Reflection Paper

The Temporary Shutdown: A Reflection Paper on the Article “Region 6 Economy Slows Down
Due to Boracay Closure”

INTRODUCTION:

The Western Visayas region’s economic impact from Boracay Island’s temporary
shutdown has spurred discussion and suggestions for remedial measures. The suggested
methods for action are reinforced by this reflection and two significant external arguments.
Emphasizing the contribution of tourism in that process, the first argument looked at the
connections between economic growth and the tourism sector. The significance of skillful
financial management is pointed out in the second argument, which looks at lost revenue and
its effects on local financial resources. Underlining the significance of the proposed
approaches in minimizing the detrimental impacts of Boracay’s closure, this perspective
highlights the association between tourism and financial wellness.

BODY:

In relation to the facts regarding the economic effects of the temporary closure of
Boracay Island on the Western Visayas economy, I personally agree with the suggested plans
of action.

Tourism Sector and Economic Impact

According to the evaluation, the temporary closure of Boracay produced an enormous

decline in visitor arrivals and income, which subsequently in turn prompted a downturn in the
region’s economic growth. I support it since this assessment promotes the accepted economic
concept that tourism plays as an essential part in encouraging economic growth, particularly
in nations that depend heavily on tourism. This arrangement may be supported by a report on
the worldwide financial impact of tourism from the World Travel & Tourism Council
(WTTC). It underlines how essential tourism is to promoting economic expansion and
creating employment opportunities. According to the poll, an important portion of the
worldwide GDP is attributed to the tourism industry. As stated by the World Travel &
Tourism Council (WTTC), the Philippines is an important destination for travel and tourism.
In line with WTTC projections, exceeding USD 155 billion and potentially adding nearly 3
million new jobs, this industry might contribute significantly to the nation’s GDP by 2032. In
order to achieve this goal, the Philippines acknowledges the need of maintaining its rich
cultural heritage while promoting sustainable tourism growth. Displaying its dedication to
developing the tourism industry, the government issued the declaration that this industry is an
essential component of its economy. The region’s economic opportunities and
macroeconomic challenges are addressed in the Economic Outlook for Southeast Asia,
China, and India in 2023. It includes specific theme chapters on the recovery of tourism in the
midst of the disruptive effects of the COVID-19 epidemic and the strategies taken to support
the resurgence of this significant industry (“Economic Outlook for Southeast Asia, China and
India 2023,” 2023). In addition, Brillo and Simondac-Peria (2021) stated that data from the
Philippine Statistics Office (PSO) show the importance the travel and tourism industry is to
the Philippine economy. In 2018, tourism contributed to 12.7% of the nation’s GDP, an
improvement from 10.7% in 2016. A thorough study on the financial impacts of travel and
tourism in the Philippines was conducted by Wu and Wu (2019), which offered details about
the complex connection between tourism and economic expansion in the Asian region. The
above data demonstrate how essential the tourism industry is to the Philippines’ economic
development. Brillo (2020) added that given a 12.7 percent contribution to the Philippine
economy in 2018, tourism is important. Ecotourism is now being investigated as an
expansion plan by municipalities like Ilijan in Batangas City; this economic impact is not
restricted to the nation. Meanwhile, institutions like The World Bank and the International
Monetary Fund emphasize how tourism has the ability to alleviate poverty and foster shared
prosperity on a worldwide scale. Despite the possible benefits, the Philippines’ cultural
tourism sector faces hurdles that call for planned actions for it to overcome the need to
succeed.

