boracay Archives | Tan, Frankum & Associates


Pernia: 6-month Boracay closure to cost economy P1.96 billion

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The six-month closure from tourists of Boracay Island starting Thursday, April 26, would cost the economy about P1.96 billion, which the country’s chief economist said Tuesday would be compensated for by an increase in arrivals in other domestic tourist spots.

Citing an earlier estimate of the state planning agency National Economic and Development Authority, Socioeconomic Planning Secretary and Neda chief Ernesto M. Pernia told reporters during a press conference that the temporary closure of the popular tourist destination, which will be rehabilitated from environmental degradation, would shed only 0.1 percent from the gross domestic product this year.

Noting that the economy is about P14-trillion worth and was expected to grow by at least 7 percent this year, about P980 million per quarter would be lost, especially in the affected local government units.

“Boracay [island], Malay [town], Aklan [province] and Region 6 will suffer-—their growth rates will be trimmed,” Pernia said.

For Western Visayas, its gross regional domestic product growth would be cut by 5.7 percentage points, Pernia added.

The Neda chief nonetheless said “there will be other areas in the Visayas earning some increase in growth rates; also, Luzon and Mindanao will have some increase” as tourists are instead expected to flock to other destinations in the country.

“We are only assuming that 50 percent of the volume of tourists going to Boracay will be going to the other [local] destinations … I would assume that closer to 70-75 percent of those who used to go to Boracay will go to the other tourist destinations, especially domestic tourists,” Pernia said.

“It’s going to be a temporary shortfall in terms of tourism income and tourist arrivals,” Pernia added.

“Regarding the possible shortfall in tourist arrivals due to the Boracay closure, the Department of Tourism will have to step up its efforts at advertising and marketing our several other tourist destinations, so the same volume of tourists, if not more, will be diverted to these other beautiful locations,” the Neda chief said in a separate statement.

Source: http://business.inquirer.net/249752/pernia-6-month-boracay-closure-cost-economy-p1-96-billion


Boracay faces shutdown

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PRESIDENT Rodrigo Duterte has threatened to close the country’s most  popular tourist beach resort, the Boracay, which he described as a “cesspool,” if the vacation island’s environmental issues would not be resolved in six months.

The President instructed Environment Secretary Roy Cimatu on Saturday to address the growing environmental concern in Boracay, saying there would come a time that no more foreigners would go there because of contamination.

The Department of Tourism has previously said that human waste were found in the waters of Boracay.

The President even mentioned architect Felino Palafox that the architect  was fully aware  what was the tragedy in Boracay.

“Now, during days when I was there, the waste was just 20 meters away from the beach. At a distance you see cotton balls of Boracay [as] white sand,” he said.

“But when you go into the water, it’s smelly. Smell of what? S***.” Duterte said.

He said those going there were destroying the environment or the Republic of the Philippines and creating a disaster coming.

“There will be a time that no more foreigner will go there because he will have—when he goes back to the plane to where he belongs, he will be full of s*** going back and forth to the restroom,” he said.

Duterte said he already ordered Cimatu to fix the environmental issue in six months.

The DoT said visitors in this world-famous island hit a record high of  1,529,895 foreign and domestic tourist arrivals from January to September compared to last year’s 1,348,064 in 2016.

The Tourism department attributed the increasing tourist arrival to visits from East Asian and Southeast Asian countries.

Source: http://www.manilastandard.net/news/top-stories/258403/boracay-faces-shutdown.html

Boracay Philippines

Ownership battle over Boracay resort property heats up

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MANILA, Philippines – The battle over a property in Boracay where a portion of Friday’s Boracay sits continues.

Mila Yap-Sumndad said she owns the property and has filed a libel suit against Jose Marcel Panlilio, head of Boulevard Holdings Inc. (BHI), the publicly listed property developer that owns Friday’s Boracay for questioning her court-sanctioned public auction of the beachfront property to settle her debt to a Quezon City-based realty company.

Yap-Sumndad, who is claiming ownership of a 1,447-square meter portion of the land, said she is the daughter and one of the successors-in-interest of the late Benjamin and Pilar Yap, said to be the original owners of 2,564 sqm of land inside the resort who forged a 25-year lease agreement with Fridays Holdings Inc. in 1989.

