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TASK PERFORMANCE: Case Analysis: Boracay Rehabilitation

Boracay’s Six-Month Closure
On April 26, 2018, the Philippine government ordered to close and shut down tourism operations in Boracay
Island for half a year. The objective of the closure was to rehabilitate the island because it turned out to be a
“cesspool.” The island is known as a prime party destination in Asia.
Boracay is a 10-square-kilometer island that has at least 350 hotels, restaurants, and other tourist
establishments that are operational. It has a population of 40,000 and at least 3.72 million visitors (foreign and
local) in 2017 alone. The island’s carrying capacity has not been determined yet but local and national officials
agree that the island needs to be decongested by regulating the number of people visiting and staying in
Boracay.
The island was called a “cesspool” due to its lack of proper wastewater treatment and sewage systems. It was
reported that pipes are discharging wastewaters into the shores of the 4-kilometer stretch white beach. The
residents also don’t know the difference between the two (2) types of sewage systems in the island:
• Those that are meant to drain rain and flood water out of the island; and
• Those that are connected to water treatment facilities that clean wastewater before discharging them
at least 500 meters away from the beach.
Data collected from water companies in Boracay (Boracay Island Water Company [BIWC] and Boracay Tubi
System, Inc. [BTSI]) indicates that only two (2) out of the three (3) barangays in the island had a sewage system.
BIWC has pledged 1 billion pesos to build a 24-kilometer sewage network in the remaining barangay in 2019,
while BTSI has conducted feasibility studies before it builds its own.
For tourism establishments, the Philippine government issues “discharge permits” to hotels that have their
sewage plants which allow them to operate. Some are issued with the same permits as well, given that they
are capable of treating their own wastewater. However, it is argued that allowing hotels to manage their own
wastewater treatment facilities is not ideal for sustainability. The reason behind is that it is not the core
competency of hotels to manage wastewater treatment since it requires hard labor. It will also require the
administrators to check day in and day out if all establishments are complying with proper wastewater
treatment.
Roads in the island were also proposed to be widened since the road could only accommodate 1,200 vehicles.
The current number of vehicles present in the island has reached approximately 6,000 which prompted the
development of a 500-million-peso road widening project.
With the island’s closure, several employment cuts and a decline in business sales were expected. Around
36,000 formal and informal workers had to leave the island to find jobs elsewhere or opt to apply as cleaners
and construction workers for the rehabilitation of the island under the in-charge government branches. Some
thought that the wages were not enough, while some opted to stay. The government provided 520 million
pesos to provide transportation assistance to those non-residents who will leave the island for other job
opportunities.
Wetlands that catch and store water from rainstorms serve as natural filters, where the water is treated before
it is released to the sea. These wetlands are reportedly gone due to the construction of shops and resorts and
due to illegal settlers. In order to restore its capability and purpose, buildings were demolished. Families
affected by restoring the wetlands were willing to comply, given that they would be properly relocated and
big establishments would be demolished first.
Developments of establishments were also seen in several zones of the island. However, the government had
stopped the construction of facilities in the said zones to prioritize the restoration of habitats and natural

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resources. Several establishments had shown support with the government’s plan to prioritize the natural
resources given that they would provide more specific details about the plan, so they could adjust their
operations accordingly. Agricultural lands also underwent land reform and were given to the farmers and
tribes.
The island produces 76 tons of garbage per day. Biodegradable wastes are used as fertilizers, recyclables are
sold to junk shops, and the rest are ferried to the mainland dumpsite. Sheds are proposed to be built for the
improvement of solid waste management systems. Garbage fees are also planned to be imposed in
establishments.
Lifted and modified from:
Domingo, K. (2018). The Boracay Project. ABS-CBN News. Retrieved from https://news.abs-cbn.com/specials/the-boracay-project on
April 29, 2019

Questions:
1. Provide and explain one by one the indicators which prompted the need for Boracay Island to be
closed for rehabilitation.

