Boracay 

is a tropical island surrounded by stunning white sand beaches and clear blue waters
located about an hour's flight from Cebu or Manila just off the larger Philippines island of Panay.

For beach connoisseurs, Boracay competes with the best beaches in more popular destinations
such as the Caribbean and the south pacific as well as the neighboring countries Thailand,
Malaysia and Indonesia
Tourists will appreciate water sports and activities such as sailing, windsurfing, snorkeling,
diving and jet skiing. The fun in Boracay doesn't end when the sun sets. The nightlife pulsates
with many bars and restaurants serving food, drink and fun until the wee hours of dawn.

Boracay is a small island in the central Philippines. It's known for its resorts and beaches. Along
the west coast, White Beach is backed by palm trees, bars and restaurants. On the east coast,
strong winds make Bulabog Beach a hub for water sports. Nearby, the observation deck on
Mount Luho offers panoramic views over the island. Offshore, coral reefs and shipwrecks are
home to diverse marine life. Boracay suffered from overdevelopment and inherited a negative
reputation for dodgy nightlife and major environmental concerns. The government closed the
island for six months and the island underwent an extensive facelift. Since reopening in October
2018, the island has had tougher rules and regulations and a limit to the number of tourists
allowed.
 ECONOMIC IMPACT

Positive Impact

For several years, the Boracay island has continuously attracted visitors, which subsequently led
to higher tourist receipts, with the peak of travel falling in months of April to May. The island,
part of the municipality of Malay in the province of Aklan, has been known globally for its white
sandy beaches. In recent years, growth among foreign tourists has been significant particularly
from South Korea and China. In 2017, Boracay had as much as 2,001,974 visitors (about half of
whom were foreigners) up by 16.0 percent from 1,725,483 touristsin 2016. Correspondingly,
tourist receipts from the resort island have been steadily increasing from PHP 4.9 billion in 2001
to PHP 56.1 billion in 2017 or at an average rate of 16.5 percent. While tourists travel throughout
the year to visit the island, the peak of travel to Boracay is during April to May as the island
transitions from the rainy season to the dry season.

Majority of the workers, as well as establishments, in Malay conduct business/livelihood in

Boracay. About 85.9 percent and 72.6 percent of the total workers and businesses, respectively,
in Malay operate in Boracay. Most of the workers are employed in the passenger transport,
accommodation and food and beverage businesses and others such as
banks/pawnshops/forex/lending/money transfer, laundry shops, lessors/parking space/space
rental, among others. Most businesses in the island fall under the retail trade, travel agents, tour
operators, and guides, and other miscellaneous industries.

Negative Impact

According to Celia M. Reyes, Jose Ramon G. Albert, Francis Mark A. Quimba, Ma. Kristina P.
Ortiz, and Ronina D. Asis Using secondary data, the study employs an Input-Output and
computable general equilibrium (CGE) model analyses. Three scenarios, which are based on
different percentage reductions in the Philippine tourism receipts, are examined to look at the
projected losses in total output and compensation, as well as its effects on specific economic
sectors. Results show that the aggregate economic loss in total output would range from PHP20.8
billion to PHP83.15 billion, while in terms of income, the loss in compensation would range
from PHP 7 billion to PHP 27.9 billion. Tourism sectors would be most affected, as well as
agriculture and services, albeit slightly. Overall, while the results may not be very significant at
the national level, it will still have its direct and indirect effects to people living in the island and
in the entire municipality of Malay. The study recommends the need to craft strategic and
harmonized overall plan which lays out the various government efforts to safeguard the welfare
of those who will be severely affected by the sudden closure of Boracay.

ENVIRONMENTAL IMPACT

Positive impact

Despite the environmental challenges that Boracay has faced in recent years, there are also a
number of positive environmental impacts that have resulted from the island's development.

One positive impact is the economic benefits that tourism brings to the local community.
Tourism is a major contributor to the economy of Boracay and has provided employment and
income opportunities for many local residents. This can help to improve their quality of life and
support the development of the island.

Another positive impact is the development of eco-tourism initiatives on the island. Many hotels
and other tourist facilities have implemented environmentally-friendly practices, such as using
solar panels for energy, recycling waste, and conserving water. These initiatives can help to
reduce the environmental footprint of tourism on the island and contribute to the long-term
sustainability of Boracay.

In addition, the government of the Philippines has implemented a number of measures to protect
the environment on Boracay, including the creation of protected areas and the establishment of
regulations to reduce pollution and protect marine life. These efforts can help to preserve the
island's natural beauty and biodiversity for future generations.

Overall, while there are certainly environmental challenges facing Boracay, there are also
positive impacts that have resulted from the island's development. It is important for the local
community and policymakers to work together to address the environmental issues facing the
island and to find ways to balance economic development with the protection of the natural
environment.

