Power rate hike rattles Boracay businesses

By Joseph Bernard A. Marzan

Boracay stakeholders warn of a more painful pinch on their pockets after the Aklan Electric Cooperative (AKELCO) recently announced another significant increase in its electricity rates, on top of rotating supply and a consistent threat of dwindling tourist arrivals.

AKELCO recently announced that it would increase rates by P5.00 per kilowatt hour (kWh) in May, following a P1.49/kWh increase in April. This was on top of power interruptions, some of which have lasted as long as 12 hours running from 6:00 a.m. to 6:00 p.m.

Tourist numbers have also been stagnant recently, with data from the Malay Tourism Office indicating that the island welcomed only 85,924 tourists, which is less than half of April’s 182,647.

Based on recent data (May 1-15), domestic tourists have continued to dominate with 68,871 arrivals, followed by foreign tourists (16,252) and overseas Filipino workers and other overseas Filipinos (801).

Boracay Foundation Inc. (BFI) chairperson Dindo Salazar told Daily Guardian that the increase in power rates will translate into higher operational costs for resorts, hotels, and other businesses.

He said it would mean increased room rates, and suggested that amenities may have to be reduced in order to keep up with the power prices. These, in turn, would affect services on the island and ultimately, guests’ experiences.

“Many resort owners are worried about the added costs, which will likely have to be passed on to tourists, potentially making Boracay a less attractive vacation destination. There is a consensus on the need for energy conservation measures, but also a recognition of the challenges in implementing these without compromising guest satisfaction,” Salazar said via Messenger.

Salazar said that while tourism has been better since the COVID-19 pandemic, it might be threatened by the effect of the power rate hike.

“Tourism has steadily picked up, bringing back jobs and boosting local businesses. Health measures have been strictly implemented, ensuring the safety of both tourists and residents. The overall well-being of the community has improved as economic activities have resumed, though challenges such as the power rate increase pose new hurdles that need to be addressed collaboratively,” he added.

Small business owner Gil delos Santos said they are already dealing with having to procure expensive generators and an increase in power rates would be a “double burden” to businesses and residents alike.

He cited his experience looking for affordable equipment for harvesting solar power, which he said was hard to come by.

Delos Santos also said that expensive power rates might force backpacking domestic and foreign tourists to other destinations including Siargao and Bohol. These types of tourists prefer parties rather than “zoning” the island for different tourism products.

“Increasing power rates adds up to the burden of inflation that kills the common Filipinos – deprives people’s priorities that families need to cut budget for education or maintenance medicines just to keep connected otherwise global warming kills us,” Delos Santos said.

Fernando Delos Reyes, a councilor of the island’s Yapak village who also owns a charging station for electric tricycles, said that residents’ and workers’ daily living would be the most affected.

Delos Reyes said that since January, the island has only experienced surges in arrivals during Holy Week and the end of April for the LoveBoracay (formerly LaBoracay) parties.

“What we budget for food will be decreased because we have to put that into paying for the power. Our provincial and regional salary rates have not been moving, and bills have been increasing, so the financial status of the residents will be affected,” he said.

Daily Guardian has reached out to Malay town mayor Frolibar Bautista, AKELCO acting general manager Ariel Gepty, and Department of Tourism-Region 6 director Crisanta Marie Rodriguez, but they have yet to respond as of this writing.