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Philippines closes holiday island to tourists

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MANILA: A decision by Philippine President Rodrigo Duterte to shut the holiday hotspot of Boracay, which he has called a “cesspool”, prompted airlines to cut flights on Thursday, as hotels prepared for cancellations and businesses appeared resigned to a move the government said was non-negotiable.


Duterte late on Wednesday ordered the closure of Boracay for six months from April 26 in a bid to rescue from ruin a once idyllic island that drew 2 million tourists and generated over a billion dollars in revenue last year.


Domestic airlines offered customers full refunds or flights elsewhere, but said they would still operate a limited number of flights to Boracay’s gateways, Caticlan and Kalibo, to serve residents, which number about 50,000.


Cebu Pacific, Philippine Airlines and AirAsia Philippines said they would scale down services to the two airports from April 26 to October 25, and add more to other popular beach and dive destinations, including Cebu, Palawan and Bohol.


Cebu Pacific, the dominant domestic carrier, said it cancelled 14 daily round-trip flights and anticipated a loss of $3 million to $5 million over the six months.


Boracay, one of 7,300 islands in the archipelago nation, hosts 1,800 businesses, including global hotel chains like Shangri-La and Movenpick, and locally listed companies Megaworld Corp and Manila Water.


The government estimated the closure could shave 0.1 per cent off 2018 GDP.


Discovery World Corp, which operates a lavish 88-room resort in Boracay, said the closure would have a significant impact on its financial health, citing the resort’s large contribution to revenue. The company’s shares dropped as much as 7.5 per cent on Thursday.


The government made it clear it was ready to take a temporary hit on tourism. “We have to swallow the bitter pill if we wish to sustain and protect the island of Boracay,” Frederick Alegre, assistant secretary for tourism, told a news conference. “It is a temporary setback but we will recover the glory days of Boracay.”


Located off the northern tip of the central island of Panay, Boracay’s white sand, lively nightlife and abundant water sports are a constant draw for visitors. — Reuters


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