Negative Impact

The increasing influx of both international and local tourists, coupled with the improper
management of wastes and poor implementation of environmental policies and guidelines, has
aggravated the island’s environmental condition and sustainability. This year, the government
has decided to close down the island to address these critical concerns. This study looks into the
potential economic effects of this recent directive, which is intended to last for six months from
May to October 2018.

SOCIAL IMPACT

Positive Impact

Tourism can bring a number of positive social impacts to the local community in Boracay. Some
of these include:

Economic benefits: Tourism is a major contributor to the economy of Boracay, providing

employment and income opportunities for many local residents. This can help to improve their
quality of life and support the development of the island.

Cultural exchange: Tourism can also provide an opportunity for cultural exchange, as visitors
from different parts of the world come to the island and interact with local residents. This can
help to broaden cultural understanding and promote greater tolerance and understanding among
different groups.

Infrastructure development: The tourism industry in Boracay has contributed to the development
of infrastructure on the island, such as hotels, restaurants, and transportation systems. This can
improve the quality of life for local residents and make it easier for them to access essential
services.
Community development: Tourism can also stimulate the development of local businesses and
organizations, such as community-based tourism initiatives, which can help to promote
economic growth and social development in the community.

Overall, tourism can bring a range of positive social impacts to the local community in Boracay,
although it is important for the industry to be managed in a sustainable way to ensure that these
benefits are shared fairly and that negative impacts are minimized.

Negative Impact

Tourism can also have negative social impacts on the local community in Boracay. Some of
these include:

Overcrowding: The high volume of tourists visiting the island can lead to overcrowding, which
can be a source of frustration and inconvenience for local residents.

Displacement: Tourism development can also lead to the displacement of local residents, as land
is acquired for hotels and other tourist facilities. This can be particularly problematic if residents
are not compensated fairly or if they are not able to find alternative housing.

Cultural impacts: Tourism can also lead to cultural changes in the local community, as traditional
ways of life may be disrupted by the influx of visitors and the adoption of new cultural practices.

Environmental degradation: The tourism industry can also contribute to environmental

degradation on the island, through pollution, the overuse of natural resources, and the destruction
of natural habitats. This can have negative impacts on the quality of life for local residents and
on the long-term sustainability of the island.

Overall, it is important for the tourism industry in Boracay to be managed in a way that
minimizes negative social impacts and ensures that the benefits of tourism are shared fairly
among all members of the local community.
 CULTURAL IMPACT

Positive Impact

One way that Boracay has had a positive cultural impact is through the development of the local
tourism industry. The island's tourism industry has provided employment and economic
opportunities for the local community, including small business owners, tour guides, and hotel
and restaurant staff. This has helped to improve the standard of living for many people in the
local community and has contributed to the overall prosperity of the region.

Boracay has also had a positive cultural impact through the development of infrastructure and
amenities on the island. The tourism industry has attracted investment in the development of
roads, hotels, restaurants, and other facilities, which has improved the quality of life for local
residents. This infrastructure has also made it easier for people to travel to and from the island,
which has helped to connect the local community with the rest of the world.

Additionally, Boracay has had a positive cultural impact through the promotion of cultural events
and activities. The island hosts a number of festivals and events throughout the year that
celebrate local culture and traditions, such as the Ati-Atihan Festival and the Boracay
International Funboard Cup. These events not only attract tourists to the island, but also provide
a platform for the local community to showcase their culture and traditions to a wider audience.

Negative Impact

One negative impact has been the rapid pace of development on the island. As the tourism
industry has grown, there has been a significant increase in the construction of hotels,
restaurants, and other tourist facilities. This has led to the displacement of some local residents
and the destruction of natural habitats. It has also led to an influx of tourists and outsiders, which
has contributed to rising property prices and the gentrification of some areas.
Another negative cultural impact of Boracay has been the commercialization and
commodification of local culture. As the island has become more popular with tourists, there has
been a trend towards the creation of tourist-centric cultural experiences and events, such as
traditional dance performances and cultural festivals, which may not accurately reflect the
authentic culture of the local community. This can lead to the erosion of traditional cultural
practices and the loss of cultural heritage.

In addition, the influx of tourists to the island has led to cultural conflicts and misunderstandings.
The large number of tourists, many of whom come from different cultural backgrounds, has led
to the erosion of some traditional customs and practices. This can lead to tension and conflict
between tourists and local residents, and can also lead to the loss of traditional cultural practices
as they are replaced by more tourist-friendly customs.
 REPUBLIC OF THE PHILIPPINES

ASIAN DEVELOPMENT FOUNDATION COLLEGE

P. BURGOS ST. TACLOBAN CITY

A.Y. 2022-2023

CASE STUDY – IMPACTS OF TOURISM ON THE PHILIPPINES

SUBMITTED BY:

Villarosa, Wendell E.

BSHM // THC 11 // 4:00-5:00PM

SUBMITTED TO:

MR. MARK DAVE FLORES

INSTRUCTOR