World-class resort hotel project in Boracay may be deferred due to DENR ruling

HSAI-Raintree International, a major foreign property development and management group, may put off plans to build a world-class resort hotel in Boracay due to the uncertainty over the government’s statement declaring portions of the island as alienable and disposable (A&D).

Annabel Wisniewski, president and chief executive officer of HSAI-Raintree, said her company and other private groups with plans to put up establishments in Boracay are extremely disappointed about the plan of the Department of Environment and Natural Resources (DENR).

HSAI-Raintree manages the deluxe serviced apartments Discovery Suites at the central business district of Ortigas and the Discovery Country Suites in Tagaytay.

The company had been preparing to begin construction of its third property project in the Philippines, the Discovery Shores in Boracay, but as a result of DENR’s move, its management is now re-evaluating its plans.

"Even if we are ready to kick off the construction of Discovery Shores, we are being forced to seriously re-think the project," said Wisniewski.

"This could very well be the last straw that breaks the camel’s back in terms of investment in the Philippines. Although property titling is a positive step towards encouraging the private sector to step up their contribution in Boracay, offering currently owned properties to open bidding discourages investors like our group to push through with any further investment and development plans in the island. At this stage, only fools would put in more money in a potentially explosive situation, let alone expose themselves to a financial disaster," she pointed out

Wisniewski noted that rather than supporting and encouraging investors to pour money into the local economy, the government is creating obstacles to progress.

"This is the general sentiment of many private individuals like us who have returned to try to give back to the community. They (government) certainly make it very difficult and discouraging," said Wisniewski.

DENR Secretary Michael T. Defensor said earlier the government will push through with its plans to declare portions of Boracay as A&D lands and subsequently, opening these up for public bidding.

This would make 579.295 hectares of Boracay land as A&D. The area comprises 56.13 percent of the entire 1,032-hectare island-resort. Also, 259.6 hectares or 25.155 percent of the island, will be declared as forest land to be used for plantations and fishponds. A smaller area, 118.6 hectares (or 11.49 percent of the island) will be categorized as protected areas. These will cover parks, buffer zones, and a conservation area for the endangered bat species on the island.

Currently, 98 percent of the lands in Boracay are untitled and most property holdings are substantiated only by tax declarations. These make the operators of hotels and other establishments in the island vulnerable because tax declarations, while recognized as evidence of ownership by government, could be subjected to direct and collateral attack by other parties claiming ownership of said properties.

Defensor said the plan to reclassify certain lands in Boracay as A&D, will enable the government to implement the Boracay Island Master Development Plan. He insisted the titling of the lands will encourage further development and bring in more investments to Boracay.

However, resort owners are also resisting the DENR scheme and are planning to intensify their pitch to prevent the plan from pushing through.

Already, a signature campaign opposing the plan is being led by the Boracay Foundation Inc.(BFI) and a rally will be held next week to bring attention to the resort owners’ plight.

Orlando Sacay, BFI vice-president and owner of Waling-Waling Hotel, said their rights as owners of the land are protected by the Marcos-era Proclamation 1801 which declared Boracay as a tourism zone and marine reserve in 1978.