Government-Led Tourism Rehabilitation and Hotel Financial Performance: Evidence from Five-Star Hotels in Boracay, Philippines

Government-led tourism rehabilitation has become an important strategy for restoring environmentally degraded destinations while promoting sustainable economic growth. This study examined the influence of government-led tourism rehabilitation on the financial performance of Department of Tourism-accredited five-star hotels in Boracay Island, Philippines. Specifically, it compared hotel financial performance before and after the 2018 Boracay rehabilitation using Occupancy Rate, Average Daily Rate (ADR), Revenue per Available Room (RevPAR), and Annual Gross Revenue. It also assessed the perceived influence of infrastructure development, tourism promotion, regulatory policies, and financial incentives on hotel revenue performance.
A mixed-methods research design was employed, integrating quantitative and qualitative approaches. Complete enumeration was used, involving ten of the twelve accredited five-star hotels operating in Boracay Island. Quantitative data were collected through a structured questionnaire and hotel financial records, while qualitative insights were obtained from open-ended responses provided by hotel managers. Descriptive statistics and the Wilcoxon Signed-Rank Test were used to analyze differences in financial performance before and after rehabilitation, while thematic analysis was applied to qualitative responses.
The findings indicate that government-led tourism rehabilitation contributed to significant improvements in hotel financial performance, particularly in Average Daily Rate, Revenue per Available Room, and Annual Gross Revenue, although occupancy rates showed varying recovery patterns. Respondents identified infrastructure improvements, strengthened environmental regulations, and destination branding as the most influential government initiatives supporting business recovery, while compliance costs and administrative requirements remained important operational challenges.
The study concludes that coordinated government interventions can simultaneously promote environmental sustainability and strengthen the financial resilience of luxury hospitality establishments. The findings provide practical insights for policymakers, destination managers, and hotel operators seeking to balance environmental conservation with tourism competitiveness and sustainable destination management.

government-led tourism rehabilitation; hotel financial performance; sustainable tourism; destination management; five-star hotels; Boracay Island; tourism policy; public-private collaboration.

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