The shutdown of tourist hotspot Boracay Island is seen to translate to P500 million to P1 billion in foregone revenues for budget carrier Cebu Pacific.
“Caticlan and Kalibo constitute about 6-7 percent of our domestic passengers. So for the first six months, we anticipate there should be maybe P500 million to P1 billion reduction in revenues because it takes time to transfer the flights to other destinations,” Lance Gokongwei, president and chief executive officer of Cebu Pacific said during the stockholders meeting of JG Summit Holdings Inc.
“But overall, we think this should be a strong positive for the country as we expect that Boracay will return as an even more popular destination after the rehabilitation is complete,” Gokongwei said.
Boracay – which Pres. Duterte described as a “cesspool” due to a number of violators of environmental regulations – was shut down by the government for six months starting April 26 to pave the way for rehabilitation.