THE country’s socioeconomic planning secretary does not see the six-month closure of Boracay Island having any severe impact on the economy, with other world-class destinations that can serve as alternatives.
National Economic and Development Authority Director General Ernesto Pernia acknowledged that the closure of the world-renowned destination will slightly hurt Western Visayas’ growth.
“But then … there will be other areas in the Visayas earning some increase in growth rates. Also, Luzon and Mindanao will have some increase,” he said after the meeting of the interagency Development Budget Coordination Committee on Tuesday in Manila.
With around 70 to 75 percent of those visiting Boracay seen to simply find another domestic destination, the negative effect on tourism income will be temporary, Pernia claimed.
He also placed at a meager 0.1 percent the likely impact of the closure on gross domestic product growth.
“This is the reason we maintained our growth rate for 2018 (at 7 to 8 percent) because we don’t want to be seen retreating from our targets right away because of the Boracay issue,” he said.
President Rodrigo Duterte ordered the temporary closure of Boracay starting Thursday for rehabilitation. He described it as a “cesspool,” citing the sewerage problems in the island. The island registered more than 2 million tourists in 2016.
The government is allocating P2 billion in calamity funds to help island workers who will lose their livelihood. Registered island workers alone were pegged at more than 17,000.
A “state of calamity” may have to be declared in Boracay before the fund could be used, Budget Secretary Benjamin Diokno said.
Funds will be disbursed through the agencies, including the Labor and Social Welfare departments, said Diokno. (PNA)
