Economy in Boracay Island – Philippines – The island of Boracay is considered as the worlds leading tropical resort. This 4-kilometer stretch of Boracay is lined up with restaurants, disco houses, hotels, souvenir shops, and other service establishments. Nearby there is a communications company, complete with uniformed personnel at par with the multinational offices of Makati City.
Despite being only less than a thousand hectares and 6,000 residents, it is described as a Paradise. Founded in 1949, Boracay is an agricultural island that is complemented by the wealthy marine resources of the Sibuyan and Sulu Seas. Because of the tourism industry, Boracay is now a fourth class municipality.
Located at the heart of the Panay group of islands in the Visayas, Boracays municipal hall is different from the others because it has several computers and cellphones and its employees have attractive uniforms.
Under the administration of Corazon Aquino, the economy of Boracay did not perform well. The level of tourism was fluctuating from stagnant to rapid increases, which is due to the instability of the political situation of the island as well as the volatility of its economy. From 1988 to 1922, the national average of tourist arrivals was 1.07 million.
With the coming of the Fidel Ramos administration, tourist arrivals increased to 1.15 million in just the first year which was translated to tourism receipts worth US$ 1.67 billion. The economy of Boracay picked up in the next five years as tourism receipts amounted to US$ 2.7 billion by the conclusion of 1996.
It is worth noting that the said amount came from the 2.05 million foreigners that visited the island. Local tourists, which were estimated at 11.87 million, generated an additional PHP 40.14 billion.
According to the World Tourism Organization, this figure registered the highest rate of growth in annual tourist arrivals in Asia. Since then, over 1.1 million Filipinos were directly employed which comprised 6 percent of the countrys gross national product.
The growth in the economy of Boracay was a result of the improving political stability and economic development brought in by the administration of Fidel Ramos.
The introduction of Boracay as a tourist destination to the outside world was attributed to Manuel Elizalde, who was a former Chief of Presidential Assistance for National Minorities of the late President Ferdinand Marcos. In the early part of the 1970s, Elizalde entertained his jetsetting friends at the Puka Shell Beach (now White Beach).
Backpackers were next in line in the same decade as well as in the early part of the 1980s. By the conclusion of 1990, over 200,000 tourists had already visited Boracay.