BY DAVE SUAN ALBARADO

Bohol’s tourism industry, long one of the country’s premier destinations, is under mounting strain as a reported 59% collapse in visitor arrivals coincides with the departure of a budget airline and the foreclosure-driven closure of one of Panglao Island’s best-known luxury resorts.

Critics say the province has priced itself out of the market.

The setbacks have fed a public debate over whether Bohol has become too expensive for travelers, with provincial officials acknowledging limits to their power to rein in prices.

AirAsia Philippines ended service to Bohol on Sept. 30, 2026 with the final operation of Flight Z2354, an Airbus A320 that landed at Bohol-Panglao International Airport at 9:45 a.m.

The airline described the suspension as an act to streamline schedules and realign operations to optimize its network. It is also preparing to replace its older A320s with more fuel-efficient Airbus A220 aircraft starting in 2027, a change it says will reduce maintenance and fuel costs.

AirAsia said the move is part of an ongoing review of its domestic routes and that it could return to Bohol in the future.

Also on Sept. 30, Donatela Hotel Panglao Corp. ended operations at Donatela Resort & Sanctuary after the Land Bank of the Philippines foreclosed on the property, according to a disclosure by parent company PH Resorts Group Holdings Inc. to the stock exchange on Thursday.

PH Resorts is the resort development arm of businessman Dennis Uy.

The 7.5-hectare resort, which has 11 private villas, served as collateral for a loan from the former United Coconut Planters Bank, now under Land Bank.

After an extrajudicial foreclosure, the subsidiary turned over management of the property to the bank.

The closure adds to Uy’s group’s losses to creditors.

In 2023, PH Resorts transferred the 12.4-hectare Emerald Bay property in Mactan, Cebu, to China Bank under a debt restructuring deal. An option to buy it back expired March 31, 2025.

PH Resorts said the Donatela closure is part of an ongoing restructuring of the company and its parent, Udenna Corp. Under the proposed plan, PH Resorts would transfer its entire ownership of PH Travel and Leisure Holdings Corp. to Udenna.

The company said the step is meant to reduce its financial obligations and would not affect its overall funds once the plan is approved and implemented.

PRICES AT THE CENTER OF THE DEBATE

The developments come amid a social media backlash over the cost of travel and touring in Bohol, including complaints about accommodation rates, transport fares and food prices.

One widely shared example was a P1,650 charge for a single serving of pompano in Panglao.

Some critics have also faulted provincial policy.

They cite Gov. Aris Aumentado’s order closing whale shark watching in the towns of Lila, Albur and Dauis.

For years, the activity drew thousands of local and foreign visitors and supported hotels, restaurants, transport services, souvenir shops and hundreds of families.

Supporters of the closure say feeding the animals alters their natural behavior and threatens marine conservation.

Critics argue the province failed to replace the attraction with new draws or an aggressive international marketing campaign, leaving Bohol less competitive against Cebu, Siargao, Palawan and Boracay. They also cite global economic conditions, weather disturbances and travel costs as contributing factors.

Officials say their powers over pricing are limited.

Vierna Teresa Ligan, the Department of Trade and Industry’s provincial director for Bohol, said the agency cannot impose price ceilings on tourism establishments outside its legal mandate.

Speaking at The Capitol Reports, she said the DTI can enforce consumer protection laws and penalize violations within its jurisdiction. Its work also includes consumer education, product development, business assistance and enforcement of price-tag requirements.

She urged establishments to obtain sales promotion permits when necessary and asked consumers to verify complaints before spreading them on social media.

Provincial Legal Officer Atty. Handel Lagunay said on the same program that the provincial government cannot inspect all hotels, restaurants, vans, tricycles and other tourism-related businesses in Bohol’s towns and cities, leaving local government units with a major role in monitoring and handling complaints.

“The provincial government cannot inspect all establishments throughout Bohol,” Lagunay said.

He urged the industry to “police themselves” and respond to complaints transparently.

“Fair value” does not mean the cheapest price, he said, but a clear price, good service and reasonable value for the customer.

He called for stronger coordination among the province, local governments and the tourism industry.

Bohol Board Member Atty. Benjie Arcamo said the DTI’s price monitoring covers basic goods and commodities, not cooked food sold in restaurants, where ingredients, cooking, operations, service and salaries all affect prices.

Each establishment serves a different target market, he said, from high-end to budget, so prices cannot be uniform.

Arcamo said consumers should have options to match their budgets.

Batuan, Bohol Vice Mayor Atty. Antonino “Dodo” Jumawid linked high prices at some hotels and restaurants to operating costs, including construction, salaries, electricity, water, maintenance, taxes and permits.

He advised cost-conscious tourists to choose homestays, local accommodations and family-run eateries, noting that Batuan has cheaper lodging options.

He acknowledged unresolved issues in the sector, including concerns over some establishments’ prices, and called for continued local government support for tourism, which he described as a pillar of Bohol’s economy alongside agriculture.

AIRPORT OPERATOR

Meanwhile, Aboitiz InfraCapital Inc. (AIC) and the Panglao local government unit are exploring ways to improve the visitor experience.

Aboitiz InfraCapital Bohol Airport Corp., which operates Bohol-Panglao International Airport, says it has invested in passenger areas, airport systems, equipment and other facilities since it took over operations.

Officials met recently to discuss closer coordination among the airport, local government, tourism stakeholders, businesses and the community. Participants included AIC First Vice President and Head of Corporate Affairs Christopher Camba, AIC Airports Head of Tourism and Destination Marketing Blessie Cruz, External Affairs Manager Mox Esperat, Panglao Mayor Edgardo “Boy” Arcay and Municipal Tourism Head Leonides Senica.

“The airport is often a visitor’s first point of contact with a destination, so we have an opportunity to make that experience a positive one from the start,” Camba said.

“We want to work closely with Panglao to understand the needs of the destination and identify ways the airport can support the experience beyond the terminal.”

Cruz said the airport wants to “complement Panglao’s efforts” by understanding what the destination needs and identifying where the two sides can work together.

Arcay welcomed the collaboration and cited the roles of government, businesses, residents and other stakeholders in providing a good experience for visitors.