PH Economy Predicted to Drop by P1.96 Billion Over Boracay Shutdown

Boracay’s temporary closure predicted to cut down Philippine’s GDP by P1.96 billion

BORACAY- The Philippine Economy is expected to drop by P1.96 Billion in arrears to the impending 6-month closure of the country’s popular travel destination- Boracay Island.

In a previous report, President Duterte approved the total shutdown of all maneuvers in the island for 6 months after calling it a cesspool due to the widespread environmental violations. The closure will start on April 26.

Based on an article from Inquirer, National Economic and Development Authority (NEDA) Chief Ernesto Pernia said during a press briefing that Boracay’s temporary closure would lead to a minor decline in the gross domestic product (GDP) amounting to P980 million per quarter.

According to the NEDA Chief, it is a small amount. The overall impact is to be limited to only 0.1 percent of GDP growth.

Boracay
Fridays / Photo lifted from fridaysboracay.com

As mentioned in the report, Pernia said that the short-term rehabilitation of the Island would affect the Region of Western Visayas the most and would possibly get a trimming of 5.7 percent in the region’s GDP growth.

Nevertheless, the NEDA Chief assured that other areas in the country will be experiencing an upsurge in growth rates as tourists are expected to consider alternative destinations instead of Boracay.

“We are only assuming that 50 percent of the volume of tourists going to Boracay will be going to the other 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, noting that the imminent closure will only bring the provisional crisis in tourism profits and arrival of tourists.

ernesto prenia
Ernesto Prenia / Photo lifted from ABS-CBN News

In another statement, the NEDA Chief said that the Department of Tourism will double its efforts in promoting other travel destinations in the country concerning the probable shortfall of tourists due to the island’s shutdown.

He further said that the government’s goal is to be able to sidetrack the same volume of tourists or more to other travel-worthy destinations in the Philippines, aside from Boracay.

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