- Department Of Tourism INTRA
Transcription
- Department Of Tourism INTRA
TABLE OF CONTENTS Page No: (i) (ii) Abbreviation and Acronyms Acknowledgements 1. INTRODUCTION .................................................................................................... 2. SHAPING THE FUTURE ....................................................................................... PART IV THE WAY FORWARD – VISION AND PLANNING FRAMEWORK 20. TOURISM VISION 2016 AND DEVELOPMENT CONCEPT .............................. 60 21. FRAMEWORK FOR TOURISM PLANNING ...................................................... 62 PART I TOURISM TO THE CENTRAL PHILIPPINES TODAY 22. TOURISM CLUSTERS AND STRATEGIC DESTINATION AREAS .................. 68 3. SOCIO-ECONOMIC STRUCTURE ...................................................................... 9 PART V DEVELOPMENT PLAN FOR THE CENTRAL PHILIPPINES 4. TOURISM DEMAND .......................................................................................... 10 5. MAIN TOURISM DESTINATIONS ..................................................................... 12 6. ECONOMIC VALUE OF TOURISM ................................................................... 15 PART II TOURISM SECTOR REVIEW 7. SUCCESSFUL TOURISM DEVELOPMENT ...................................................... 18 8. COMMUNITY INVOLVEMENT........................................................................... 20 23. TOURISM BUSINESS OUTLOOK ..................................................................... 90 24. GROWTH SCENARIOS ..................................................................................... 94 25. PLANS, PROGRAMS AND PROJECTS IN PRIORITY SDAs ........................... 96 26. SUPPORT AND CROSS CUTTING PROGRAMS AND PROJECTS .............. 124 PART VI PROGRAM EVALUATION, STRATEGY AND IMPLEMENTATION 9. NATURAL RESOURCES AND CULTURAL HERITAGE .................................. 22 10. ECONOMIC INFRASTRUCTURE ...................................................................... 26 27. ECONOMIC ASSESSMENT ............................................................................ 134 28. DEVELOPMENT STRATEGY, PROGRAM SELECTION AND FICHES ......... 139 29. PROGRAM IMPLEMENTATION ..................................................................... 140 30. INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTATION ..................... 141 11. TOURISM PRODUCTS AND FACILITIES ......................................................... 36 12. VISITOR FACILITATION ................................................................................... 39 13. ACCESS TRANSPORT ..................................................................................... 40 14. ENABLING ENVIRONMENT ............................................................................. 42 PART VII ANNEXES 15. SECTOR MANAGEMENT ................................................................................. 48 31. PROJECT TERMS OF REFERENCE .............................................................. 144 PART III TOURISM PERFORMANCE 32. INFRASTRUCTURE PROJECTS IN EMERGING SDAs ................................. 145 16. MARKET COMPETITIVENESS ......................................................................... 54 33. PROJECT FICHES ................................................................................................ 17. DESTINATION & PRODUCT COMPETITIVENESS .......................................... 56 34. WORKING PAPERS .............................................................................................. 18. CAPITAL INVESTMENT COMPETITIVENESS ................................................. 57 19. KEY ISSUES CONSTRAINING DEVELOPMENT ............................................. 58 ABBREVIATIONS AND ACRONYMS ASEAN ATO BFAR BOI CCI CCRMP CEP CHED CI CLUP CPPAP CTC CWC DENR DepEd DILG DOT DOTC DPWH DTI ECAN ECC FDI FIT GDP GDRP GMP ICRM JBIC KKP LCC LGU LRT MICE MMCP MTO NCCA NCIP NEDA NES Association of Southeast Asian Nations Air Transportation Office Bureau of Fisheries and Aquatic Resources Board of Investment Coral Cay Conservation Incorporated Camiguin Coastal Resource Management Project Coastal Environment Program Commission on Higher Education Conservation International Comprehensive Land Use Plan Conservation on Priority Protected Areas Project Canadian Tourism Commission Camsur Water Sports Complex Department of Environment and Natural Resources Department of Education Department of Interior and Local Government Department of Tourism Department of Transportation and Communications Department of Public Works and Highways Department of Trade and Industry Ecologically Critical Area Network Environmental Compliance Certificate Foreign Direct Investment Free Independent Traveller Gross Domestic Product Gross Domestic Regional Product General Management Plan Integrated Coastal Resources Management Japan Bank for International Cooperation Kabang Kalikasan Pilipinas Low Cost Carriers Local Government Unit Light Rail Transit Meetings, Incentives, Conventions, Exhibitions Marine Mammal Conservation Program Municipal Tourism Office National Commission for Culture and the Arts National Commission on Indigenous People National Economic Development Authority National Ecotourism Strategy NFEFI NGA NGO NIPAS NIPAP NPDC NSO NTAP ODA PA PAMB PAWB PCSSD PCVC PDA PDP PPA PRRCFI PRRM PRTS PTA PTO RDC RO-RO SDA SONA TDA TDC TESDA TMP TO TS UNESCO WBCP WTO Negros Forests and Ecological Foundation Incorporated National Government Agency Non-Government Organization National Integrated Protected Areas System National Integrated Protected Area Project National Parks Development Committee National Statistics Office National Tourism Action Plan Official Development Assistance Protected Area Protected Areas Management Board Protected Areas and Wildlife Bureau Philippine Commission on Sports Scuba Diving Philippine Convention and Visitors Corporation Partido Development Administration Power Development Plan Philippine Ports Authority Philippine Reef and Rainforest Conservation Foundation Incorporated Philippine Rural Reconstruction Movement Incorporated Program for Recovery of Threatened Species Philippine Tourism Authority Philippine Tourism Office Regional Development Council Roll-On, Roll-Off Strategic Development Areas State of the Nation Address Tourism Development Areas Tourism Development Cluster Technical Education and Skills Development Authority Tourism Master Plan Tourism Office Tourism Site United Nations Educational, Scientific and Cultural Organization Wild Bird Club of the Philippines World Tourism Organisation 1. INTRODUCTION In particular the Tourism Management Plan will 1.1 BACKGROUND provide a comprehensive planning framework for the development of tourism so that it can play a key role in the development of the regional economy President Gloria Macapagal-Arroyo in her State of the Nation Address (SONA) in July 2006 established the Central Philippines Super Region. The area includes the provinces of Palawan, Romblon and Camiguin, the island of Siargao, the city of Dapitan and Regions V, VI, VII and VIII. elaborate a vision of the future direction and content of tourism development, which can help to focus and guide the actions of the various stakeholders towards a shared goal identify priority areas for tourism development, related tourism facilities and supporting infrastructure Table 1.1: Administrative Areas of Central Philippines Super Region Admin Areas Region IV – MIMAROPA Region V – BICOL Region VI – WESTERN VISAYAS Region VII – CENTRAL VISAYAS Region VIII – EASTERN VISAYAS Region IX – ZAMBOANGA PENINSULA Region X – NORTHERN MINDANAO Region XIII – CARAGA Provinces/Destinations Palawan, Romblon Albay, Camarines Nortre, Camarines Sur, Catanduanes, Masbate, Sorsogon Aklan, Antique, Capiz, Guimaras, Iloilo, Negros Occidental Bohol, Cebu, Negros Oriental, Siquijor Biliran, Eastern Samar, Leyte, Northern Samar, Southern Leyte, Western Samar Dapitan City (Zamboanga del Norte) Camiguin Siargao (Surigao del Norte) The Central Philippines possesses a wealth of ecological and cultural attractions including pristine and white sandy beaches, diverse marine life, and UNESCO heritage sites. The people are renowned for their warmth and hospitality. The Government of the Philippines wishes to develop the tourism sector as a driver of regional economic activity and diversification. It has designated tourism as a priority sector for the Central Philippines Super Region which has the ecological and cultural resource base upon which to develop a sustainable industry on the one hand and on the other, take advantage of the expanding markets for international travel to and within South East Asia. 1.2 specify the major programs, roles and responsibilities of key players, institutional arrangements and resource requirements for achieving the vision. 1.3 METHODOLOGY In formulating the Management Plan, fieldwork missions were undertaken to almost all of the provinces within the Central Philippines Super Region, during which consultations were held with stakeholders directly associated with the tourism sector. In addition an extensive review of published and unpublished tourism plans, studies, policy papers and other documents was undertaken. An important part of the study approach was the involvement of stakeholders in a highly participative manner so that the initiatives would be designed in such a way as to directly meet the needs of the sector and evoke its support and enthusiasm for their implementation. This was chiefly achieved through the organisation of eight Tourism Planning Workshops (April through July, 2007) in the various provinces under the aegis of the Department of Tourism. The participants in these industry workshops included representatives from both the private and public sectors holding key positions in organisations and associations of importance in the sector. The purpose of these Tourism Planning Workshops was to: assess the present status and characteristics of tourism in the Central Philippines review the strengths and weaknesses of the tourism sector covering infrastructure, human resource development & training, infrastructure & access, marketing, institutional relationships, product development, business climate identify issues and investment priorities, and identify actions for tourism development. However, the Government is aware that the realisation of the Central Philippines‟ tourism potential will not just simply happen. Tourism development will require planning, stimulation and change. AIMS OF THE TOURISM MANAGEMENT PLAN In addition the draft Management Plan was presented to a Tourism Summit meeting in Cebu (Nov 8, 2007) attended by stakeholders from both the public and private sectors in the identified priority strategic development areas (SDAs). As specified in the project Terms of Reference, the objective of the Tourism Management Plan is to: Formulate an integrated sustainable tourism management plan for the Central Philippines, identifying viable critical environmental, infrastructure and communitybased projects to link and integrate the tourism development of the area. The deliberations and recommendations from these meetings and workshops formed the basis of the tourism Management Plan as elaborated in this report. 2. SHAPING THE FUTURE 2.1 SOCIO-ECONOMIC CONTEXT The Central Philippines Super Region consists of the provinces of Palawan, Romblon, and Camiguin, the island of Siargao, the city of Dapitan and Regions V, VI, VII and VIII. The land area is just under 98,000 sq. km, representing one third of the country‟s land mass and the population is 24.5 million. Published statistics indicate that about a quarter of the labour force in this Super Region is either unemployed or under-employed. In reality, the figure is considerably higher. Moreover, the people are less well off than in the rest of the country. Using GDP as an indicator of the economic well-being, output (and therefore incomes) per head is approximately 30% lower than the national average. Government Looking to Tourism As the Way Forward Looking to the future, the major challenge facing the Central Philippines is to diversify the economy from its reliance on primary products – mainly agriculture. This can only be done by identifying and developing value added internationally traded products/services in agri-business, manufacturing and the service sector. However, the service sector‟s capacity to constitute a „driver‟ of regional economic activity is limited by the fact that much of the output is either non-traded (Government services) or sheltered (utilities). Internationally traded services with significant growth potential are few, tourism being the main one. 2.2 IMPORTANCE OF TOURISM TO THE CENTRAL PHILIPPINES Currently, tourism is very important. In 2005, tourism‟s gross contribution to the Super Region‟s economy was about US$ 1,420 million, representing almost 7.5% of output (GDRP). Based on the NSO Labor Force Survey of 2005, we estimate that 191,000 are employed in the Hotel and Restaurant sector in the Central Philippines. Making allowance for those employed in tourism services, facilities and attractions, our estimate of total tourism employment in the Super Region is about 350,000 jobs. Tourism has the potential to make a significantly greater contribution to the economy by capitalising on Region‟s wealth of ecological and cultural attractions which include pristine and white sandy beaches, diverse marine life, volcanoes, forests and UNESCO heritage sites. However, the realisation of the Central Philippines‟ tourism potential will not just simply happen. This requires planning, stimulation and change management. The first step is the elaboration of a Tourism Management Plan for the Super Region, the overall objective being to: Formulate an integrated sustainable tourism management plan for the Central Philippines, identifying viable critical environmental, infrastructure and communitybased projects to link and integrate the tourism development of the area. 2.3 TOURISM VISION 2016 The 2006 State of the Nation Address envisaged the Central Philippines to be the country‟s premium tourist destination on account of its range of natural attractions and cultural heritage. Based on consultations with provincial tourism officers, planners, and representatives from the tourism industry throughout Central Philippines, a vision statement was formulated: “The Central Philippines will be a significant destination that offers direct international access, seamless interconnectivity, world-class tourist facilities and products that meets the demands of tomorrow‟s tourist. The Central Philippines will achieve these through the sustainable development of tourism products, environmental protection and enhancement, underpinned by adequate infrastructure with rational management of the destinations, capacity building, investment promotion and effective marketing and an improved business environment”. Figure 2.1: Ideal Tourism Destination in Central Philippines 2.4 THE DEVELOPMENT CHALLENGE Making this vision a reality by 2016, means putting in place the key factors which create a competitive tourism destination, viz 2.5 DEVELOPMENT CONCEPT To give coherence to the overall planning, management and promotion of the Central Philippines Super Region, a development concept is proposed that is based on five key fundamentals: designation of Strategic Destination Areas (SDAs) within the Super Region Direct International Access – Presently, the Central Philippines only has the Mactan-Cebu International Airport in Metro Cebu with regular flights from abroad. Kalibo in Aklan and Puerto Princesa in Palawan are designated alternate international airports. Having more international flights to more international gateways will open up more destinations in Central Philippines. Seamless Interconnectivity – Having over two thousand islands instead of a contiguous land mass is the access transport challenge. This will be met by the development of a seamless interconnected transport network consisting of interconnected roads, airports and seaports and Roll-On Roll-Off (RO RO) seaports to facilitate fast and efficient inter-island travel. World Class Facilities and Products – Although there are a number of world class facilities and products in the region, they are located either near big cities such as Metro Cebu or widely dispersed as in Northern Palawan. Moreover, there is insufficient product and facilities. The aim is to develop world class integrated resorts and facilities in a number of tourism areas throughout the region, capable of being promoted as stand-alone destinations in the market place. These destinations areas will have their own character and provide a variety of things tosee-and-do. A range of accommodation will be provided, from large scale resorts to boutique hotels and individual guest houses. Sustainable Tourism Product Development – Sustainable development will allow development to take place without degrading or depleting the resources which make their development possible. It means that the natural, cultural and other tourism resources are conserved and enhanced for continuous use in the future, while at the same time, benefiting society. Capacity Building – The main beneficiaries from any tourism activity must be the local communities where the tourism activity takes place. Tourism must provide employment and livelihood opportunities to local people. Human resource development means providing the local governments and communities with knowledge and skills to manage their tourism resources to their benefit. Infrastructure Development to Attract Investment – Many areas have infrastructure „gaps‟ in respect of not just transport-related infrastructure but also utility systems such as clean water supply, power generation, sewage treatment and solid waste management. Closing these infrastructure „gaps‟ is a necessary pre-condition to attracting private sector investment to the tourism sector. Marketing Connectivity – Increased demand, in tourism as well as in any other industry, cannot rely solely on having a product of the right kind and quality, on a market-led pricing policy and on an effective distribution network. What is also essential is systematic promotion to potential tourists and trade intermediaries (tour operators, travel agents) bridging the gap between the tourism product supplier (the hotelier, resort) and the potential visitor. Improved Business Environment – Currently it is difficult to do business. Regulations are very bureaucratic; restrictions on foreign ownership discourages direct foreign investment; uncertainty with regard to the status of PAMB plans also constrains investment. Improving the business environment will involve addressing these issues along with providing greater incentives to attract investment. access through strategically located international gateways linkages through an intermodal transport system development of differentiated destination product experiences destination branding rather than regional marketing. Figure 2.2: Tourism Development Concept 2.6 DESIGNATION OF THE STRATEGIC DESTINATION AREAS (SDAs) The criteria used for evaluating the SDAs were as follows: The designation of SDAs resulted from the application of a planning framework which grouped the various tourism development areas (TDAs) within the Central Philippines into nine clusters. Within these clusters, eight SDAs were identified on the basis of the following criteria. critical mass of attractions, facilities and services in the area capacity of environment to sustain tourism development capability of direct accessibility from key source markets diversity of product offer in a way that can be promoted to different niche markets, thereby facilitating product/branding area geographically large enough to allow different forms of tourist development to co-exist, for example including particular areas for nature tourism only, other areas for more intensive use capable of being promoted as „stand alone‟ destination in the market place. Priority SDAs As both public and private resources for investment in infrastructure, resort development etc., are limited, these SDAs are likely to compete for resources in the short/medium term. Consequently, the eight SDAs were evaluated and prioritized. Significant existing tourism base. Significant market potential in the short and medium term. Significant potential linkages with adjacent SDAs and TDAs. Significant private sector interest. Potential for direct international air access services Environmental risk posed by further development. SDAs with ratings above a cut-off point were designaed Priority SDAs while those that didn‟t reach this cut-off point were designated Emerging SDAs. The priority SDAs are the areas which offer the best tourism potential in the short/medium term. This does not mean that development will not take place outside of these SDAs. It will. But in a situation of limited resources, the priority SDAs are the areas where it is considered that investment will be most productive and give the best rate of return. The five Priority SDAs and their ranking are: Strategic Destination Area C – Cebu/Sogod - Ranked 1st TDA 3.1 (Metro Cebu), TDA 3.2 (Sogod), & TDA 3.3 (North Islands) Strategic Destination Area A – Boracay and Carabao - Ranked 2nd TDA 1.1 (Boracay Island) & TDA 1.2 (Carabao Island) Strategic Destination Area D – Bohol - Ranked 3rd TDA 4.1 (Tagbilaran-Panglao), TDA 4.2 (Jagna to Anda), & TDA 4.3 (Tubigon to Jetafe) Strategic Destination Area H – Northern Palawan - Ranked 4th TDA 8.2 (El Nido – Taytay), TDA 8.3 (San Vicente – Roxas Area) & TDA 9.1 (Puerto Princesa) Strategic Destination Area B – Iloilo/Guimaras/Negros Occ - Ranked 5th TDA 2.1 (Metro-Iloilo-Guimaras), TDA 2.2 (Bacolod-Silay), TDA 2.3 (The Northeast Coast), & TDA 2.4 (Mount Kanlaon) The three Emerging SDAs are: Strategic Destination Area E – Dumaguete - Ranked 1st TDA 5.1 (Dumaguete-Sibulan-Tambobo Bay), TDA 5.2 (Jagna to Anda) & TDA 5.3 (Bais Bay Area) Strategic Destination Area G – Bicol - Ranked 2nd TDA 7.2 (Naga City – Pili Area), TDA 7.5 (Iriga City Area), TDA 7.6 (Albat – Sorsogon Area) Strategic Destination Area F – Samar - Ranked 3rd TDA 6.1 (Samar – Leyte Interface) & TDA 6.4 (Southeastern Samar) 2.7. GROWTH SCENARIOS 2.7.1 Pivotal Assumptions For any tourist destination, consideration of future growth scenarios will be predicated by a number of assumptions concerning the fundamental factors determining development – market demand, supply of labour and skills, availability of land etc. Similarly for the Central Philippines where six of these factors will have a determining influence on the nature and pace of tourism development in the Super Region. The factors are the rate of improvement to: 2.7.2 Low Growth Scenario Under this growth scenario it is assumed that no initiatives are undertaken to reposition the tourism sector. This is not to say that investments to infrastructure, facilities and services will not take place. They will, but at a low level and not at a scale to effect significant change. In essence, things continue much as they are today with marginal improvements to the economic infrastructure, the continuation of the non-conducive investment climate and no sustained destination marketing. Total tourist arrivals to the Central Philippines are projected to increase by about 5% annually from just over 4.5 million in 2006 to 7.4 million by 2016. The market profile is projected to remain unchanged, almost 4/5th domestic and 1/5th foreign tourists. the economic infrastructure - air and sea ports, roads, sewage and solid waste management Domestic transport connectivity - transport services to and within the region environmental sustainability - increased environment protection and enhancement the tourism business environment - investment incentives, planning processes destination marketing - adequate funds, web site development new product development - increased range, high value-added. A range of possibilities arise in considering future growth scenarios for tourism to the Central Philippines. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of the infrastructure, utilities, non-conducive investment climate, environmental planning etc. high growth scenario which can be seen as the rate at which tourism could expand if sufficient public and private sector capital were attracted in developing the necessary economic infrastructure, facilities and services, coupled with significant improvements in the business environment and sector management. Between these two extremes, a number of other scenarios can be considered, each reflecting different levels of investment in infrastructure, facilities and services etc. Foreign Balikbayan 19% 3% 78% 2.7.3 High Growth Scenario 2.7.4 Priority SDA Growth Scenarios The high growth scenario represents major change involving not just a massive investment infrastructure program, estimated at just under Php 30 billion in the five priority SDAs, but also significant improvements in the business climate, environmental protection and enhancement, destination marketing and sector management. The outcome is a projected growth in total tourist arrivals from just over 4.5 million in 2006 to almost 11.5 million by 2016, representing an average growth rate of 10% yearly over the period. The growth projections for the priority SDAs and other destinations within the Central Philippines are shown on Table 24.1 following. Table 2.1: SDA Growth Projections A. Tourist Arrivals (000s) 2006 SDA FOR BALIK A. Boracay/Carabao 185 32 B. IIoilo/Guimaras 79 46 C. Cebu 475 3 D. Bohol 45 5 H. Palawan 50 n/a Total 834 86 Other SDAs & Destinations 83 28 TOTAL CENTRAL PHILIPPINES 917 114 Domestic Foreign Balikbayan 2% 31% BASE LINE 67% B. The market profile is projected to change significantly with foreign tourists representing just under a third (31%) and domestic tourists just over two thirds (67%) of total arrivals. TOTAL 575 960 1,250 220 190 3,195 1,359 4,554 LOW GROWTH SCENARIO Tourist Arrivals (000s) 2016 SDA FOR BALIK A. Boracay/Carabao 260 55 B. IIoilo/Guimaras 130 65 C. Cebu 775 5 D. Bohol 75 10 H. Palawan 80 5 Total 1,320 140 Other SDAs & Destinations 110 50 TOTAL CENTRAL PHILIPPINES 1,430 190 C. DOM 358 835 772 170 140 2,275 1,248 3,523 DOM 585 1,360 1,260 280 295 3,780 2,040 5,820 TOTAL 900 1,555 2,040 365 380 5,240 2,200 7,440 DOM 930 1,750 2,010 520 435 5,645 2,040 7,685 TOTAL 1,750 2,020 4,020 780 700 9,270 2,200 11,470 HIGH GROWTH SCENARIO Tourist Arrivals (000s) 2016 SDA FOR BALIK A. Boracay/Carabao 750 70 B. IIoilo/Guimaras 200 70 C. Cebu 2,000 10 D. Bohol 250 10 H. Palawan 260 5 Total 3,460 165 Other SDAs & Destinations 110 50 TOTAL CENTRAL PHILIPPINES 3,570 215 2.8 DEVELOPMENT STRATEGY 2.9 To achieve the projected growth in tourist numbers and expenditures over the next decade, the Central Philippines will have to: DEVELOPMENT PROGRAM The overall development program for the five priority SDAs is summarised as follows: 2.10 SDA DEVELOPMENT PROGRAMS Move to an investment driven strategy Outside of Cebu and Boracay, little investment has taken place in recent years in the Super Region‟s tourism sector. The result is that the tourism industry is totally reliant on its natural attractions as the motivation for tourists to visit. But the natural attractions, though unique in many ways, are not sufficiently strong in themselves to attract the numbers required to support a significant tourism sector. This is a primary factor driven strategy and characterized by infrastructure inadequacies, limited investment in product, insufficient accommodation, medium to low quality product and inadequate airlift. PROGRAM TITLE CENTRAL PHILIPPINES „SUPER REGION‟ TOURISM DEVELOPMENT PROGRAM SDA/TDAs SDA–A: Boracay/Carabao; SDA-B: IIlilo/Guimares; SDA-C: Cebu; SDA-D: Bohol; SDA-H: Palawan Description The Central Philippines „Super Region‟ includes the provinces of Palawan, Ramblon and Dapitan, the Islands of Siargao and Camiguin, and Regions V, VI, VII and VIII. Although the Super Region has a wealth of ecological and cultural attractions, it has failed to translate these touristic resources into a substantial tourism industry. The Central Philippines is not alone in this regard. All destinations, where the core products are nature and culture based but are not considered world class (such as the Galapagos, Egypt, Greece) face this problem. The strategy that many destinations which do not have „world class‟ nature and cultural attractions have pursued, is to invest heavily in related products – golf, health and wellness, cruise, yachting, marinas, conference and incentive etc. These destinations have seen their tourism sectors prosper and grow. To move on to the next stage of development requires an investment driven strategy, with sustained investment in all aspects of tourism – infrastructure, utilities, new products, destination marketing, human resource development etc. The purpose of the program is to establish the Central Philippines as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Justification Figure 2.2: Tourism Development Strategy Capitalising on its natural resource base, tourism can be developed as a driver of economic activity, generating incomes and creating employment within the Region, thus contributing to closing the gap in living standards with the rest of the nation. Tourist No.s / Revenue Benefits & Impacts Investment Driven Primary Factor Driven 2006 Some 24.5 million Filipinos live in the Super Region, representing about 28% of the population. As regional output (GDRP) per head is 30% below that of the country as a whole, the region is characterised by a significant incomes „gap‟. Moreover, unemployment and underemployment are high. Estimated Costs (PhP M) The investment program is expected to generate increased earnings of PhP 103 billion from international tourism and just over PhP 32 billion from domestic tourism. Benefits arising include new job creation (min of 114,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Infrastructure Sector Management Environ Protection : 22,529 : 270 : 554 Community Development LGU HRD Time Lines 10 years. Implementation Agencies DOT in association with other relevant agencies. 