CEBU, Philippines – Tourism-related businesses in Cebu are experiencing heavy losses as oil price hikes have reduced the number of clients and brought operating costs to an all-time high.

Orlich Ompad, a pumpboat owner and operator of Orlich Island Hopping and Tours in Mactan Island, said that fuel expenses for their island trips have tripled since prices of fuel drastically increased after the US and Israel launched strikes on Iran in late February.

The pumpboat owner explained that they now have to spend up to P1,500 to get 10 liters of fuel from what used to be P500 for 10 liters due to the oil price hikes as well as the high demand for fuel among pumpboat owners in Mactan. The island in central Philippines is a major tourism hub and is where the Mactan-Cebu International Airport, the main gateway to Cebu province and other areas in the Central Visayas region, is located.

“Kausa na lang gyud mi makabyahe sa usa ka semana (We can only make a trip once a week),” Ompad told Rappler on Monday, April 6.

According to Ompad, the minimum rental rate for a pumpboat is around P5,000: P1,500 expense for fuel, around P500 for maintenance, and the remaining amount divided between the owner of the boat, and the boatmen. 

Ompad said they cannot increase rental rates even if they wanted to due to the large number of competing pumpboat operators and lack of interested clients.

“If mu-increase mi sa presyo, wala na ma’y musukol…Imagina, duha ra kabuok imu guest, unya pila kabuok empleyado (If we increase prices, no one is going to hire us… Imagine, you only get two guests, and you have how many number of employees),” Ompad said.

Fewer local tourists

John Hanlon, a divemaster and manager at Malapascua Beach and Dive Resort in Malapascua Island, told Rappler on Tuesday, April 7, that resorts are also not spared due to a dwindling pool of clients.

“There’s a lot less locals coming over because with foreigners, they do come here specifically for diving but local tourism has been on the low,” Hanlon said.

According to the divemaster, travel expenses to get to Malapascua Island have risen amid the oil price. Hanlon shared that taking the V-hire van from Cebu City to Maya Port now costs P400, which used to be P300. 

He added that boat rides from Maya Port to Malapascua have also risen to P250 from P200.

“I think in the next few weeks, it’s going to start affecting us more because it’s going to be more expensive to bring in items like beer and all other stocks since it’ll be harder for people to get here [in Malapascua],” Hanlon said.

A gamble to live

Many jobs are now at stake.

“Ang amoang panginabuhi diri intawn gamble kaayo (Our livelihoods here are very much a gamble),” Marcial Arong, a boat owner in Mactan, told Rappler.

Arong shared that he supports six children who are still in school. In order to survive, he said, their family now has to ask for loans from neighbors.

The boat owner had hoped that the recent Holy Week celebration would bring in many clients like in previous years. However, not many came to avail their services this year.

On top of looking for clients, Arong said that he has to worry about finding a replacement for his damaged boat engine, and making sure that thieves don’t siphon or steal their fuel supply while their boat is on standby.

According to Ompad and Arong, a brand new boat engine would cost an estimated P100,000 while an engine overhaul would cost at least P50,000.

“Sa karon, ang usa ka libo mura na lang og usa ka gatos (Now, a thousand is just worth a hundred),” Arong added.

As the conflict in the Middle East rages on, the Philippine Statistics Authority reported on Tuesday, April 7, that inflation in the Philippines rose to 4.1% in March — almost twice as fast as the 2.4% inflation rate in February.

Boat owners like Ompad and Arong only hope that the Marcos administration finds a solution soon as fellow island-hopping operators in their community have begun to temporarily stop their services due to the high cost of fuel.

“Pangandoy ra unta namo nga dili lang maglisod ang mga Pilipino (We just hope that Filipinos don’t have to keep struggling like this),” Arong said. – Rappler.com