(File Photo) 
BUSINESS

Think tank pushes power fix for tourism

Maria Bernadette Romero

Think tank Center for Energy Research and Policy (CERP) has urged the Department of Tourism (DOT) to integrate energy security into tourism planning, warning that power outages pose a serious threat to the country’s top travel destinations.

In its study “Blackout in Siargao: Energy Security for Tourism-Dependent Economies,” CERP detailed how a 14-day blackout in December 2024 bled the island of an estimated P1.09 billion, with tourism businesses losing P10,000 to P30,000 daily.

“Energy disruptions have a profound ripple effect on tourism activities, causing both direct and indirect economic impacts. The tourism industry can only function and thrive with a stable and sufficient electricity supply,” said CERP lead economist Yla Paras over the weekend.

The shutdown was triggered by the failure of a 41-year-old submarine cable, plunging nine municipalities into darkness — including General Luna, home to the world-famous Cloud 9 surf break. 

The blackout struck at the height of the holiday season, wiping out bookings and forcing hotels, resorts, and restaurants to close their doors.

CERP stressed that Siargao is not an isolated case. Palawan continues to reel from scheduled blackouts, Boracay suffered an 18-hour outage in May 2025, and Siquijor declared a state of calamity in June after a month-long blackout shuttered tourism businesses. 

The 2024 Panay Island regional blackout alone cost Iloilo P3.8 billion in just four days.

To address these risks, CERP has offered research and technical support to DOT, combining legal, economic, and engineering expertise for energy-tourism planning. 

The think tank noted that many local governments lack the technical capacity to align infrastructure with tourism growth, leaving emerging destinations off-grid or underpowered.

CERP and DOT are now exploring ways to integrate energy resilience into tourism frameworks. CERP pledged to share its upcoming Siquijor study and extend research support to local governments.

Tourism generated P3.86 trillion in 2024, equivalent to 8.9 percent of GDP, and employed 13.82 percent of the Philippine workforce.