Table of Contents
Energy security is critical for the Philippines’ tourism sector, the Center for Energy Research and Policy (CERP) warned, as recent blackouts in key destinations have inflicted severe economic losses. The think tank urged measures to ensure a stable power supply to protect the industry and support local livelihoods.
“Energy disruptions have a profound ripple effect on tourism activities, causing both direct and indirect economic impacts,” stressed Yla Paras, CERP’s chief economist. “The tourism industry can only function and thrive with a stable and sufficient electricity supply.”
A Philippine Institute for Development Studies (PIDS) study covering 2010 to 2022 found that frequent power outages slash local government revenues. Each interruption can cut business taxes by 0.2% in the first year, totaling nearly 1% over four years, with real estate taxes also falling. Overall, a single outage costs governments about ₱10.7 billion, undermining essential services and development projects.
Energy uncertainty hits tourism hubs
CERP’s analysis echoed earlier warnings about energy challenges in Philippine tourism. In May, ILAW, a consumer advocacy NGO, reported that businesses in major destinations were losing up to hundreds of thousands of pesos daily due to unreliable power.
Focus groups revealed that local electric cooperatives’ (ECs) frequent outages had not only caused significant losses but, in some cases, forced establishments to close.
In Cebu, power outages have hit businesses hard, with large companies losing an average of ₱216,000 a day and MSMEs about ₱82,000 daily.
The Cebu Chamber of Commerce and Industry (CCCI) also projected that a three-day power outage, mirroring the blackouts that hit Western Visayas in January 2024, could inflict losses reaching ₱1.44 billion.
In Puerto Galera, MSMEs faced average monthly electricity bills of ₱22,000, while losses during outages reached around ₱30,000 a day. ILAW noted that high energy costs, particularly for accommodation businesses, have been compounded by frequent interruptions due to reliance on Mindoro’s external power sources.
Meanwhile, in the Island Garden City of Samal (Igacos), Mayor Al David Uy warned that unresolved power issues could escalate once the Davao-Samal Bridge opens. Annual losses may reach ₱50 million in tourism, ₱30 million in local businesses, ₱50 million for households, ₱10 million in public services, and ₱20 million in agriculture and fisheries.
Tourism establishments often have to offer refunds or cut rates to maintain occupancy, undermining profitability. ILAW added that recurring outages also harm the destination’s reputation, with cancellations and negative reviews directly linked to power problems.
The organization concluded, “This reputational damage has led to declining competitiveness compared to other Southeast Asian destinations where power infrastructure is more reliable.”
(Also read: Recurring Yellow Alerts Put Visayas Economy at Risk)
Spotlight on key tourist hubs
Tourism hotspots across the Philippines are feeling the growing strain of unreliable power. Here are some of the areas most affected:
- Siargao
Known as the “Surfing Capital of the Philippines,” Siargao welcomed over 14,000 visitors in the first half of 2024. Its pristine white-sand beaches and world-renowned surf spots, including Cloud 9, continue to attract both local adventurers and international travelers drawn to its waves.
Last December 2024, a 13-day power outage plunged Siargao into crisis after a damaged undersea cable owned by the Siargao Electric Cooperative (Siarelco) cut electricity to nine municipalities, including the tourism hub of General Luna.
It took nearly two weeks before Siarelco pinpointed the cause of the blackout—a fault in a 1.6-kilometer section of its ageing submarine cable, finally identified on December 12. The damaged line was lifted from the seabed and repaired by technical experts, as frustrated consumers demanded accountability and criticized years of poor maintenance.
According to CERP, the outage inflicted an estimated ₱1.09 billion in economic losses, as businesses disclosed daily revenue drops ranging from ₱10,000 to ₱30,000.
In May 2025, PhilStar reported that Siargao once again faced power interruptions, bringing the island’s bustling tourism to a sudden halt. Siarelco implemented a nearly hour-long outage on May 5 due to a tripped transmission line, followed by another brief island-wide blackout the next day.
Despite recurring power interruptions, Siargao’s MSMEs continue to struggle with soaring electricity costs. On average, small businesses pay around ₱55,000 in monthly power bills while losing an estimated ₱42,000 a day during outages. Additionally, resorts spend ₱60 to ₱70 per liter of fuel to keep generators running, and laundry shops shell out about ₱3,500 per eight-hour shift.
“If you compare the electricity cost to the average losses, there is only P13,000 or less of revenue left,” stated ILAW Youth Convenor Francine Pradez. “What we can notice here is that the power crisis within Siargao has led to systemic vulnerabilities.”
- Palawan
Palawan’s tourism industry rebounded strongly in 2023, recording 1.53 million visitors, nearly double the previous year, and generating ₱57.2 billion in revenue. Its global recognition also grew, with TripAdvisor naming it one of 2024’s top trending destinations and U.S. News & World Report declaring it the world’s best island to visit in 2025.