Loss of Revenues and Impact on Local Fiscal Resources

The story claims terminal and environmental fees resulted in a revenue loss of nearly
PHP57.9 million over the course of six months. I agree with this perspective since income
losses can have far-reaching consequences, like the inability to support important programs
and initiatives. Both the general well-being and the community’s finances have been affected
by this loss. To further support this idea, one could employ a study on sustainable tourism
development conducted by the United Nations World Tourism Organization (UNWTO). For
the purpose to ensure it continues to promote destinations’ long-term development, the study
stresses how essential it is to efficiently handle income from tourism. It demonstrates how
income losses brought on by poor administration may hinder the social and economic
advancement of the community. The province of Batanes in the Philippines has
acknowledged the importance of the growing industry of tourism and its potential impact on
local finances. Batanes has joined the International Network of Sustainable Tourism
Observatories (INSTO), a project led by the University of the Philippines Diliman
multidisciplinary team. Fostering resilient and sustainable tourism in the area, this
observatory strives to provide essential information that will guide future decisions and
restrictions. The local stakeholders in Batanes have dedicated themselves to advancing
sustainable tourism development, having a focus on evidence-based and participatory
endeavors that safeguard the environment and cultural heritage while benefiting both locals
and tourists. The observatory plans to expand its measuring focus to include social as well as
environmental variables, in accordance with the INSTO Framework to promote sustainable
and responsible tourism. The development has been made possible through the observatory’s
relationship with the indigenous Ivatans, which have given valuable insights into key
sustainability issues (Asia and the Pacific, 2023). According to Pescador and Caelian (2022)
study, in the Philippines, the COVID-19 pandemic had an immense effect on local fiscal
resources. Which is an essential source of funding for regional governments, the impact was
mostly attributed to a decline in local revenue from taxes. This economic crisis not only
reduced municipal revenue but also increased unemployment due to the recession in the
economy. For communities to overcome these challenges and achieve city self-sufficiency,
appropriate revenue-generation projects and collection approaches have become necessary.
Demonstrating the importance of these attempts, the study assessed the effectiveness of these
tactics and found that the program to generate income was essentially implemented. The
adoption of an electronic payment system had been suggested as a best practice, and
implementation problems were also acknowledged. It emphasizes the importance of
innovation in local fiscal resource management in the Philippines. Moreover, Resuello (2020)
added that there are some significant consequences for disaster risk reduction and
management (DRRM) in the Philippines when local governments revenue levels differ,
particularly within low-income areas with inadequate DRRM resources. The need for
addressing economic disparity is further illustrated by the Philippine local governments’
reliance on local revenue, with cities relying on it more than provinces and municipalities.
Particularly in places where people are susceptible to disasters, it makes the unequal sharing
of resources among local governments worse, which adversely affects infrastructure and
service delivery. In order to support self-sufficient towns and successful partnerships in
national development, the 1991 Local Government Code established roles and revenue-
sharing procedures between central and local administrations.

CONCLUSION:

Hence, the implications of Boracay Island’s brief closure on the Western Visayas
region’s economy underline the significance of tourism for encouraging economic growth.
Global study verifies the intricate connection between the two, which is demonstrated by the
decline in tourist visits and revenue. Emphasizing the importance of fiscal responsibility,
loss of income additionally results in a major effect on municipal fiscal resources. The
relevance of the suggested mitigation strategies for reducing the negative effects of the
closure is reaffirmed in this reflection, as it also provides insightful data regarding the
relationship between tourism and the region’s economic well-being as well as the necessity of
responsible financial management for assisting local communities through these trying
moments.

References:

Lena, P. (2019, April 25). Region 6 economy slows down due to Boracay closure.

[Link]. [Link]

fbclid=IwAR1Kqi7YGqxb3RCZUo-54m8iHecFLXg7-

udS8grXInW3q6sWyBRh0ezSxfM

Economic outlook for Southeast Asia, China and India 2023. (2023). In Economic

outlook for Southeast Asia, China and India. doi: 10.1787/f677c529-en

[Link]
Brillo, B. B. C., & Simondac-Peria, A. C. (2021). Sustainability of a local

government-instituted ecotourism development: Tayak adventure, nature and wildlife

Park in Rizal, Laguna, Philippines. Environment, Development and Sustainability,

23(11), 16145–16162. doi: 10.1007/s10668-021-01336-w

[Link]

Pescador, M. R. B., & Caelian, M. V. (2022). Revenue Generation Program of Cities:

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[Link]

Asia and the Pacific. (2023, June 20). Batanes Islands in the Philippines joins the

UNWTO Network of Sustainable Tourism Observatories. UNWTO.

[Link]

network-of-sustainable-tourism-observatories

Brillo, B. B. C. (2020). Initiation and establishment of ecotourism development:

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GeoJournal, 86(6), 2573–2586. doi: 10.1007/s10708-020-10216-1

[Link]

Resuello, M. D. (2020). Building disaster resilient local economy: the case of the

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10.5296/jpag.v10i4.17752 [Link]