ILAW Finds Power Price Hike and Unreliable Supply Cause Up to PHP 100,000 Loss Per Day for PH Tourist Hubs…

Tacloban City ( Leyte) — Power consumer group ILAW PIlipinas (ILAW) reveals rising electric costs and unreliable power supply are causing a decrease in tourist arrivals, stunting economic growth in some of the Philippinesʼs most popular tourist destinations. According to ILAW, persistent blackouts and mounting power rates are bleeding local tourist businesses dry.

In a newly launched study, ILAW reported that tourism-dependent enterprises in Camiguin, Siquijor, and Masbate are facing financial losses driven by power instability. These findings are based on a series of focus group discussions (FGDs) conducted by the group to assess the impact of recurring outages on the tourist economies of these places.

“Reliable energy is crucial to any local economy, especially in tourism-driven locations,” said ILAW National Convenor Agnes “Beng” Garcia. “When power is unreliable, it doesnʼt just leave communities in the dark, it also leaves them with financial burden and a stalled economic growth.”

Persistent Blackouts and Rising Costs Sink PHʼs Tourist Economy

Tourism remains a significant contributor to the Philippine economy, bringing in PHP 3.86 trillion to the countryʼs gross domestic product in 20241. However, data from ILAWʼs FGD revealed that these gains are at risk due as unreliable electricity disrupts operations in areas known tourist areas such as Camiguin, Siquijor, and Masbate.

Participants across all three locations claim that power outages, regardless of duration, translate to lost income, particularly for service-oriented industries such as hospitality, retail, and food services. Frequent power interruptions disrupt daily operations, from food preparation and retail transactions, to guest check-ins and digital payments, causing booking cancellations, shortened stays — and, in some cases, issuing refunds. This forces tourist enterprises, especially small businesses, to cut into already thin financial margins.

In Masbate, businesses estimated daily losses of up to PHP 50,000, while in Siquijor, approximate losses reached as high as PHP 60,000. In Camiguin, where electricity rates are higher compared to surrounding areas, businesses reported daily losses ranging from PHP 10,000 to PHP 100,000.

To keep operations running, many establishments are forced to invest in backup solutions, including fuel-powered generators, which comes with its own challenges as fuel supplies are threateningly decreasing while oil prices are skyrocketing as a result of the tensions in the Middle East. Additionally, some participants claim that persistent power interruptions cause damage to appliances and equipment, requiring costly repairs or replacements, significantly increasing operational costs and further straining businesses financially.

“Persistent power interruptions are not merely isolated inconveniences,” said Garcia. “They are systemic disruptions with real economic consequences.”

Beyond financial impact, the group asserted that recurring power interruptions and electric rate hike ultimately cause a drop in tourist arrivals. Last March, the Department of Energy projected that electricity rates could increase by as much as 16% due to higher global fuel prices linked to the tensions in the Middle East2. The spike in fees driven by higher electricity prices, while electric

instability persists, leads to heightened guest dissatisfaction. This affects the provincesʼ reputation as tourist destinations, discouraging repeat visits and resulting in lower income for businesses.

“Reliable power is crucial to driving economic growth,” said ILAW Youth Convenor Francine Beatriz Pradez. “Without it, tourists are less likely to visit these places, resulting in huge losses for their tourist economy.”

Structural Power Issues Persist Across Island Grids

The study done by ILAW also points to deeper structural issues in local power systems. Among the areas visited by the group, Masbate was found to experience the most severe and persistent instability. This was mostly driven by long-standing inefficiencies in its distribution system, limited supply, and delayed infrastructure repairs following typhoons. Illegal connections and recurring voltage fluctuations further stain the grid, while consumer sentiments often go unresolved.

In Siquijor, outages are less severe but remain frequent, largely due the lack of substantial upgrades on aging infrastructures and the dependence on temporary fixes that fail to address the underlying structural issues. Consumer frustration has led the local Chamber of Commerce to establish an organized, rotating communication chain to extract updates from the local electric cooperative.

Conversely, Camiguin exhibits relatively better stability, yet outages still frequently paralyze local enterprises. While businesses in Camiguin attempt to bypass grid failures by installing solar panels, limitations in policy and capacity continue to restrict wider adoption.

These local challenges are further intensified by the conflict in the Middle East, which has resulted in higher fuel prices, directly impacting electricity generation in off-grid and diesel-reliant island systems. For tourism businesses, the effect is immediate as oil price hikes inflate electricity rates and make generator use more expensive — even as revenues continue to decline due to power interruptions.

“Tourist economies in these places are highly exposed to global energy shocks because of our dependence on imported fuel,” emphasized Pradez. “When oil prices rise, businesses here feel it almost instantly, and often more severely.”

In response to the studyʼs findings, ILAW is urgently pushing for immediate, short-term interventions alongside sweeping long-term reforms. “Electric cooperatives must enhance their management protocols,” reiterated Pradez. “They should provide accurate schedules and real-time updates to minimize the paralyzing uncertainty that businesses face daily. Furthermore, targeted financial subsidies may also help vulnerable enterprises to cope, especially during prolonged grid failures.”

However, the group emphasized that long-term solutions must go beyond temporary measures. Investments in modernizing power infrastructure, improving distribution efficiency, expanding access to diversified energy resources, and clearer governance frameworks across stakeholders are essential to secure the countryʼs power supply.

Beng Garcia said, “We need to treat energy as a cornerstone of economic development.” She added, “Addressing these challenges requires coordination across the government, distribution utilities, the private sector, and the consumers. If we want our tourist destinations to continue to thrive, we must act decisively to secure a stable, affordable, and resilient power supply.”

ILAW is a non-profit grassroots organization aiming to be the voice of consumersʼ rights for just, equitable, and affordable electricity nationwide. ILAW is at the forefront of amplifying vital issues on power in the Philippines.