New Long Nose Tax for Apo Island Divers

Please do not try to apply logic to the new pricing scheme, or economic principles either. I guess no one has every taught the law of diminishing returns for pricing here in the Philippines. As I learned it at some point in time, items are priced beyond reason to the point that fewer and fewer buy the product; the gross sales income is reduced because of small quantities of purchases, and the best decision it to lower the price until gross income is maximized. (this only applies to products with constant cost of production.. like the local tourist trade) This reduction is gross income will happen here when the people decided it is no longer reasonable priced, and stop coming. The Government will get reduced fees, along with other taxing entities that tax the resorts, airlines etc. causing the resorts, transportation provider to Negros, and many other entities to also suffer economically. This will have no effect on the economic decisions pricing schemes of the Philippines, if some of the local politicians are pocketing the money. They really do not care about the Philippines or the people of the Philippines. Obviously the politicians have figured out with the local low unemployment rate here,(even after putting the lower end of drug industry out of business) that jobs and family incomes are not important... unless it is your family income.

 

It's difficult to understand the Philippine propensity to "shoot myself in the foot" when it comes to dealing with tourists. The Philippines is starting to get a bad reputation, and tourists with the money to travel just pick someplace else to go...and I don't blame them.

 

If the divers pay it then someone will make more money. If divers rebel and don't pay it and the money coming in takes a dive then they will drop the price again Oops, forgot where I was for a minute. They would rather ask too much when no one is paying it than put the price down to where people will actually pay it.

 

Just got a place in Valencia and in the process of moving over. Did the new fees go into effect and was anyone able to clarify if LOCAL foreigners are subject to the "foreigner" rate? Many thanks.

 

Without getting too far off track I can see them asking for your citizenship card as non citizens can't own land. ..you pay the tax.

 

Agree, and if they can break even, they probably feel they are ahead because they've successfully reduced the "human footprint" in the area.

 

Typically if no one comes and buys something they raise the price to make up for the loss gross revenue that is not coming in... then after raising the price they lose more gross income and have to raise the price again; then after raising the price again, they lose more gross income and have to raise the price again;then after raising the price again, they lose more gross income and have to raise the price again; then after raising the price they lose more gross income and have to raise the price again,then after raising the price they lose more gross income and have to raise the price again.then after raising the price they lose more gross income and have to raise the price again. There is no learning curve here. This is how most eating/drinking establishments go out of business here.

 

Looking at your logic causes me concern!
Are you sure your an architect cause I'm starting to think maybe your one of those MBA guys. Suspicions are aroused.