Boracay Tourist Fees Spark New Sustainability Debate

By Francis Allan L. Angelo

In a comprehensive analysis released recently, the Institute of Contemporary Economics (ICE) warns that Boracay faces critical sustainability challenges as pressure mounts to reduce tourist fees on the world-famous island.

The report, titled “Boracay: Are We Again Killing the Goose that Lays the Golden Egg?” examines the delicate balance between tourism revenue and environmental protection.

“We remain steadfast in our belief that economic growth and the protection of the environment are not mutually exclusive,” ICE stated in its analysis.

The study comes at a crucial time when national government officials are pushing for reduced tourist fees, despite concerns about exceeding the island’s carrying capacity.

Last month’s meeting between Interior Secretary Jonvic Remulla, Tourism Secretary Christina Frasco, and local officials highlighted these tensions.

During what sources described as a “tense” meeting, Secretary Remulla gave Malay Mayor Frolibar Bautista a two-week ultimatum to either reduce or suspend fees for activities like island hopping, picnicking, and snorkeling.

While Aklan Governor Joen Miraflores expressed willingness to reduce fees immediately, Mayor Bautista raised concerns about revenue loss and its impact on public services.

The debate comes against the backdrop of Boracay’s tumultuous recent history.

In 2018, the island underwent a six-month closure after being labeled a “cesspool” due to environmental degradation.

Tourist arrivals plummeted from 2,001,974 in 2017 to 941,868 in 2018, causing local government revenues to fall by 21.1%.

The municipality of Malay saw its revenue from taxes, services, and business income drop to PHP 442 million in 2018 from PHP 561 million in 2017.

By 2019, tourism had rebounded, with visitor numbers exceeding pre-closure levels.

However, the COVID-19 pandemic delivered another blow, causing tourist numbers to decline by 83.8% compared to 2019 levels.

This hammered local revenues, which fell by 29.8% in 2020 and another 28.3% in 2021.

By 2021, Malay’s local revenues had dwindled to PHP 224 million, less than half of their 2019 levels.

It wasn’t until 2023 that both tourism numbers and local government finances finally surpassed their 2017 highs.

The ICE report emphasizes a critical factor absent from recent discussions: Boracay’s carrying capacity.

A 2018 study by UP Los Baños and the Ecosystems Research and Development Bureau determined that Boracay can sustainably accommodate only 54,945 people daily.

This includes 35,730 non-tourists (residents and workers) and 19,215 tourists.

“Capping tourists at 19,215 on any given day means there can only be about 6,000 arrivals per day, assuming they stay an average of three days on the island,” the ICE report explains.

This isn’t the first warning about Boracay’s limitations.

In 1997, a study by Ecoplan International, commissioned by various agencies including the Department of Tourism, reached similar conclusions.

Those recommendations were largely ignored, leading to the environmental crisis that forced the 2018 closure.

The ICE report points out the irony in current proposals to reduce tourist fees.

“Fees and other similar regulatory levies have the effect of making it more expensive to visit Boracay. That being the case, it helps deter the influx of people testing the carrying capacity of the island,” the researchers note.

They argue that removing these fees contradicts the mandate to protect Boracay’s environment.

The municipality of Malay has achieved revenue levels that can support equitable development without increasing tourist numbers.

Current fee structures maintain Boracay’s competitiveness while helping regulate visitor numbers.

The report also highlights the need for economic diversification in Aklan province.

Tourism accounts for an estimated 25-30% of Aklan’s GDP, making it vulnerable to sector disruptions.

This dependence was evident when the province’s economy contracted by 20.7% during the pandemic.

The recent decision by Philippine Airlines to discontinue Manila-Kalibo flights serves as a “clear red flag” of uneven economic development in the region.

ICE researchers recommend that the national government focus on developing alternative tourism destinations to reduce pressure on Boracay.

They cite international examples of destinations damaged by overtourism, including Santorini (Greece), Maya Bay (Thailand), Bondi Beach (Australia), and Kuta Beach (Bali, Indonesia).

Notably, both Boracay and El Nido already appear on lists of beaches threatened by overtourism.

“The economic costs of ignoring environmental considerations are substantial, as proven by the billions of pesos foregone during Boracay’s 2018 closure,” the ICE report warns.

The ICE report concludes with a stark warning about repeating past mistakes.

“If we ignore lessons from the past, we may just end up killing the goose that lays the golden egg,” the researchers caution.

As Boracay faces this crucial decision point, the report suggests that maintaining current fee structures could help preserve the delicate balance between tourism revenue and environmental sustainability.

The island’s experience serves as a case study in the challenges of managing popular tourist destinations sustainably.

With global tourism recovering post-pandemic, the decisions made about Boracay’s fee structure could have far-reaching implications for its future.

The report’s findings indicate that short-term gains from increased tourism must be weighed against long-term environmental and economic sustainability.

As pressure mounts to reduce fees, stakeholders must consider whether they’re willing to risk another environmental crisis for temporary economic benefits.

The ICE analysis suggests that Boracay’s current challenge isn’t just about tourist fees – it’s about choosing between sustainable management and potentially destructive overtourism.

This decision could determine whether Boracay remains a world-class destination or becomes another casualty of unsustainable tourism practices.