agencies is for Boracay? So they go to Phuket instead, and the entire Philippines loses out,” he warned.

Wiesnewski, whose hospitality firm manages Coast Boracay on Station 2, added that many establishments on the island have poured in “millions and billions of pesos” of investments into their businesses. But she underscored, “it takes about seven years for resorts to break even, while restaurants, about four years.”

Many business owners, she added, also borrowed from the banks to put up their hotels and resorts. “What do I tell my bank? ‘I can’t repay my loan because the government closed Boracay?’ Will the government pay my debt?” she asked with incredulity. She noted that the closure also opens up resort owners, travel agencies and tour operators to lawsuits from their tourist-clients for not fulfilling their booking contracts.

For his part, former Tourism Region 6 Director Edwin Trompeta described the recommendations of the interagency task force as “a neat demolition job or economic sabotage by the authorities supposed to ensure the success of the industry.” He added: “What is ironic is that the DOT is part of the conspiracy, not even providing a moderating voice to protect the interests of law-abiding investors, tourists and service providers, who have made Boracay what it is today, one of the best destinations of the world and the flagship of Philippine tourism.”

Sen. Nancy Binay, chairman of the Committee on Tourism, also opposed the one-year total closure of Boracay, saying this “may not be the best solution for the island and its locals.

“Although we all agree that a moratorium on building construction be imposed, and we share the same observation that over-commercialization has created a serious environmental disaster, it appears that the DENR, DILG, and DOT only see one aspect of the problem. The likely loss of 17,000 jobs hasn’t quite resonated, that may be caused by the impact of a total closure.” She pointed out that the DENR and DOT didn’t have any “concrete steps” on what to do with the people who will be displaced by the closure.

“A phase-by-phase rehabilitation where government can strictly enforce the law, and at the same time, implement the needed corrective measures, could be the better option for Boracay. We want the island to breathe the same way we want the people of Boracay to live,” Binay stressed.

For its part, the Hotel and Sales Marketing Association International (HSMA) expressed hope that the government would “reconsider” the recommendation to close Boracay to tourists, noting that many lives will be affected by this move.

The group said it supports closing “those that have violated [laws] until such time that they have made the needed rectification to be compliant. [But] why penalize those who follow the rules?” The group also appealed to government to involve the stakeholders in the decision-making process “and have an honest and sincere discussion [with us].”

Clemente warned that it may take a long time again for government and private sector stakeholders to get foreigners interested in Boracay and the Philippines again. “Will the government give the DOT additional funds to promote Boracay and the Philippines again in 2019?” he asked, noting that as it is, the country has the smallest marketing budget among Asian nations.

Trompeta agreed. “Remember during the coliform scare in 1997, when DENR tried to hit the tourism industry with their incompetence? It was the travel trade sector and the DOT which banded together to save the day for the island, but still it took the island one year to recover the tourist arrival level of the previous year. And there was no closure order then, only bad publicity.”

Wiesnewski said the root of the problem in Boracay is incompetence and corruption of the local government. “Why did they allow this to happen? They saw an opportunity to stuff their pockets so they allowed everyone to come in. They didn’t enforce the laws. What happened to the environmental fees the tourists have been paying every year? Where did that go?” She added that DENR officials were also complicit in allowing many violations on the island. “Why are we, the island stakeholders, paying for the government’s own mistakes?”

She also said the tourism industry on Boracay “created a service culture” that is unparalleled in many destinations. “We gave them jobs, trained them, now what? Where will they go? Back to their provinces? The reason they are on Boracay is because they couldn’t find work in their own areas!” said Wiesnewski.

On Thursday, DILG officer in charge Eduardo M. Año told a news briefing that the recommendations of the task force will be taken up in a Cabinet cluster meeting on security with President Duterte on March 19.