2016 :150 :100 2.10.1 SDA – A: Boracay and Carabao Program Description Sector Management Formulate CLUP for Carabao. Provide tax incentives to encourage investment in Carabao. Clarify legal situation in respect of title to land on Boracay. Destination and air access promotion Environment Protection and Enhancement Enforce municipal zoning of the island. Strictly enforce EIA system for all new development projects. Implement Solid Waste Management System in all barangays Regulate tricycles on Boracay to minimise noise and air pollution. Prosecute those violating environmental laws and regulation. Bird sanctuary on Boracay. Community Involvement Tourism Awareness and Environmental Protection Programs. Human Resource Development Capacity building for LGU officials in Carabao. Infrastructure Projects Improve paving of Caticlan-Kalibo Road Priority B Improve and expand terminal facilities at Kalibo airport A Boracay Island Solid and Liquid Waste Management Capacity Upgrade Boracay Island Water Supply. A A Sanitary Landfill in Caticlan A Sanitary Landfill (7 hectares) in Southern Tablas (to benefit Carabao Island) A Sibalom (Antique) 16.5 MW Villasiga Hydropower Plant Project. A Upgrade/develop transmission from Sibalom to Boracay Sector Management A A Environmental Protection and Enhancement A San Jose Airport (north portion of Carabao Island) A San Jose Seaport and Terminal (northeast portion of Carabao Island) A Upgrading and construction of new roads (30 kilometres) B Carabao Island Electrification programme C Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years Benefits & Impacts The investment program is expected to generate increased earnings of PhP 8.5 billion from international tourism and PhP 5.1 billion from domestic tourism. Benefits arising include new job creation (min of just under 20,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 5,175 : 70 : 4 Community Development LGU HRD :10 :20 2.10.2 SDA – B: Iloilo/Guimaras/Bacolod Program Description Sector Management Establish tourism development zones and provide investment incentives Destination Promotion. Establish/strengthen local tourism councils. Environmental Protection and Enhancement Support to PAWB for finalisation of GMPs and establish Protected Area Fund. Establish marine reserve on Guimaras and set up sanctuary. GMP for Taklong Island. Community Involvement Community-based forest management in Mt. Kanlaon and Northern Negros Forest Reserve and mangrove management in Guimaras province. Human Resource Development Capacity building for LGU officials. Infrastructure The proposed infrastructure projects are as follows: Projects Key: Priority Balcolod-Silay new airport access road. Bacolod-Murcia-Don Salvador-San Carlos national road. Metro Iloilo radial road (Zarraga-Iloilo airport road). Guimaras circumferential national road. Improve RO-RO port facilities (Iloilo and Guimaras). Sanitary Landfill for Iloilo City Sanitary landfill for Bacolod City Environmental protection and enhancement. Iloilo river rehabilitation (river parks, heritage buildings and improvement of waterways). New convention centre/mixed use development at Metro Iloilo old airport site which has been sold to a private real-estate developer. Waterfront redevelopment in Metro Iloilo port area. Blue projects – Public Sector; A B A A A A A A B B B Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 – 5 years 5 to 10 years Benefits & Impacts The investment program is expected to generate increased earnings of PhP 2.7 billion from international tourism and just under PhP 6.6 billion from domestic tourism. Benefits arising include new job creation (min of 8,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 1,468 : 20 : 22 Community Development LGU HRD :10 :20 2.10.3 SDA – B; Cebu Program Description Sector Management i Update CLUP, designating tourism zones Develop Cebu as „home‟ port for cruise Destination and air access promotion Air access promotion. Environmental Protection and Enhancement Support to PAWB to prepare/finalise GMPs for Pas in SDA. Establishment of marine sanctuaries off the islands of Bantayan and Malapascua. Protection program for rare species such as Black Shama, Thresher Sharks etc. Restoration of cultural and heritage sites. Community Involvement Community based eco-tourism product development on Olango Island. Restoration of cultural heritage sites. Human Resource Development Capacity building for LGU officials. Infrastructure The proposed infrastructure projects are as follows: Projects Key: Priority Cebu cruise ship port and international marina. Upgrade/expand Mactan-Cebu Int‟l Airport passenger terminal. Bantayan Island airport upgrade and expansion. Bantayan Island solid and liquid waste management project (Phase 1). Bantayan Island water supply project. Sanitary landfill in Metro Cebu. Solid waste management system in Malapascua. Water supply and distribution system for Metro Cebu. Liloan-Sogod Road (50 kilometers) Blue projects – Public Sector; A A B B B A B A B Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years Benefits & Impacts The investment program is expected to generate increased earnings of just over PhP 80.6 billion from international tourism and PhP 13.6 billion from domestic tourism. Benefits arising include new job creation (min of 61,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 3,910 : 100 : 208 Community Development LGU HRD :60 :20 2.10.4 SDA – D: Bohol Program Description Sector Management Destination promotion Establish/strengthen local tourism councils. Environmental Protection and Enhancement Formulate and finalise GMPs Ecological zoning and guidelines preparation. Rehabilitate cultural heritage buildings and sites. Community Involvement Tourism awareness programs for communities in Anda peninsula. Human Resource Development Capacity building for LGU officials. Infrastructure The proposed infrastructure projects are as follows: Projects Key: Priority Tagbilaran airport lighting and ILS project to accommodate international flights over the period 2007 – 2011. Cruise ship port and marina project. (Loon) Panglao international airport. Panglao Island road capacity upgrade and Causeway improvement project. Panglao Island solid and liquid waste management project. Bohol backbone power transmission project. Tagbilaran solid waste management project. Sanitary landfill sites (for the towns of Tubigon, Ubay, Jagna, Sagbayan) Blue projects – Public Sector; A C A B A A A A Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years Benefits & Impacts The investment program is expected to generate increased earnings of PhP 5.3 billion from international tourism and PhP 4.3 billion from domestic tourism. Benefits arising include new job creation (min of 16,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 8,266 : 50 : 100 Community Development LGU HRD :10 :20 2.10.5 SDA – H: Palawan Program Description Sector Management Destination promotion Environmental Protection and Enhancement Formulate and establish GMPs for PAs. Implementation of ECAN zoinging management plan for El Nido. Enforce Solid Waste Management Act (RA 9003) in all SDA municipalities. Puerto Princesa Subterranean River Conservation. Community Involvement Community forestry development and watershed management program in San Vicente and Taytay. Human Resource Development Capacity building for LGU officials. Infrastructure The proposed infrastructure projects are as follows: Projects Key: Priority Upgrade Puerto Princesa Airport Upgrade Puerto Princes Seaport to accommodate cruise ship calls Construction of Jetty at Sabang (access to Puerto Princesa Subterranean River). Construction of Jetty at Puerto Princesa Subterranean River Upgrade Roxas-Taytay National Road. Babuyan Small Hydropower Project. Langogan Small Hydropower Project. Water Supply and Distribution Project for Puerto Princesa City. Solid Waste Management System with Sanitary Landfills in San Vicente and El Nido. Upgrading of Salvacion to Cabayugan Road. Upgrading of San Jose to Port Barton Road (about 40 kilometers). Upgrade Itabiak to San Vicente Road (about 20 kilometers). Blue projects – Public Sector; A A A A A B B A A A A A Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years Benefits & Impacts The investment program is expected to generate increased earnings of PhP 5.8 billion from international tourism and just under PhP 2.6 billion from domestic tourism. Benefits arising include new job creation (min of 9,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 3,710 : 30 : 220 Community Development LGU HRD :60 :20 2.11 ECONOMIC ASSESSMENT OF GROWTH SCENARIOS 2.11.2 Evaluation of Growth Scenarios The purpose of the economic evaluation is to measure the costs and benefits of the five priority SDA growth scenarios from the point of view of the Central Philippines‟ regional economy and the national economy to determine whether, in general, they are economically viable. Government has to decide how much additional weight should be given to other factors, such as employment generation, tax revenues, etc. In this regard Government will have to compare the net benefits from investments in tourism with other investment opportunities in other sectors of the economy in prioritizing its investment program. This, however, is outside the scope of the study. The net present values of the five SDA growth scenarios are summarised on Table 2.4. The assumptions underlying the economic analysis along with the detailed calculations of the NPVs for the different SDA growth scenarios are outlined in Ch. 34 (Working Papers). At the discount rates, the NPV‟s are positive for all five SDAs. This indicates that each scenario is economically viable. Table 2.4: Computed Net Present Values and Economic Rates of Return for the Priority SDAs (Peso Million at 2006 Prices) SDA Initially, the economic costs of tourism development in the five priority SDAs of the Central Philippines are estimated and the associated economic benefits are then quantified. With this information, the economic returns to the economy over the lifetime of the five priority SDA growth scenarios (2008 – 2030) are calculated. SDA A SDA B SDA C SDA D SDA H SDA A – H 2.11.1 SDA Tourism Growth Scenarios The growth scenarios, along with the associated public and private sector investment costs are summarised on Table 2.3 following. Table 2.3: SDA Growth Scenarios and Associated Public and Private Sector Investment Costs Bednights (000‟s) SDA Baseline 2006 A. Boracay/ Carabao B. Iloilo/ Guimares/ Bacolod C. Cebu D. Bohol H. Palawan Dom For Dom For 1,075 650 1,310 400 With Invest 2016 2,790 2,350 3,500 940 Dom For Dom For Dom For 3,100 1,910 680 245 420 150 7,640 18,040 2,110 1,310 1,305 1,315 W‟out Invest 2016 1,755 945 2,720 650 5,030 3,120 1,120 340 885 255 Public Sector Capital Investment Peso (M) Public Private Sector Sector Current Capital 5,179 100 3,490 1,490 50 400 4,168 130 n/a 8,366 80 n/a 3,980 60 n/a Legend: D – domestic tourists; F – foreign tourists, including Balikbayan Public Sector Capital Investment Public Sector Current Investment - capital infrastructure project costs current expenditures on sector management, environmental protection & enhancement etc over the period 2006 – 2016. EIRR 34.7% 36.7% 77.6% 25.6% 37.2% 40.3% ENPV @ 15% d.r. 14,708.5 5,601.8 33,503.9 6,864.5 6,059.6 66,738.28 @ 18% d.r 9,299.2 3,716.3 23,701.7 3,848.6 3,962.9 44,528.78 2.11.3 Other Economic Benefits The benefits emanating from the project are not readily quantifiable, but are significant in the context, the main ones being: increased GNP through the multiplier effect employment generation contribution to foreign exchange earnings contribution to government revenues through direct and indirect taxation. Studies on tourism in different countries estimated tourism multiplier coefficients within the range of 0.9 to 4.3. On the basis of a tourism income multiplier of about 1.8, it is suggested that the initial addition of just under Php 103 billion to incomes arising from international tourist spending in all of the SDAs by 2016 would lead through successive waves of spending to an ultimate increase of about PhP 185 billion to regional income. When the additional spending by these tourists in other parts of the Philippines during the remainder of their stay is also included, the total increase to national income would be significantly greater. Employment Generation 2.12 INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTATION As shown on Fig 2.3, the DOT is the overall program coordinator of the proposed Central Philippines Tourism Development Program. A total of 114,000 jobs are expected to be created in the 5 priority SDAs. Table 2.5: Employment Generated in Priority SDAs Priority SDA A. Boracay/Carabao B. Illilo/Guimaras/Bacolod C. Cebu D. Bohol H. Palawan Total SDAs 2.12 Current „06 4,000 5,000 12,500 2,500 2,000 26,000 Rooms With inv 2016 12,000 12,000 40,000 9,000 6,000 79,000 With Inv. 2016 6,000 9,500 21,000 4,000 3,000 43,500 Incr. direct tour employment Accom Other Total 17,000 5,000 38,000 10,000 6,000 71,000 7,500 3,000 23,000 6,000 3,500 43,000 Figure 2.3: Proposed Organizational Structure of the Inter-Agency Tourism Program Coordination, Monitoring and Evaluation Inter-Agency Tourism Program Coordination, Monitoring and Evaluation Committee – Central Philippines [IATPCMEC-CP] 19,500 8,000 61,000 16,000 9,500 114,000 IATPCMEC-CP Secretariat PROGRAM SELECTION PROGRAM DIRECTOR DOT CP Program Coordinating Unit The total public sector investment program for the priority SDAs is estimated at just under PhP 23.5 billion. As resources may not be available to carry out the required investment program simultaneously in all five SDAs the following criteria were used in ranking the investment program(s) for implementation. Central Philippines Project Management Office (Consultant and DOT Counterparts) The investment program should: build on existing structures, taking development to a higher level rather than providing infrastructure for start-up areas include all the projects within the development program rather than „cherrypicking‟ projects. Investing in just one or two projects of a particular SDA program will not bring about the projected growth. There has to be a critical mass of investment for substantive development to occur have a high rate of economic return (NPV & ERR) and produce significant socioeconomic benefits in terms of contribution to job creation, incomes, tax receipts to government SDA TWGs contribute to environmental protection and enhancement through projects which mitigate any adverse environmental impacts on the one hand and on the other, contribute to enhancing the environment be affordable in that the investment resources required do not „crowd-out‟ other development opportunities in the medium term. SDA A SDA B SDA C SDA D SDA H The application of the above criteria indicated that the following sequencing of the SDA investment programs for optimum returns. 1st: 2nd: 3rd: 4th: 5th: SDA – C: Cebu SDA – A: Boracay/Carabao SDA – D: Bohol SDA – H: Palawan SDA – B: Iloilo/Guimaras MEMBERS OF EACH SDA TWG* DOT, DPWH, DENR, DOTC, DILG, DTI, CHED, DOST, PCVC, PTA, PPA, BOI, TESDA, NCCA, National Museum, LGUs (Province/City), Communities * - The membership in each SDA Technical Working Group will depend on the number and type of projects and their location in the specific SDA. PART I TOURISM TO THE CENTRAL PHILIPPINES TODAY 3. SOCIO-ECONOMIC STRUCTURE ................................................ 4. TOURISM DEMAND ...................................................................... 5. MAIN TOURISM DESTINATIONS.................................................. 6. ECONOMIC VALUE OF TOURISM................................................ 3. SOCIO-ECONOMIC STRUCTURE 3.1 POPULATION DISTRIBUTION 3.3 The population of the Central Philippines Super Region is an estimated 24.5 million (2006), representing about 28% of the total population of the Philippines. EMPLOYMENT IN CENTRAL PHILIPPINES The results of the Labor Force Study (Oct 2005) published by the National Statistics Office indicates the number of 15 yrs old and over who are employed, unemployed and underemployed in the Central Philippines. Within the Central Philippines, population is concentrated in Bicol, the Eastern, Western and Central Visayas Regions which together account for 93% of the Super Region's population. Table 3.3: Employment Status of Central Philippines Labor Force, 2005 Region Table 3.1: Land and Population Distribution within Central Philippines Region IV IV V VI VII VIII IX X XIII Palawan Romblon Bicol Western Visayas Central Visayas Eastern Visayas Dapitan/Dipolog Camiguin Siargao Island Central Philippines All Philippines Land Area (sq.km.) 17,031 1,534 18,130 20,626 15,886 23,231 435 238 670 97,781 300,000 Projected Population 2006 (000s) 913 306 5,290 7,012 6,488 4,103 195 84 104 24,495 86,972 Employed Population Distribution Share Density Pers/sq.km % 3.7 1.3 21.6 28.6 26.5 16.8 0.8 0.3 0.4 100.0 28.2 IV V VI VII VIII 53.6 199.9 291.7 340.0 408.4 176.6 449.2 353.4 156.0 250.5 289.9 Region IV IV V VI VII VIII IX X XIII Palawan Romblon Bicol Western Visayas Central Visayas Eastern Visayas Dapitan/Dipolog Camiguin Siargao Island Central Philippines Philippines Source: National Statistics Office (PhP 000) 41,682,958 13,996,304 147,772,692 396,832,844 417,046,348 137,334,199 8,183,594 5,807,982 3,378,667 1,172,035,588 6,032,623,555 *at current prices *GDRP (2006) % 3.6 1.2 12.6 33.9 35.6 11.7 0.7 0.5 0.3 100.0 19.4 GDRP/Pop 45,665 45,665 27,937 56,591 64,282 33,470 41,876 69,060 32,319 47,846 69,362 206 695 675 484 482 2,542 10,520 10 47 65 57 12 191 871 The numbers employed in the hotel and restaurant sector is about 191,000. However, this significantly understates the numbers employed in the tourism industry in the Super Region as those employed by tour operators, transport companies, tourism facilities etc., are not included in this figure. The output (GDRP) of the Central Philippines economy was estimated at Php 1,172 trillion in 2006, representing almost one-fifth (19.4%) of the national total. Table 3.2: Regional Breakdown of GDP, 2006 40 100 168 205 77 590 2,635 When Dapitan City, Camiguin Province and Siargao Island are included, the numbers employed in the Central Philippines are estimated at just under 10 million, representing about 30% of the national total. Although the unemployment rate appears relatively low (5.6%), this masks considerable under-employment – officially at about 25%, but considerably higher in reality. STRUCTURE OF THE REGIONAL ECONOMY Within the Central Philippines Super Region, output is concentrated in the Western and Central Visayas Regions which together account for nearly 70% of total regional output. 1,030 1,991 2,767 2,422 1,605 9,815 32,875 Hotel & Restaurants Source: National Statistics Office Labour Force Survey, 2005 Source: National Statistics Office * Consultant estimates 3.2 Romblon/Palawan Bicol Western Visayas Central Visayas Eastern Visayas Central Philippines All Philippines Nos (000s) Un-employ Underemploy 3.4 INCOME AND PRODUCTIVITY GAP GDP per head is a frequently used indicator of a country's or region‟s economic well being. On the basis of published statistics, GDP per capita in the Central Philippines is PhP 47,850 (US$1,018), which is approximately 70% of that for the Philippines as a whole - PhP 69,362 (US$1,476). Economic Challenge The immediate challenge for the Central Philippines is to close the income and productivity gap with the rest of the nation. The extent of this challenge is indicated by the fact that GDP per capita in the Central Philippines must grow by an average of just over 15% each year just to close this gap over 4 years, assuming national GDP per head grows by an average of 5% annually over the period. 4. TOURISM DEMAND 4.1 NATIONAL CONTEXT Length of Stay For international tourists, the average length of stay is about 8.5 nights; overseas Filipinos stay about 21.5 nights on average. However, the average length of stay varies by source market – generally, the closer the geographical proximity of the market to the Philippines, the shorter the length of stay. 4.1.1 International Tourism Tourist Arrivals International tourist arrivals to the Philippines have increased from approximately 2.0 million in 2000 to 2.84 million in 2006 – representing an average growth rate of about 6% yearly. Fig 4.1 International Arrivals to the Philippines Table 4.2 Average Length of Stay by Main Source Market Length of Stay 5 to 7 nights 8 to 15 nights Markets Hong Kong, Taiwan, Japan, Singapore Korea, Australia, USA, Canada, Germany, UK Source: DOT Purpose of Visit 3,000,000 2,500,000 2,000,000 1,500,000 Arrivals Some 45% of international visitors (including overseas Filipinos) state 'holiday' as their purpose of visit; 27% are visiting friends and relatives; and 13% are on business. However, main purpose of visit varies significantly by source market. At one extreme, 68% of Koreans come on 'holiday' with 7% visiting friends. At the other extreme, 'holiday' is the main purpose of visit for less than a quarter (23%) of USA tourists, with 57% visiting friends and relatives. 1,000,000 Visiting Places outside of Metro Manila 500,000 0 2000 2003 2004 2005 2006 Table 4.3 Proportion of Tourists Visiting places outside of Metro-Manila Main Source Markets The three main source markets are Korea, USA and Japan, together accounting for almost 60% of total international arrivals. Secondary markets are China, Taiwan, Australia and Hong Kong, together accounting for 17% of international arrivals. Indeed, the top 10 source markets now account for almost 85% of total international arrivals. Table 4.1 International Tourist Arrivals by Main Source Markets, 2006 No. of Arrivals (000s) 400 to 600 100 to 150 50 to 99 Source: DOT Not all international tourists travel outside of Metro-Manila. The majority of Japanese and Singaporean tourists do not visit places outside of Metro-Manila. On the other hand Germans, Canadians and Koreans are more likely to travel outside of Manila. Markets Korea, USA, Japan China, Taiwan, Australia, Hong Kong Singapore, Canada, UK, Germany, Malaysia % of Tourists 70 to 80 60 to 69 50 to 59 30 to 49 Markets Germany, Canada UK, Korea, USA, Taiwan, Australia Hong Kong Japan, Singapore Source: DOT 4.1.2 Domestic Tourism DOT and the National Statistics Office conducted a Household Survey on domestic trips taken away from home during the 6 month period Apr 1 – Sept 30, 2005. The relevant findings are: 43.5% (23.7 million) of 54.6 million Filipinos aged 15 years + travelled within the country, each making an average of 2 trips during this 6 month period and visiting 2 destinations main purpose of visit for most was to visit family & friends - visit family & friends 55.6% - pleasure/vacation 34.6% - business/profession 12.8% - MICE 2.2% 4.2.2 Main International Source Markets The main source markets for the Central Philippines are Korea, Japan and USA – together accounting for 60% of international arrivals. The second line markets are Germany, Taiwan, UK, Australia and China. Table 4.5 Estimated Foreign Arrivals to Central Philippines (2006) Source Market type of accommodation used was primarily the home of family & friends - home of relatives & friends 78.4% - hotel 6.9% - resort 5.4% - apart/hotel 3.8% - inns/lodges 2.4% - hostel/boarding house 1.4% nearly half (49%) of respondents stayed one night at their destination average expenditure for last trip was Php 1,300 Korea Japan USA Germany Taiwan UK Australia China Canada Hong Kong Switzerland Nos. 328,957 142,602 98,063 25,477 28,485 22,024 22,582 18,805 14,689 12,694 10,599 Share of Total % 36 16 11 3 3 2 2 2 1 1 1 Share of Market % 71 51 37 61 35 54 44 36 47 36 59 Source: DOT 4.2 CENTRAL PHILIPPINES SUPER REGION Overall, nearly one-third (32%) of international tourist arrivals (excluding overseas Filipinos) visit the Central Philippines, a proportion which has remained fairly consistent over the last three years. 4.2.1 Tourist Arrivals Total tourist arrivals (international and domestic) to the Central Philippines have increased from just under 2.5 million in 2001 to over 4.5 million in 2006, representing a growth rate of 13% yearly. 4.2.3 Domestic Market Table 4.4 Tourist Arrivals* to Central Philippines Source Market Foreign Tourists O‟seas Filipinos Domestic Tourists Total Source: DOT 2001 439 17 2,002 2,458 Arrivals (000s) 2003 2005 490 792 121 82 2,479 3,114 3,090 3,988 Seven out of ten Korean tourist arrivals visit the Central Philippines. The majority (60% approx) of Western Europeans; just over half (51%) of Japanese; and just over a third (37%) of US tourists visit the Super Region. 2006 917 114 3,523 4,554 Dist % 20 3 77 100 Grw % 16 46 12 13 *Recorded arrivals at accommodation establishments Domestic tourist arrivals account for just over three-quarters (77%) of the total. However, foreign tourist arrivals (excluding overseas Filipinos) have increased significantly since 2001 and now account for 20% of the total. Based on statistics collected by DOT on domestic tourist arrivals at accommodation establishments, the Central Philippines receives about 25% of the domestic market. Table 4.6 Domestic Tourist Arrivals at Accommodation Establishments Year 2002 2003 2004 2005 2006 Source: DOT National 8,915,806 9,687,573 11,331,212 13,804,876 14,064,724 Central Philippines 2,210,424 2,479,317 2,987,594 3,114,058 3,522,597 % Share 25 26 26 23 25 5. MAIN TOURISM DESTINATIONS Based on DOT statistics on foreign and domestic tourist arrivals at accommodation establishments in the Central Philippines, the main tourism destinations are as illustrated on the accompanying map. Table 5.1: Distribution of Tourist Arrivals within Central Philippines, 2006 Destination Cebu Boracay Palawan Bohol Iloilo Negros Occidental Negros Oriental Camarines Sur Camiguin Tacloban City Guimaras Tourist Arrivals at Accommodation Establishments* Foreign Overseas Filipino* Domestic Total 475,000 3,000 772,000 1,250,000 185,000 32,000 358,000 575,000 50,000 n/a 140,000 190,000 45,000 5,000 170,000 220,000 40,000 31,000 294,000 365,000 30,000 15,000 375,000 420,000 20,000 1,000 134,000 155,000 13,000 13,000 234,000 260,000 12,000 2,000 206,000 220,000 7,000 n/a 138,000 145,000 9,000 n/a 166,000 175,000 The island has a range of tourist facilities. Reflecting the island‟s popularity, there has been a notable increase in the number of new high-end resort facilities. Although average annual room occupancy rates in Boracay are around 50%, the high seasonal pattern of demand implies a shortage of rooms during peak periods. Access transport networks are good. However, there are services infrastructure gaps in respect of roads, utilities and port/s. Bohol About 50,000 overseas tourists visit Bohol, mainly from East Asia and Europe. About 170,000 domestic tourists also visit the island. Bohol has a good range of natural attractions, which include white sandy beaches, unique geological formations (Chocolate Hills), culture, wildlife, and coral reefs. Growth of tourism in Bohol is reflected by the recent development of a number of resort and hotel facilities in the area, a number of which cater to the higher end of the market. Palawan Source: DOT * figures rounded Cebu In terms of tourist arrivals, Cebu is the Central Philippines‟ premier destination for both foreign and domestic tourists. The main overseas markets are Korea, Japan, USA and Europe (Germany, UK, Switzerland and France). Because Cebu/Mactan airport is a major international gateway, the island has good international and domestic access. Cebu possesses a range of touristic attractions – high quality beaches, dive sites, cultural heritage, etc., along with a wide range of accommodation facilities. However, the area is experiencing shortage of quality rooms as evidenced by 70%+ average annual room occupancy rates achieved in Cebu‟s high end hotels and resorts. Although the transport infrastructure is reasonable, there are services infrastructure gaps with regard to utilities, particularly access to potable water. Boracay Boracay is perhaps the best island and beach destination that the Philippines can offer. This 1,000-hectare tropical destination in the province of Aklan has a high level of tourism development and is equally popular among foreign and domestic tourists. Almost half a million tourists visited Boracay Island in 2006. The main overseas source market is Korea, which accounts for about 60% of all foreign tourists. Visitors from the USA and Japan account for just under 10% and 5% respectively. Marketed as the „Last Frontier‟, Palawan is increasingly becoming identified as the Philippines‟ primary eco-tourism destination. The island receives about 50,000 foreign tourist arrivals, mainly from Europe and East Asia. Domestic tourist arrivals to the province are about three times the number of foreign visitors. Although there are a few high-end destination resorts (mainly in the El Nido and Taytay areas) tourist facilities in the province are mainly 2* to 3* international standard. Iloilo Metropolitan Iloilo is a typical urban sprawl with few tourism products to offer. However, the city attracts a sizeable number of visitors - mainly for business and special interest. The quality of hotel accommodation in Iloilo City is 2* to 3* international standard. English language learning is the major reason for the growth of foreign tourism to the area. Another reason is that the city is the main access point to Guimaras island, which has a number of attractive beaches and coves. Average annual room occupancy rates in Iloilo is about 50%, which suggests that these is sufficient room capacity to cater for existing demand. Guimaras The province of Guimaras is increasingly popular among domestic tourists, most of whom come from nearby Iloilo. They are attracted by the numerous secluded coves and small resorts in the area. Guimaras is also well-known for various food products such as mangoes. Tourist facilities are mainly of the „mom & pop‟ category. Camiguin More than 220,000 tourists visited the island province in 2006, the vast majority being domestic visitors. With access being a major problem, few foreign tourists visit Camiguin. Negros Occidental Tourist facilities located around the island-province are low-end. Owing to the seasonal demand patterns and access limitations, average room occupancy rates are about 50%. This province offers a mix of urban amenities, natural and cultural attractions. The area‟s tourism potential is based on the quality of its natural attractions which include the marine protected area in Sagay, Danjugan Sanctuary in Cauayan, Mt. Kanlaon National Park, and the Northern Negros Forest Reserve. Camarines Sur Bacolod City has several 2* to 3* international standard hotel properties that cater primarily to business travellers. Average yearly room occupancy rates of about 50% suggest that there is sufficient room capacity to cater for existing demand. Negros Oriental Dumaguete City is becoming an increasingly popular centre for scuba diving. The province also has various other natural attractions and activities such as dolphin watching, mangrove walks, waterfalls, caves and forest areas. Tourism to the province of Camarines Sur is charactized by seasonal influxes of domestic visitors participating in its major religious event. However, a range of leisure products are being developed, such as the CWC complex where wakeboarding and cable skiing are available. These leisure developments are expected to widen the appeal of the province. Moreover, the Caramoan Peninsula is being opened up to tourism development. More than 35,000 foreign and 230,000 domestic tourists visited the province in 2006. Although access to the area from Manila is mainly by road, there are regular flights between the capital Pili (Naga) and Manila. Tacloban City, Leyte Accommodation facilities are mainly 2* to 3* international standard, with average annual room occupancy rates of around 60%. Tacloban is the service centre for the major historical sites in the eastern part of the Visayas. The city is also a convenient gateway to the various natural attractions in the neighbouring provinces of Samar and Eastern Samar. The main „draw‟ is historical (based on World War II events) but this is a diminishing market. Just under 150,000 tourists visited the province of Leyte in 2006, of which fewer than 7,000 were foreign visitors. Siargao Dapitan City Siargao has gained world-wide recognition as a top quality surfing destination and is now a part of the official circuit of international surfing competitions. Moreover, the island has other attractions that are begining to attract non-surfing visitors. Located in northwestern Mindanao, Dapitan City is mainly a cultural/historical destination. Access (air) is via Dipolog City, where most of the area‟s tourist facilities are located. In 2006, more than 80,000 tourists (mainly domestic) visited the province of Zamboanga del Norte, most of them staying in Dapitan and Dipolog. Most visitors to Negros Oriental are domestic; foreign visitors number about 20,000. At present, Siargao is a highly seasonal destination, attracting the most number of tourists during the surfing season (March to September). Because of this, average annual room occupancy rates are less than 50%. Facilities in the area are mainly a combination of surf camps and low-end resorts. 26 one-half of tourist expenditures, international tourism's direct contribution to GDP is between 1.0% and 1.5%. When domestic trips are taken into account, tourism‟s direct contribution to GDP would be closer to 2%. 6. Contribution to Employment ECONOMIC VALUE OF TOURISM Tourism's value to the economy is measured in terms of: Statistics published by the NSO indicate almost 33 million employed nationally in 2005, of which 871,000 (2.6%) were in the Hotel and Restaurant sector. However, this figure significantly underestimates the wider tourism industry‟s contribution, since employment by tour operators, car rental companies, airlines etc., are not included. Allowing for employment generated in these sectors, the tourism industry‟s direct contribution to employment is probably in the region of 1.5 million jobs nationally. boosting output (GDP) employment generation tax revenues to government income generation at community level foreign exchange earnings, and linkages with other sectors of the economy. 6.2 6.1 REGIONAL ECONOMIC IMPACT NATIONAL ECONOMIC IMPACT Preliminary figures for 2005 indicate that spending by foreign tourist arrivals and from domestic trips amounted to about US$5.2 billion. As statistics are not available on tourist spending in the various regions, we have made a number of simplifying assumptions2 when calculating the value of tourism to the Central Philippines‟ economy. Table 6.1: National Value of Tourism, 2005 Table 6.2: Value of Tourism to Central Philippines, 2005 Variable Foreign Tourists Domestic Trips1 Total Arrivals (000s) 2,600 118,500 113,300 Spend US (Million) 2,100 3,080 5,180 Avg. Nights 8.5 n/a - Source: DOT, Consultants estimates Contribution to GDP In 2005 the Philippines GDP at market prices was estimated at US$99 billion and international tourism revenue at about US$2.1 billion. Consequently, international tourism‟s direct contribution to GDP was about 2%. However, it should be noted that tourism receipts are at gross value and strictly speaking, the imported inputs to tourism sales should be excluded before expressing them as a proportion of GDP. To the extent, therefore, that direct imports have not been excluded, tourist receipts as proportion of GDP will be overstated. There are no published statistics available on the proportion that direct imports represent. However, on the assumption that direct imports represent between one-third and 1 The number and value of domestic trips are based on the applications of a number of very simplifying assumptions to the findings of the DOT/National Statistics Office household survey on domestic trips. The figures should be regarded as indicative of the magnitudes involved rather than precise statistics. Variable Foreign Tourists* Domestic Trips Total Arrivals (000s) 795 28,875 29,670 Spend US$ (Million) 650 770 1,420 Avg. Nights 8.5 n/a - Source: DOT, Consultants estimates *excluding overseas Filipinos Contribution to GDRP In 2005, tourism‟s gross contribution to the Central Philippines‟ economy was about US$ 1,420 million, representing almost 7.5% of the Super Region‟s output (GDRP). Contribution to Employment Based on the NSO Labor Force Survey of 2005, we estimate that 191,000 are employed in the Hotel and Restaurant sector in the Central Philippines. Making allowance for those employed in tourism services, facilities and attractions, our estimate of total tourism employment in the Super Region is about 350,000 jobs. 2 Main assumptions are that a) average daily expenditure by foreign tourists in Central Philippines is the same as in the rest of the country and b) that spending patterns of domestic tourists per trip to the Central Philippines is the same as in the rest of the country. 27 Government Looking to Tourism As the Way Forward Looking to the future, the major challenge facing the Central Philippines is to diversify the economy from its reliance on primary products. This can only be done by identifying and developing value added internationally traded products/services in agri-business, manufacturing and the service sector. However, the service sector's capacity to constitute a 'driver' of regional economic activity is limited by the fact that much of the output is either non-traded (Government services) or sheltered (utilities). Internationally traded services with significant growth potential are few, tourism being the main one. PART II TOURISM SECTOR REVIEW 7. SUCCESSFUL TOURISM DEVELOPMENT .................................. 8. COMMUNITY INVOLVEMENT ....................................................... 9. NATURAL RESOURCES AND CULTURAL HERITAGE............... 10. ECONOMIC INFRASTRUCTURE .................................................. 11. TOURISM PRODUCTS AND FACILITIES ..................................... 12. VISITOR FACILITATION ............................................................... 13. ACCESS TRANSPORT ................................................................. 14. ENABLING ENVIRONMENT.......................................................... 15. SECTOR MANAGEMENT .............................................................. 28 Communities, as direct providers, offer goods and services which are purchased and consumed directly by the visitors. They are in the front line, having face-to-face interaction with the visitors. Communities are hosts and direct providers when individuals and groups in the community provide transport services, operate lodging establishments, restaurants, entertainment, and other services. For example, in many tourism areas such as Bohol, the pump-boats used for diving, island-hopping or dolphin watching, are provided by households or cooperatives/associations in the local communities. These boats are used for fishing during the off-season when there are few tourists in the area. In this manner, tourism provides supplemental income to the pump-boats owners without displacing their traditional livelihood sources. These activities also serve as conduits to distribute the economic benefits of tourism to local households. 8.2.2 Communities as Support Services Providers Many communities provide support services to the direct providers – i.e. hotels, resorts and other tourism services. They comprise the suppliers to the dry/wet markets, laundry contractors and, to a certain extent, medical services. 8. COMMUNITY INVOLVEMENT The term “community” is used interchangeably to describe both the community in its broadest sense as in a barangay or province and the community in its narrowest, such as a site-specific area. 8.1. GOVERNMENT POLICY ON COMMUNITY INVOLVEMENT Government policy on community involvement encourages participatory processes that strive to attain equity for all concerned. The application of this policy is manifested in the acceptability of tourism development to the host communities and validated by the degree of the communities‟ participation in its component activities. Emphasis is also given to bringing the benefits of tourism development to womenfolk and putting in place measures that will not make them unfairly pay the price of such development. 8.2. The role of the community in tourism areas as providers of support services is general in nature and tends to focus on basic products and services. Tourism establishments obtain the bulk of their food supplies from the local dry/wet market which inserts cash into the local economy through food purchases. This is particularly pronounced in the rural areas, where tourism establishments provide wage employment to the local people. The result is a reduction of unemployment and underemployment in the community. 8.2.3 Communities as Agents of Development Communities, in their role as agents of development, plan and implement programs to stimulate the growth of tourism. They supervise, regulate and encourage the activities of the direct providers and support services for the well-being of the tourism industry. COMMUNITY INVOLVEMENT IN TOURISM Communities are involved in tourism activities as direct providers, support service providers or agents of development. Communities, as agents of development, plan and implement programs through the local government units and non-governmental organizations. The Local Government Code of 1991 provides the legal framework for LGUs to provide support for the community, while most NGOs give financial assistance. 8.2.1 Communities as Direct Providers Table 8.1: Communities‟ Involvement in Tourism 29 Community Location Coron Palawan Donsol Sorsogon Caticlan Aklan Bais Negros Oriental Olango Is. Cebu Pamilakan Is. Bohol Sohoton Cave Samar Mantique Camiguin Danjugan Is. Negros Occ Negros Forest Negros Occ Mt. Isarog Camarines Sur Jatafe Bohol Direct Providers Support Services ☺ ☺ ☺ ☺ Agents of Development ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ ☺ The major community projects in the Central Philippines are shown on Map 8.1. 30 Map 8.1: Major Community Projects in Central Philippines 8.3. DEVELOPMENT ISSUES The major community/tourism development issues are: Lack of cooperation between key stakeholders in the locality Abuse of the environment Exploitation of the simple rural folk Deterioration of moral values, and Debasement of culture (for indigenous peoples) Examples are the destruction of coral beds caused by illegal fishing methods; indiscriminate harvesting of mangroves in coastal areas; slash-and-burn (kaningin) methods to clear farm land; tolerance of illegal logging. 8.3.1 Mitigating Measures Initiatives needed to tackle these development issues include: Improved coordination and collaboration between the private sector, the community and the local government authorities Greater awareness of need for conservation and preservation of natural resources Implementation of CLUP and other similar plans and programs, and Greater awareness of the value of tourism to the local community 8.3.2 Key Success Factors Successful community tourism initiatives, in terms of employment and revenue generation, protection and conservation of the environment, and preservation of the community‟s socio-cultural values, tend to be charactised by: Strong LGU support in the enforcement of ordinances Committed private sector involvement, particularly in marketing and sales, and 31 Strong, stable and mature community organizations with coherent and transparent policies. 9. NATURAL RESOURCES AND CULTURAL HERITAGE 9.1 NATURAL RESOURCES AND ATTRACTIONS The major natural touristic resources and attractions in the Central Philippines are illustrated on Map 9.1. 9.1.1 National Parks and Reserves Most of the existing and potential tourism destination sites in Central Philippines are located within Protected Areas. These sites have been proclaimed as national parks and marine reserves because of their pristine nature and environmental and ecological significance. The terrestrial national parks have a variety of natural features and attractions ranging from a richly diverse forest vegetation, wildlife, landforms, waterfalls, rivers and lakes. The marine parks are known for their beautiful white sand beaches, crystalline waters, highly diverse and colourful coral reefs, thick meadows of seagrass, robust mangrove stands, rich fishing grounds and several species of marine mammals and sea turtles. These natural features support a range of tourism activities to include nature trekking, wildlife watching and photography, botanical tours, caving, water tubing, canoeing, beaching, diving, snorkelling, whale and dolphin watching, surfing, kayaking and swimming. 9.1.2 Forest and Mountain Attractions Central Philippines has several forested mountains and volcanoes that offer some outstanding and unique features. In the Bicol Region, three volcanic mountains can be found: Mt. Mayon, Mt. Bulusan and Mt. Isarog. Western Visayas Region has two major forest attractions, - Mt. Kanlaon and Northern Negros Mountains that offer a variety of tourism activities such as nature trekking, bird watching, waterfalls viewing and bathing in hot springs. Two forest reserves with several attractive features are found in Central Visayas: Southern Negros Forest Reserve and Rajah Sikatuna National Park. Mt. Guiting-Guiting in the province of Romblon is ideal for nature trekking, bird watching and botanical tours because of its rich montane and mossy forest and various wildlife species. Added attractions are the scenic waterfalls found in the area. The Regional Ecotourism Stakeholders‟ Consultation Workshop conducted by DOT and DENR in 2003 identified a number of development issues with regard to Forest and Mountain tourism, the main ones being: Trekking and climbing products and services are limited and are generally run by enthusiastic amateur groups of local climbers rather than full-time professional mountain guides. Limitations on the number of climbers allowed to visit mountains and volcanoes effectively curtails potential benefits from ecotourism Emergency response services are limited Destruction of forest through illegal logging and cutting of trees, shifting cultivation, and forest fires. 9.1.3 Landforms and Cave Attractions A variety of touristic attractive landforms can be found in several places in Central Philippines. The Chocolate Hills in Bohol are famous for the 1,268 mounds of limestone and shale hills that turn chocolate-brown in colour during the dry season. The Sohoton Natural Bridge in Western Samar has a limestone gorge, caves and natural bridge. Karst and limestone cliffs of varying sizes and shapes are also found in the coastal waters of El Nido and the islands of Coron, Siargao, Caramoan and Carabao. The St. Paul Underground River - stretching about 8 kilometers - is internationally known. This cave river is habitat to several wildlife animals such as bats, Tabon birds, otters and a variety of fish species. Caves attractive for exploration include those found in Sohoton National Park in Western Samar and Ticao Island in Masbate. The main tourism development issues concerning caves and caving activities are: The caves in the Central Philippines have limited appeal to foreign tourists. Moreover, they are considered to be less attractive compared to caves found in other ASEAN countries. Absence or lack of on-site information on the natural and cultural history of the caves reduces their appreciation by visitors. Damage to caves due to lack or poor monitoring of visitor activities and lack of information on rules and code of conduct for caving activities Organizations running caving activities are amateur organizations which lack experience of the proper operations and management of caves. 9.1.4 Coastal and Marine Attractions 32 The Central Philippines coastal and marine environment supports a variety of recreational and water sports activities such as scuba diving, snorkelling, kayaking, whale and dolphin watching, surfing and sail boating. Boracay Island is probably the best known coastal tourism destination in the Central Philippines, due to its unique, fine white sandy beach. Another popular destination is the Donsol coastal waters in Sorsogon province in the Bicol region where whale/shark encounters is the main attraction. Most of the touristically attractive island and coastal sites in the Central Philippines are designated Protected Areas, the exception being Donsol. 33 23 34 As a consequence, in this area development takes place without much environmental consideration. The two other non-protected areas which have tourism development potential are Ticao island in Masbate and Aliguay Island off Dipolog City. The list of protected areas in the Central Philippines is contained in Ch 34, (Working Papers). Important development issues and concerns identified in the Regional Ecotourism Stakeholders‟ Consultation Workshop conducted by DOT and DENR in 2003 include: Illegal fishing, coral reef destruction and whale shark, manta ray and dolphin killings Safety measures and quality of professional guides in SCUBA diving Promotion of community-based tourism to spread the benefits to local communities, and Proper training of tourism workers and guides in ecotourism, guiding and safety measures. 9.1.5 Inland Water Attractions Lakes and wetlands in the country serve as feeding grounds for migrating birds from Siberia, Japan, Australia and Southeast Asian countries. Bird watching, photography and scientific studies are activities undertaken in wetlands with Olango island in Cebu being a popular destination. Other lakes which offer similar attractions are Bulusan Lake in Sorsogon province, Lake Danao in Leyte, and Kayangan Lake in Coron island in Palawan. These lakes have clear waters, pristine environment and serene surroundings making them ideal for relaxation, meditation and non intrusive water recreation activities such as swimming and boating. Rivers and waterfalls are natural attractions that are also found in many of the national parks. Sites with good rivers and imposing waterfalls include: Ogod River in Donsol whose 5 kilometer stretch is teeming with fireflies at night; Camiguin Island waterfalls with hot and cold springs; Ticao Island waterfalls and Mt. Guiting-Guiting waterfalls in Romblon. The main tourism development issues and concerns with regard to wetlands, lakes, rivers and waterfalls are: Chemical and sediment pollution of lakes and rivers emanating from cultivated patches of watersheds and forest areas Threat that damming of rivers for hydroelectric projects will obliterate waterfalls Human settlements encroachment in wetlands threatens and drives away migratory birds 9.2 CULTURAL HERITAGE RESOURCES The main cultural heritage sites in the Central Philippines are illustrated on Map 9.2. The list of selected cultural attractions in Central Philippines, their location, cultural features and historic significance are described in Chapter 34 (Working Papers). 9.2.1 Old Churches There are numerous old churches in the Central Philippines that were built during the Spanish period. These old churches are interesting for their unique architectural designs and historical significance. There are numerous church designs based on Aztec, Romanesque, Byzantine, Renaissance, Gothic, Modejar, Chinese, Muslim, Spanish and Mexican architecture. 9.2.2 Old Forts, Museums and Historical Monuments Numerous old Spanish forts, built as early as the 1500‟s, can be found in the Super Region – the better known and preserved being in Romblon town and Cuyo Island, Palawan. 9.2.3 Festivals and Fiestas Since Filipinos are very fond of festivals and fiestas, every town in the country has its annual celebration. The basis for festivities includes religion, history and folklore. Festivals are usually celebrated with dances, parades, musical shows, eating and drinking. The more popular festivals are listed in Ch. 34 (Working Papers). In Kalibo, Aklan, the local version of the mardi gras (locally called “Ati-atihan”) is a colorful festival, often featured in cultural television programs. Other festivals that are interesting include: the buffalo race in Pavia, Iloilo province; Halaran festival of Roxas City, Capiz province; smiling mask festival of Bacolod City in Negros Occidental; and the lanzones fruit festival in Mambajao town, Camiguin island. 9.2.4 Indigenous Handicrafts The various provinces of Central Philippines have their own niches and unique handicraft products which have been perfected throughout the centuries. Cebu is known for its guitars; Palawan for the colourful rice baskets made by the Tagbanua people; Silay and Bacolod for porcelains and earthenware. 9.2.5 Cuisine and Food Philippine dishes are greatly influenced by Spanish culture. About 80% of Filipino dishes are of Spanish origin. The national dish is called “adobo” which consists of chicken and pork cooked in vinegar, soy sauce, and garlic. Another favourite Filipino dish of Spanish influence is “kare-kare” which is meat and vegetable in peanut butter sauce. 35 36 25 10. ECONOMIC INFRASTRUCTURE 10.1 NAUTICAL HIGHWAY SYSTEM The Nautical Highway System is the arterial transport network linking the various parts of the Central Philippines with each other on the one hand and on the other with Manila. The nautical highway system is part of Government‟s strategy to establish an intermodal transport corridor through the integration of highways, ports and ferry services. It is envisioned that this nautical highway system will serve as the gateway for domestic tourists from Luzon and Mindanao, as well as for international tourists visiting destinations other than Luzon and Mindanao. As shown on Map 10.1, there are now three nautical highways - the Western, Eastern and Central Nautical Highways. The Eastern Nautical Highway, which is part of the Pan Philippine Highway, links the islands of Luzon and Samar, and Leyte and Mindanao, and has been in operation since the 1980‟s. The Western Nautical Highway connecting the islands of Luzon, Mindoro, Panay, Negros and Mindanao, was completed in March 2003 and has since been operational. The most recent connection, completed in September 2007, is the Central Nautical Highway that links the islands of Luzon, Masbate, Cebu, Bohol, Camiguin and Mindanao. These fast-craft vessels are revolutionizing the intermodal transport system in Central Philippines. Plying mainly shorter routes, which are not viable for air transport operators, these vessels increasingly provide access to places where tourism can be developed. Fast-craft vessels also mean increased frequency of service. Tourism Development Issues The rapid use and popularity of RO-RO transport and fast-craft ferries has put increasing pressure on the existing port infrastructure. In most ports of Central Philippines, passenger traffic mixes chaotically with cargo traffic, resulting in certain inefficiencies in port operations especially during peak periods. The following are the major tourism development issues: RO-RO facilities at some ports are decrepit and cannot cope with larger RO-RO vessels. Since these ports are located at strategic points along the major RO-RO corridors, they must be improved as a matter of priority For obvious reasons, ports are important components of the nautical highway system. The Central Philippines has a seaport system consisting of 64 public ports composed of 8 base ports and 56 terminal ports operated by the Philippine Port Authority. The base ports are located in Legaspi, Tacloban, Cebu, Tagbilaran, Dumaguete, Pulupandan, Iloilo, and Puerto Princesa. In addition to these larger ports operating on international and inter-island transport, there are also about 1,200 local ports that are generally operated by LGUs or under the DOTC. The majority of these local ports serve the local water transport requirements, often involving the use of motorized outriggered “bancas” with low passenger capacities. With the development of the nautical highway system, a number of local ports strategically located along the alignments of the nautical highways are programmed to be improved in order to handle increased ferry and passenger demands. Additional RO-RO ramps at particular ports are needed to cope with increasing transport demand Increased berthing area for fast-craft ferries and land-side space for parking should be provided Ample passenger terminal space is required at many ports in order to provide passenger amenities such as clean comfort rooms and waiting areas Insufficient port utilities such as water supply, drainage system, lighting system, fire fighting system, etc. Relevance to Tourism Increased frequencies of service between some RO-RO connections are required The Roll-On, Roll-Off (RO-RO) transport system, which is suited for nautical highways, is a time-and-cost efficient way of moving passengers and cargos. The concept is for the RO-RO vessel to serve as the floating bridge in a seamless terrestrial and nautical highway system, linking the various Central Philippines islands with one another as well as with Manila. There is a need to establish RO-RO or fast-craft ferry connections to provide access to places where tourism can be developed Additional routes and connections to different islands should be developed to further improve tourism movement. Currently, expansion of the three nautical highways is underway including the completion of the East-West routes (PanayLeyte route and Negros-Southern Leyte route), Panay-Sorsogon route, PalawanLuzon route, and Palawan-Visayas route. RO-RO facilities at these routes must be improved as a matter of priority. In addition to the RO-RO vessels, the introduction of fast-craft ferry vessels in the domestic shipping services, particularly in Central Philippines, has significantly reduced travel times. These fast-craft ferry services are increasingly interfacing with air services, particularly through Mactan-Cebu International Airport, to provide seamless interconnectivity of air, sea and road transport services. The newer vessels cater to a growing tourism market by offering quality service at affordable prices. 37 27 38 10.2 ROAD NETWORK The Central Philippines has a total of 9,475 kilometers of national roads which provide the main trunkline network connecting key population centers and linking provinces. Paved roads (concrete or asphalt) represent only 77% of national roads. About 23% percent of national roads have an earth surface (gravel and earth), thereby making them highly vulnerable to bad weather conditions. Nearly half (47%) of the national road network is rated as „good‟ or „fair‟, with the balance generally rated as „poor‟ or „bad‟, because of deficiencies in design and construction, inadequate maintenance, and damage from overloaded vehicles. - - construction of bypass roads in regional growth centers, such as in Metro Iloilo, Bacolod, Roxas, and Cebu completion and upgrading of circumferential roads on island destinations, such as on Siquijor, Guimaras, Camiguin and Panglao islands upgrading of rural roads, particularly farm-to-market roads, to facilitate transport of food supplies and other commodities. Relevance to Tourism Roads are the most important element of any transport system as they provide the necessary access to destinations. Accessibility to a tourism destination is fundamental to its successful development. Beach resorts in Cebu such as in Moalboal, Alcoy and Boljoon in the South, and Bantayan, Balamban, Daanbantayan and Malapascua island in the North, Beaches in Sipalay, Negros Occidental National Parks (Lakes and Waterfalls) in Negros Oriental Bulusan National Park in Sorsogon Tourism Development Issues The Central Philippines Super Region is largely composed of islands that are, for the most part, mountainous, and with settlements mainly located along coastal areas. The road network has developed through linking together these coastal settlements, forming coastal ring roads. To improve linkages between islands and provide access to tourism, market and activity centers, the completion of vital road links of the Nautical Highways must be undertaken as a priority. Completing a) the Western Nautical Highway will involve improving roads in the islands of Panay, Negros, and Cebu; b) the Central Nautical Highway will involve improving roads in Masbate, Cebu, Bohol and Camiguin; c) the Eastern Nautical Highway will involve improving roads in Camarines Norte, Camarines Sur, Albay, Sorsogon, and roads in the islands of Biliran, Samar and Leyte. In addition to the network of roads which form the nautical highways, road linkages between airports, tourist destination areas, accommodation and market and activity centers, must also be improved. Priorities are the: construction of new airport access roads to Iloilo and Bacolod-Silay improvement of access roads going to airports such as Caticlan and Kalibo improvement of access roads to tourist destination areas such as: - Caramoan Peninsula in Camarines Sur Inadequate maintenance is a crucial issue affecting the sustainability of roads in Central Philippines, particularly those providing basic access to tourism sites, farms, markets and social services. A major part of the maintenance problem is attributed to lack of resources by local authorities. Other tourism development issues relating to roads are: Poor linkages to other modes of transport such as ferry services and airports. Focus should be geared towards improving connectivity in intermodal transfers. For example, roads linking to seaports should be improved to enhance the function of the port as a gateway. Some connecting roads need pavement improvement, especially those located on the nautical highways. Generally, these roads are two-lane roads that have widths ranging from 6 to 6.7 meters. Roadsides are also surrounded by rural developments which further aggravate traffic conditions and decrease roadway capacities. The majority of road segments were not constructed to stringent design standards. As a result, some road segments become impassable during the rainy season and require major rehabilitation on a yearly basis. Road structures, such as drainage systems and signage are usually not provided, thus compromising road quality and safety. Many access roads to existing and potential tourist destinations are either bad or non-existent, thereby constraining tourism development. All major roads leading to tourism sites should be upgraded to all-weather status. 39 29 10.3 AIRPORT INFRASTRUCTURE The Philippines has nine (9) international airports designated as major gateways to the country. The primary international airports are Ninoy Aquino International Airport, Mactan-Cebu, Clark and Subic International Airports, while Laoag, Puerto-Princesa, Davao, General Santos and Zamboanga Airports serve as alternate international airports, handling limited international scheduled and chartered air services. The Central Philippines airport system consists of some 36 functional airports, strategically located in the various islands of the region. Of the total number of airports in the islands, 1 airport is categorized by the Air Transportation Office (ATO) as international, seven are trunkline, 13 are secondary and 15 are feeder airports. The international airport is the Mactan-Cebu Airport. The airports in Puerto Princesa and Kalibo, although not categorized by ATO as international airports, operate international flights. Iloilo Airport, which is a replacement of the old Mandurriao Airport in Iloilo City, began operations in June 2007. The Bacolod-Silay Airport, located 15 kilometers northeast of Bacolod City in Silay City, was completed in July 2007. However, there is a debate whether or not the airport should be made operational as a 500-meter extension of the runway is being planned in order for the airport to accommodate larger aircraft. Depending on the scenario, the airport could be opened in November 2008 or sometime in 2010, following the completion of a diversion road to the airport. Two new airports are in the pipeline for the province of Palawan. One is in Busuanga, on the site currently occupied by the small YKR airport; and another in the town of San Vicente, both in the northern part of the province. With help from a grant from the Korea International Cooperation Agency (KOICA), the first phase of the Busuanga Airport Development Project, involving the rehabilitation of the airport‟s existing facilities including construction of a new terminal building, concreting of apron and runway extension, is currently underway. The airport in San Vicente is intended for completion in 2008. Right-of-way and acquisition is almost complete, while civil works started earlier this year (2007). The San Jose Airport Development Project in Carabao Island, Romblon, which is planned to have a 4,000-meter runway, is part of the tourism masterplan being developed by a Korean company. Portions of Carabao Island have already been leased out to the Korean company which is committed to put up the necessary infrastructures before establishing commercial operations. The airport, to be constructed to international standards, is targeted for completion by the end of 2010. Ongoing airport improvements, mostly in the form of runway expansion and upgrading and passenger terminal improvements are being undertaken in Guian, Siargao, Tacloban and Dumaguete. These improvements are expected to be completed by early 2008. Relevance to Tourism 30 Airports serve as gateways to major tourism destinations and regional centers. The general direction of air transport development is geared towards providing a wider coverage of service area. In addition, present and future airport developments in Central Philippines are consistent with the Government‟s plan to promote decentralized progress and facilitate inter-regional linkages, particularly in tourism. Table 10.1: Major Airports in Central Philippines Airport Capability (Available Flights) Max Aircraft Size Pax/ max aircraft Pax Terminal Area (m2) Runway Length (m) CIQS Facilities NiteLanding Official Designation Mactan-Cebu International B-747 433 33,000 3,300 Yes Yes International Bacolod-Silay Iloilo Dumaguete Legazpi Puerto Princesa Roxas Tacloban Daet Naga Virac Masbate Catarman Calbayog Ormoc Tagbilaran Kalibo Antique Romblon Dipolog Sorsogon Busuanga Caticlan Siquijor Camiguin Siargao Guian San Vicente Balabac Domestic* Domestic* Domestic Domestic International Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic International Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic Domestic A-330 B-747 B-737 B-737 A-330 B-737 A-320 GA B-737 YS-11 DHC-7 BAe146 BAe146 DHC-7 B-737 A-320 ATP Yak40 B-737 302 433 274 274 302 274 599 19 50 2,000 2,500 1,845 2,280 2,600 1,890 2,138 1150 1402 1560 1200 1350 1476 1865 1779 2187 1200 1390 1912 1200 1200 1200 No No No No No No No No No No No No No No No No No No No No No Yes Yes No No Yes No No No No No No No No No No Yes No No No No No No No No No Trunkline Trunkline Trunkline Trunkline Trunkline Trunkline Trunkline Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary Secondary LET 410 DHC-7 GA LET 410 GA 10,075 12,000 589 922 1,384 607 1152 797 451 120 350 260 35 250 550 450 81 - - - 1800 No No No No 274 64 50 100 100 50 274 599 32 274 19 Feeder Feeder Feeder Feeder Feeder Feeder Feeder Feeder Sources: Master Plan Study on the Strategy for the Improvement of National Airports, JICA (2005)/World Data (http://www.worldaerodata.com) Note: * Bacolod-Silay and Iloilo Airports are designed as international airports 33 Among the planned airport projects indicated in the Medium-Term Philippines Development Plan to support tourism development in Central Philippines are: New Panglao International Airport in Bohol Southern Luzon (Bicol) International Airport located in Daraga, Albay Improvements of feeder airports in Siargao, Guian, and Busuanga New domestic airport located in Kabankalan, Negros Occidental Tourism Development Issues Tourism development issues identified through our review of plans and documents relating to airport facilities, as well as the results of stakeholder consultations are: Insufficient runway length in the trunkline airports of Dumaguete (1,845 m) and Roxas (1,890m), and all of the secondary airports with the exception of Kalibo. The runways have to be extended to accommodate larger aircrafts and increased passenger and cargo traffic Need to improve passenger terminal facilities in many domestic airports. Available data show that all domestic airports have less than 1,000sq. meters of passenger space. Increased passenger space should be provided to iimprove passenger comfort and expand the range of facilities and amenities. Need for improved airport infrastructure such as runway strips, taxiways, general aviation aprons, cargo terminal buildings, control towers, passenger boarding bridges and baggage conveyor belts. Upgrading of navigational equipment to cater to night and all weather landings and take-offs. With the exception of the 5 international standard airports (Mactan-Cebu, Bacolod-Silay, Iloilo, Puerto Princesa, and Kalibo), all airports need to have their facilities upgraded for night landings. The completion of two new international-standard airports located in Bacolod-Silay and Iloilo, coupled with the improvement of airport facilities in Puerto Princesa and Kalibo, further places the Central Philippines Super Region closer to attaining its objective of being able to cater directly to the wider international tourism market. Presently, only the three airports of Cebu-Mactan, Puerto Princesa, and Kalibo are operating international flights. However, this situation is expected to change as soon as the necessary airport facilities and infrastructures are fully operational (e.g., Iloilo and Bacolod) or are constructed (e.g., San Vicente and Carabao). The addition of these international standard airports will facilitate direct access to almost all major destinations in the Central Philippines, the exception being the eastern side of the Super Region. The construction of a new international airport in Bicol would fill this gap. (The planned new international airport in Panglao aims to replace the existing Tagbilaran airport in order to accommodate the larger sized aircrafts needed to cope with the increasing air traffic demand due to growth in tourism in the area). 10.4 POWER SUPPLY Siquijor, Masbate, and Bantayan, must be completed in order to alleviate the problem of power shortages in some island provinces located off-grid. Although the Central Philippines is endowed with vast indigenous energy resources, including geothermal energy, hydropower and wind, the cost of electricity is high primarily due to inadequacies and inefficiencies of the power infrastructure needed for generation, transmission and distribution. According to the Power Development Plan (PDP) 2006, the projected aggregate dependable capacity for Central Philippines is 1,536 MW as of end 2006. In terms of required capacity, about 1,424 MW are needed in 2006, 1,683 MW in 2009 and 2,283 MW in 2014. A total of 869 MW of new generating capacities are still required to meet the growing demand for the period 2006-2014. Of this, 269 MW will be provided from already committed power projects and 600 MW from proposed power projects. As of April 2007, the Central Philippines‟ (including Palawan) electrification level stood at 95.5 percent. Of the potential 4.1 million connections, 2.6 million (63.4%) are already connected. The Bicol region has the highest proportion of connections (66.8%). Palawan has the least electrification level (45.8%) as most of the barangays are located in remote areas. Table 10.2: Status of Barangay Electrification by Region, as of April 2007 Region Coverage 370 3,449 Barangays Energized 265 3,243 % 71.6 94.0 Palawan Bicol Region Western 3,870 3,824 98.8 Visayas Central Visayas 2,713 2,709 99.9 Eastern Visayas 4,372 4,073 93.2 TOTAL 14,774 14,114 95.5 Source: National Electrification Administration (2007) Potential 169,100 993,500 Connections Actual 77,406 663,987 % 45.8 66.8 1,267,300 800,302 63.2 934,800 778,500 4,143,200 589,568 495,918 2,627,181 63.1 63.7 63.4 10.4.1 Development Issues According to estimates by the Department of Energy, critical capacity limitations on the Visayas grid are not expected until 2011. However, if commissioning of the committed projects are delayed, capacity limitations will occur in 2009. The commissioning of both KEPCO‟s 200 MW coal fired power plant in Cebu and PNOCEDC‟s 20 MW Nasulo Geothermal Project in Negros must therefore be completed within 2009 to prevent power shortages. Upgrading and installation of transmission lines and substation capacities to accommodate higher load distribution in the future must also be done to avert power shortages. In addition, interconnection of small-island grids, such as in Romblon, Alternative renewable energy resources must also be tapped to augment installed capacities. Abundant sources of hydropower, wind and solar energy can be found in most provinces of the Central Philippines. In addition, biofuels derived from sugarcane, coconut, and jathropha can be used to power electric plants. To support the increasing power demand in the Super Region, new power plants in the Bicol Region with a total capacity of 80 MW are required. In addition, to ensure efficient distribution and transmission of electricity, the National Transmission Corporation (TransCo) has identified several infrastructure projects to strengthen the power highways and optimize the generation of power. 10.5 WATER SUPPLY A total of 26 water districts supply the water requirements of the Central Philippines. The top two producers are Central Visayas with 55.7 billion cubic meters and the Bicol Region with 26.3 billion cubic meters of water produced. However, as shown on the chart, access to safe water varies significantly within the Super Region, with the prime tourist areas among the provinces registering the lowest access as a proportion of population. In Iloilo, water sources are mainly shallow wells or dugwells. Because coastal areas are prone to saltwater intrusion, the Metro Iloilo Water District taps surface water located 35 kilometers inland. Degradation of the watershed areas has contributed to the deterioration of the quality of surface water. Less than two-thirds of the population has access to safe and potable water. The Leyte Metropolitan Water district (LMWD) supplies water to Tacloban City and nearby municipalities. The P200 million water treatment rehabilitation project of the LMWD has recently been completed to improve the province‟s supply of water. Table 10.3: Water Service Coverage in Selected Provinces Population Coverage Service Coverage Level III Level II Level I Total % Aklan 432,358 57,226 20,150 194,635 272,011 63 Biliran 136,851 40,383 22,573 38,195 101,105 74 Bohol 1,239,829 432,414 46,954 252,851 732,219 59 Cebu 2,921,305 509,259 56,049 660,625 1,225,933 42 Iloilo 1,489,556 106,683 31,880 806,413 944,976 63 Leyte 1,450,935 307,003 69,797 582,864 959,664 66 Negros Occidental 2,127,770 249,575 89,430 1,269,638 1,608,643 76 Negros Oriental 1,200,315 255,438 114,630 321,689 691,757 59 Source: Provincial Water Supply, Sewerage and Sanitation Sector Plan (PW4SP), JICA (2000) Note: Level 1 (point source) - a protected well or a developed spring with an outlet but without Province Population (1998) Served By Safe Sources a distribution system; generally adaptable for rural areas where the houses are thinly scattered. Level II (communal faucet system) - a system composed of a source, a reservoir, a piped distribution network and communal faucets. Level III (waterworks system) - a system with a source, a reservoir, a piped distribution network and household taps. In Aklan, the majority of the population is served by Level I water supply system. (Level III water supply systems exist only in large municipalities such as Kalibo). Approximately 2 out of 5 of the population get their water supply from springs and rain water. Biliran has a comparatively good water service coverage, in which a total of 136,851 people or about 74 percent of the population have access to potable water supply. In Bohol, water in Tagbilaran City and some municipalities is basically supplied by groundwater. The rest of the residents source their water from dugwells, rivers, and rainwater. With the recent completion of the Tagbilaran Water Supply Project, water supply has been made available in Tagbilaran City and nearby municipalities. The main sources of water in Cebu are from deep wells and springs, pumped into reservoirs and then distributed by gravity using Level III water supply systems. The Metropolitan Cebu Water District (MCWD) supplies potable water to the various cities of Cebu. However, shortage of water has always been a problem in Metro Cebu due to deforestation and seawater intrusion of the underground water supply. Only 2 out of 5 of the population have access to potable water. In Negros Occidental, large municipalities such as Bacolod, Bago, La Carlota and Silay, are served by Level III water supply systems. Residents outside of these larger municipalities source their water supply from wells and springs. In Negros Oriental, the main sources of water in the province are springs and dug wells. Additional water supply sources, treatment plants and distribution pipes are needed on the island to cope with demand. In Palawan, the percentage of households with access to safe water is about 60%, considerably below the national average. This indicates that roughly, only half of the dwelling units in Palawan have access to safe, potable drinking water. 10.6 SOLID WASTE DISPOSAL FACILITIES area of jurisdiction through local property taxes and enforcement of a service fee system. Solid wastes are disposed in open dumpsites, burned or collected by the Local Government Unit (LGU) and dumped in open areas. Liquid waste, on the other hand, goes along with the normal flow of water, and usually disposed in open channels, roads, ditches, or open pits in backyards. Open dumpsites pose grave risk to the health of the local population because open garbage sites harbor disease-carrying insects and vermin. Dumpsites located near coastal areas pose a similar danger and may also contaminate the marine resources of the region. However, high costs of constructing sewer networks, poor technical capacity and reluctance-to-pay for sanitation services are the major reasons why investment in sewerage collection and treatment facilities is low. In Boracay, only a small proportion (less than 5%) of the population is connected to the sewerage system – due to the reluctance of people to pay the connection rates. 10.8 Currently, there are 260 open dumpsites, 98 controlled dumpsites, 8 sanitary landfills and 322 materials recovery facilities in the Central Philippines. The Western Visayas has the most of the aggregated number of open and controlled dumpsites (125). Table 10.4: Solid Waste Disposal Facilities in Central Philippines Area Open Dumpsite Controlled Dumpsite Closure & Rehab Plan Authority to Close Bicol Region 77 13 6 4 Western Visayas 100 25 18 14 Central Visayas 74 44 4 1 Eastern Visayas 9 16 3 2 Total 260 98 31 21 Source: National Solid Waste Management Commission (2007) 10.7 Sanitary Landfill Matls Recov. Fac. (MRF) Proposed Landfills - 77 2 4 134 42 4 66 36 8 45 322 7 87 COMMUNICATION FACILITIES The Central Philippines is wired with the rest of the world through state-of-the-art telephone facilities that provide domestic and international linkages. This is made possible by various service providers such as PLDT and cellular phone firms such as Globe and Smart. In 2005, a total of 1.16 million telephone lines have been installed in Central Philippines. Of these, 470,616 (40%) are in the Central Visayas, and 427,481 (37%) are in Western Visayas. In terms of telephone density, the region has an average of 6 telephone lines and 2 subscribers per 100 persons. A total of 48,713 licensed radio stations operate in the area as recorded in 2004, with Central Visayas having the most number at 28,715 or 59% of the super region‟s total. Western Visayas, on the other hand, has the least number of registered radio stations with only 5,536 or 11%. There are 436 cable television networks distributors in the Central Philippines. Bicol has the most cable distributors (131), followed by Western Visayas (110), Eastern Visayas (106) and Central Visayas (89). Table 10.5: Communication Facilities in Central Philippines Bicol Region 109,631 2 1 No. of Licensed Radio Stations (2004) 5,866 Western Visayas 427,481 6.21 1.97 (2005) 5,536 110 Central Visayas 470,616 7.76 3.67 (2005) 28,715 89 Eastern Visayas 151,652 3.67 0.67 (2005) 8,596 106 1,159,380 5.0 1.8 48,713 436 SEWAGE FACILITIES Only about 7 percent of the country‟s total population is connected to sewers. Due to insufficient sewage treatment and disposal, more than 90 percent of the sewage generated in the Philippines is not disposed or treated in an environmentally acceptable manner. The control of sewage pollution is covered under the Clean Water Act, enacted in 2004. This Act mandates the connection to sewerage systems of all subdivisions, condominiums, commercial centers, hotels, sports and recreational facilities, hospitals, market places, public buildings and other similar establishments within five years following the enactment of the law. It also compels the collection of wastewater charges covering all sources of wastewater discharges, including effluent from wastewater treatment plants, sewage treatment plants and discharges from water treatment facilities. In addition, discharge permits are required from owners or operators of facilities that discharge regulated effluents. The Clean Water Act also encourages LGUs to raise funds to subsidize the necessary expenses for the operation and maintenance of sewage treatment or septage facilities servicing their Area TOTAL Telephone Lines (2005) Source: Philippine Statistical Yearbook (2006) Telephone Density (per 100 population) Lines Subscribed Cable TV Networks Distribution (2005) 131 11. TOURISM PRODUCTS AND FACILITIES The spatial distribution of tourism products and facilities in the Central Philippines is shown on Map 11.1. 11.1 TOURISM PRODUCTS Beach Resorts The Central Philippines has a large number of beach resorts, the best known being in Mactan and Borocay. The Central Philippines possesses a wealth of ecological and cultural attractions including pristine white sandy beaches, diverse marine life, volcanoes, forests and wetlands and heritage sites. These natural resources support a range of tourism products and facilities to include national parks, eco-tourism sites, beach resorts, scuba diving, golf courses, trekking and festivals. Golf Courses National Parks Yachting & Marinas Visits to national parks are an important element of the Central Philippines tourism Although golfing is a recognised driver of tourism demand, there are only 14 golf courses in the Central Philippines, of which less than a handful can be considered championship quality – i.e. the level necessary to attract the international golfer. Although the waters of the Central Philippines are ideal for yachting, the product is virtually non-existent. There are no established marinas, yachting guides etc. product. Cruise Nature and Ecotourism Sites Nature and ecotourism sites form a significant component of tourism in most of the destinations within the Central Philippines. There is a wide range of nature products which include dolphin watching, birdwatching and mangrove tours. In the development of nature products, ecotourism principles are being consciously applied. The National Ecotourism Strategy formulated by the DOT and DENR has given impetus to the development of various community-based ecotourism products. Nature and ecotourism sites assisted by LGUs, NGOs and the DOT/DENR include the Olango Birdwatching tour in Cebu, the Cambuhat River Cruise and the Pamilakan Island Dolphin Watching (Marine Life) tour in Bohol. Scuba Diving Scuba diving is a growth sector and is becoming a major market driver for many coastal and marine destinations. The scuba dive product is mainly promoted to the overseas markets. Festivals and Events Major festivals include the Ati-atihan, Dinagyang and Sinulog festivals in Aklan, Ilo-ilo and Cebu respectively. They are one/two day events primarily for the domestic market – few have international appeal. Although well established in South East Asia, the cruise product has not been developed in the Central Philippines. Hiking/Trekking Hiking/trekking is a major tourist activity worldwide. Although the Central Philippines has the natural resource base to offer a unique hiking/trekking product, there are few designated trails, informed guides and supporting superstructure of hotels, inns etc, Urban Attractions Urban attractions are mainly composed of buildings/streetscapes/plazas of architectural significance, museums and art galleries, theatre and other forms of entertainment (dance, music etc), historical sites (churches, forts, castles etc), retail (shopping centres, malls), bay or river promenades/waterfront areas, restaurants, bars etc. Whereas the Central Philippines has a number of churches and ancestral houses of historical interest, few are of international significance. However, shopping and dining out (mainly fast-food and mid range) is well developed everywhere. 37 11.2 ACCOMMODATION FACILITIES There are approximately 30,000 rooms in the Central Philippines in all forms of accommodation establishments. Cebu and Boracay together account for almost half (46%) of the accommodation stock. Few product „drivers‟ with the exceptions of beach resorts and scuba diving, there is insufficient product „drivers‟ that would influence international tourists to visit the Central Philippines. Golf is poorly developed; yachting, cruising, trekking/hiking etc., are practically non-existent. - Table 11.1: Number of Rooms by Location and Type of Property, 2006 Location Hotels Palawan 280 Boracay 880 Cebu 4,760 Bohol 290 Region V n/a Region VI (except Boracay) 1,560 Region VII (except Cebu and 150 Bohol Region VIII 110 Total 8,030 Source: DOT and Consultants estimates. Inns/Lodgings Houses 1,420 210 2,610 1,230 n/a 3,000 Resorts 1,060 2,830 2,450 1,060 n/a 1,000 Total Number of Rooms 2,760 3,920 9,820 2,580 1,030 5,560 950 720 1,820 1,550 10,970 400 9,520 2,060 29,550 Tourism products widely dispersed and many not easily accessible although the Central Philippines has a wide range of tourism products, they are widely dispersed throughout the region and many are difficult to reach. Examples are the islands of Samar and the whole of the Bicol Region. Samar boasts of major cave systems, impressive waterfalls, and closed-canopy rainforests which are ideal for adventure and nature tourism. However, these sites receive few tourists due to difficult and time-consuming accessibility. Access and travel time are the two major constraints to tourism development in the Bicol Region. the number of top quality properties in the region is very few – only three 5* international equivalent properties (1,100 rooms) in Cebu. Most destinations offer only 1* and 2* international standard equivalent hotel facilities. High density-habitation at potential tourist sites - TOURISM DEVELOPMENT ISSUES in the Central Philippines as a whole, there are only 114 hotel properties with an estimated 10,760 rooms. With high room occupancy rates, there is little spare capacity in the region. Lack of quality properties - the Philippines promotes the island of Boracay as its best island destination in terms of beach quality. However, the relatively small size of the island coupled with the fragility of its environment means it cannot handle massive tourism development. Thus there is a need to develop other areas. Limited accommodation capacity - In the major destinations (Mactan, Boracay) within the Super Region, the high end properties report annual room occupancy rates in the range of 70% to 80%. From an operational standpoint, this means that many of the high-end hotels are virtually full all year round. - Only one “Boracay” in the Philippines - For the Central Philippines as a whole, accommodation establishments have a fairly even room occupancy rate (between 40% and 50%) throughout the year. However, room occupancy rates can vary significantly by region. Region VII has an average room occupancy rate close to 70% whereas the corresponding figure for Region VIII is just under 35%. the actual number of destinations within the Central Philippines which are easy to access and offer a diverse range of tourism products are relatively few – Cebu and Boracay being the only ones. - Room Occupancy Rates 11.3 Few destinations offer diverse and easily accessible products informal communities are established in many coastal areas and islands that would otherwise be considered ideal tourism development sites. Few new investments in accommodation facilities - with the exceptions of developments in Boracay in 2007 (Shangri- La, Korean hotel, and extensions to existing properties) there have been few new investments in tourist accommodation in the Region in recent years. 12. VISITOR FACILITATION 12.1 CUSTOMS AND IMMIGRATION The Bureau of Customs and Immigration are present at the international gateways as well as at the alternate international airports. 12.2 VISITOR INFORMATION The Department of Tourism has established a network of information offices based in the regional centers. These offices are located in Legaspi City (Region V), Iloilo City (Region VI), Cebu City (Region VII), and Tacloban City (Region VIII). Sub-offices have also been established in important destinations such as Boracay, Bacolod and Dapitan cities. These offices serve as the major tourism networking and visitor information points in the areas. 12.3 MEDICAL AND RESCUE All medical support facilities for tourists are at the existing hospitals located in the destinations. More advanced medical facilities are located in provincial and regional centers. A decompression chamber for scuba diving is available only in Cebu. Since scuba diving is a major product in the Central Philippines, it is important to provide decompression chambers at strategic locations. These locations should include Palawan and Aklan. Local volunteer rescue units for general emergency situations are trained by the local Red Cross and other volunteer groups in the destinations. 12.4 BANKING There are adequate banking facilities in all the service centers of Central Philippines with automatic teller machines (ATMs) conveniently stationed in those areas. However, destinations in rural areas such as Coron in Palawan and Donsol in Sorsogon lack ATM facilities. 12.5 SHOPPING Shopping is not easy for tourists outside of shopping malls. Only metropolitan Cebu has established tourism shopping centers that visitors can include in their itineraries. Tagbilaran City in Bohol has started developing tourist stores along the visitor routes. Most of the other destinations only have pockets and small-scale special interest shopping outlets. Boracay, on the other hand, is being increasingly characterized by „hawkers‟ whereby such people and their merchandise compete for space with legitimate businesses and the pathways used by tourists. If continued unregulated, this situation could contribute to the decline of the quality of the „retail‟ experience for visitors. 