ILAW Pilipinas showcased how tourism businesses in Camiguin, Siquijor, and Masbate are suffering major financial losses due to unstable electricity supply and rising power costs, with some enterprises reporting losses of up to PHP 100,000 per day during blackouts.

The findings were presented on Thursday, May 7, during a focus group discussion (FGD) and media launch conducted by ILAW, which examined the economic impact of recurring power outages on tourism-driven businesses in the three island provinces.

The study involved 44 participants from the tourism, retail, hospitality, food and beverage, and government sectors, ranging from microenterprises to large companies.

According to the study, 72.73% of respondents identified electricity as “extremely critical” to business continuity, particularly during peak tourism months when visitor demand is highest.

ILAW said recurring outages disrupt hotel operations, food services, retail activities, digital payments, travel services, and accommodations, while also forcing businesses to spend heavily on generators and fuel.

“Reliable energy is crucial to any local economy, especially in tourism-driven locations,” said National Convenor Agnes Garcia.

Garcia added that persistent outages create financial burdens for local enterprises and weaken long-term economic growth prospects in island communities.

Among the areas studied, Camiguin recorded some of the highest reported losses, ranging from PHP 10,000 to PHP 100,000 per blackout. Businesses there also reported average monthly electricity expenses of PHP 35,812.

The study noted that Camiguin’s electricity rates remained among the country’s highest at around PHP 14 per kilowatt-hour as of March 2026. ILAW also cited infrastructure limitations and limited energy capacity as continuing challenges for the island province.

In Siquijor, businesses reported losses ranging from PHP 5,000 to PHP 60,000 during outages, following the island’s widely publicized 2025 power crisis that saw outages lasting up to 10 hours or more daily.

Many establishments in Siquijor said they were forced to rely on generators to continue operations, resulting in higher fuel and maintenance costs.

Meanwhile, businesses in Masbate pointed to persistent electricity instability and infrastructure damage caused by Severe Tropical Storm Opong in 2025, which reportedly left some residents waiting up to a month for electrical restoration.

The study also highlighted broader economic consequences from unreliable electricity supply, including weaker investor confidence, reduced employment stability, and slower business growth.

Youth Convenor Francine Beatriz Pradez said, “Island tourism economies remain vulnerable to fluctuations in global fuel prices due to their dependence on imported fuel and diesel-based power generation systems.”

Pradez explained that rising fuel prices linked to ongoing tensions in the Middle East could further increase electricity costs for off-grid and island communities already struggling with power reliability issues.

The group urged electric cooperatives, local governments, and national agencies to improve infrastructure planning, strengthen outage response systems, and support long-term investments in more reliable and sustainable energy sources.

What long-term solutions should be prioritized to improve electricity reliability in tourism-dependent island provinces?

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