“We were expecting some sort of compromise between a partial or total closure, or at least given more time to adjust to a closure, but I guess the president made up his mind and we’re taken aback by it. We’re a bit depressed right now in the industry," Clemente said.
It’s final: The popular Philippines’ tourism magnet, Boracay island, will be closed for six months, starting April 26.
President Rodrigo Duterte gave the green light for the island’s closure after three state agencies - the departments of Tourism, Environment, and Interior - gave their recommendation.
The order came a month after President Duterte slammed the popular destination, calling it a “cesspool.”
The Philippine government has served notices to 51 businesses on Boracay island for violating environmental laws.
The private sector was taken by surprise by the order, according to Tourism Congress of the Philippines (TCP) president Jose Clemente III.
“We were expecting some sort of compromise between a partial or total closure, or at least given more time to adjust to a closure, but I guess the president made up his mind and we’re taken aback by it. We’re a bit depressed right now in the industry," Clemente said.
"If given the opportunity, yes, we would like to present our case. The private sector did not have a face-to-face dialogue with the president. We were doing it through the various agencies. Unfortunately, I guess this is the result of the recommendations of those agencies," he added.
The closure is expected to directly affect 36,000 workers on the island, and revenue losses is projected to reach at least US$1 billion—about 20% of the country’s tourism receipts.
The closure is also expected to impact the Philippine airline industry. Boracay is the third largest aviation market in the Philippines after Manila and Cebu, according to the Centre for Aviation (CAPA).
Boracay accounts for approximately 6% of seat capacity of Cebu Pacific Airways and Philippine Airlines while smaller Philippines AirAsia has 22% of its capacity allocated to the Boracay market, CAPA said.
The closure is also expected to affect the 2018 arrivals target of the Department of Tourism (DOT). Boracay attracted two million visitors last year, almost half of that were foreign visitors.
Boracay’s closure could see a drop in arrivals of more than 50%, according to some tour operators. This, in turn, will likely impact the 7.4-million arrivals target of the Philippines this year.