The island's temporary closure was caused by a number of factors. Some have been seen and
watched for years, while others have only recently been discovered as the government's focus on the island
destination has shifted. These factors are as follows:

• Innumerable Annual Tourists – Boracay Island has reached its limit in numerous ways, resulting in its
temporary shutdown. Officials have previously stated that these surpluses would not just be pinned
on infrastructure and waste, but also on population growth. Boracay Island can only hold 54,945
people at a time, according to a study commissioned by the Department of Environment and Natural
Resources. The total number of visitors and non-tourists on the island was calculated, taking into
account the island's geographical area, restricting factors such as environmental concerns, and hours
spent on activities. If the "actual carrying capacity" advice is implemented, just 19,215 visitors and
35,730 inhabitants should be present. However, the 10-square-kilometer island, which has 350
operating hotels, restaurants, and other tourism enterprises, has a population of 40,000 people and
had at least 3.72 million visitors (foreign and local) in 2017 alone, indicating a clear need for
decongestion.

• Ill-managed Sewerage System - Due to the absence of sewage facilities and an effective wastewater
treatment, the island was termed a "cesspool” (an underground container for the temporary storage
of liquid waste and sewage). Pipes have been reported to be pouring wastewater into the 4-kilometer
length of white beach which is an ideal situation for the growth of hazardous coliform bacteria and
other forms of algae growth. Only two of the three barangays on the island had a sewage system,
according to data acquired from water firms in Boracay: Boracay Island Water Company (BIWC) and
Boracay Tubi System, Inc. (BTSI). As a result, it may be inferred that Boracay's infrastructure,
specifically the island's sewage system, was unable to meet the demands of the destination's millions
of yearly visitors.

• Disappearance of Wetlands – On the island, there are nine wetlands totaling 37.81 hectares, eight of
which are in forest areas and one of which is classed as alienable and disposable. Only four survived
out of nine, owing to the establishment of stores and resorts, as well as illegal settlers. According to an
additional study, the constructions included 937 that were built unlawfully on forestlands and
wetlands, as well as 102 that were built on easement land. As a result, buildings were dismantled in
order to restore its capabilities and purpose.

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• Deteriorating Environmental Condition – Pollution has become one of the most severe issues that
contributed to Boracay Island's temporary closure, owing to a lack of appropriate sewage and waste
management systems and was aggravated by the presence of several hotels and inns. Furthermore,
faecal coliform bacteria were identified in the water at levels 47 times higher than the permissible
threshold on several of the beaches, which is alarming because it causes health risks to both locals and
tourists. Further investigation also revealed that there were around 800 ecological infractions on the
popular tourist spot, prompting the Philippines' Department of Natural Resources and Environment
(DNRE) to shut down 300 establishments that had committed an offence.

• Overall Waste Disposal Management – Boracay Island produces 76 tons of garbage daily, as stated.
And yet according to research, just 30 tons of trash make it to a landfill on a nearby island. As a result,
even with the island's sewage treatment and solid waste disposal systems in place, the infrastructure
will still be inaccessible to the vast majority of hotels and residential homes. Given that the solid waste
problem also becomes much worse during peak season. This was one of the grounds why Boracay
Island was scheduled for rehabilitation, since, in addition to overcrowding, waste disposal had become
unregulated, resulting to an environmental issue which is pollution.

2. Explain the effects of the Boracay rehabilitation program to the three (3) dimensions of sustainable
tourism (environmental, economic, and social).

The natural world provides us, individuals, with resources that we may consume in our daily lives.
Water is obtained, crops are cultivated, metals and minerals are extracted, and energy is produced in the
current environment. Overuse, however, might diminish these resources, restricting our capacity to use them
in the future. This is precisely what occurred, resulting in the temporary closure of Boracay Island for
restoration. On the other hand, the rehabilitation program, opened up a lot and had a lot of effects, especially
in terms of the three dimensions of sustainable tourism. The following are the details:

