NEDA: 6-month Boracay closure won’t dent the economy

MANILA, Philippines — A potential six-month shutdown of world famous Boracay island for cleanup will not hurt the Philippines’ overall economy, the country’s socioeconomic planning agency said Tuesday.

Boracay—which is known for its powdery white sand, rich water sports and vibrant nightlife—recently grabbed the headlines after President Rodrigo Duterte called the Philippines’ top tourist draw a “cesspool.”

In a press conference, National Economic and Development Authority Policy and Planning Director Reynaldo Cancio said a half-year closure to allow the rehabilitation of Boracay will not have a “very significant effect” on the economy.

“I think the overall picture we see is that even if the ban extends up to, say, six months... the most that we see is something like 0.1 percent of gross domestic product,” Cancio said.

“That’s the current estimate but that would depend really on how it goes on the assumptions that you use,” he added.

Earlier, three agencies—Department of Environment and Natural Resources, Department of the Interior and Local Government, and Department of Tourism—recommended the shutdown of Boracay for six months starting April 26.

The country’s most famous tourist hotspot—which has attracted millions of visitors—brings hefty revenues. According to stakeholders, closing Boracay will wipe out 36,000 jobs and P56 billion in tourism receipts.

Malacañang recently said the Department of Trade and Industry proposed a phased recovery of Boracay to minimize any unduly impact on the island’s economy.

For her part, NEDA Undersecretary of Policy and Planning Rosemarie Edillon said her agency submitted a separate proposal regarding Boracay’s rehabilitation to the Office of the President, including a “contingency plan” that will provide “social protection” to those who will be affected by the looming closure.

Edillon also said moves to shutdown Boracay could have a “short-term impact” on the municipality of Malay in Aklan province, where the island resort is located.  

“We’re hoping that the closure would happen during the lean season so that... the adverse effect would not be that much,” she said.

“Local government units will need to coordinate closely with the Department of Tourism for possible placements of these workers to the nearby establishments [that are] not affected by the closure,” she added.

Related video: