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Thursday, 25 May 2017

Price fixing in Boracay

There are plenty of great dive locations in the Philippines, the favourite beach destination of Boracay Island is unfortunately not one of them. With the exception of the Yapek walls, some pretty ordinary dive sites are found on Boracay Island.


But as Boracay is the Philippines premier holiday destination, scuba diving is going to make up one of the numerous beach activities available for holidaymakers. The majority of divers are new and inexperienced and aren't looking for a challenging and exciting dive destination, they are there for sun, sand and the excellent nightlife the beach has to offer revelers and party-goers. 


Try to negotiate diving in Boracay and not one shop will discuss price, they openly tell you they engage in price fixing and are not allowed to drop the price - the price is fixed. Now, this rule goes against every rule of competition and anti-competitive behaviour. This illegal behaviour is enforced through the Boracay Association of Scuba Diving Schools, an association that all the dive centres have joined to restrict competition, gouge customers and profiteer from restricting competition through cartel like behaviour. 

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