• Environmental – Tackling environmental sustainability, we are talking about managing natural

resources responsibly in order for them to still be available in the future. This includes both limiting
use of natural resources and protecting them from degradation. Based on the occurrence of Boracay's
rehabilitation, its environmental impact includes a beneficial influence in favor of facilitating
sustainability initiatives and the restoration of over-saturated places, as well as advocating a diverse
range of destinations. Sand erosion, coastal pollution, and environmental changes such as
intermittent timber harvesting have all changed as the island has been rehabilitated and developed. A
wastewater treatment plant was also established as part of a joint venture with Japan to keep up with
the garbage generated by various tourism businesses. Aside from the aforementioned, its
environmental impact on sustainable tourism also includes coral reef preservation, rule changes and
current status of coastlines, structural shifts in fish supply, hotel sewage treatment system
improvements, and overall development of tourism strategy that ensures the island's long-term
viability.

• Economic – Investigations indicate that the overall aggregate economic loss ranges from 20.8 billion
to 83.15 billion pesos during the restoration of Boracay Island, while the loss in compensation ranges
from 7 billion to 27.9 billion pesos. The following were the economic implications of the island's
closure, based on additional study and the 2006 Input-Output and Computable General Equilibrium
assessments: 1) Due to the obvious drop in demand for tourism-related items, total production in the
impacted industries has fallen by 0.56 to 2.23 percent, 2) Although it is natural that tourist services
and transportation might be the most disrupted, agricultural and industrial sectors were also
impacted owing to their ties to tourism-related industries, 3) Tourism (travel, lodging, restaurants,
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beauty, and recreation) were most afflicted, followed by agriculture and services, although in a minor
way. The transmission mechanism of the impact of the Boracay shutdown was seen in the increase in
costs caused by the reduction in supply of tourist-friendly items, and lastly; 4) According to the CGE
model results, around 0.02 to 0.045 percent of the gross domestic product was required to restore
families to the level of utility that they had before to the closure of Boracay. Overall, while the
outcomes were not substantial at a national scale, they still created significant and indirect
consequences for inhabitants of the island.

• Social – Concerns from local companies about the impact on the island and its population arose in
response to the news of Boracay's closure. Immediate industry response included flight cancellations
and the closure of 900 facilities that breached laws, such as the destruction of buildings within 30
meters of the beach. As a result, 30,000 people lost their employment, raising worries about the
community's long-term impact of the shutdown. This is a great illustration of how local populations in
tourist destinations rely on tourists. Unfortunately, when the island of Boracay was briefly closed,
there was no transition period for local populations to adjust their source of food, shelter, or income.
The Department of Labor and Employment, on the other hand, provided monetary assistance to
informal sector workers as well as training for formal sector workers to increase their employability.

3. How can this problem be avoided from happening again should you be in charge of Boracay’s
rehabilitation?

There are several options available to avoid the issue from happening again. There are numerous
ways for us to safeguard the environment while still having enjoyment and this is through the implementation
of sustainable practices. These practices include establishing additional laws regulating tourists' mindsets and
conduct, as well as putting a limitation on visitor arrivals depending on the island's available capacity. With the
aforementioned issues that caused Boracay Island to temporarily close, it is only fair that only those hotels
and other establishments that adhered with the prerequisites of the Departments of Environment and Natural
Resources and the Interior and Local Government, as well as those certified by the Department of Tourism, be
allowed to reopen. Furthermore, they must be linked to a competent sewage treatment system. Finally, as
one of the root causes of the island's problems, trash and unlawful structures should be removed from the
wetlands. These laws, in my opinion, would enable tourism on Boracay Island to become more sustainable
than it is now — and will also prevent the previous situation from recurring again.

Instructions:
1. Given the above case study, your group is required to do the following:
a. Answer the questions legibly, clearly, concisely.
b. Analyze the case and give appropriate solution.

2. Place your answers on a Word file and submit it via eLMS Dropbox.

3. You will be graded according to the rubric below.

CRITERIA PERFORMANCE INDICATORS POINTS
Provided well-thought-out solutions and clear explanation of ideas 40
Content Answers reflect full understanding of the case provided. 40
Used simple terminologies that are easy to understand. 10
Organization Expressed the points in a clear and logical arrangement of ideas
10
of ideas based on the given flow of information
TOTAL 100
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