13. ACCESS TRANSPORT 13.1 INTERNATIONAL AIR ACCESS Air seat capacity to the Philippines and Cebu from the major source markets is shown on the following table. Table 13.1: Direct Scheduled Services from Major Markets Market US Japan Korea Hong Kong Taiwan Australia Flights per week Phil Cebu 37 47 5 64 22 100 19 32 2 7 Seats per week Phil Cebu 21,536 16,596 1,675 9,894 4,281 25,143 5,016 8,721 230 2,172 Tourist arrivals* Phil CP 529 82 415 138 490 267 107 15 123 20 96 18 No direct scheduled international flights to other (international standard) airports in Central Philippines - can only receive charters No direct schedules connectivity with China – Asia‟s fastest growing tourism source market - all connections via Manila or Hong Kong International Air Access Issues Insufficient connections with mega-hubs of Dubai, Singapore, Hong Kong Inadequate visitor facilities (customs, immigration, baggage handling) for processing international passenger arrivals at international standard airports in the Central Philippines - thus inhibiting the development of international scheduled air services on a regular basis. Europe Singapore Kuala Lumpur Other ASEAN China Middle East 14 64 15 69 49 49 16 4 5 2 3 6,885 21,440 2,250 10,350 5,067 13,539 2,094 460 288 1,140 n/a 69 n/a n/a 108 n/a 66 n/a n/a n/a 14 n/a Over 90% of total scheduled seat capacity is to Manila - less than 10% directly to Cebu from source markets Open Skies The proposed “open skies” policy remains a contentious issue as Philippine Airlines and Cebu Pacific oppose any further liberalization of air access to the Philippines. However, it is only Manila (NAIA) that is restricted to airlines operating under existing bilateral arrangements. International, alternate international and international standard airports such as Mactan-Cebu, Kalibo, Iloilo and Bacolod-Silay are open to international flights, whether charter or scheduled. Map 13.1: Scheduled Air Routes to Philippines 13.2 DOMESTIC AIR TRANSPORT SERVICES Currently, three domestic air carriers dominate air transport services in the country. These are: Philippine Airlines, Cebu Pacific Air and Air Philippines. Philippine Airlines (PAL) was the only carrier allowed to operate to Philippine airports until 1986, when the air transport policy on airline liberalization was adopted, encouraging new airlines to enter the domestic air services market. PAL currently operates to 18 airports in the country. PAL, together with its sister airline, Air Philippines, (with which it codeshares) dominate the domestic air passenger market. Together with Cebu Pacific Air, the airlines have more than 90% share of the market. Cebu Pacific Air, one of the three major airlines launched after liberalization of the aviation sector in 1994, continues to challenge PAL/Air Philippines on domestic routes, presently also operates to 18 airports. Two other domestic airlines started scheduled flights to tourist destinations and secondary airports, namely: South East Asian Airlines (SEAIR) and Asian Spirit. SEAIR, founded in 1994, offers services to Palawan, Boracay, Siargao, Bohol, Dumaguete and to 12 other destinations. Asian Spirit, founded a year later in 1995, operates to 18 airports. It is understood that Cebu Pacific and Air Philippines will start to compete on the secondary routes operated by Asian Spirit and SEAIR by acquiring turbo-prop aircrafts such as the ATR 72-500 and Bombardier Q300. Initially to serve the highly trafficked Manila-Caticlan route, they are likely to use these aircrafts to further expand their domestic routes by offering low cost services to other secondary destinations. flight operations. Upgrading of airport facilities is sought by the airlines. Domestic Air Access Issues Cabotage remains a serious concern of the major carriers, as attempts are being made by the smaller carriers to partner with some low cost carriers (LCCs) and use their aircraft flying into the Philippines to provide onward domestic flights. Dilapidated airport facilities particularly passenger terminals and runways, (including those in the Manila Domestic Airport and especially in the provinces) are a serious concern not only in terms of passenger convenience but also safe Map 13.2: Scheduled Domestic Air Routes 14. ENABLING ENVIRONMENT 14.1 INSTITUTIONAL ARRANGEMENTS Because of the diverse and fragmented nature of tourism, there are many central government departments, local government units (LGUs), committees/councils, national government agencies (NGAs) and non government organizations (NGOs) that have important roles in relation to tourism 14.1.1 Central Government The tourism sector is affected to a greater or lesser degree by the policy decisions and actions of nearly all government departments, but particularly the departments responsible for finance, the environment, transport and public works. Table 14.1: Government Departments with Involvement in Tourism Department Tourism (DOT) Environment and Natural Resources (DENR) Interior and Local Government (DILG) Education (DepEd; CHED; TESDA) Transport and Communications (DOTC) Public Works and Highways Trade and Industry Fisheries (BFAR) (i) Department of Tourism (DOT) Area of Involvement Tourism Promotion and Product Development Environmental protection and policies for sustainable resource use Administrative functions for local governance Formative educational values and discipline for DepEd, higher level education and skills development for CHED and TESDA Transport policies; development and management of airports (ATO) and seaports (PPA); Policies on communications Development of infrastructure (roads, bridges, etc.) Development of industries and businesses Food security and sustainable utilization of fishing resources This commission helps promote the preservation and perpetuation of local arts and culture in the Philippines Board of Investment (BOI) - Under the Department of Trade and Industry, the BOI helps promote business growth and investments through economic policies and investment incentives - DOT is the central government unit responsible for the development and promotion of tourism in the country. In addition to destination marketing, DOT leads in the development of new products and destinations in conjunction with related agencies that provide specific functions: (ii) Philippine Tourism Authority (PTA) – the implementing arm for various tourism infrastructure and site development projects Philippine Convention and Visitors Corporation (PCVC) – the marketing arm of DOT. Also promotes MICE Duty Free Philippines (DFP) - commercial activities augment budget through a percentage share from revenues from the duty free sales National Parks Development Committee (NPDC) – manages major urban parks such as the Rizal Park in Manila Corregidor Foundation – manages Corregidor Island Philippine Commission on Sport Scuba Diving (PCSSD) – policy making and monitoring body for scuba dive development Department of Environment and Natural Resources DENR is the central government agency that protects the environment and at the same time, issues policies for the utilization of natural resources. It has direct involvement in various tourism-related projects such as beach development (environmental impact assessment; foreshore leases; development setbacks); resource extraction (logging, quarrying); biodiversity (dolphin watching), and activities in natural areas (protected areas system). (iii) Commission on Higher Education (CHED) and TESDA CHED is the policy-making unit of the government for higher education. With regard to tourism, CHED has developed a curriculum for undergraduate degrees administered by colleges and universities. TESDA implements nondegree and skills-based curriculum programs. Graduates of the tourism programs of TESDA become the service frontliners of the industry (receptionists, bartenders etc). (iv) Department of Transport and Communications (DOTC) DOTC is responsible for the country‟s air, rail, sea and communications infrastructure. 14.1.2 Other Government Agencies National Economic Development Authority (NEDA) - NEDA is the economic policy-making unit of the country. Together with DOT, it helps pave the way for the development of destinations and the infrastructure needed by the tourism industry National Commission on Indigenous People (NCIP) - This unit helps protect the interests of indigenous communities and in the establishment of ancestral domains National Commission for Culture and the Arts (NCCA) Protected Areas and Wildlife Bureau (PAWB) - Under the DENR, PAWB is the policy-making unit for the establishment of protected areas and programs for biodiversity conservation. It is also the lead unit of DENR for the ecotourism related programs of the agency Philippine Economic Zone Authority (PEZA) - PEZA is the national investment promotion agency and a government owned corporation, attached to the Department of Trade and Industry - PEZA grants fiscal and non-fiscal incentives to developers of economic zones, - export producers and IT service exporters. PEZA offers ready-tooccupy locations to foreign investors who are export producers or IT service exporters in world class and environment friendly Economic Zones and IT parks/buildings. Recently, tourism has been included as a priority investment sector opening the way for the designation of tourism economic zones. 14.1.3 Regional Agencies Figure 14.1: Local Government Institutional Arrangements for Tourism LINE AGENCIES DOT, DENR, DTI, DA, etc PROVINCIAL GOVERNOR PROVINCIAL TOURISM COUNCIL RESORTS, TRANSPORT, ACADEME, TRAVEL AGENCIES, RESTAURANTS, RELIGIOUS SECTOR, MUNICIPAL TOURISM COUNCILS PROVINCIAL TOURISM OFFICE MUNICIPAL MAYOR Regional Development Councils (RDC) - Composed of top local executives and regional directors of various government agencies, the Council formulates development programs that have direct impacts for the region of its jurisdiction. Regional Land Use Committees (RLUC) - Guiding decisions on the use, allocation, management and development of land resources in the Regions MUNICIPAL TOURISM OFFICE MUNICIPAL TOURISM COUNCIL TRE OPERATORS, MANAGERS, ETC., RELIGIOUS SECTOR, ACADEME, LOCAL OFFICIALS, ABC PRESIDENT BARANGAY TOURISM COUNCIL Legend: --------- liaison arrangement; hierarchical arrangement 14.1.4 Local Government LGUs are the executive and implementing units of government. Governed by elected officials, LGUs are the direct interface between the local residents and government. With regard to tourism development, LGUs can initiate tourism-related development projects. However, as tourism is a new industry for many LGUs, few have established tourism units with appropriately qualified personnel. Figure 14.1 shows the local government institutional arrangements for tourism. Provincial Tourism Offices (PTOs) and Municipal Tourism Offices (MTOs) are LGU units that have direct involvement in tourism. The local government tourism office (TO) primarily functions as a tourism promotion unit with responsibility for coordinating or organizing events, representing the area at tourism road shows/fairs, and producing collateral materials. 14.1.6 Non-Government Organizations (NGOs) While national and local governments provide the policy framework, there are many non-government agencies that contribute to the actual groundwork of tourism development, particularly ecotourism. Largely working independently of government, these organizations collaborate with each other and have secured support from international funding sources to implement various programs. 14.1.7 Private Sector Key NGOs involved in tourism in the Central Philippines include: Negros Forest and Ecological Foundation (NFEFI): based in Bacolod City, Negros Occidental, this NGO helps organize communities in the Northern Negros Forest Reserve to develop the ecotourism potential in the area. It also maintains a wildlife rescue center in the city proper which has become a major educational attraction. Philippine Rural Reconstruction Movement (PRRM): under its “EcoDev Tour” program, PRRM has developed nature tours in Ifugao, Marinduque, and Camiguin. Conservation International (CI) – Philippines: helps in the protection of ecosystems and improving the quality of life of local communities. CI is now involved with ecotourism programs in Palawan. It also manages the „Adopt a Species‟ program. Worldwide Fund for Nature (WWF) – Philippines (Kabang Kalikasan ng Pilipinas): is an environmental organization committed to reversing the accelerating degradation of the environment. WWF is involved with ecotourism programs in Tubbataha, Donsol, Pamilakan Island and Turtle Islands. Haribon Foundation: works for biodiversity conservation and sustainable resource management. Its mission includes the promotion of community-based management strategies, such as the areas in Mt. Isarog (Camarines Sur) and Jetafe (Bohol) Wild Bird Club of the Philippines (WBCP): although considered as a hobby club, WBCP has been advocating and creating programs geared towards the appreciation and growth of birdwatching in the Philippines. El Nido Foundation: is a social development organization that seeks to improve the quality of life in El Nido, while at the same time preserving the area‟s natural integrity through community-based efforts and partnerships in conservation and sustainable utilization of resources. Coral Cay Conservation, Inc. (CCCI): is a U.K.-based organization which undertakes studies of coral reefs and other natural areas in Danjugan Island, Negros Occidental and Sogod Bay, Southern Leyte. Philippine Reef and Rainforest Conservation Foundation, Inc. (PRRCFI): based in Bacolod City, this NGO is the lead organisation in the purchase of Danjugan Island in Negros Occidental for conservation. The island is now a major showcase for ecotourism in the area. Friends of the Flying Fox: is involved in the protection of forest areas in Aklan and the fruit bats in Boracay Island. It seeks to protect the remaining roosting site of the giant fruit bats in Boracay from the encroachment of development. Provincial/Municipal Tourism Councils Provincial or municipal/city tourism councils are private entities, the memberships of which usually comprise 60% private entities and 40% government representatives. These councils help organize the local tourism industry into a cohesive organization that promotes the growth of the sector and the area. Barangay Tourism Councils With the same set-up as provincial or municipal tourism councils, these organizations focus on the tourism affairs and concerns of the barangay or village. Associations Various tourism associations representing either homogenous organizations or varied representations are organized in the different areas of Central Philippines. However, the levels of involvement and organizational sophistication vary greatly between areas. 14.2 LEGISLATIVE AND REGULATORY FRAMEWORK The formation of institutional structures and the execution of tourism policy and strategy by these structures require enabling legislation. There are three main areas to be addressed: the enabling legislation for the national tourism organization the regulatory framework for the industry, and environmental legislation 14.2.1 Enabling Legislation for the National Tourism Organization The Department of Tourism was created through Executive Order No. 120 and 120-A in 1986 which reorganized the previous tourism body. This EO mandated DOT to be the primary unit of the government in the development and promotion of tourism in the country. 14.2.2 Regulations for the Industry The purpose of regulatory legislation is to: Provide an environment in which business may be carried out within the framework of law Provide mechanisms for arbitration in the event of disagreement Provide for consumer protection Ensure health and safety National Laws of Local Application in Supporting Tourism Development There are many pieces of legislation that have varying impacts on tourism but which are not specifically enacted for the benefit of tourism alone. These include laws in such areas as taxation, customs and immigration, transport, public safety, health, environment and planning. Legislation in these fields is properly the responsibility of the relevant government departments and not of the department responsible for tourism. However, it is appropriate that the tourism sector should have a consultative role into those aspects of legislation in other fields which impact on tourism National laws of local application in support of tourism development, including recently passed laws creating tourism zones and supporting institutions, further support the development of ecotourism activities and products in PAs. The more pertinent are the SEP law (RA 7611) and the Tourism Zones Declaration laws (RA 9444 and 9445). The SEP law provides for Ecologically Critical Area Network (ECAN) zoning that aims to protect, develop and conserve the natural resources of the province of Palawan. The law defines ECAN zoning as a system of classifying land and aquatic/marine resources in accordance with their important ecological features, vulnerability, present conditions and management requirement. ECAN zoning involves the establishment of a graded system of protection and management covering the whole of Palawan including its tribal lands, forests, mines, agricultural areas, settlement areas, small islands, mangroves, coral reefs, seagrass beds and the surrounding areas. ECAN zoning also includes the provision of areas for tourism and recreation. In effect, the ECAN zones clearly define and delineate areas suitable for ecotourism development. One of the main challenges of the DOT is that it lost its regulatory mandate in the industry when the Local Government Code was implemented in 1991. Licensing of tourism businesses was transferred to the local government units which do not have the required skills for regulating the industry. 14.2.3 Environmental Legislation Pertinent to Tourism Development Protected Areas Almost all of the ecotourism destination sites in Central Philippines are located within areas declared as Protected Areas (PAs) under the NIPAS Act (RA 7586). Implementation of this Act (passed in 1992) is the responsibility of the DENR – PAWB. The law aims to protect outstanding and biologically important public lands that are habitat to rare and endangered species of plants and animals. It has established different categories of protected areas to include: strict nature reserves, national parks, national monuments, wildlife sanctuaries, protected landscapes and seascapes, resource reserves, national biotic areas and other categories established by law, convention or international agreements to which the Philippine Government is a signatory. In addition Congress can enact laws declaring certain areas as Tourism Zones. Development Issues A number of institutional issues constrain tourism development at local level: Tasked to manage the protected areas under the NIPAS Act are the Protected Areas Management Boards (PAMBs), membership of which includes DENR, other government and local government units, and local community members. To carry out this mandate PAMBs are responsile for the formulation of protected area management plans (GMPs) that serve as blueprints for sustainable development and protection of the PAs. To complement the NIPAS Act, two other environment laws were passed in 2001. The Wildlife Act (RA 9147), which was passed to regulate the collection and trade of wildlife species. During the same year, the National Caves and Cave Resources Management and Protection Act (RA 9072) was also passed to conserve, protect and manage caves and cave resources as part of natural wealth of the country. PAMBs in many PAs are weak and ineffective in making policies, decisions and in coordinating efforts to protect and manage the PAs. About half of the designated PAs still do not have their respective PAMBs established. Thus, there is no governing body at the local level to oversee the protection and management of PAs. The vast majority of PAMBs do not have General Management Plans (GMPs) either because of lack of resources to undertake them or failure by the PAMB to approve them. The net effect is that none of the PAs have approved GMPs. The absence of approved plans and/or unclear management zoning of PAs serves to deter tourism development. Poor enforcement of environmental management laws has led to the degradation of natural attractions such as coral reefs, mangrove cover, terrestrial and marine wildlife. Many tourism destination sites may lose their touristic appeal in the near future if the present pace of degradation continues. Policy and Guidelines on Ecotourism Development 14.3 Ecotourism development in Protected Areas received further support from Government with the passage of Executive Order No. 111 (Ecotourism Development) in 1999. This law mandated the preparation of a National Ecotourism Strategy (NES) to provide an integrated management plan for the development of Ecotourism. The NES was published in 2002. SKILLS TRAINING NEEDS AND HRD FACILITIES The principal objective of a tourism HRD policy is to ensure that: The necessary numbers of trained people are available when and where required Their skills standards are competitive within the ASEAN region and internationally recognized, and A clear career path is established for young entrants to the tourism industry. For education and training institutions, the main challenge is the inability to comply with the requirements of an upgraded technical skills program to meet the standards of a quality-assured assessment and certification program in tourism. 14.3.4 Training Needs The tourism work force acquires education and training through four modalities: 14.3.1 Sector employment Based on the NSO Labour Force Survey of 2005, we estimate that 191,000 people are employed in the Hotel and Restaurant sector in the Central Philippines. Making allowance for those employed in tourism services, facilities and attractions, our estimate of total tourism employment in the Super Region is about 350,000 jobs. 14.3.2 Skill Levels and Service Standards We have categorized the training needs into three sectors: local government sector, the private sector and educational/training institutions. Their respective training needs and capability development requirements are as follows: In the smaller properties, the critical area is inadequate managerial expertise. Among the rank-and-file and front-liners, a number of deficiencies are noted in language and communication skills, inadequate technical skills and poor work attitudes. Local Government: Destination planning and management Destination marketing and promotion Environmental management Heritage and cultural preservation Strengthening institution-building/linkages. In the government sector, many officers and staff of the LGUs lack formal education and skills training in tourism-related subjects and competencies. 14.3.3 HRD Facilities Private Sector: Enterprise management and marketing Product development of local handicrafts and quality control Vocational skills training (table waiting, front-desk etc) Tour guiding Home-stay Locations where the full range of education and training facilities for tourism are provided are shown on Table 14.2 Table 14.2: Education and Training Facilities in Central Philippines Region Palawan Bicol Western Visayas Central Visayas Eastern Visayas Institution/Facility Palawan State University TESDA Training Centers Aquinas University Mariners Polytechnic Colleges TESDA Training Centers St. Paul‟s University University of San Agustin Central Philippines University La Consolacion College De La Salle College TESDA Training Centers University of San Jose - Recoletos University of Cebu San Carlos University TESDA Training Center TESDA Training Center Leyte Normal University TESDA Training Center Location Puerto Princesa Puerto Princesa Legazpi City Legazpi City Legazpi City Iloilo City Iloilo City Iloilo City Bacolod City Bacolod City Iloilo/Bacolod Cebu City Cebu City Cebu City Cebu City Tagbilaran City Tacloban City Tacloban City Four-year programs known as Formal Education Two-year Voc-Tech courses or diplomas referred to as Semi-formal Training Short-term interventions as in On-the-Job training known as Non-formal or OJT Trade association short training modules conducted on an ad-hoc basis. Education and Training Institutions: Capability-building on program registration, institutional accreditation, assessment and certification Upgrading of training facilities and equipment Faculty-upgrading programs 14.4 BUSINESS ENVIRONMENT Compared with other countries, the Philippines has a less than friendly business environment. According to the results of a World Bank survey undertaken in 2007, the Philippines ranks 133rd out of 178 economies surveyed with regard to the ease of doing business. The issues covered in the survey included starting a business, registering property, getting credit, enforcing contracts, employing workers - all of which affect the tourism sector. - 15. SECTOR MANAGEMENT 15.1 POLICIES, PLANNING AND RESEARCH - 15.1.1 National Tourism Policy and Plans - Enhance social benefits from tourism development Conserve, preserve, and restore cultural and historical sites, monuments and landmarks Strengthen research and development on environment, social and cultural concerns Undertake advocacy and capacity building for tourism stakeholders on protection and preservation of natural and cultural resources National tourism policy is stated as being to: Promote sustainable tourism development that maximizes socio-economic contribution, instills pride in and respect for culture and heritage, is gender-sensitive, conserves the environment, and fosters partnership among stakeholders towards a resilient and competitive industry. This is seen to be realized through the policy objectives of: increasing international tourist arrivals and domestic trips spreading the benefits of tourism to rural areas in order to reduce regional imbalances, improve access to infrastructure, and alleviate poverty institutionalizing public-private sector partnership in planning and development of tourism at the national and local levels strengthening the capability of local government units to undertake mandated tourism functions developing and maintaining a flexible tourism organizational structure responsive to current and future needs working towards the adoption of the National Tourism Action Plan (NTAP) by national and local governments To achieve these policy objectives a number of sectoral strategies and programs have been elaborated in The National Tourism Action Plan, 2004-2010, covering Transportation and Infrastructure - Improve air/sea access to the Philippines - Continue liberalizing civil aviation to expand air seat capacity/frequency within the Philippines as well as between the Philippines and source markets - Promote seamless travel to and from tourism gateways and satellite destinations - Develop related infrastructure to tourism Marketing and Product Development - Enhance the Philippines‟ image as a safe, secure and tourist-friendly destination - Pursue a focused promotion in existing and potential tourist markets - Synchronize public and private sectors‟ marketing and promotional efforts - Undertake product development for a quality tourism experience while preserving and protecting the environment, culture, heritage and host communities Environment, Social, Cultural - Conserve and protect the national, physical, and ecological resources Investments and Economics - Encourage investment in existing and new tourism enterprises through tourism enterprise/economic zones, rationalization of incentives for tourism projects and continued investment liberalization - Promote greater involvement of local communities in tourism Institution Building and Human Resource Development - Institutionalize public-private sector partnerships in the formulation, implementation and monitoring of the NTAP - Strengthen the management capacity for tourism development and promotion National Tourism Master Plan The Tourism Master Plan of the Philippines (1990 – 2010) was formulated in 1990 to guide the development of the tourism industry in the country, the main goals being to: optimize the contribution of tourism to economic growth at national and regional levels enhance and contribute to social cohesion and cultural preservation at local level develop tourism on an environmentally sustainable basis, and develop a diversity of destinations, attractions and markets to minimize exposure to major internal and external threats to tourism activity The strategies to attain the TMP objectives were identified as being to: adopt a cluster development approach based on the establishment of three main international gateways and associated satellite destinations adopt a niche/mass market approach based on a diverse mix of special interest, vacation resort, convention, exhibition, touring and incentive travel products, and work towards a balance of development between foreign and domestic tourism Regional Tourism Plans From the mid-1990‟s the DOT encouraged and supported the formulation of regional tourism master plans which were envisioned to be „blueprints‟ for the development of the regional destinations. In addition to these regional plans, site specific tourism master plans have also been formulated. Research and Statistics Reliable research and statistics are a major weakness of the tourism industry. Although actions are being taken to improve the quantity and quality of data collected by the DOT and local government units, major efforts will still be necessary in order to develop a consistent and reliable database. Currently there is no reliable database on characteristics of tourists from the different source markets (what they do, length of stay, how much they spend, etc) inventory of resources (how many hotels, rooms, location, standards, etc) utilization of resources (occupancy rates, bednights sold in different forms of „paid‟ accommodation by source market etc) profiles of main international source markets – (size of markets, motivations, travel patterns, etc) profile of domestic market – (although partial survey undertaken in 2005, potential of market requires more comprehensive survey). 15.2 DESTINATION PROMOTION 15.2.1 National Marketing Department of Tourism (DOT) Tourism marketing is undertaken by the DOT and includes advertising, website development, production and distribution of collateral materials, participation in international travel fairs, publicity, invitationals and PR activities. The DOTs destination marketing activities have been re-structured, with dedicated teams focussing on particular source markets. The teams also provide the logistical support for market-based activities such as invitationals or familiarization tours for both media and the travel trade. Currently the teams are: Team Team Team Team North America Europe Korea Japan Team China Team India Team Asia-Pacific Overall, the DOT spends approximately US$3 million on national marketing. The Central Philippines features prominently in the DOTs marketing effort. The Central Philippines destinations featuring in the DOTs collateral material are mainly Boracay, Cebu, Bohol and Palawan. Local Government (LGUs) At provincial level not much more than the equivalent of US$5,000 is spent by individual LGUs on marketing on an annual basis. Private Sector Private Sector operators undertake their own individual promotions – ads in selected print media, their web sites, participation at international travel fares. It is interesting to note that there are very few inbound tour operators or ground tour operators interfacing (and promoting) between the Filipino product suppliers (hotels, resorts etc) and the foreign tour operators. 15.2.2 E-marketing and E-distribution To date, information technology has not been given sufficient priority either in terms of technical development or the development of in-house IT skills. This is illustrated by poor website development and maintenance. Various websites have been developed by the DOT, its organic units and attached agencies, which include the wowphilppines, visitmyphilippines and pcvc.com. The WOW Philippines Homepage is poorly presented (with many blank spaces), provides inadequate information (for example, none of the Central Philippines‟ golf courses are included on the list of golf courses) and difficult to navigate (Explore Philippines presents information on the attractions of the Philippines categorized by the various administrative regions and provinces. This is meaningless for international tourists, few of whom are familiar with the various administrative regions. Tourists want information on tourist destinations). The WOW Philippines UK, US and other sites, are also poorly presented and developed. Although these sites give a listing of tourist destinations – including Boracay, Cebu and Palawan - very little information is provided on facilities and attractions (no hotel listing provided, etc.). On the UK site, no information is provided on any tourist destinations, with the exception of Boracay. Figure 15.1: Screenshots of wowphilippines and visitmyphilippines websites. 15.2.3 Image and Destination Branding The WOW campaign, originally conceived to be applied across all markets, has been in operation for some 7 years. Recent thinking within the DOT is that the general application of the WOW campaign across all markets is no longer effective. The approach, now being implemented by the DOT through dedicated market teams, is to create market specific campaigns. 15.3 ENVIRONMENTAL MANAGEMENT For the last 15 years, a number of large-scale environmental management projects, aimed at protecting and conserving terrestrial and marine biodiversity and rehabilitating and enhancing coastal resources and habitats have been undertaken by government agencies in several parts of the country led by DENR and supported by international funding institutions. There are several on-going projects on coastal resources management being implemented by Government, led by the DENR, the main ones being: 15.3.2 Development Issues Most PAs have only tentative management zoning and general management plans that are still subject to review and approval by DENR. This situation makes it difficult for tourism development planning and project implementation because of the risk of conflicting land uses that may arise when the zoning and management plan is finalized by the DENR. Weak capability of LGUs in respect of planning and implementing environmental management programs such as CRM. Many municipalities do not have the capability to prepare and implement CRM plans. Poor compliance monitoring by DENR with regards to Environmental Compliance Certificate (ECC) requirements. Lack of manpower and funding by DENR to implement on-going environmental management programs. Unfortunately, the preparation of an environmental management plan does not guarantee protection and conservation of environment and natural resources because the DENR, in many cases, is not able to implement the plans or programs due to lack of funds and manpower. Overlaps in CRM functions between DENR, DA-BFAR and LGUs lead to confusion in the implementation of laws and programs on coastal resources management. Implementation of a number of CRMs is stalled because of unclear roles and responsibilities of DENR vis-a-vis DA-BFAR. Poor coordination between DENR and LGUs in the implementation of environmental policies and regulations oftentimes result in institutional inefficiencies and delays in program or project implementation. When DENR issues foreshore lease agreements without consultation with LGUs, confusion and misunderstanding occurs. When DENR declares protected areas without or with minimal consultation with LGUs and the local communities, resistance from stakeholders arise. Inadequate efforts by DENR, DA-BFAR and LGUs to regulate destructive uses of environment and natural resources. Examples of these potentially destructive activities which are poorly regulated are: reclamation and other non-suitable uses of foreshore lands; use of illegal fishing methods such as dynamite and cyanide fishing; and lack of enforcement of laws concerning the intrusion of commercial fishing into municipal waters. The more prominent programs were: National Integrated Protected Area Project (NIPAP 1995 – 2002) Conservation of Priority Protected Areas Project (CPPAP 1994 – 2003) Establishment of 91 Protected Areas Management Boards (PAMBs) to manage protected areas. Protected Area Plans have been prepared and an IPAS Trust Fund has been established. Many areas in Central Philippines were included in this program. 