Boracay closure to nick off nearly P2 billion from GDP —Pernia

The economy is estimated to lose as much as P1.96 billion during the six-month closure and rehabilitation of Boracay island, Socioeconomic Planning Secretary Ernesto Pernia said Tuesday.

“In terms of the amount, the reduction in GDP (gross domestic product) itself will amount to around P980 million only, so it’s a small amount,” Pernia said in a press conference in Manila.

The Cabinet official then clarified he meant P986 million per quarter.

The National Economic and Development Authority (NEDA), which Pernia heads, earlier said the six-month closure of Boracay would lead to a GDP loss of 0.1 percentage point.

President Rodrigo Duterte has approved the recommendation to close the island resort starting April 26, to make way for an environmental cleanup and rehabilitation.

The recommendation was made by the Departments of Tourism (DOT), of Environment and Natural Resources (DENR), and of Interior and Local Government (DILG).

While the shutdown of Boracay would dampen the local economy, other destinations are expected make up for the slack, Pernia noted.

“We are only assuming that 50 percent of the volume of tourists going to Boracay will be going to the other destinations,” he said.

“I think it could be more. I would assume that probably closer to 70, 75 percent of those who used to go to Boracay will be going to the other destinations. —VDS, GMA News