Commentary
Re: The Economic Slowdown in Boracay
By: Gil Delos Santos
Let’s continue the discussion โ in a bigger perspective. Admittedly, I always stress that a proper research could give us all the answers and solutions we need in Boracay. This can be done by a DMO or a Destination Management consultant which we always have recommended to LGU Malay. It could be hired under the office of the mayor as one of his executive arms.
See our presentation to them on the pinned post.
While it’s still in limbo, we want to share a bigger picture of our discussion.
The loss of foreign tourists, which is identified as the high spenders and long staying guests have caused the economic slowdown in Boracay. Foreign decline is caused by many factors:
(1) Over regulation (mainly complained by the korean market),
(2) Infrastructure issues,
(3) Transfer inconveniences,
(4) Nuisance vendors,
(5) Tourist bad experiences,
(6) Excessive Fees,
(7) Lack of international travel ties,
(
Insufficient or ineffective marketing and promotions specific for Boracay
Insufficient or ineffective marketing and promotions specific for Boracay(9) Lesser nightlife activities.
With daytime activities, Boracay still has diversed offerings.
In another equation, over-development is the bigger UNSEEN factor to the total economic slowdown especially to the local MSMEs. Now is the era of low spending tourists or budgetarian travellers. The small players get a tiny slice in the whole pie. They are eaten up by big players who has the capacity for a bigger and wider marketing arm and ties.
Even if we reach the maximum carrying capacity limit of the island, it wouldn’t be sufficient enough to cater all the 14,000 compliant hotel rooms plus the extra unpermitted establishments. There are thousand additional current rooms compared to the pre-pandemic numbers.
Boracay is majority represented by MSMEs. They are the gauge of the local economy โ it’s them who suffer most from all of this decline. The presence of big players and the over-development, that what’s killing them.
