Pernia: This will cost economy P1.96B

By Inquirer.net |April 24,2018 - 10:14 PM

Boracay’s 6-month closure 

The six-month closure from tourists of Boracay Island starting Thursday, April 26, would cost the economy about P1.96 billion, which the country’s chief economist said Tuesday would be compensated for by an increase in arrivals in other domestic tourist spots.

Citing an earlier estimate of the state planning agency National Economic and Development Authority, Socioeconomic Planning Secretary and Neda chief Ernesto M. Pernia told reporters during a press conference that the temporary closure of the popular tourist destination, which will be rehabilitated from environmental degradation, would shed only 0.1 percent from the gross domestic product this year.

Noting that the economy is about P14-trillion worth and was expected to grow by at least 7 percent this year, about P980 million per quarter would be lost, especially in the affected local government units.

“Boracay [island], Malay [town], Aklan [province] and Region 6 will suffer — their growth rates will be trimmed,” Pernia said.

For Western Visayas, its gross regional domestic product growth would be cut by 5.7 percentage points, Pernia added.

The Neda chief nonetheless said “there will be other areas in the Visayas earning some increase in growth rates; also, Luzon and Mindanao will have some increase” as tourists are instead expected to flock to other destinations in the country.

“We are only assuming that 50 percent of the volume of tourists going to Boracay will be going to the other [local] destinations … I would assume that closer to 70-75 percent of those who used to go to Boracay will go to the other tourist destinations, especially domestic tourists,” Pernia said.

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