15.3.1 Management of Coastal Resources and Habitats Tourism in the Philippines is basically coastal-based. Having the concentration of tourism activities in coastal areas puts heavy pressure on coastal resources. Without proper management of coastal resources that serve as tourism attractions such as beaches, swimming waters, coral reefs, mangrove forests, fishes and marine wildlife, they can be easily degraded thereby undermining the raison d‟etre of tourism. Of course, tourism activities are not the only potential cause of coastal resource degradation. There are many interrelated causes, such as overfishing and destructive fishing methods, water pollution due to improper waste disposal among coastal villages, unplanned physical development along coastal areas and foreshore lands, and improper land uses. The DENR‟s programs and projects to protect, conserve and rehabilitate coastal resources are critical to sustaining revenues from ecotourism at destination sites. In coastal areas threatened by environmental degradation due to various causes, the DENR adopts the integrated coastal area management (ICRM) approach in the design of its programs and projects. This approach employs the participation of coastal communities and other stakeholders and involves resource inventory and assessment, community organisation, mangrove and coral reefs protection and rehabilitation, patrolling and law enforcement, and sustainable alternative livelihood projects. Integrated Coastal Resources Management (ICRM) (2007-2012) Camiguin Coastal Resource Management (CCRMP) (2006 – 2011) Mainstreaming Ecotourism in the Community-Based Natural Resources Management (Phase II of National Ecotourism Program, 2004 – 2008) Coastal Environment Program (CEP) Marine Mammal Conservation Program (MMCP) Program for Recovery of Threatened Species (PRTS) 15.4 Pollution of coastal waters and habitats due to lack of sewerage and solid waste management systems in coastal settlements and particularly coastal urban areas due to: pesticides runoff from upland agriculture; heavy metals from mining wastes; soil erosion and siltation coming from denuded watersheds and sloping agricultural lands. Pollution reduces the productivity of coastal ecosystems and their attractiveness for tourism. Poor enforcement of easement or salvage zones regulation by DENR. Easement areas are oftentimes violated and encroached upon by business operations (including tourism resorts) and occupied by squatters. Even foreshore lands with mangrove vegetation are known to have been cleared and used for building tourism resort structures and facilities. Encroachment of settlers and tourism facilities in protected areas. Upland settlers continue to encroach on protected areas and cultivate plots for agricultural crops. Some tourism developers manage to construct tourism facilities inside PAs because of the lack of approved management zoning in these areas. Illegal logging and wildlife hunting in some PAs remain difficult to control by DENR. Unless these illegal acts are effectively controlled, the ecological integrity and biodiversity of PAs are greatly threatened along with their tourism appeal. Poor monitoring and supervision of mountain climbing activities can result in degradation of trails and pollution of surroundings. Poor management of campsites etc., can lead to accelerated environmental deterioration. The lack of professional guides to properly supervise mountain climbers has created many serious problems in national parks. INVESTMENT PROMOTION Countries with a high dependency on tourism, particularly island destinations, usually have a range of investment incentives for tourism on a par with those for manufacturing industry, and a targeted promotional campaign to attract both foreign and domestic private sector tourism investment. Range of Incentives The range of incentives available to the tourism sector are outlined on Table 15.1 which also shows those available to manufacturing industry. Table 15.1: Fiscal Incentives for Tourism Investment Type of Incentive Economic Zones Guarantee Cover Tax Holidays Tourism Sector Manufacturing Industry Economic Zones: physical territory proclaimed by PEZA within which investors enjoy tax and other incentives (tax holidays, tax free importation of capital equipment etc). Although there are numerous economic zones for manufacturing industry, only Boracay Eco-Village Resort Tourism Economic Zone and Misibis Resorts and Estates have this status in the Central Philippines Guarantee Cover for private sector investment: This is a very attractive incentive which both TIDCORP and the PTA can provide to potential investors. Again, while such guarantees are extended to manufacturing enterprises, none have been made a available to tourism enterprises. Investment Promotion Campaigns There is little, if any, effort to mobilize private sector investment in tourism. PART III TOURISM PERFORMANCE 16. MARKET COMPETITIVENESS ..................................................... 17. DESTINATION AND PRODUCT COMPETITIVENESS.................. 18. CAPITAL INVESTMENT COMPETITIVENESS.............................. 19. KEY ISSUES CONSTRAINING DEVELOPMENT A number of conclusions can be drawn from Table 16.1. 16. MARKET COMPETITIVENESS Since consistently, about one-third (32%) of international tourist arrivals visit the Central Philippines on an annual basis, the competitive performance of this Super Region directly mirrors that of the Philippines as a whole. Competitiveness is a relative measure, describing a state which is better or worse than that of others. The acid test of competitive performance is market share. In broad terms, situations where the Philippines has maintained or increased market share can be interpreted as maintaining or improving competitiveness. Conversely, where the Philippines has lost or is losing market share, this can be taken as an indicator of loss of competitiveness. In this context, the gains or losses in competitiveness may be due to changes in product quality, standards of service, access, changing consumer trends, etc., and not just changes in relative prices. Market share performance can be addressed at a number of levels – globally, competitor grouping or individual source markets. 16.1 Global Market With approximately 846 million international tourist arrivals globally in 2006, the Philippines share is miniscule (less than half a percentage point). Competitor Grouping From a general perspective, the Philippines is in competition with every other tourist destination in the world. However, from a practical perspective, the Philippines is in competition with about a handful of destinations offering a similar type product in the region – destinations which tourists would generally regard as alternative options. So regarded, the selected destinations in the competitor grouping is unlikely to be misleading. Table 16.1: Philippines‟ Share of Competitor Grouping Market (ASEAN) Destination Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam All 2000 466 5,064 10,222 1,992 (5.3%) 7,810 9,579 2,140 37,273 Source: WTO, ASEAN and National Tourism Authorities international tourist arrivals to ASEAN in 2006 have recovered sharply following the downturn in 2005 to Indonesia and Thailand because of the tragic impact of the tsunami in December 2004 and the bombings in Bali in 2005. the underlying growth rate of international tourist arrivals to ASEAN (the Philippines‟ competitor grouping) is about 6.5% yearly the Philippines‟ market share is about 5% within a period of 6 years, international tourist arrivals to Vietnam is over 25% higher than to the Philippines, both countries having started from approximately the same base in 2000. INTERNATIONAL TOURISM RECEIPTS Global Market According to the World Tourism Organisation, international tourism receipts were estimated at approximately US$733 billion in 2006. In the same year, international tourists spent US$2.3 billion in the Philippines, representing 0.3% of the total. INTERNATIONAL TOURIST ARRIVALS Numbers (000s) and Share % 2002 2004 2005 787 1,055 1,422 4,913 5,321 5,000 13,292 15,703 16,403 1,933 2,291 2,623 (4.6%) (4.9%) (5.3%) 7,640 8,375 8,940 10,799 11,737 11,516 2,628 2,628 3,468 41,992 47,110 49,372 16.2 2006 1,700 4,800 17,550 2,840 (5.2) 9,750 13,820 3,600 54,060 Competitor Grouping As shown on Table 16.2, international tourism receipts to the Philippines competitor grouping were estimated at just over US$ 34 billion in 2005. Over the five year period to 2005, earnings by the Philippines from international tourism have increased by less than 5%. Table 16.2: Philippines‟ Share of International Tourism Receipts to ASEAN Competitor Grouping Destination Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam All Tourism Receipts (US$ M) 2000 2002 2005 304 603 840 4,975 4,798 4,521 5.011 8,198 8,543 2,134 2,017 2,236 5,142 5,219 5,740 7,483 10,034 10,108 1,390 1,750 2,220 26,439 32,619 34,208 Source: WTO and National Tourism Authorities Market Share (%) 2000 2004 2005 1.0 1.8 2.5 19.0 14.7 13.0 19.0 25.1 25.0 8.0 6.1 6.5 19.0 16.0 17.0 28.0 30.8 30.0 5.0 5.4 6.5 100 100 100 Although unaffected by the tsunami tragedy and terrorist activities (affecting Indonesia in particular), the Philippines has lost market share since 2000. With the recovery of tourism in last eighteen months to ASEAN destinations, the Philippines is likely to have lost further market share. Figure 16.1: Tourism Receipts (US$ Billion) 2000 - 2005 2005 Vietnam 2000 Thailand Singapore Philippines Malaysia Indonesia Cambodia 0 2 4 6 8 10 12 17. DESTINATION AND PRODUCT COMPETITIVENESS As described previously in Ch 7, a number of elements make up a competitive tourism product - the key ones being: direct and frequent access range of good accommodation and high standards of service variety of attractions, things-to-do-and-see high quality infrastructure - roads, utilities etc relative prices and value -for-money As it is impossible to make a comparative assessment of all types of products in all destinations, we have compared the Central Philippines‟ top destination, Cebu, with that of Thailand‟s, Phuket, under these key elements. The findings are: Cebu has 72 direct flights per week from 9 unique destinations, versus Phuket‟s 282 flights from 10 unique destinations In terms of 5* accommodation, Cebu has 3 properties with 1,100 rooms versus Phuket‟s 20 properties and 3,000 rooms In terms of 4* accommodation, Cebu has 16 properties with about 1,860 rooms versus Phuket‟s 61 properties and 12,500 rooms Phuket has considerably more international hotel brands - 10 major brands compared to Cebu‟s 3 Phuket has better quality and wider range of attractions - 7 championship golf course versus 2 in Cebu In terms of infrastructure and utilities, nearly all of Phuket has access to potable water while only about 40% of Cebu‟s population has Based on asiarooms.com classifications and quoted tariffs, Phuket resorts and hotels appear to offer better value for money. Table 18.2: FDI and International Tourism Receipts US$M, 2000 - 2005 18. CAPITAL INVESTMENT COMPETITIVENESS US$M Investment is fundamental to growth, whether at national, regional or company level. 18.1 Country Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam Total NATIONAL CONTEXT Gross Capital Formation is a measure of the extent to which new investments in infrastructure, factories, technology, hotels etc. is taking place in the economy. On the basis of published national statistics, the rate at which new investment was taking place in the Filipino economy in 2005 was lower than five years earlier, as shown on the following table. Table 18.1: Gross Capital Formation, 2000 - 2005 Foreign Direct (US$M) Investment 2000 2005 150.0 380.0 4,550.0 5,300.0 3,800.0 4,000.0 2,200.0 1,100.0 16,500.0 20,100.0 3,400.0 4,500.0 1,300.0 2,000.0 31,900.0 37,380.0 International Tourism Receipts US$M 2000 2005 304.0 840.0 4,975.0 4,521.0 5,011.0 8,543.0 2,134.0 2,236.0 5.142.0 5,740.0 7,483.0 10,108.0 1.390.0 2,220.0 26,439.0 34,102.0 Source: World Bank Data Market prices Constant prices US$ Billion 2000 2005 16.8 14.5 16.8 10.8 % GDP 2000 2005 21.2 15.1 In contrast and with the exception of Indonesia which was affected by the tsunami tragedy and terrorist activities, increasing flows of direct foreign investment have been associated with increasing tourism receipts in the Philippines‟ main competitor destinations. Source: World Bank and National Statistics When the effects of inflation are discounted, the rate of new investment taking place in the economy in 2005 was about two-thirds of the rate of five years earlier. By contrast, Gross Capital Formation as a proportion of GDP is 31.6% in Thailand and 35% in Vietnam. 18.2 18.3 TOURISM DIRECT FOREIGN INVESTMENT IN CENTRAL PHILIPPINES Foreign Direct Investment in the tourism sector has been extremely limited due to: FOREIGN DIRECT INVESTMENT AND TOURISM Restrictions on land ownership by foreigners Foreign direct investment (FDI) plays an increasingly important role in the global economy and has a significant impact on the domestic economy and its tourism industry. Lack of clarity concerning development policies for tourism purposes, particularly in protected areas Local government units (LGUs) have little experience in the management of tourism The Philippines is a difficult place to do business in. In a recent World Bank survey4 on the extent to which a country‟s policies, regulations, procedures etc., are considered „business friendly‟, the Philippines is ranked 133rd out of the 178 countries surveyed . A recently published study3 analysing the link between FDI and tourism in the host country found empirical evidence supporting the view that increasing FDI is associated with increasing international tourism. The study also found evidence that the direction of the causality is one way - from FDI to tourism, - and not the other way round. As shown on Table 18.2, FDI to the Philippines declined by 50% over the five year period 2000 to 2005 and was associated with static earnings from international tourism. 3 The relationship between Foreign Direct Investment and Tourism: Empirical Evidence from China; Tang, Selvarthan et al, Tourism Economics, March, 2007 4 World Bank Competitiveness Survey, 2006 PART IV THE WAY FORWARD – VISION AND PLANNING FRAMEWORK 20. TOURISM VISION 2016 AND DEVELOPMENT CONCEPT .......... 21. FRAMEWORK FOR TOURISM PLANNING .................................. 22. TOURISM CLUSTERS AND STRATEGIC DESTINATION AREAS ........................................................................................... 20. VISION 2016 AND DEVELOPMENT CONCEPT President Gloria Macapagal-Arroyo first unveiled the concept of “super regions” in the Philippines in her 2006 State-of-the-Nation-Address (SONA), noting the importance of grouping selected regions and provinces by their economic strengthens to stimulate economic growth and development and “make the country in step with the rest of its Asian neighbours”. The Central Philippines Super Region is envisioned to be the premier tourist destination on account of its range of natural attractions which include long white beaches, rich coastal and marine resources, vast forest reserves and diverse ecosystems, varied provincial cultures, historical landmarks and warm and friendly people. 20.1 THE VISION Based on consultations with provincial tourism officers, planners, and representatives from the tourism industry throughout Central Philippines, a vision statement was formulated: “The Central Philippines will be a significant destination that offers direct international access, seamless interconnectivity, world-class tourist facilities and products that meets the demands of tomorrow‟s tourist. The Central Philippines will achieve these through the sustainable development of tourism products, environmental protection and enhancement, underpinned by adequate infrastructure with rational management of the destinations, capacity building, investment promotion and effective marketing and an improved business environment”. Figure 20.1: Ideal Tourism Destination in Central Philippines 20.2 THE CHALLENGE key Making this vision for tourism development a reality by 2016, means putting in place the factors which create tourism destination, viz. Direct International Access – Presently, the Central Philippines only has the Mactan-Cebu International Airport in Metro Cebu with regular flights from abroad. Kalibo in Aklan and Puerto Princesa in Palawan are designated alternate international airports. Having more international flights to more international gateways will open up more destinations in Central Philippines. Seamless Interconnectivity – Having over two thousand islands instead of a contiguous land mass is the access transport challenge. This will be met by the development of a seamless interconnected transport network consisting of interconnected roads, airports and seaports and Roll-On Roll-Off (RO RO) seaports to facilitate fast and efficient inter-island travel. World Class Facilities and Products – Although there are a number of world class facilities and products in the region, they are located either near big cities such as Metro Cebu or widely dispersed as in Northern Palawan. Moreover, there is insufficient product and facilities. The aim is to develop world class integrated resorts and facilities in a number of tourism areas throughout the region, capable of being promoted as stand-alone destinations in the market place. These destinations areas will have their own character and provide a variety of things tosee-and-do. A range of accommodation will be provided, from large scale resorts to boutique hotels and individual guest houses. Sustainable Tourism Product Development – Sustainable development will allow development to take place without degrading or depleting the resources which make their development possible. It means that the natural, cultural and other tourism resources are conserved and enhanced for continuous use in the future, while at the same time, benefiting society. Capacity Building – The main beneficiaries from any tourism activity must be the local communities where the tourism activity takes place. Tourism must provide employment and livelihood opportunities to local people. Human resource development means providing the local governments and communities with knowledge and skills to manage their tourism resources to their benefit. Infrastructure Development to Attract Investment – Many areas have infrastructure „gaps‟ in respect of not just transport-related infrastructure but also utility systems such as clean water supply, power generation, sewage treatment and solid waste management. Closing these infrastructure „gaps‟ is a necessary pre-condition to attracting private sector investment to the tourism sector. Marketing Connectivity – Increased demand, in tourism as well as in any other industry, cannot rely solely on having a product of the right kind and quality, on a market-led pricing policy and on an effective distribution network. What is also essential is systematic promotion to potential tourists and trade intermediaries (tour operators, travel agents) bridging the gap between the tourism product supplier (the hotelier, resort) and the potential visitor. Improved Business Environment – Currently it is difficult to do business. Regulations are very bureaucratic; restrictions on foreign ownership discourages direct foreign investment; uncertainty with regard to the status of PAMB plans also constrains investment. Improving the business environment will involve addressing these issues along with providing greater incentives to attract investment. 20.3 THE DEVELOPMENT CONCEPT To give coherence to the overall planning, management and promotion of the Central Philippines Super Region, a development concept is proposed that is based on five key fundamentals: designation of Strategic Destination Areas (SDAs) within the Super Region access through strategically located international gateways linkages through an intermodal transport system development of differentiated destination product experiences destination branding rather than regional marketing. Lessons from Experience Elsewhere The Central Philippines is clearly unique and cannot be compared with anywhere else in the world. However, from the development concept standpoint, there are analogies with Caribbean tourism. The Caribbean is composed of some 33 independent island destinations, almost all are highly dependent on tourism. Not every island has international access and transport linkages between the various islands can be expensive and time consuming. Moreover, the islands have a similar basic product - sea, sun, sand. Tourism growth to the Caribbean has been impressive over the last two decades. Key to this growth has been: international access to most islands differentiation - each island promoting a unique image attraction of direct foreign investment product development - wider range of product offering (golf, cruise, yachting, etc) - higher quality product (world class resorts with international brands such as Four Seasons, Six Senses). 21. FRAMEWORK FOR TOURISM PLANNING 21.1 Camiguin Island and Siargao Island did not meet the criteria for TDCs, they were designated Tourism Development Areas. PLANNING CONCEPTS The planning concepts used to elaborate the vision for the development of the Central Philippines Super Region are: (i) (ii) (iii) (iv) TOURISM CLUSTER Tourism Sites (TSs) Tourism Development Clusters (TDCs), Tourism Development Areas, (TDAs) and Strategic Destination Areas (SDAs). GATEWAY TO TOURISM CLUSTER 21.1.1 Tourism Sites (TS) Tourism Sites are the specific places which tourists come to see and experience. A Tourism Site may be an existing natural attraction (volcano); an area of natural scenic beauty (national park); or man-made attraction (heritage structure, beach/golf resort). A TS can also be a site or area for potential development or enhancement for tourism such as a greenfield site for a new resort, or a coastal area which could be designated as a marine park. Tourism Sites may be grouped together for development and/or marketing purposes either because of their geographical proximity or product type. TOURISM SITE Table: 21.1: Composition of Tourism Development Clusters As part of the study fieldwork, a large number of Tourism Sites (TSs) were identified. These TSs comprise significant natural and cultural heritage sites, areas of attractive landscape, areas where activities take place and key sites for tourism development. 21.1.2 Tourism Development Clusters (TDCs) The criteria used to identify and delineate the tourism clusters were: existence of a sufficient number and range of tourism sites (TSs) with capacity to meet long term development possibilities topographical features; contiguousness of land masses geographical size – large enough to contain extensive range of potential tourism products/experiences location of „gateway‟ centres and cities location of significant brand/unique features and/or „world class‟ attractions robust, sustainable environmental base access transport linkages/connectivity. The application of these criteria resulted in the designation of nine Tourism Development Clusters, as illustrated on the following map. As Dapitan City, Cluster Ref Cluster 1 Cluster 2 Designation Provinces/Cities Cluster 3 Cluster 4 Cluster 5 Cluster 6 North Panay – Romblon South Panay – Negros Occidental Cebu Island Bohol Island Negros Oriental – Siquijor Leyte – Samar Cluster 7 Bicol Cluster 8 Cluster 9 North Palawan South Palawan Aklan, Romblon, Antique Iloilo, Negros Occidental, Guimaras, Antique, Capiz Cebu, Cebu City Bohol Negros Oriental, Siquijor Leyte, Southern Leyte, Samar, Biliran, Northern Samar, Eastern Samar Camarines, Norte & Sur, Albay, Sorsogon North Palawan, Puerto Princesa South Palawan, Puerto Princesa Gateway Kalibo, Caticlan Iloilo, Bacolod Cebu Tagbilaran Dumaguete Tacloban Legazpi Puerto Princesa Puerto Princesa 21.1.3 Tourism Development Areas (TDAs) A Tourism Development Area consists of at least one, but more usually several Tourism Sites (TSs). A TDA can either have considerable existing tourism activity or have the potential for significant tourism development. By virtue of a combination of attractions, facilities and amenities which meet tourists‟ interests and needs, TDAs provide the operational focus for the development of tourism within the various Tourism Development Clusters. Although TDAs are not limited by geographical size, their boundaries correspond to administrative units – barangay, municipality or province, depending on size. From this evaluation exercise, 18 TDAs were designated priority TDAs as having significant development potential in the short/medium term. Table 21.2: Identified Tourism Development Areas (TDAs) Cluster Cluster 1 The North Panay – Romblon The criteria for the designation of the TDAs were: topography natural attractions/environment access transport linkages/connectivity range of things-to-see-and-do existence of infrastructure spatial relationships of the various TSs. Using the above criteria some 47 TDAs were identified. Cluster 2 The South Panay – Negros Occidental Cluster 3: Cebu Island Cluster 4: Bohol Island Priority TDAs It is acknowledged that some of the TDAs will take many years to develop for a variety of reasons – infrastructure gaps, inadequate connectivity etc. Recognising this, the TDAs were evaluated in order to determine the strongest to take forward to the strategic level, the key criteria being: market attractiveness environmental quality and its sustainability potential for product development quality of infrastructure quality of connectivity availability of land for development carrying capacity of TSs. Cluster 5: The Negros Oriental - Siquijor Cluster 6 Leyte - Samar Cluster 7 Bicol Cluster 8 North Palawan Cluster 9 South Palawan North Mindanao TDA Refr 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 5.1 5.2 5.3 6.1 6.2 6.3 6.4 6.5 6.6 7.1 7.2 7.3 7.4 7.5 7.6 7.7 8.1 8.2 8.3 9.1 9.2 9.3 10.0 11.0 12.0 Province Aklan Romblon Romblon Romblon Romblon Romblon Antique Iloilo and Guimaras Negros Occidental Negros Occidental Negros Occidental Iloilo Negros Occidental Iloilo and Antique Cebu Cebu Cebu Cebu Cebu Bohol Bohol Bohol Negros Oriental Siquijor Negros Oriental Eastern Samar Western Leyte Leyte & Biliran Eastern Samar Southern Leyte Northern Samar Camarines Norte Camarines Sur Camarines Sur Camarines Sur Camarines Sur Albay & Sorsogon Sorsogon Palawan Palawan Palawan Palawan Palawan Palawan Zamboanga del Norte Camiguin Surigao del Norte Cities/Municipalities/Islands Boracay Island and Caticlan Carabao Island (San Jose) Looc-Alcantara-Santa Fe, Tablas Island Northeast Tablas Island Romblon Island Sibuyan Island Pandan – Culasi – Tiblao Metro Iloilo and Guimaras island Bacolod City – Silay City Northeast Coast Area. Mount Kanlaon & Northern Negros Forest Reserve Northeast Panay Area, Southern Area of Negros Occidental Southern Area of Iloilo and Antique Metro Cebu, Mactan Island and Olango Island Sogod Bantayan Island and Malapascua Island Camotes Islands Southern Area of Cebu Tagbilaran City, Panglao Island Jagna to Anda (Southeast) Tubigon to Jetafe (Northwest) Dumaguete – Sibulan – Tambobo Bay Siquijor Island Bais Bay Area Guiuan Area Ormoc Area North Leyte – Biliran Area Southeastern Samar Island Sogod Bay Area Catarman – Allen Area Daet – San Miguel Bay Area Naga City – Pili Area Sabang – Sagnay Area Caramoan Peninsula Iriga City Area Albay – Sorsogon Area Southern Sorsogon Area Calamianes Islands El Nido – Taytay Area San Vicente – Roxas Area Puerto Princesa City Quezon, Aborlan, Brooke‟s Point Balabac Islands Dapitan Camiguin Island Siargao Island Priority TDAs 65 21.1.4 Strategic Destination Areas To ensure that TDAs with the highest ratings have an environment conducive to rational development and growth, the priority TDAs adjacent to each other were grouped to form Strategic Destination Areas (SDAs) within their respective clusters. The criteria used to identify the Strategic Destinations Areas (SDAs) were: critical mass of attractions, facilities and services in the area capacity of environment to sustain tourism development capability of direct accessibility from key source markets diversity of product offer in a way that can be promoted to different niche markets, thereby facilitating product/branding area geographically large enough to allow different forms of tourist development to co-exist, for example including particular areas for nature tourism only, other areas for more intensive use capable of being promoted as „stand alone‟ destination in the market place. Significant potential linkages with adjacent SDAs and TDAs. Significant private sector interest. Potential for direct international air access services Environmental risk posed by further development. SDAs with ratings above a cut-off point were designaed Priority SDAs while those that didn‟t reach this cut-off point were designated Emerging SDAs. The priority SDAs are the areas which offer the best tourism potential in the short/medium term. This does not mean that development will not take place outside of these SDAs. It will. But in a situation of limited resources, the priority SDAs are the areas where it is considered that investment will be most productive and give the best rate of return. The five Priority SDAs and their ranking are: Strategic Destination Area C – Cebu/Sogod - Ranked 1st TDA 3.1 (Metro Cebu), TDA 3.2 (Sogod), & TDA 3.3 (North Islands) Eight SDAs were identified for the Central Philippines. Strategic Destination Area A – Boracay and Carabao - Ranked 2nd TDA 1.1 (Boracay Island) & TDA 1.2 (Carabao Island) Priority SDAs Strategic Destination Area D – Bohol - Ranked 3rd TDA 4.1 (Tagbilaran-Panglao), TDA 4.2 (Jagna to Anda), & TDA 4.3 (Tubigon to Jetafe) As both public and private resources for investment in infrastructure, resort development etc., are limited, these SDAs are likely to compete for resources in the short/medium term. Consequently, the eight SDAs were evaluated and prioritized. Strategic