Business establishments in the country’s top tourist spots, namely, Samal Island, Siargao, Puerto Galera and Cebu City, lose an aggregate sum of P100,000 per day on average due to persistent power outages in those areas, studies conducted by the energy consumer group ILAW show.
The average daily losses of micro, small and medium enterprises (MSMEs) were P27,000 in Samal Island; P42,000 in Siargao; and P30,000 in Puerto Galera. Meanwhile, the average daily losses incurred by establishments in far more advanced Cebu City totaled P216,000 per day for large enterprises, and for MSMEs, up to P82,000.
One survey covered 43 establishment-respondents in tourism and related businesses between September 2024 and the first week of March, ILAW national convenor Agnes Garcia told reporters in a press briefing in Manila on Wednesday.
Garcia said that in ILAW’s focused group discussions, they learned that inefficiencies of electric cooperatives have led to the closure of some businesses, cancellations of bookings, provision of discounts and refunds, as establishments continue to struggle due to unreliable power supply, frequent and unannounced outages and poor service response, to this day.
ILAW said Siargao, for one, has been experiencing frequent power outages and voltage fluctuations, leading to equipment damage and business losses of up to P100,000 per blackout incident.
ILAW added that Puerto Galera businesses have complained about unannounced power outages, lack of infrastructure investment, and frequent disruptions that have forced establishments to offer customer refunds or cut prices.
Garcia said that during their Cebu City FDG, tourism and business stakeholders urgently called for the modernization of energy infrastructure to meet the increasing power demand driven by the province’s expanding economy.
“With tourism serving as a major economic driver in these areas, ILAW has called on electric cooperatives to improve their performance and ensure reliable power supply that meets the present and future demands of their franchise areas. It’s time for our electric cooperatives to step up and ensure reliable and efficient power supply, especially in key tourism areas where businesses and livelihoods depend on stable electricity,” Garcia said.
The group called on the Department of Energy and the Energy Regulatory Commission to impose stricter accountability measures on electric cooperatives operating in tourism hubs.
It also stressed the need for penalties for service failures and the implementation of mandatory compensation policies to protect affected businesses.
The group pushed for investment in renewable energy, community microgrids, and energy storage systems to provide more reliable power to tourism zones.
Tourism revenues generated in Samal Island, Siargao, Puerto Galera and the island of Cebu, reach billions of pesos every year, with Samal Island hitting a high of P1.6 billion in 2016; Puerto Galera raking in revenues from P500 million to P1.2 billion; Siargao hitting a high of P17 billion in 2023; and the island of Cebu hitting a high of P40 billion also that year. In 2024, tourism revenues nationwide grew 9 percent to P760.50 billion, from P697.46 billion in 2023, Tourism Secretary Christina Garcia Frasco reported in January.
