On June 30, 1997, the people of Boracay Island, Philippines were shaken by the news from the Department of Environment and Natural Resources that the crystal clear swimming waters off Boracay’s internationally renown Long Beach were contaminated with high levels of coliform blamed on inadequate sewage treatment. As a result, the dramatic 100% increase in tourist arrivals between 1995–96 was nearly matched by a dramatic 70% decline in the months that followed the announcement (DOT 1997). The livelihoods of residents who had grown dependent on tourism suddenly became imperiled, billions of pesos in capital investments were threatened, and the image of Philippines’ tourism suffered (Figure 1).

The announcement came in the midst of the Philippines Department of Tourism’s (DOT) attempt to implement a program of sustainable tourism on Boracay. In December 1996, through a partnership with the Canadian Urban Institute (CUI), The Canada–Philippines Cooperative Program on Sustainable Development for Boracay Island began a community-based and participatory approach to local development. The program was predicated on sustainable development principles widely discussed at the 1992 Rio Conference on Environment and Development and highlighted in Agenda 21 (ICLEI 1996). Although there is still debate over the definition and significance of sustainable development, most experts emphasize the need to change human conduct in light of massive global environmental degradation and socioeconomic inequities (Trousdale 1997a). Clearly, change is needed to move tourism towards sustainability, as indicated by its many well-documented adverse impacts (Archer; Cohen; Ioannides; Mieczkowski; Pearce; Smith; UNESCAP and WTO). Change in the near term will likely be subtle as the industry largely considers sustainable tourism within the predominant paradigm of economic growth (Nelson, Butler and Wall 1993). From this perspective, sustainable tourism can be defined as expanding development to intentionally improve the quality of the host community, provide a high quality experience for the tourist, and maintain the quality of the environment upon which they both depend (Eadington and WTO). Paramount in this approach to development is the identification and contribution of a full range of stakeholders (Gunn 1988) and participation by the residents in planning and decision making (Gunn; Hitchcock; Innskeep; Long and Pearce) in order to determine the community’s long term interest rather than the limited short term goals of an elite minority (Brohman 1996).

Despite the need for more sustainable development in tourism, there remains a large and growing gap between sustainability doctrine and actual achievement in the developing world. Some of the more salient reasons are highlighted in the work of Morah (1996). He cites nearly a half dozen program assessments going back to 1964, all concluding that implementation and administration were the most significant challenges in developing countries. Similarly, Richter (1989) has identified political and administrative action as a key determinant of the success or failure of tourism. The international development community has recently subsumed politics and administration under the concept of governance, where it is beginning to receive attention. More cash is now being spent by development organizations (such as the World Bank) on creating institutions, improving management skills and building governance capacity (The Economist, 1994 and Frischtak, 1994). Governance is defined as the ability to coordinate the aggregation of diverging interests to promote policy, projects, and programs that credibly represent the public interests. Public involvement, institutional development, transparency of decision making procedures, interest representation, conflict resolution, limits of authority, and leadership accountability are all issues of governance (Frischtak 1994). This case study of tourism on Boracay Island supports the assertion that governance is the critical issue in moving development towards sustainability.

A key consideration in promoting sustainable tourism through effective governance is the development context, including factors such as historical experiences, market forces, sociocultural influences, politics, and legislation. Emphasizing context helps avoid the criticism that many researchers have over-generalized findings assuming that their conclusions are widely applicable (Wall 1993). Therefore, the discussion and analysis in this article revolves around the changes that are taking place on Boracay and how they can best be managed. The research presented here is based on analysis, a review of relevant literature, and broad-based participatory research including over 60 interviews, meetings, and workshops. It satisfies the need for more case study research that examines institutional and organizational development (such as Selin, S. and Beason, K., 1991. Interorganizational Relations in Tourism. Annals of Tourism Research 18, pp. 639–652. Abstract | View Record in Scopus | Cited By in Scopus (27)Selin and Beason 1991), a need that is especially important in the developing world. Work highlighting the role of local politics and governance is rare, making this case study of Boracay valuable for other rapidly developing destinations. Understanding sustainable development in the Philippines is especially relevant and important from a regional perspective. Arguably the most democratic nation in Asia, and considering progressive national legislation that gives greater power to the local residents, the Philippines is providing an Asian model for participatory government.

Boracay and tourism

Boracay is a small island, only seven kilometers long and slightly over 1,000 hectares (see Figure 2). It is most famous for Long Beach (also know as White Beach), four kilometers of white powder sand gently extending into the crystal blue waters of Sibuyan Sea. It can be accessed by air from Cebu, Manila, and Palawan in less than an hour. Larger planes land in the provincial capital of Kalibo, one and a half hours to the south. Smaller planes land in Caticlan, directly across the strait from Boracay. Sea transport is possible from locations all over the Philippines, and ground transportation is possible throughout the large island of Panay. A short 20 minute pump-boat ride is required to get from the main island of Panay to Boracay.