Destination Area H – Northern Palawan - Ranked 4th TDA 8.2 (El Nido – Taytay), TDA 8.3 (San Vicente – Roxas Area) & TDA 9.1 (Puerto Princesa) Strategic Destination Area B – Iloilo/Guimaras/Negros Occ - Ranked 5th TDA 2.1 (Metro-Iloilo-Guimaras), TDA 2.2 (Bacolod-Silay), TDA 2.3 (The Northeast Coast), & TDA 2.4 (Mount Kanlaon) The three Emerging SDAs are: Strategic Destination Area E – Dumaguete - Ranked 1st TDA 5.1 (Dumaguete-Sibulan-Tambobo Bay), TDA 5.2 (Jagna to Anda) & TDA 5.3 (Bais Bay Area) Strategic Destination Area G – Bicol - Ranked 2nd TDA 7.2 (Naga City – Pili Area), TDA 7.5 (Iriga City Area), TDA 7.6 (Albat – Sorsogon Area) Strategic Destination Area F – Samar - Ranked 3rd TDA 6.1 (Samar – Leyte Interface) & TDA 6.4 (Southeastern Samar) The criteria used for evaluating the SDAs were as follows: Significant existing tourism base. Significant market potential in the short and medium term. 22. TOURISM CLUSTERS AND STRATEGIC DESTINATION AREAS 22.1 CLUSTER 1: THE NORTH PANAY – ROMBLON CLUSTER TDA 1.1 Boracay Island and Caticlan (also the rest of Malay and Nabas municipalities), Aklan Province World renowned for its white sand beach, Boracay Island will continue to be the primary destination of Cluster 1. With its current stock of 4,000 rooms, more rooms are expected to be added in the next three years, including 300 up-market rooms in the new Shangri-La Hotel. The development of the Shangri-La Hotel in the north western tip of Boracay Island further establishes this portion (same area where Fairways & Bluewater resort is located) as the luxury section of the island. Smaller hotels in the more congested portion of White Beach (middle portion) will need improvements to maintain standards. The central part of Boracay Island needs upgrading through consolidation of small lots to allow larger and higher quality hotel developments. The Boracay Foundation and the local government will be responsible for enforcing development guidelines. Improving environmental management (sewage treatment, solid waste management, control of noise and air pollution from vehicle emissions) to sustain tourism activities and businesses on the island is a priority. Boracay Island continues to attract investment and it is anticipated that tourism developments will spread to areas such as mainland Aklan (municipalities of Malay and Nabas). However, as yet, no new tourism developments have taken place there. TDA 1.2 Carabao Island (San Jose Municipality), Romblon Province The beaches at Carabao Island are a close second in terms of quality to those on Boracay Island. However, accessibility is very poor, thus constraining development. Visitors to the island are generally day trippers from Boracay. The prospect of a new airport in Carabao Island capable of handling medium-haul aircraft (B737-400) opens-up the possibility of significant tourism development. TDA 1.3 Looc-Alcantara-Santa Fe, Tablas Island, Romblon Province Close to the town of Looc is a 48 hectare coral reef protected area known as the Looc Bay Marine Refuge and Sanctuary which offers good snorkelling. A second site, just a short distance north of the Looc Bay Marine Refuge and Sanctuary, is Buenavista Marine Sanctuary. The municipality of Santa Fe at the southern tip of Tablas Island is a gateway point to Boracay, Caticlan and Carabao islands. Santa Fe could also function as a gateway to Tablas Island if an airport is constructed on Carabao Island. TDA 1.4 Northeast Tablas Island, San Agustin, Tablas Island, Romblon Province The town of San Agustin, which is set amidst rugged mountains, has a port with boat connections to Romblon Island. Aside from the Dubduban Busay Waterfalls, the surrounding waters are good for fishing and yachting. The main seaport of Tablas Island is in Odiongan. The Odiongan seaport has ferry connections to Batangas City on Luzon Island and also to Boracay Island. TDA 1.5 Romblon Island, Romblon Province Romblon town is the capital of Romblon Province and has a seaport with ferryboat services to and from Metro Manila. The seaport also has ferry connections to Lucena City in Luzon and Cebu City in Cebu. There are regular boat services between the three main islands of Romblon Province. There are also regular boat services to and from remote Banton Island on the north. Romblon Island is a nature and adventure destination but is also known for its patrimony – historical churches, old Spanish forts, etc. TDA 1.6 Sibuyan Island, Romblon Province Sibuyan Island is a nature and adventure tourist destination. It has the Mount Guiting-Guiting mountain range (2,058 meters at its highest elevation), waterfalls and clear rivers. The Mount Guiting-Guiting Natural Park has some of the best preserved forests in the Philippines containing diverse flora and fauna. Sibuyan Island has a port in Magdiwang with ferry connections to Lucena City on Luzon and Cebu City in Cebu. TDA 1.7 Pandan – Culasi – Tibiao Area, Antique Province This area in the province of Antique has become an add-on attraction offered to Boracay visitors, particularly white water rafting in Tibiao River. This TDA is accessible from Manila via the Caticlan Airport in Malay, Aklan (or even Kalibo Airport) rather than through the Iloilo Airport. Flights to the airport at the Provincial Capital, San Jose de Buenavista from Manila have been discontinued for over a year now. Determination of Cluster 1 Strategic Destination Area The TDAs were assessed according to the criteria described in Chapter 21, Framework for Tourism Planning, and the strongest (TDA 1.1 & TDA 1.2) selected to form the Strategic Destination Area (SDA-A) within this cluster. 22.2 CLUSTER 2: THE SOUTH PANAY – NEGROS OCCIDENTAL CLUSTER A number of the TDAs in the South Panay – Negros Occidental Cluster have good linkages with TDA 1 (North Panay) and TDA 3 (Negros Oriental). TDA 2.1 Metropolitan Iloilo - Guimaras, Iloilo and Guimaras Provinces Metropolitan Iloilo is the main hub of Cluster 2 as it has a new airport in the nearby municipalities of Santa Barbara and Cabatuan and a seaport that has good connections to Jordan in Guimaras and Bacolod City in Negros Occidental. Its current inventory of hotels and the new airport makes it a service centre for tourist attractions in the cluster. The nearby province of Guimaras has considerable tourism potential. There are small beaches and attractive coves in Nueva Valencia (South Guimaras) which have the potential for resort development. Guimaras Island has a RO-RO port in Jordan which connects with Iloilo City and another RO-RO port in San Lorenzo that connects to Negros Occidental. TDA 2.2 Bacolod City – Silay City Area, Negros Occidental Province At the core of TDA 2.2 is Bacolod City. Other cities include Silay, La Carlota (south of Bacolod City) and Victorias (north of Silay). The port in Bacolod City has regular, daily fast craft ferry services to and from Iloilo City. Moreover, a new airport has been constructed in Silay City, which replaces the old one in Bacolod City. However, the aiport is not yet operational because of inadequate road access. Bacolod City is a service centre as many of the hotels, restaurants and banks are located here. As a result, Bacolod City attracts a lot of conferences and meetings. There are three golf courses in TDA 2.2 - the Negros Occidental Golf and Country Club in Bacolod City; the Bacolod Golf and Country Club in Murcia; and the Victorias Golf and Country Club in Victorias City. Bacolod City also has a vibrant night life. Just 14 kilometres north of Bacolod City is Silay City, known for its collection of ancestral houses built between 1800 to 1930. The more prominent of these heritage structures are the Jalandoni and Gaston ancestral residences. TDA 2.3 The Northeast Coast Area, Cadiz City - Sagay City -Escalante City- San Carlos City, Negros Occidental Province The north-east Coast Area is dotted with sugar cane haciendas (plantations) that give a glimpse of century old luxury lifestyles made possible by a once booming sugar industry. Many of the old haciendas still produce sugar and most of them have developed exhibits and museums depicting their history. This TDA also has very good beaches, the Sagay Marine Reserve, and small islands off the north eastern coast. On the eastern coast of Negros Occidental in San Carlos City is a RORO seaport with connections to Toledo City in Cebu (Tourism Cluster 3). TDA 2.4 Mount Kanlaon and Northern Negros Forest Reserve, Negros Occidental Province In the 24,600 hectare Mount Kanlaon Nature Park is Mount Kanlaon which, at 2,460 meters, is the highest peak in the Visayas. It is one of six volcanoes in the Negros Volcanic Belt. About 20 kilometres east of Bacolod City (north of the Mount Kanlaon Nature Park) is the 86,600-hectare Northern Negros Forest Reserve. TDA 2.5 Northeast Panay Area, north-eastern municipalities of Iloilo Province Few tourism developments of significance are located on the beaches and islands on the north-eastern part of Panay Island. TDA 2.6 The Sipalay City Area, Negros Occidental Province Since Sipalay is situated about 200 kilometres from both Bacolod City in Negros Occidental and Dumaguete City in Negros Oriental, it can be reached from either of the two gateways. However, connectivity is poor. Sipalay has long white sand beach areas, coral reefs, wreck dive sites and accessible off-shore islands. Three kilometers off the west coast of Negros Occidental (north-west of Sipalay) is the Danjugan Island Marine Reserve and Wildlife Sanctuary. The Sanctuary has a range of diverse natural features such as dense forests, limestone hills, five lagoons encircled by mangroves, several caves and beaches and is home to 68 species of birds and 240 species of coral. TDA 2.7 The South Panay Area, Iloilo and Antique Provinces The southern area of Panay Island comprising the municipalities of Tigbauan, Guimbal, Miag-ao, and San Joaquin in Iloilo Province, and the southern Antique town of Anini-y have varied attractions such as old churches, scenic landscapes and seascapes, and scuba diving sites. Just off shore of Anini-y is Nogas Island, known for its marine sanctuary. The sites are accessible from Iloilo City and can be reached by land over generally good roads. However, paving of the southern most section of the road between San Joaquin in Iloilo and Anini-y in Antique is long overdue. Determination of Cluster 2 Strategic Destination Area The TDAs were assessed according to the Criteria in Chapter 21, Framework for Tourism Planning, and the strongest (TDAs 2.1, 2.2 and 2.3) along with TDA 2.4 selected to form the Strategic Destination Area (SDA – B) for this cluster. 22.3 CLUSTER 3: THE CEBU ISLAND CLUSTER TDA 3.1 Metropolitan Cebu, Mactan Island and Olango Island Metro Cebu, through the Mactan-Cebu International Airport, is the international and regional gateway for Cebu Province, Region VII (Central Visayas). The recently completed Cebu International Convention Center (up to 4,000 seats in three adjacent venues) in Mandaue City and the Waterfront Hotel convention facility (up to 4,000 seats in one plenary area) in Cebu City makes Metro Cebu a key national/ international convention and exhibition site. Metro Cebu is also a nationally important business destination. The port of Cebu is a hub for the Visayan and Northern Mindanao regions as well as an important international container port. Many parts of Metro Cebu need improvements to their respective physical environments - sewage, wastewater, solid waste, noise and air pollution, traffic, informal settlements, building code violations, etc. With only about 40% of the population serviced with potable water, safe water supply is a pressing need. With its upmarket resort facilities and a current stock of more than 1,100 rooms, Mactan Island is the primary tourism destination of Cluster 3. Additional rooms are expected to be constructed within the next few years. Among the important low-rise, upmarket resort hotel developments are the Shangri-La, Plantation Bay and the Maribago Bluewater properties, all located along Mactan Island‟s eastern coast. Tourists are primarily Korean (mainly honeymooners) and Japanese. Many of the high end properties have average room occupancies exceeding 90%. With its Wildlife Sanctuary, Olango Island is a key destination for birdwatchers. TDA 3.2 Sogod Sogod is a quiet resort town with many properties geared to the international tourist. The stock accommodation is expected to increase significantly in the short/medium term with new developments and upgrading and expansion of existing properties. TDA 3.3 San Remigio, Bantayan Island and Malapascua Island The northern Cebu municipalities, including San Remigio and its RO-RO port, are close to Bantayan Island. A number of resorts already operate in the San Remigio area, especially along its western coast. Santa Fe in Bantayan Island has a RO-RO port, clean waters, fine beaches and a range of accommodations. The 900 metre Santa Fe airstrip has the capacity to serve more traffic to and from Bantayan Island. Presently, traffic is mainly composed of private/charter flights from Mactan airport. Malapascua Island (a short boat journey from Maya town) is characterized by its clear blue waters and white sand beaches. Together with Snake Island, these islands are popular dive destinations. TDA 3.4 Camotes Islands The Camotes Islands have good white sand beaches, limestone rock formations, caves, waterfalls, rivers and Lake Danao. The islands can be reached via a two hour boat journey from Danao town and offers a mix of adventure, history and culture. The airstrip needs to be improved. TDA 3.5 South Cebu Area This area of southern Cebu has numerous natural and cultural attractions. The municipalities of Badian and Moalboal are known for their dive sites and dive resort facilities. The eastern section of the TDA has old churches and heritage structures of interest to visitors looking for cultural experiences. Tourism investment in the eastern section of this area has been very limited and most of the sites are currently visited by excursionists. The Tañon Strait which borders the western section of the TDA is an established whale and dolphin watching location. Scuba diving can also be further developed in this area. Determination of Cluster 3 Strategic Destination Area The TDAs were assessed according to the criteria in Chapter 21, Framework for Tourism Planning, and the strongest TDAs (3.1 and 3.3) along with TDA 3.2 were selected to form the Strategic Destination Area (SDA -C) for this cluster. 22.4 CLUSTER 4: BOHOL ISLAND CLUSTER TDA 4.1 Tagbilaran City, Panglao and Balicasag Islands The provincial capital of Tagbilaran City is the gateway to the province. Almost all of southern, central and western Bohol is accessible from Tagbilaran City. The planned construction of a new international standard airport at Panglao Island will be completed by 2010. With its current accommodation stock of more than 1,000 rooms, Panglao Island is likely to continue to be the primary tourism destination in Cluster 4. More high quality rooms are expected to be added in the next few years. However, land consolidation is a major problem. Of the 1995-proposed 2,000 hectare Panglao Tourism Estate, only about 100 hectares have been consolidated to date. Panglao Island needs to improve its physical environment - sewage treatment, solid waste management, noise and air pollution, and congestion. Pamilacan Island offers opportunities for dolphin watching. Balicasag is considered one of the best dive sites in Asia, with its overhangs, crevices, drop offs, walls and an abundance of marine life. TDA 4.2 Jagna to Anda (Southeast) Seaboard The Anda Peninsula has good quality beaches and dive sites. Several facilities that cater to mostly European and Asian visitors are located there. It is understood that there are some consolidated properties in the Anda Peninsula (as much as 200 hectares) which could facilitate the development of larger integrated tourism resorts. TDA 4.3 Tubigon to Jetafe (Northwest) Seaboard Bohol‟s north-western seaboard interfaces with Cebu, which is about a two hour journey by regular ferry. The main gateway is Tubigon port while Jetafe serves as an alternate gateway. The towns along the north-western seaboard are all linked by the recently constructed circumferential road. Determination of Cluster 4 Strategic Destination Area The TDAs were assessed according to the criteria in Chapter 21, Framework for Tourism Planning, and the strongest TDAs (TDA 4.1 & 4.2) along with TDA 4.2 were selected to form the Strategic Destination Area (SDA – D) for this cluster. 22.5 CLUSTER 5: THE NEGROS ORIENTAL - SIQUIJOR CLUSTER TDA 5.3 Bais Bay Area, Negros Oriental Province TDA 5.1 Dumaguete – Sibulan – Tambobo Bay, Negros Oriental Province Bais Bay and Tañon Strait offer opportunities for dolphin and whale watching, with Bais City (40 kilometres north of Dumaguete City) the service centre for touring. With its airport and seaport, the provincial capital Dumaguete City is the main gateway for tourists visiting the province. Bais Bay also has several islands with mangrove forests that have become the habitat for various bird species. About 20 kilometres north-west from Dumaguete City is the Twin Lakes National Park in Sibulan municipality. The National Park is 1,200 meters above sea level and contains the Twin Lakes (Balinsasayaw and Danao) and a forest of about 3,500 hectares with a diverse collection of flora and fauna within its boundaries. Located close to Mabinay town is an interesting network of caves. About 6 kilometres to the south-east of Dumaguete City is Mount Talinis in the municipality of Valencia. Also in this area is Banica Valley and the 30 metre high Casa Roro Falls. Apo Island Marine Reserve and Fish Sanctuary is an important dive site (scuba and snorkel) off the south-east coast of Negros Oriental. Dauin municipality and Malatapay Beach in Zamboanguita municipality are the traditional access points to Apo Island which is about 40 minutes away by pumpboat. Apo Island has a range of accommodation, the better properties catering to divers. Tambobo Bay is on the south-eastern tip of Negros Oriental between the towns of Siaton and Zamboanguita. The Bay attracts fishing and yachting enthusiasts. TDA 5.2 Siquijor Island, Siquijor Province Siquijor Island, being a coral island, has reefs which offer good diving. Moreover, the island has long stretches of white sandy beaches (Maria, San Juan, Larena, Lazi, Siquijor and Enrique Villanueva). The seaport town of Larena is the main port of entry to the island province. There is a regular daily ferry service between Larena in Siquijor and Dumaguete City in Negros Oriental. There are also regular boat services between Siquijor-Dumaguete CityTagbilaran City-Cebu City. The province of Siquijor has a 72 kilometre circumferential road that runs along its scenic coast. Siquijor Island is also popular for its folk traditions and healing rituals. Other attractions include the San Juan de Capilay Lake, Cantabon Cave, Mount Bandila-an Nature Park and forest, Cambugahay Falls, Tulapos Marine Sanctuary, Paliton Beach, Salagdoong Beach and many heritage structures. Determination of Cluster 5 Strategic Destination Area The TDAs were assessed according to the criteria described in Chapter 21, Framework for Tourism Planning, and the strongest (TDA 5.1 and 5.3) selected to form the Strategic Destination Area (SDA – E) for this cluster. 77 22.6 CLUSTER 6: THE LEYTE - SAMAR CLUSTER TDA 6.1 Samar-Leyte Interface, Leyte and Samar Provinces Tacloban City is the provincial capital and gateway for Leyte Island (including Southern Leyte Province) and parts of Samar Island close to the San Juanico Bridge. The municipality of Malitbog contains heritage attractions which include the Santo Niño Parish Church (1857) made of coral blocks, the watchtower (1862) and Villa Margarita (1922). TDA 6.6 Catarman-Allen Area, Northern Samar Province With its airport, Catarman is the gateway to Northern Samar. Attractions in and around Tacloban City include the Santo Niño Shrine and Heritage Center, the Leyte Landing Memorial in Palo and other sites related to Gen. McArthur‟s landing during World War II. North-west of Catarman is the marine protected area of Biri, Las Rosas Islands which has good snorkelling and dive sites. Also in this area is the Sohoton Natural Bridge National Park across the San Juanico Strait from Tacloban City in Samar, which contains a complex of caves, a forest and rivers. At the north-western tip of Northern Samar is the municipality of Allen which has a port with regular boat services to Cluster 7 and the rest of Luzon. Allen is also a gateway to TDA 6.6 (and the rest of Northern Samar). TDA 6.2 Ormoc Area, Western Leyte Determination of Cluster 6 Strategic Destination Area Ormoc is a port city facing the Camotes Sea. It has become a provincial hub on the western side of Leyte because of its protected harbour. Ormoc City is a transportation hub between this Cluster 6 (the Leyte-Samar Cluster) and Cluster 3 (Metropolitan Cebu) as there are regular boat services to and from Cebu City. There are also regular boat services to the Camotes Islands. Ormoc City has developed as a resort area catering to leisure and business visitors from Cebu. In addition to its beaches, there is also the Lake Danao National Park on the hills just east of Ormoc City and the Leyte Golf and Country Club. TDA 6.3 North Leyte-Biliran Area, Leyte and Biliran Provinces Connected by a bridge on the northern tip of Leyte is the island province of Biliran. The island (eight kilometres wide and 32 kilometres long) has a quiet, rural ambience. It has off-shore islands with white sand beaches, mountains, waterfalls, hot springs and rice lands. TDA 6.4 South-eastern Samar Island South-eastern Samar Island area includes Calicoan Island (separated by a causeway from Samar Island proper) and the Calicoan and Matarinao Bays. TDA 6.5 Sogod Bay Area, Southern Leyte The Sogod Bay area offers opportunities for viewing whale sharks across Sogod and Liloan Bays. In addition, there are several reefs, walls and caves in Sogod Bay and around Limasawa that have become popular dive sites. The TDAs were assessed according to the criteria described in Chapter 21, Framework for Tourism Planning, and the strongest (TDAs 6.1 and 6.4) selected to form the Strategic Destination Area (SDA – F) for this cluster. 79 22.7 CLUSTER 7: THE BICOL CLUSTER TDA 7.1 Daet-San Miguel Bay Area, Camarines Norte Province Daet is the capital and commercial center of Camarines Norte. The area of Bagasbas Beach (4 kilometers north of Daet) is popular for surfing. TDA 7.2 Naga City-Pili Area, Camarines Sur Province About a 1 hour journey from Legazpi City is the municipality of Donsol, which has whale shark (butanding) interaction as its main attraction. Donsol is also a dive base and access point to dive sites in Ticao Island (Masbate Province). The Butanding Festival is usually held in mid-April. TDA 7.7 Mount Bulusan Area, Sorsogon Province Naga City, is the main commercial centre in the Bicol region and together with the municipality of Pili, site of the present airport. About 8 kilometres west of the municipality of Bulusan is the Bulusan Volcano National Park. Mount Bulusan (1560 meters) last erupted in 1983 and is currently popular among mountain climbers. Within the national park is Lake Bulusan, which is a popular picnic area. Pili is the site of the Camsur Water Sports Complex (CWC), a major wakeboarding/wakeskating/kneeboarding/waterskiing destination. At the southern tip of TDA 7.7 and the rest of Cluster 7 is the municipality of Matnog. It has a RO-RO port with ferry services to Allen, Northern Samar in Cluster 6. Mount Isarog is a major nature area that hosts many activities including trekking and mountain climbing. Determination of Cluster 7 Strategic Destination Area TDA 7.3 Sabang-Sagnay Area, Camarines Sur Province The coastline from Sabang to Sagnay has a number of wide beaches (Sabang Beach, Raso Beach, Casuna Beach, Nato Beach) with calm waters. It has daily transport services to and from Naga City. Sabang is also the jump-off point for scenic boat trips to Guijalo on the Caramoan Peninsula. TDA 7.4 Caramoan Peninsula, Camarines Sur Province The Caramoan Peninsula is a relatively isolated and unspoiled area with good quality white sand beaches, excellent for swimming and snorkelling. There are small limestone islands offshore facing Lagonoy Gulf. TDA 7.5 Iriga City Area, Caminarines Sur The upper slopes and summit of Mount Iriga and its many springs and lakes make up the primary natural attraction of this area. Lake Buhi is home to the smallest fish in the world. TDA 7.6 Albay-Sorsogon Area, Albay and Sorsogon Provinces Legazpi is the provincial capital of Albay and the regional centre for Region V (Bicol Region). The quality of accommodation in Legazpi City is poor. Legazpi City is continually threatened by volcanic eruptions from Mount Mayon, which, though an attraction for tourists, is a disincentive for investors. The TDAs were assessed according to the criteria described in Chapter 21, Framework for Tourism Planning, and the strongest (TDAs 7.2, and 7.6) along with TDA 7.5 selected to form the Strategic Destination Area (SDA – G) for this cluster. 81 22.8 CLUSTER 8: THE NORTH PALAWAN CLUSTER TDA 8.1 Calamianes Islands, Palawan Province The Calamianes Islands are at the north-eastern tip of Cluster 8. They are equidistant from Puerto Princesa City (the south-western tip of Cluster 8) and Metro Manila. The two gateways are the Francisco Reyes Airport and the Coron Port, both in Coron. The airport has regular flights (largest planes are 50 seaters) to and from Manila, it also has flights from El Nido and Puerto Princesa City. There are weekly ferryboat services from Manila and Puerto Princesa City. Coron Island is a major tourism site where Kayangan Lake, several lagoons and limestone cliffs are located. Coron Island is also the ancestral home of the Tagbanua indigenous people. Off-shore from Bintuan, Concepcion is a recently designated marine reserve containing remnants of World War II sunken Japanese warships and has become popular among wreck divers. Many of the resorts and dive shops in the area rely on this market alone. On the north-west tip of Busuanga Island is Calauit Island, a wildlife reserve established in the mid-1970‟s which is home to endemic and a small number African species of fauna. Notwithstanding its appeal to mostly domestic tourists, this wildlife reserve is an attraction for foreign tourists. The Maricaban Bay area has many scenic islands and coves where a number of resorts have been established, including El Rio y Mar Resort and Club Paradise (Dimaquiat Island), which have a combined total of approximately 70 rooms. The Poblacion of Culion municipality has a collection of heritage structures from the Spanish Colonial Period (portions of Fort Culion, La Immaculada Concepcion Church) and the American Colonial Period (Culion Sanitarium and General Hospital). Many of the islands east of the Culion mainland have secluded white sand beaches and sand bars. TDA 8.2 El Nido-Taytay Area, Palawan Province El Nido‟s Bacuit Bay area, consists of parts of the west coast of the southern El Nido mainland, several islands and its marine environment. Largely because of the Ten Knots Development Corporation‟s successful El Nido Resort on Bacuit Bay, El Nido has become a well known destination. The Bacuit Bay area has some of the best tourism sites for the “ecotourism adventure” market segment in the whole of Central Philippines. Measures to discourage intensive development and limit the number of visitors have to be instituted to conserve the tourism resources of the area. Most of the small tourism establishments in El Nido are located in the Poblacion. A few kilometres north is Villa Libertad where the only airstrip (owned by Ten Knots Development Corporation) in the area is located. The three kilometres Nacpan Beach, facing Base Bay, has the longest and best white sand beach on the west coast of the El Nido mainland. It is presently undeveloped. The Malampaya Bay area is one of the richest fishing grounds in the Philippines. Dolphin watching is an attraction in Malampaya Sound, along with other activities such as yachting, cruising and coastal/ river explorations. TDA 8.3 San Vicente-Roxas Area, Palawan Province With an airport currently under construction, San Vicente will become a major gateway to northern Palawan. Port Barton serves as the centre for diving and island “hopping” activities in the area. 83 22.9 CLUSTER 9: THE SOUTH PALAWAN CLUSTER TDA 9.1 Puerto Princesa City, Palawan Province Puerto Princesa City is one of the largest cities in the Philippines in terms of geographical area. As the tourism service centre where the main seaport and international airport are located, many visitors use it as a gateway point to other points in the province including the Kalayaan Islands (considered the Philippines‟ western outer reaches) and the Tubbataha Reefs National Park (a UNESCO World Heritage Site). The city proper, however, has many things to-see-and-do in terms of museums, restaurants, bars and other attractions. Other tourism sites within this TDA include the Palawan Wildlife Rescue and Conservation Center in Irawan and the penal colony in Iwahig. The Honda Bay area, situated off the east coast of Puerto Princesa, has many small islands known for the quality of their white sand beaches and coral reefs. The Puerto Princesa Subterranean National Park contains a rainforest with marked trails and the Saint Paul‟s Subterranean River. The National Park was recognized by UNESCO as a World Heritage Site in 1999. TDA 9.2 Quezon, Aborlan, Brooke‟s Point, Palawan Province About 100 kilometres south of Puerto Princesa City is an archaeologically significant complex of caves that has yielded many relics of pre-historic Philippines. The Tabon Caves Complex is under the care and management of the National Museum of the Philippines. Very few tourists visit municipalities farther south than Quezon. Lack of access to these municipalities in southern Palawan (Brooke‟s Point, Bataraza, Rio Tuba, Balabac) inhibits tourism development. TDA 9.3 Balabac Island, Palawan Province Balabac is a municipality of islands at the southwestern tip of Palawan and the least accessible from Puerto Princesa City. Access is by means of a once monthly boat service from Puerto Princesa. Basic infrastructure, such as roads, bridges, utilities etc., are lacking in Balabac Determination of Clusters 8 & 9 Strategic Destination Area The TDAs of both clusters were assessed according to the criteria described in Chapter 21, Framework for Tourism Planning, and the strongest (TDAs 8.2, 8.3 and 9.1) selected to form the Strategic Destination Area (SDA-H) for these two clusters. 85 22.10 TDA 10: DAPITAN, ZAMBOANGA DEL NORTE Dapitan City is known as the place of exile of the national hero, Dr. Jose Rizal, from 1892 to 1896. Many historical attractions (such as the Rizal Museum at Talisay, the old church, the plaza) are associated with Jose Rizal‟s stay in Dapitan. Dapitan has an attractive beach with fine sand and a white sand island with good coral (Aliguay Island) just 45 minutes off-shore. The main seaport of TDA 10 is Palauan Seaport which has regular ferry connections to Dumaguete City in Negros Oriental and Cebu City in Cebu. There are also weekly boat services to/ from Manila. The main airport is in Dipolog City which has regular connections to Manila by Philippine Airlines and Cebu Pacific. Dipolog City consists of 13,628 hectares of diverse landscape, including a long coastline, hills, valleys and mountains. Attractions include the 344 hectare Cogon Nature Park, the Sungkilaw Falls and the Linabo Peak. It also has hotels, beach resorts and other attractions. 