Over-development causes major economic turndown in Boracay

I agree that if there’s nothing really that we can help, we better shut up.

I have however been personally consulted or invited as a resource person by the municipal legislators when we first feel the decline in Boracay and they have in fact implemented some of our recommendations with the help of other stakeholders: https://www.facebook.com/share/p/1AhjKpvATD/ So we are extending that opportunity to present this another discussion.

Again, we are looking at the wrong problem. That’s why our solutions don’t match. We acknowledge that there are ground works that truly need fixing — like for instance the nuisance vendors, accessibility and transfer issues, infrastructure, myopic policies, and others. However, there are bigger issues which are not often discussed.

We target Boracay to be a MICE destination but the event organizers are crying for the pain to secure permits because of the overpriced licenses — in which the bigger amount is not legally declared to the municipal treasury — the LoveBoracay events for instance, most millions went to personal pockets. Under the table extortion is hurting and killing our industry.

Let’s go to the economic challenges which everyone sees the “low” tourist arrival as the culprit. That’s why the focus solution is marketing. One thing we oversee is the factor of over-development.

Let’s do the mathematics again:

172,000 Tourist Arrival (July 2025)

CURRENT ARRIVAL BASE

5,733 Daily arrival average

÷ 2 Assumed occupant/room

= 2,866 Rooms needed daily

With 14,000 Hotel rooms in Boracay

– 2,866

= 11,134 vacant rooms daily

Equivalent to:

20% Occupancy rate for overnight stay

40% for 3D2N stay (average of the current market)

60% Vacancy means 8,400 rooms vacant daily in Boracay

>>>>>>>>>>>>>

CARRYING CAPACITY BASE

6,400 Daily arrival maximum requirement

÷ 2 Assumed occupant/room

= 3,200 Rooms needed daily

With 14,000 Hotel rooms in Boracay

– 3,200

= 10,800 vacant rooms daily

Equivalent to:

23% Occupancy rate for overnight stay

46% for 3D2N stay (average of the current market — most conservative, that’s 7,560 vacant rooms daily)

69% for 3D2N stay

Note:

(1) This computations will have occupancy percentage varietions as markets are always assumed mixed when it comes to number of stay days. (2) There is another 3,000 (unofficial) unpermitted hotel rooms that can further lower the occupancy rate once the establishments acquire licenses to operate. (3) Number of restaurant operators and other businesses also doubled in recent time adding dividing factors on economic impact.

2,304,000 — is the Maximum annual tourist Arrival based on Boracay Carrying Capacity

IT MEANS:

(1) Boracay cannot target more than that number.

(2) Marketing efforts to increase arrivals exceeding to 6,400 daily constitutes illegality.

(3) The tourism economic decline of Boracay is not caused by low arrival but over supply or OVER-DEVELOPMENT.

(4) Efforts on marketing and promotions are the wrong solution to Boracay tourism’s economic challenges.

Kayo na humusga dyan kung may sense itong presentation natin!

A DMO can make things clearer for all of us here in Boracay because it seems that none of us in Malay has the capability to identify the real problem so that real solutions can be applied.