A

CASE

STUDY

RESEARCH

IN

BORACAY

PHILIPPINES

Submitted by:

Joy Andrea Narzabal

BTM 32
 Boracay is a small island with a length of approximately seven kilometers and an area of

just over 1,000 hectares (see Figure 2). Long Beach (also known as White Beach) is a four-

kilometer stretch of white powder sand that slowly extends into the crystal blue waters of the

Sibuyan Sea. It can be reached in less than an hour by plane from Cebu, Manila, and Palawan.

Larger flights land one and a half hours to the south at Kalibo, the regional capital. Caticlan,

right over the water from Boracay, is where smaller planes land. Ground transportation is

available throughout the big island of Panay and sea transit is available from sites throughout the

Philippines. To travel from Panay's main island to Boracay, you'll need to take a 20-minute

pump-boat journey.

Boracay grew naturally as a tourist destination as a result of the entrepreneurial Filipino

mentality combined with European leisure expertise and desires. Many of the original Boracay

families, or those who acquired land before tourism became popular, still operate tiny resorts on

the island, making it a unique worldwide tourism destination. These resorts usually consist of

just an eating area and a few rooms or cottages. Those who had visited the island and decided to

stay in 'paradise' had a strong European influence. They were mostly men who married or took

on Filipino business partners and provided working capital to service the predominantly

European and Filipino market (Nicholson 1997). However, as growth demands mount and the

natural environment's quality deteriorates, the laissez-faire approach to development that

contributed to establish the appealing atmosphere is proving to be a risky planning strategy.

Finally, there are the cautious and apprehensive, who fall somewhere in the middle. They

recognize Boracay's unique traits, but view recent trends as harbingers of calamity if drastic

measures are not done quickly. This group says Boracay is on the cusp of overdevelopment, with

numerous indicators already exceeding sustainable growth boundaries. Still, they are optimistic:
Boracay will be saved. Key players in this group include highly qualified DOT officials, the

Department of Environment and Natural Resources (DENR), and the Boracay Foundation, a

non-governmental organization that represents a segment of the business sector (Trousdale

1997e). However, there is widespread agreement among these groups (95 percent of locals and

86 percent of tourists) that Boracay is changing rapidly and that stronger development regulation

is needed (Trousdale 1998a). Tourism economics are driving the transformation.

INRODUCTION

Residents' livelihoods that had become reliant on tourism were suddenly jeopardized,

billions of pesos in capital investments were jeopardized, and the Philippines' tourism image

suffered. The announcement from the Department of Defense shook the inhabitants of Boracay

Island, Philippines, on June 30, 1997. According to the Department of Environment and Natural

Resources (DENR), the crystal blue swimming waters off Boracay's internationally renowned

Long Beach were contaminated with high levels of coliform due to poor sewage treatment. As a

result, the 100 percent rise in tourist visits from 1995 to 1996 was virtually equaled by a 70

percent drop in the months following the announcement (DOT 1997). The development context,

which includes aspects such as historical experiences, market forces, socio-cultural influences,

politics, and legislation, is an important component in fostering sustainable tourism through

governance. The importance of context helps to avoid the criticism that many researchers have

over-generalized findings and assumed that their conclusions are universally applicable. As a

result, the focus of this article's discussion and analysis is on the changes that are occurring on

Boracay and how they can be best managed. Finally, from a regional standpoint, comprehending

sustainable development in the Philippines is very relevant and crucial. The Philippines, arguably
Asia's most democratic nation, is providing an Asian example for participatory governance by

enacting progressive national legislation that allows local communities more influence.

PESTLE ANALYSIS

 SOCIAL – Beach erosion, the elimination of wetlands, high concentrations of fecal

coliform in Bolabog Beaches, pollution caused by incorrect waste management, and

encroachment of protected areas by unauthorized structures are among the significant

findings on the condition of Boracay Island. The National Council is recommending to

the President that Boracay Island be declared a State of Calamity for a maximum of one

(1) year due to the actual environmental disaster occurring in its barangays, and that the

island be temporarily closed as a tourist destination to protect residents, workers,

businesses, and tourists, and to enable the government to deliver and protect a balanced

and healthy ecology throughout the island.

 ECONOMIC - The economic gains they created, on the other hand, led to more intensive

tourism dynamics (e.g., hotels and restaurants were erected), as well as rising citizens'

quality-of-life ambitions. Boracay became both unmanageable and uncontrollable due to

the intensification of tourism activities and poorly planned environmental infrastructure,

as well as the detrimental socioeconomic repercussions on the indigenous community.

Pollution became a big concern on the island, mainly due to the lack of a modern sewage

infrastructure. The water at some beaches, for example, has faecal coliform (e. coli)

levels 47 times higher than the permissible levels. This posed major health dangers to

both residents and visitors.

attributed to poor governance. Although the relevant laws and regulations appear to be in

place, local and national government agencies have long failed to put them into effect. In

coastal locations where business establishments are connected to the sewage system,

good water quality was observed. Cuevas suggested that, for policy reasons, a state-of-

the-art wastewater-treatment facility be built near the outfall of drainage canals from

informal settlers, wet markets, parlors, stores, and other facilities before being discharged

into the coastal water. She underlined the importance of keeping an eye on the adjacent

islands for wastewater from homes, businesses, and sewage effluent disposal.

RESULTS AND DISCUSSION

Boracay Island, located in the province of Aklan, has long been a popular tourist

destination in the Philippines. The island's environmental state and sustainability have been

exacerbated by an increase in both foreign and local tourists, as well as inappropriate waste

management and inadequate application of environmental rules and guidelines. The

administration has chosen to close the island this year in order to address these serious problems.

This research looks into the economic implications of the recent directive, which is set to span

six months from May to October 2018. The study employs input-output and computable general

equilibrium (CGE) model evaluations using secondary data. There are three possible

scenarios which are based on various percentage reductions in Philippine tourism receipts, are

investigated to see what the expected losses in overall production and compensation will be, as

well as the repercussions.

billion, while the loss in compensation in terms of income would range from PHP 7 billion to

PHP 27.9 billion, according to the findings. The tourism industry, as well as agriculture and

services, would be the most affected, albeit in a minor way. Overall, while the outcomes may be

mixed,

Although it may not be relevant on a national level, it will have immediate and indirect

consequences on those living on the island and throughout the Malay municipality. The report

suggests that a planned and coordinated overall strategy be developed, outlining the various

government initiatives to protect the welfare of individuals who may be badly impacted by the

unexpected shutdown of Boracay.

For numerous years, the Boracay island has consistently drawn visitors, resulting in

greater tourism revenues, with the months of April and May being the busiest. The island, which

is part of the Malay municipality in the province of Aklan, is famous for its white sand beaches.

Growth has been strong in recent years. There has been a huge increase in foreign tourists,

mainly from South Korea and China. Boracay received 2,001,974 visitors (almost half of whom

were foreigners) in 2017, up from 1,725,483 tourists in 2016. As a result, tourist receipts from

the resort island have consistently risen from PHP 4.9 billion in 2012. From PHP 56.1 billion in

2001 to PHP 56.1 billion in 2017, a 16.5 percent annual growth rate. While travelers visit the

island throughout the year, the months of April and May are the busiest, as the island changes

from the rainy season to the dry season.

It is critical to improve policy execution and governance, as well as more effective

coordination among stakeholders, particularly between federal agencies and local governments.

Various government efforts have been launched in the past with the goal of investigating
Boracay's environmental state and looming sustainability challenges. Despite these attempts,

problems that have been acknowledged for a long time have remained. Policy implementation

inadequacies and overall governance are part of the challenge, as is the tendency for government

departments to formulate fragmented policies and work in silos rather than adopting and

implementing a whole-of-government strategy to Boracay development.

CONCLUSION

The island's infrastructural carrying capacity is sufficient to meet tourism demand.

Despite the fact that the Department of Tourism (DOT) reduced the arrivals target in late 2018,

the country welcomed a record 7.1 million visitors. The closure of Boracay prompted a rise in

new destination marketing, highlighting a variety of exotic islands. For the time being, it appears

to be working. Since its reopening in October 2018, these restrictions on Boracay Island have

resulted in more sustainable tourism activities. Compliance with the maximum carrying capacity

has been satisfactory, and in April 2019, the Civil Aeronautics Board reminded airlines to adhere

to the government's guest restriction.

Only 353 facilities are permitted to provide lodging, which is much less than before the

April 2018 closure. Boracay, the Department of Transportation has pledged to promote a

collaborative approach. They then looked at the organizations' capabilities, roles, and

responsibilities for putting the strategy into action. They came to the conclusion that Boracay's

governance is insufficient, and that the Municipality will be unable to carry out the strategy. To

turn Boracay into the long-term tourism destination envisioned in their proposal, new

governance connections would have to be established.

consensus, is an important step toward true community empowerment. The session ended with

participants agreeing to start a process of establishing governing institutions that take advantage

of the assets and talents of individual citizens, local NGOs, enterprises, and, of course,

government.

RECOMMENDATIONS

The majority of Boracay's issues have been identified. Legitimate political responses to

growth's obvious obstacles are now necessary. To incorporate the concept of governance into

systematic management of the island, political and community leadership must work together. If

governance is effective, the results will help maintain Boracay competitive in the global market

and improve the island's quality of life. Nonetheless, this new approach to governance is sure to

elicit criticism. The first concern would be the loss of local political control. As a result, the

process of producing local governance innovations must begin with the community itself.

Perhaps with the help of the federal government. The second opposition would most certainly

come from Boracay's many strong interests, who frequently break the law and would hate the

increased oversight that would come with greater governance.

Include the local community in the decision-making process more directly. Many of the

initiatives taken by Boracay stakeholders were aimed at identifying who was to blame for the

island's poor growth. Stakeholders must take more responsibility for their own community

affairs, become more politically involved, and demand higher governance standards from their

elected officials. Under the Local Government Code, they have a lot greater power.
 Give people a chance to be more critical, honest, and accountable in their government.

The intrinsic limits imposed by clannism, favoritism, and the clouds of corruption that envelop

the local political system must be removed. To balance local politics, more media scrutiny and

more consistent involvement from national and regional agencies (notably the DOT and DENR,

which may offer financing, technical expertise, and environmental law enforcement) are

required.

Allow local leaders to express their political intent while still preserving their dignity.

Strong and fair local leadership is hampered in Boracay by socio-cultural restrictions and kinship

ties. Local leaders should be able to justify their positions and actions using suggestions from an

advisory panel that includes off-island technical/professional specialists under the new

governance frameworks.

REFERENCES:

https://dirp4.pids.gov.ph/popn_pub/governance_boracay.pdf

https://businessmirror.com.ph/2018/05/13/scientists-boracay-environmental-woes-traced-to-
weak-governance/

https://hospitalityinsights.ehl.edu/overtourism-borocay-island-philippines

https://infographics.channelnewsasia.com/interactive/closing-boracay-the-politics-10177948/
index.html

https://www.ocd.gov.ph/news/press-release/444-ndrrmc-issues-resolution-on-boracay-island-
state-of-calamity.html

https://oxfordbusinessgroup.com/analysis/new-standard-success-rehabilitation-boracay-island-
leading-way-environmentally-conscious-tourism
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1837.pdf