Of this property, about 60 percent or 1,447 sqm was acquired by Yap-Sumndad after her parents died, while her siblings shared the rest of the property.

In a statement, Yap-Sumndad said the 25-year lease agreement expired in 2014 but alleged that a year later, the BHI group forcibly took over this lot with the aid of a local court sheriff and local authorities belonging to the Philippine National Police (PNP) Boracay Tourist Assistance Center (BTAC).

BHI said the contested property is now worth P240 million while the entire resort is worth between P1.5 billion and P1.9 billion.

“In these articles, no doubt the respondent (Panlilio) maliciously and publicly imputes against Mila Yap-Sumndad to have entered into a transaction involving a property which she does not own and to somebody she never contracted with,” said Yap-Sumndad in her complaint-affidavit recently filed at the Provincial Prosecutor’s Office in Kalibo, Aklan.

Yap-Sumndad is trying to sell the property but BHI filed a third-party claim in a bid to stop the auction in Quezon City on the ground that FHI was supposedly the owner of the property.

BHI claimed that Yap-Sumndad presented to sell what does not belong to her, trying to transact it with Ambassador Amable Aguiluz. After she supposedly received P74 million from him, she could not repay it, forcing him to pretend to compromise in the Quezon City RTC by offering to auction the property to settle her debt to Aguiluz, BHI alleged.

The company said it would file a criminal case against Aguiluz and Yap and third party claims before the QC trial court.

Yap-Sumndad said BHI’s charges are malicious.

“Such malicious charges (by Panlilio)…are bereft of any fact to support the same,” said Yap-Sumndad as she “never entered into a mortgage contract or any other contract involving property she does not own and further she never had any transaction…with AMA Colleges.”

“It is crystal clear that the defamatory imputation against (her) was prompted by personal ill-will and to injure (her) reputation,” discredit and ridicule her before the bar of public opinion, and expose her to public contempt,” she said.

Boracay Property Auction

QC Court Orders Suspension of Friday’s Boracay Property Auction

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THE COURT has stopped the auction of a beachfront property owned by a subsidiary of Boulevard Holdings, Inc.

Branch 95 of the Regional Trial Court (RTC) of Quezon City ordered on March 4 the suspension of the sale of a 1,477-square-meter Boracay property, owned by Friday’s Holdings, Inc., that was supposed to take place yesterday in deference to the outcome of a pending petition at the Supreme Court, the Panlilio-led holding firm said in a disclosure to the stock exchange.

Jose Marcel E. Panlilio, chairman, president and chief executive officer of Boulevard Holdings, said the auction of the parcel of land was supposed to “satisfy [the] personal debts” allegedly owned by Mila Yap-Sumndad, former owner of the property, to businessman Amable Aguiluz of AMA Colleges.

In coming out with the decision, Quezon City RTC Presiding Judge Edgardo B. Bellosillo noted that the property is still the subject of a pending case at the Makati RTC.

However, the implementation of the writ of execution issued by the said Makati court was suspended due to the Court of Appeals’ issuance of the injunctive order, which is now the subject of a pending petition at the Supreme Court.

“For this Court to allow the Sheriff’s sale to proceed as scheduled on March 7, 2016 would render moot and academic whatever the outcome of the pending petition at the Supreme Court,” Mr. Bellosillo said in the order.

Boulevard Holdings said it diverted P195 million in cash allocated for the development of Friday’s Puerto Galera to “rescue” Friday’s Boracay and pay for damages.

To recall, a group of armed civilians led by Datu Yap-Sumndad, a member of the family that previously owned part of the resort, took over the portion of the lot they claimed was theirs in February 2014.

Boulevard Holdings disclosed in December of the same year that a trial court in Aklan issued a writ of injunction against the resort’s former owners, allowing the listed resort developer to recover possession of the Boracay property.

Boulevard Holdings said it acquired the contested property after paying P40 million to Ms. Yap-Sumndad as part of a full court settlement in 2009.

Shares in the resort operator surged 7.84% to close at P0.055 each on Monday.

Source: http://www.bworldonline.com/content.php?section=Corporate&title=QC-court-orders-suspension-of-Friday%27s-Boracay-property-auction&id=124150