IT’S been a month since the government did what was previously deemed unthinkable, shocking and disappointing people: close down for six months Boracay island in Aklan, shutting out the world to the fabled white sand and other attractions of the island consistently listed by global travel magazines among the best.
However, some larger companies that have operations in Boracay say they have prepared for its closure, and will take the losses, if necessary.
All new construction plans are on hold, until after the government decides to again open the island after six months. Hopes of an earlier-than-announced reopening may yet be dashed, however, by last week’s discovery by the Department of Environment and Natural Resources (DENR) of an old sewer line built by the then Philippine Tourism Authority (PTA) on one of the beaches. The discovery was made in the course of DENR’s efforts to track pipes illegally discharging untreated wastewater near the beach. It has so far found 33 such pipes, as well as an old septic tank.
As the government does its thing, businesses and their workers are coping, meanwhile.
In an interview just days before the ban took effect, some of the businessmen had laid down their plans while the island is closed, such as refurbishing of the property that they operate, and other things that they cannot do while still in operation.
The big developers are finding ways to cope, certainly, while some of those already in operation—the restaurants, especially—have come up with creative solutions like pop-up operations outside of the island, especially in Metro Manila, where their long-time patrons are only too eager to flock.
Discovery: Keep, retrain, redeploy staff
A large company such as Discovery World Corp., a company led by the Tiu family, earlier admitted that its income will take a hit once the island is closed.
The company, which operates Discovery Shores Boracay, had committed to keep most of its staff, retrain them or put them in other company properties, such as those in Palawan.
“This temporary challenge will allow us to finish the soon-to-open Signature Suites of Discovery Shoes Boracay, as well as showcase our resort in Coron—Club Paradise—and the diving operations of Discovery Fleet,” the company said.
Workers have obviously borne the brunt of the Boracay closure, despite the government’s plea not to lay off their employees. Many of those laid off by the closure have since ventured out to nearby provinces, finding work in the hospitality sector, such as spas and beauty parlors in Negros.
Fortunately, certain other larger companies, such as Vista Land, say they will keep most of their staff, retraining them if necessary, or place them in other branches. The company is a new entrant in the industry, but it has been making investments in hotels and need all the workers.
“The industry [property development] in general is moving toward food and beverage,” Manuel Paolo A. Villar, president and CEO of property developer Vista Land & Lifescapes Inc., said in an earlier interview.
Discovery World, meanwhile, said it already made plans for its staff members since February, when the issue first broke, and will maintain enough personnel for the upkeep of their resort throughout the six-month period.
Look beyond the island–SMC
Conglomerate San Miguel Corp., which operates Boracay Airport in Caticlan and is currently conducting its upgrade, said it supports the closure of the island resort.
It declined to give further statement on its plan for the next six months while the ban is in effect.
San Miguel President and COO Ramon S. Ang said that all concerned sectors, including the government, businesses, developers and its residents, must also look beyond the island and move to disperse tourism to nearby municipalities, such as Caticlan and Nabas.
Ang is pushing for the government to build a Caticlan-to-Boracay bridge to help reduce the need for tourists and tourism workers to stay on the island.
“Tourists and visitors will have the option to go to Boracay during the day and in the afternoon or at night for accommodations outside the island,” Ang explained.
The accessibility of Boracay, through the proposed bridge, will enable developers to build hotels and resorts outside the island, Ang said.
Some new establishments, on the other hand, can be positioned as alternative or more affordable accommodations for tourists. At the same time, accommodations for workers can also be built.
That bridge could also solve the garbage and sewage problem on the island since it can be used as a safe way to deliver sewage via pipes, which would be built into the bridge design, out of Boracay island.
Better, ‘more world-class,’ island
Indeed, the “new, improved” Boracay—assuming the government succeeds in all major infrastructure reforms, such as proper and adequate sewage and wastewater treatment systems—may yet enhance the bottom line of developers whose projects are still just about to go onstream.
“I’m not trying to make light of what will happen to the people employed by them [other resort owners]. But just from a corporate point of view, it won’t affect Vista Land and arguably after the cleanup it will be better,” Vista Land’s Villar said.
Vista Land over the past two years has been snapping up properties on the island, as it dives into hotel operations.
In 2015 it bought Boracay Sands Hotel for P157 million and then a year later it launched Costa Vista Boracay, another property it bought that sits on a 6.5-hectare property that has direct access to the beach.
The first phase of the project costs about P2.2 billion and involves a residential component aside from the resort and the next phases of the project development will cost even more.
“So for us, economically we’re better off with the ban because… the projects that we have, which are not yet [operational], will be worth more after the ban. We would actually benefit,” he said.
“I am not saying whether that’s [the ban] good or bad for the island. But for all intents and purposes, it’s a ban. You’re crazy if you initiate construction [of a new project]. They’re already ripping off some physical structures in Boracay. I think construction is virtually stopped, almost completely stopped,” he said, adding that the company can afford to take a hit with the ban.
Vista Land was recently accused of continuing construction works despite the ban, even of allegedly “leveling a mountain” in a private area to give way to a condominium project.
The Villars have since denied such accusations.
Double Dragon Properties Corp., meanwhile, also considers it beneficial to them if the island is temporarily closed to tourists as its hotel will not be opened until 2020.
Marriana H. Yulo, the company chief investment officer, said the six-month cleanup of the government will not affect them since its 1,001-room hotel, which is a joint venture with Newcoast South Beach Inc. led by its Chairman Enrique Y. Gonzalez, will start operations in 2020.
“It’s a great thing that the government is cleaning up Boracay. In fact, it’s very good for us when it [the island] reopens because we’re going to come back with a stronger, more world-class island,” Yulo said.
Image credits: Nonie Reyes