Business losses due to blackouts in Puerto Princesa have been widespread, with about 40% of establishments reporting losses of up to ₱10,000 and another 40% losing as much as ₱30,000 daily. According to ILAW, recurring power interruptions have severely hurt the local tourism industry, reducing the city to a mere stopover for travelers heading to other destinations in Palawan.
Moreover, Palawan’s ECs have long faced allegations of mismanagement and financial trouble. The Palawan Electric Cooperative (Paleco), in particular, has drawn criticism for its unreliable service, with consumers enduring unannounced blackouts lasting up to an hour several times a day, alongside long scheduled interruptions.
In 2019, Puerto Princesa’s local government filed a lawsuit over what it described as an ongoing “electricity crisis.” Despite the National Electrification Administration (NEA) taking control of the cooperative in 2018, service reliability has not substantially improved.
Meanwhile, the Busuanga Island Electric Cooperative Inc. (Biselco) has also faced public outrage. In 2021, Culion residents petitioned the Energy Regulatory Commission (ERC) to investigate the utility over persistent brownouts that disrupted livelihoods, damaged appliances, and hampered hospital and government operations.
A year later, the ERC fined Biselco ₱700,000 for repeatedly failing to submit required reports for seven years, including supplier invoices and consumer billing data crucial for tracking power charges.
- Boracay
Boracay, celebrated for its world-class white sand beaches, drew over two million visitors in 2024. In the same year, the island was named the World’s Leading Luxury Island Destination by the World Travel Awards.
But in May 2025, power went out across the island and nearby towns for over 18 hours, drawing a wave of online complaints as residents and tourists endured the sweltering heat. The outage was later traced to a snapped jumper wire along the Nabas–Unidos–Caticlan line that failed late at night.
Another massive outage took place on September 13, when damaged underground transmission cables near Caticlan Airport cut power to Malay and neighboring Buruanga, leaving Boracay without electricity for 49 hours and affecting about 150,000 residents and tourists.
Emergency crews from the National Grid Corporation of the Philippines (NGCP) and the Aklan Electric Cooperative (Akelco) rushed to erect temporary poles and an 800-meter bypass line, but high tide hampered repairs. Power was restored two days later.
Manila Times columnist Ben Kritz underscored that Boracay serves as a crucial economic lifeline for both the tourism sector and the province, which has few other sources of growth. “Thus, the stability of electricity supply should be considered a matter of national significance, and not left to the management of a cooperative that can only be generously described as mediocre,” he wrote.
(Also read: Is Akelco equipped to Meet Boracay’s Growing Energy Demands?)
Time for accountability and action
The evidence gathered by CERP, ILAW, and local stakeholders paints a stark picture: blackouts are not just inconvenient—they are undermining tourism, local economies, and livelihoods. Without urgent reforms, destinations that once set the Philippines apart risk falling behind more resilient competitors in Southeast Asia.
Senator Juan Miguel Zubiri has called the power disruption in Siargao “killing the tourism economy of the island,” pointing out how prolonged outages force resorts, hotels, and restaurants to scale back or shut down operations entirely.
Meanwhile, Nic Satur Jr., Chief Advocate Officer of Partners for Affordable and Reliable Energy (PARE), warned that the rotating brownouts expose “systemic neglect and outdated energy planning,” demanding not just temporary relief but long-term infrastructure fixes.
To safeguard the future of Philippine tourism, the response must focus on greater accountability for ECs, increased investment in modern and resilient energy systems, and the inclusion of more dependable baseload power in the energy mix. As frustrations rise and losses deepen, the government has to take concrete steps to ensure that the country’s top destinations are powered by a stable, sustainable, and future-ready grid.
Sources:
https://cebudailynews.inquirer.net/611573/siargao-fault-in-submarine-cable-causes-power-outage
https://beta.tourism.gov.ph/news_and_updates/siargao-a-priority-for-tourism-development-frasco
https://www.pna.gov.ph/index.php/articles/1217233
https://www.pna.gov.ph/articles/1216834
https://www.pna.gov.ph/articles/1248777
https://palawan-news.com/paleco-franchise-faces-opposition-from-rep-alvarez/
https://palawan-news.com/culion-residents-petition-against-biselco-for-frequent-blackouts/
https://www.philstar.com/nation/2025/09/16/2473123/power-back-boracay-after-2-days
https://www.facebook.com/photo?fbid=1017416140484414&set=a.584065413819491
https://www.worldtravelawards.com/award-worlds-leading-luxury-island-destination-2024
https://www.philstar.com/nation/2025/09/16/2473123/power-back-boracay-after-2-days
https://www.manilatimes.net/2025/09/16/opinion/columns/akelco-strikes-again/2184367
https://www.wazzuppilipinas.com/2025/06/power-crisis-in-siquijor-exposes-deep.html