Poor power supply hurting tourism hubs
MAJOR tourism hubs across the Philippines are grappling with severe financial losses and business closures due to the unreliable power supply and inadequacies of electric cooperatives, according to a comprehensive study by consumer advocacy group ILAW. The study, based on focus group discussions (FGDs) with tourism business owners in Davao del Norte's Island Garden City of Samal (Igacos), Siargao Island, Cebu and Puerto Galera, revealed widespread dissatisfaction with the performance of local electric cooperatives. Business owners cited frequent outages, inadequate infrastructure and poor response to service disruptions as primary concerns that have resulted in economic setbacks. Based on ILAW's findings, 74.29 percent of business owners in the tourism hubs reported daily revenue losses ranging from P10,000 to P30,000 due to power interruptions. Larger businesses faced even greater losses, exceeding P100,000 whenever there is a blackout. Many have been forced to cut costs by reducing staff, scaling down operations, or, in some cases, shutting down entirely. In Igacos, business owners rated the Northern Davao Electric Cooperative (Nordeco) with an alarmingly low score of 2.45 out of 10 due to prolonged blackouts and slow service response. The island has been losing approximately P50 million annually in tourism revenue. Local officials fear that the unstable power supply could deter investors, limit job creation and stagnate economic growth. Siargao's power woes, attributed to the Siargao Electric Cooperative (Siarelco), resulted in losses of up to P100,000 per blackout. Business owners reported being forced to spend P60 to P70 for a liter of fuel to run generators, while some laundry shops shell out P3,500 per 8-hour shift just to keep operations running. The December 2024 submarine cable crisis caused millions in revenue losses during peak tourism season, exacerbating the problem. Puerto Galera, another top tourist destination, reeled from frequent and unannounced outages under the Oriental Mindoro Electric Cooperative (Ormeco). Business owners rated its service 4.5 out of 10, with many saying they had to issue customer refunds and offer discounts to compensate for the inconvenience caused by power failures. ILAW emphasized the need for immediate action from both the government and electric cooperatives. The group called on the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to impose stricter regulations and accountability measures on the cooperatives mentioned. They also urged mandatory compensation for businesses suffering from service failures. The consumer advocate proposed long-term solutions such as investments in renewable energy, community microgrids, and energy storage systems to ensure a stable and sustainable power supply in tourism areas. "If electric cooperatives fail to modernize and provide reliable electricity, the tourism industry — one of the country's biggest economic drivers — will continue to suffer," said ILAW National Convenor Beng Garcia during the launch of the study held in Manila. Garcia noted that Cebu, while experiencing fewer outages, still faces growing energy demands as its economy grows. According to ILAW, business stakeholders in the province stressed the urgency of modernizing the power infrastructure to sustain long-term tourism growth. Unlike other regions, some Cebu businesses have started investing in solar energy and battery storage as a precautionary measure. Garcia said tourism remains a vital economic pillar for the Philippines, contributing 8.6 percent to the national GDP and generating P760 billion in revenue in 2024 alone. With the country hosting over 5.9 million visitors last year, a stable power supply is critical to maintaining the industry's competitiveness. "The continued failure of electric cooperatives threatens not only individual businesses but also the livelihoods of millions of Filipinos dependent on tourism," said Garcia. "Unless immediate reforms are implemented, the Philippines risks losing its standing as a top travel destination in Southeast Asia."
Tomas Kauer - Moderator 
MAJOR tourism hubs across the Philippines are grappling with severe financial losses and business closures due to the unreliable power supply and inadequacies of electric cooperatives, according to a comprehensive study by consumer advocacy group ILAW.
The study, based on focus group discussions (FGDs) with tourism business owners in Davao del Norte's Island Garden City of Samal (Igacos), Siargao Island, Cebu and Puerto Galera, revealed widespread dissatisfaction with the performance of local electric cooperatives.
Business owners cited frequent outages, inadequate infrastructure and poor response to service disruptions as primary concerns that have resulted in economic setbacks.
Based on ILAW's findings, 74.29 percent of business owners in the tourism hubs reported daily revenue losses ranging from P10,000 to P30,000 due to power interruptions.
Larger businesses faced even greater losses, exceeding P100,000 whenever there is a blackout.
Many have been forced to cut costs by reducing staff, scaling down operations, or, in some cases, shutting down entirely.
In Igacos, business owners rated the Northern Davao Electric Cooperative (Nordeco) with an alarmingly low score of 2.45 out of 10 due to prolonged blackouts and slow service response.
The island has been losing approximately P50 million annually in tourism revenue.
Local officials fear that the unstable power supply could deter investors, limit job creation and stagnate economic growth.
Siargao's power woes, attributed to the Siargao Electric Cooperative (Siarelco), resulted in losses of up to P100,000 per blackout.
Business owners reported being forced to spend P60 to P70 for a liter of fuel to run generators, while some laundry shops shell out P3,500 per 8-hour shift just to keep operations running.
The December 2024 submarine cable crisis caused millions in revenue losses during peak tourism season, exacerbating the problem.
Puerto Galera, another top tourist destination, reeled from frequent and unannounced outages under the Oriental Mindoro Electric Cooperative (Ormeco).
Business owners rated its service 4.5 out of 10, with many saying they had to issue customer refunds and offer discounts to compensate for the inconvenience caused by power failures.
ILAW emphasized the need for immediate action from both the government and electric cooperatives.
The group called on the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to impose stricter regulations and accountability measures on the cooperatives mentioned.
They also urged mandatory compensation for businesses suffering from service failures.
The consumer advocate proposed long-term solutions such as investments in renewable energy, community microgrids, and energy storage systems to ensure a stable and sustainable power supply in tourism areas.
"If electric cooperatives fail to modernize and provide reliable electricity, the tourism industry — one of the country's biggest economic drivers — will continue to suffer," said ILAW National Convenor Beng Garcia during the launch of the study held in Manila.
Garcia noted that Cebu, while experiencing fewer outages, still faces growing energy demands as its economy grows.
According to ILAW, business stakeholders in the province stressed the urgency of modernizing the power infrastructure to sustain long-term tourism growth.
Unlike other regions, some Cebu businesses have started investing in solar energy and battery storage as a precautionary measure.
Garcia said tourism remains a vital economic pillar for the Philippines, contributing 8.6 percent to the national GDP and generating P760 billion in revenue in 2024 alone.
With the country hosting over 5.9 million visitors last year, a stable power supply is critical to maintaining the industry's competitiveness.
"The continued failure of electric cooperatives threatens not only individual businesses but also the livelihoods of millions of Filipinos dependent on tourism," said Garcia. "Unless immediate reforms are implemented, the Philippines risks losing its standing as a top travel destination in Southeast Asia."