22.11 TDA 11: CAMIGUIN ISLAND, CAMIGUIN PROVINCE With an area of 256 square kilometres, the island of Camiguin consists of five municipalities. The island has several volcanoes which provide a distinct feature to the landscape. Camiguin has an airstrip at Mambajao with regular flights to/from Cebu City. SeaAir flies 19 seater planes three times weekly. However, access remains problematic. Tourists coming directly from Manila have to fly to Cagayan de Oro City, travel 88 kilometers by land to Balingoan and then take a 45 minute journey by ferry to Benoni Wharf in Mahinog municipality or Guinsiliban pier. Poor access from source markets is one of the main reasons for the lack of tourism. The coastal area of Mambajao has beaches for swimming and snorkelling as well as a number of dive sites. White Island (actually, a white sand bar) is the most frequented beach destination in the province. Trekking in Camiguin‟s volcanoes and mountains is a popular activity. The Mabajao Area has hot and cold springs, and waterfalls. In the northern portion of Catarman municipality are the ruins of a Spanish Church and a sunken cemetery. 22.12 TDA 12: SIARGAO ISLAND, SURIGAO DEL NORTE PROVINCE Part of Surigao del Norte province, Siargao Island, is well known in surfing circles for its big waves and the “Cloud Nine” surf break.. The capital of Surigao del Norte is Surigao City where the main airport and seaport are located. Asian Spirit provides regular flights between Manila and Surigao City. There are regular passenger ferry services that connect to Manila (WG & A twice weekly) and Cebu (Cokaliong and Sulpicio Lines, weekly). Montenegro Lines operates daily RO-RO services between Surigao City and Dapa, Siargao Island, which normally takes about four (4) hours travel time. A faster service is provided by Fortune Angel which makes the trip in about two and a half (2½) to three (3) hours. SEAIR operates flights between Siargao Island and Cebu City twice weekly. The airstrip is in the municipality of Del Carmen (western part of Siargao Island). The main seaport is in the municipality of Dapa (southern part of Siargao Island) with two daily ferry/RO-RO services between Dapa and Surigao City. Siargao is best known for its surfing environment which is concentrated in the municipality of General Luna (also known as GL). General Luna is in the south-east portion of the island and this is where many of the resorts, restaurants and hangouts are Iocated. The “Cloud Nine” surf break is six kilometres north of GL. A number of resorts and restaurants are located here. Other attractions in the main and adjacent islands of Siargao include: General Luna Beach: a 27 kilometer stretch of white sand beaches, sapphire seas and natural coral barrier Guyam Island: an islet with powdery-white sand Daku Island (General Luna): an ideal location for swimming, snorkelling and sun bathing Naked Island: free from vegetation, for swimming and snorkelling Corregidor Island: an isolated islet of Dapa with one of the most beautiful beaches in Siargao Island Kangkangon White Beach (San Benito): known for its fine white sand and crystal clear waters Cambiling Naked Island (San Benito): a haven for birds of varied species and long array of vast corals Suhoton Cove (Socorro): a half-submerged cave navigable only during low tides with a lagoon, brilliantly-colored fishes, dense coral growth anemones, jet-black sea urchin and other exotic marine species. PART V DEVELOPMENT PLAN FOR THE CENTRAL PHILIPPINES 23. TOURISM BUSINESS OUTLOOK ................................................. 24. GROWTH SCENARIOS ................................................................. 25. PLANS, PROGRAMS AND PROJECTS IN PRIORITY SDAs ....... 26. SUPPORT AND CROSS CUTTING PROGRAMS AND PROJECTS .................................................................................... 23. TOURISM BUSINESS OUTLOOK In targeting for a significantly higher growth rate than what has been achieved to date, the Central Philippines Super Region (and indeed the Philippines as a whole) will have to take account and respond to changing demand trends, market and product opportunities, technological developments, competitor activities, changing consumer socio-demographics etc. The following are the more relevant. 23.1 23.2 DEMAND TRENDS TO SOUTH-EAST ASIA FOR STAY-OVER ARRIVALS 23.2.2 USA and Canada Canada According to the Canadian Tourism Commission (CTC) some 16.2 million trips abroad were taken by Canadians during the first 8 months of 2006. Of these, 4.9 million were taken overseas. Excluding the USA, the top overseas destinations for Canadians in order of importance are UK, Mexico, France, Cuba, Dominican Republic and Italy. Since 2000, global travel5 has increased by about 3% yearly, constrained by a variety of factors – 9/11 terrorist attacks, sluggish economic growth in Europe and SARS in Asia. Between 2000 – 2006 international travel to South-East Asia increased from 37.3 to 54.1 million tourist arrivals, representing an average growth rate of 6.5% yearly. In interpreting these figures it should be borne in mind that growth in international tourist arrivals were down significantly to Indonesia and Thailand in 2005 because of the tragic impact of the tsunami in December 2004 and the bombings in Bali in 2005. However, growth rebounded in 2006. Canadian tourist arrivals to ASEAN numbered 440,000 in 2005. The Philippines‟ share of the market is about 15%. Looking to the future, and taking into account the rapidly expanding Chinese market for travel, international stay-over tourism to South-East Asia is likely to grow at between 7% and 10% yearly. However, US overseas travel (i.e. excluding Mexico and Canada) is more buoyant. In 2006 just over 30m overseas trips were made by US residents – up 12% since 2000. US travel to Asia is the fastest growing segment, the major destinations being Japan and China (People‟s Republic). MARKET OPPORTUNITIES 23.2.1 Europe Almost 90% of total European outbound trips are for destinations in Europe and other Mediterranean countries. However, as reported at the Pisa Forum 20066 demand among Europeans for long haul destinations has picked up sharply, with Asia benefiting the most. In 2005, European8 tourist arrivals to ASEAN amounted to just under 5.3 million, representing about 10% of total international (including intra ASEAN) tourist arrivals to the region. Currently, the Philippines‟ share of the European market is about 5%. The main traditional European source markets for the Philippines are: UK, Germany, France, Switzerland and Italy with the main emerging market being Russia. USA Based on the US Dept. of Commerce statistics, total outbound travel by US residents was just under 64 million trips in 2006, marginally up on the previous year. Since 2000, US travel abroad has only increased by about 0.5% annually. US travel to the Philippines competitor grouping has increased since 2001/2, but still below the 2000 peak figure of just under 1.7 million trips. Table 23.1: US Travel to ASEAN Destination 2000 Cambodia n/a Indonesia 161 Malaysia 107 Philippines 457 (27%) Singapore 457 Thailand 376 Vietnam 107 ASEAN 1,665 Asia 4,914 Source: US Dept. of Commerce Numbers (000s) and Share (%) 2002 2004 2005 n/a n/a n/a 94 82 70 140 109 115 234 (17%) 438 (31%) 288 (20%) 374 274 374 398 410 489 117 109 120 1,357 1,422 1,456 4,492 5,087 6,074 The Philippines‟ share of total US travel to ASEAN is about 20%. 5 World Trade Organisation, Tourism Highlights 2005 Edition World Travel Trends Report 2006 – 07, ITB Berlin & IPK International 8 European Union includes Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom 6 2006 n/a 50 121 271 (18%) 422 482 181 1,527 6,271 23.2.3 Asia Main Source Markets Results from the Asian Travel Monitor, (part of IPK International‟s World Travel Monitor), concur with data gathered by the Pacific Asia Travel Association (PATA), which shows that Asia is the fastest growing outbound source region in the world. In 2005, the top eight markets alone generated some 64 million trips and 545 million overnights, resulting in a total spend of US$135 billion. Japan is the region‟s major source market, followed by China and South Korea. Table 23.2: Philippines‟ Share of ASEAN Markets Market Intra-Asian travel accounts for the highest share of all trips (71%). Europe takes second place in the destinations ranking with a 16% share, ahead of America with 12%. Figure 23.1: Asian Outbound Travel by Region, 2005 Africa 1% Europe 16% a Japan Chinaa South Korea Taiwan Singapore India Malaysia Thailand Hong Kong ASEAN Trips 2005 (mn) Total Abroad To ASEAN 17.1 3.6 12.2 3.0 9.8 2.6 8.7 1.6 5.3 n/a 4.9 1.2 3.4 n/a 2.5 n/a n/a 1.0 n/a 23.3 PhP % Share Total Abroad To ASEAN 2 14 1 5 6 23 1 8 * n/a * 2 * n/a * n/a n/a 10 n/a 1 Excludes travel to Hong Kong and Macau * Less than 0.5% Sources: IPK International’s Asian Travel Monitor; ASEAN Nat. Tourist Organisation America 12% With the sole exception of South Korea, the Philippines gets a negligible share of total outbound travel from these major source markets. However, when travel from these major source markets to ASEAN is considered, the Philippines performs well in the context of its competitor grouping, achieving significant shares of the Korean, Japanese, Hong Kong and Taiwanese markets. Asia 71% Source: IPK International’s Asian Travel Monitor 23.2.3 Australia Of the total trip volume, holidays account for more than two thirds (65%), with other leisure travel (including VFR) generating a 24% share and business travel 11%. The favourite types of holidays involve touring (44%) – travelling to several different destinations – followed by city breaks (13%) and sun and beach trips (13%). In 2005, visits to ASEAN by Australians totalled just under 2 million, of which 5% were to the Philippines. 23.3 PRODUCT OPPORTUNITIES 23.3.1 Cruise Cruise has been one of the fastest growing tourism products in recent times. Since 1980 the cruise industry has experienced an average passenger growth rate of 8.5% yearly. With the expansion of the cruise fleet, passenger numbers are expected to have reached 15 million worldwide in 2006 (compared with 13.8 million in 2000) and 20 million by 2012. Cruise ships range in size from the small „discovery‟ type with 100 to 300 passengers to the large Genesis class with 5,400 passengers and 1,500 crew. Medium sized cruise ships have 2,000 to 3,000 passenger capacity in addition to 750 to 1,000 crew on board. The value of the cruise ship product can be important to a destination for a number of reasons: passenger and port charges uplift of water, provisions and fuel spending by passengers on-shore - shopping, visits to eco-tourism sites, tours overcomes accommodation supply problems at destination many tourists use a cruise ship trip to get initial impressions of possible destinations for a future (longer) vacation stay. facilities in the South-East Asia such as Thailand. Malaysia and India are also fast developing this segment of the tourism industry. 23.3.6 Theme/Amusement Park A major world class theme/amusement park and its associated hotels would draw very large numbers of domestic and foreign tourists every year, create thousands of new jobs, grow the service sector in the Super Region and enhance the Philippines image internationally. The Central Philippines (and the Philippines as a whole) has the population size to support such a park. It would have to be located at a major gateway – Cebu being the obvious option – to facilitate both domestic and international access. Based on experience elsewhere, a theme/amusement park could attract up to ten million admissions annually, create some 10,000 jobs at full build-out, and generate considerable off-site benefits – hotel stays, tours, shopping etc. With its myriad of islands and variety of natural attractions, the Central Philippines has the potential to be Asia‟s primary cruise area. Although Manila receives cruise ship calls, the product is undeveloped both nationally and in the Central Philippines – principally due to the limitations of port facilities. 23.3.2 Yachting/Sailing 23.3.7 English Language Learning The waters around the islands in the Central Philippines offer excellent opportunities for sailing. As yet, the product is undeveloped. What is required is the development of marinas, providing hubs and facilitating the promotion of circuits. Marinas vary in size from the small jetties/pontoons and basic shore facilities to the up scale marina typically accompanied by hotel, condo, retail and waterfront developments. A legacy of US colonial involvement in the Philippines is that English is widely spoken. Capitalising on the growing interest of other Asian countries to learn the English language, the Philippines is being promoted as a destination for English language learning. 23.3.3 Real Estate/Residential 23.4 ONLINE TRAVEL Today, many people want to buy property in vacation destinations rather than to rent villas, condos, etc. These buyers are from the USA, Europe, and Asia. Reflecting this, the major investments are now in residential property developments. For example, both Malaysia and Thailand are actively promoting the sale of properties at prime tourist destinations to foreigners – Malaysia, My Second Home and Phuket Ocean Villas Properties are just two of many real estate agencies offering properties to foreigners. As reported in IPK International‟s European Travel Monitor, use of the Internet for online booking as opposed to simply „looking‟ – gathering information prior to booking a trip – is growing very fast especially for flights and accommodation. This means that more than one third of total outbound trip volume from the major European source markets now involves online booking for at least part of the trip. The equivalent share was just 19% in 2003. Destinations are promoting these types of developments as they „anchor‟ future tourism. People are obviously more likely to return and stay longer if they own a property in a destination. As might be expected, the Internet is used most for the purchase of airline tickets, followed by accommodation. 23.3.4 Retirees Allied to the real estate/residential segment of the market are the retirees. This is a fast growing market as populations in Japan and many European countries are aging fast. The growth of retirement villages attests to this trend. 23.3.5 Medical Tourism Medical tourism is a growth market in the region as lower operational and medical costs become the major draw for western travellers to visit the world-class hospital Chart 23.2: Travel Bookings in Europe, Jan – Aug 2006 (% of pre-bookings in total travel) 100 In Total Via Internet 80 23.7 CUSTOMER TRENDS International tourism markets are facing unprecedented change because of increasing affluence, demographic shifts, changing lifestyle values and rapidly evolving technologies. This changing profile of customers makes it difficult to determine the pattern of future tastes and preferences. The increasing complexity of the market makes the concept of the typical or average tourist of little practical use for tourism planning purposes. Some characteristics of tomorrow‟s customer provide pointers for the Central Philippines as to their needs: 60 they are more affluent - increasing numbers purchasing vacation properties - taking more than one holiday annually - want a quality product, but look for „price deals‟ they are older, more physically and mentally active - activities and interests increasingly determine choice of destination - greater range and depth of niche market customer segments they are increasingly using the Internet to get information on destinations and make bookings, rather than the traditional retail travel agent - looking for value-for-money and transparent cost structures - want more control in organising their trips and customise their own travel plans they are better educated, more discerning and look for fulfilling experiences as well as relaxation - „responsible tourism‟ becoming increasingly important and determining choice of holiday and destination - concepts of nature versus beach holiday; activity versus relaxation holiday; touring versus resort holiday are obsolete. It is the capacity of a destination to provide a range of fulfilling experiences that is determining choice they are much less concerned about which destination they visit – and less loyal to destinations than they ever were in the past – and much more interested in the tourism products and experiences on offer they want authenticity – more interaction with local people and a more emotional and cultural link to the people and communities they visit. 40 20 0 Accomm Flight Travel Ins Bus/Coach Car Rental Ferry Train Others This has important implications for the Central Philippines Super Region (and for the Philippines as a whole) in its approach to destination marketing. 23.5 AIR ACCESS/LOW COST CARRIERS There seems to be no end in sight for the boom in demand for low-cost/low fare airline travel, more usually referred to as „no frills flights‟. These low cost airlines have changed the face of the industry and are now one of the major factors dictating how countries perform as tourist destinations. Indeed, without low cost/no frills airline services, destinations risk looking less attractive to holidaymakers and investors. The growth of low cost airlines means the trend towards shorter and more frequent trips will accentuate. 23.6 MEGA HUBS AND POINT-TO-POINT ACCESS The recent inauguration of the (maximum) 850 passenger A380 Airbus ushers in the era of mega hubs – London, Dubai, Hong Kong, Singapore, Sydney, etc., between which air passenger traffic will expand significantly. To tap into this expected trend, it is important that there is adequate connectivity to the Central Philippines. Parallel with this trend is the increasing demand by travellers for point-to-point access. The planned launch of Boeing‟s 787 Dreamliner aircraft serving points up to 8,500 nautical miles distant is geared to facilitate this demand which is also expected to grow rapidly. The implication is that airports in the Central Philippines must be of international standard so that they can accommodate direct international air access. 24. GROWTH SCENARIOS 24.1 PIVOTAL ASSUMPTIONS For any tourist destination, consideration of future growth scenarios will be predicated by a number of assumptions concerning the fundamental factors determining development – market demand, supply of labour and skills, availability of land etc. Similarly for the Central Philippines where six of these factors will have a determining influence on the nature and pace of tourism development in the Super Region. The factors are the rate of improvement to: 21.2 LOW GROWTH SCENARIO Under this growth scenario it is assumed that no initiatives are undertaken to reposition the tourism sector. This is not to say that investments to infrastructure, facilities and services will not take place. They will, but at a low level and not at a scale to effect significant change. In essence, things continue much as they are today with marginal improvements to the economic infrastructure, the continuation of the non-conducive investment climate and no sustained destination marketing. Total tourist arrivals to the Central Philippines are projected to increase by about 5% annually from just over 4.5 million in 2006 to 7.4 million by 2016. The market profile is projected to remain unchanged, almost 4/5th domestic and 1/5th foreign tourists. the economic infrastructure - air and sea ports, roads, sewage and solid waste management Domestic transport connectivity - transport services to and within the region environmental sustainability - increased environment protection and enhancement the tourism business environment - investment incentives, planning processes destination marketing - adequate funds, web site development new product development - increased range, high value-added. A range of possibilities arise in considering future growth scenarios for tourism to the Central Philippines. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of the infrastructure, utilities, non-conducive investment climate, environmental planning etc. high growth scenario which can be seen as the rate at which tourism could expand if sufficient public and private sector capital were attracted in developing the necessary economic infrastructure, facilities and services, coupled with significant improvements in the business environment and sector management. Between these two extremes, a number of other scenarios can be considered, each reflecting different levels of investment in infrastructure, facilities and services etc. Foreign Balikbayan 19% 3% 78% 24.3 HIGH GROWTH SCENARIO 24.4 The high growth scenario represents major change involving not just a massive investment infrastructure program, estimated at just under Php 30 billion in the five priority SDAs, but also significant improvements in the business climate, environmental protection and enhancement, destination marketing and sector management. The outcome is a projected growth in total tourist arrivals from just over 4.5 million in 2006 to almost 11.5 million by 2016, representing an average growth rate of 10% yearly over the period. PRIORITY SDA GROWTH SCENARIOS The growth projections for the priority SDAs and other destinations within the Central Philippines are shown on Table 24.1 following. Table 24.1: SDA Growth Projections B. Tourist Arrivals (000s) 2006 SDA FOR BALIK A. Boracay/Carabao 185 32 B. IIoilo/Guimaras 79 46 C. Cebu 475 3 D. Bohol 45 5 H. Palawan 50 n/a Total 834 86 Other SDAs & Destinations 83 28 TOTAL CENTRAL PHILIPPINES 917 114 Domestic Foreign Balikbayan 2% 31% BASE LINE 67% B. The market profile is projected to change significantly with foreign tourists representing just under a third (31%) and domestic tourists just over two thirds (67%) of total arrivals. TOTAL 575 960 1,250 220 190 3,195 1,359 4,554 DOM 585 1,360 1,260 280 295 3,780 2,040 5,820 TOTAL 900 1,555 2,040 365 380 5,240 2,200 7,440 DOM 930 1,750 2,010 520 435 5,645 2,040 7,685 TOTAL 1,750 2,020 4,020 780 700 9,270 2,200 11,470 LOW GROWTH SCENARIO Tourist Arrivals (000s) 2016 SDA FOR BALIK A. Boracay/Carabao 260 55 B. IIoilo/Guimaras 130 65 C. Cebu 775 5 D. Bohol 75 10 H. Palawan 80 5 Total 1,320 140 Other SDAs & Destinations 110 50 TOTAL CENTRAL PHILIPPINES 1,430 190 C. DOM 358 835 772 170 140 2,275 1,248 3,523 HIGH GROWTH SCENARIO Tourist Arrivals (000s) 2016 SDA FOR BALIK A. Boracay/Carabao 750 70 B. IIoilo/Guimaras 200 70 C. Cebu 2,000 10 D. Bohol 250 10 H. Palawan 260 5 Total 3,460 165 Other SDAs & Destinations 110 50 TOTAL CENTRAL PHILIPPINES 3,570 215 25. PLANS, PROGRAMS AND PROJECTS IN PRIORITY SDAs The recommended plans, program and projects for the optimum development of the Priority SDAs are described in this Chapter. Recommended infrastructure projects for the Emerging SDAs are identified in Ch. 32 (Annexes). 25.1 SDA A – BORACAY AND CARABAO ISLANDS 25.1.1 Overview This SDA is comprised of the two TDAs: TDA 1.1 (Boracay Island and portions of Malay and Nabas Municipalities). TDA 1.2 (Carabao Island) Because of the unique quality of its beach, Boracay is one of the Central Philippines‟ more successful tourism destinations in terms of development and market attractiveness. However, due to the relatively small size of the island coupled with the fragility of its eco-system any significant development puts great pressure on the environment. There is a need therefore to rationalize the development of the island to ensure the sustainability of the tourism industry. A Comprehensive Land Use Plan (CLUP) is currently being developed for Boracay Island. Carabao Island to the north has had very limited development to date but has the potential to become a major resort development to absorb much of the increasing numbers of visitors to the area. 25.1.2 Tourism Resources and Access Transport Environmental Resources Boracay has some of the best beaches in the Philippines; also has a diversity of coral reefs. Carabao has fine white sand beaches, intact coral reefs and good mangrove cover. Culture Heritage No heritage sites or significant festivals. Tourist Attractions and Activities A good mix of resorts, restaurants, shops and night time entertainment along the west coast of Boracay. Excellent water sports on offer (sail boats, jet-skis, kayaks, parasailing etc) as well as diving (has 26 dive centers) on Boracay Island. Good windsurfing conditions on the east coast of Boracay Island Championship Golf at the Fairways and Blue Waters resort on Boracay. Horse riding on Boracay. Access Transport Air and sea access services adequate for present demand. Size of aircraft to Caticlan Airport constrained by topography of airport location. Frequent flights from Manila - Asian Spirit , SEAIR and Inter Island Voyager have air services to Caticlan. PAL, CEBU Pacific and Air Philippines have air services to Kalibo which also attracts charters from Korea and China. RO-RO used primarily by domestic tourists via SRNH - weather can affect RO-RO services 25.1.3 Tourism Infrastructure Accommodation Full range of accommodation with around 4,000 rooms in Boracay. Annual average room occupancy rates approximately 60%. Larger and high end resorts are located towards the north of the island. Very few sites available for new resort development in Boracay. In contrast to Boracay, very little development exists on Carabao Island. Transport Infrastructure Kalibo Airport is the main gateway to the area. Funds for the improvement of the Kalibo Airport, including the installation of an instrument landing system, have already been allocated by DOTC. Caticlan airport and the Jetty port situated on the mainland of Malay Municipality provide the gateway points to Boracay Island. Caticlan‟s capacity to facilitate more flights is limited by short runway and topography of airport site. On Boracay, a narrow road connects the main seaport at the southern tip at Cagban Beach to the northern tip at Yapak – main vehicular traffic are tricycles and multi cabs. Carabao Island presently has a network of narrow concrete roads suitable for bicycles and motorcycles but inadequate for motor vehicles. Other Infrastructure Power generation in Boracay and Carabao can only meet current demand. Limited sewage network on Boracay. (Although a central sewage treatment plant is operated by the PTA, some resorts refuse to connect because they don‟t want to pay the service charge). Carabao has no sewage network. Water supply systems can only meet current demand on both islands. Significant solid waste management problems on Boracay. Current Developments The 300 room Shangri-La Hotel is currently under construction at the northern end of Boracay – this development will attract higher end tourists. 100 room hotel Seraph currently under construction. Number of small scale resorts (15 to 20 rooms) being developed by Korean investors. Many of the existing resorts on Boracay are either adding rooms or renovating (e.g., Discovery Shores, Waling-Waling, Asya, Crown Regency). Infrastructure improvements on Kalibo Airport and Caticlan Seaport Sanitary landfill to serve Boracay Island is under construction on Caticlan (Malay mainland). Proposed Developments A new airport with a 2.5 kilometer runway on the northern part of Carabao Island (estimated cost of more than Php 3 billion) is proposed – this is a key infrastructure project that would permit direct international (chartered) flights from Korea and cities in China. Proposals are currently being considered for a major resort development for Carabao Island including hotels, villas and golf course. Private sector investor proposal to develop and operate Caticlan airport, involving extension of runway, new passenger terminal etc. 25.1.4 Tourism Product/Markets Existing clientele are primarily Korean, American/Balikbayan and European as well as domestic tourists. The current product/markets for Boracay Island are: - beach resort - conferences and conventions - health and wellness - water-based activities (diving, snorkelling, windsurfing). 25.1.5 Development Potential Strengths Boracay – highly developed holiday resort and well known internationally and domestically. Good range of tourism products Carabao Island – good beaches, considerable potential for major resort development. Adequate air, land and sea access services. Tourism operators well organised - Boracay Foundation Inc; Boracay Chamber of Commerce; Boracay Association of Resorts, Restaurants and Allied Industries. Opportunities Expanding international and domestic markets. Further development of current product/markets in addition to golf resorts, yachting/sailing and associated marinas Development potential of Boracay and Carabao islands. Creation of tourist service centre on mainland of Malay Municipality, Aklan. 25.1.6 Constraints to Development 25.1.7 Growth Scenarios Capacity Issues To sustain the tourism activities on Boracay Island, environmental management issues (sewage and wastewater treatment, solid waste management, control of noise, air pollution from vehicle emissions, land and building use controls, fire code and accessibility compliances, etc) have to be addressed. Boracay‟s White Beach is almost at saturation point in terms of development. However, consolidating the many smaller properties into larger integrated developments could accommodate more visitors. To relieve environmental pressures on Boracay, consideration needs to be given to providing sites for industry, storage of supplies and housing for Boracay employees and their families on the mainland Power and water supply near or at capacity levels and need to be increased. The planning and development control capacity of LGUs needs strengthening to safeguard the distinctive ambience and character of Boracay and to ensure quality development proposals are implemented for Carabao Island. Weaknesses No integrated legal and regulatory framework for tourism development. Boracay Island – environmentally fragile with limited development capacity. Boracay Island – inadequate infrastructure (roads, power, water, waste management). Carabao Island - inadequate infrastructure for large scale development. LGUs lack qualified staff and resources for successful urban and tourism planning and control functions. Caticlan Airport inadequate to cater to increasing visitor numbers. Lack of clarity with regard to land ownership – whole of Boracay is unclassified public land; land title issues will inhibit development. Moreover, illegal titling of unclassified lands is widespread, creating problems for the future. Comprehensive Land Use Plan (CLUP) and Master Development Plan not being adhered to in the development of Boracay. Threats Uncontrolled development (planning and design, land and building use, development and construction and supervision) of tourist facilities adversely impacting on the character of the area as an attractive tourism destination. Uncontrolled environmental impacts. Uncontrolled service providers and other businesses (hawkers, vendors, etc.). Growing resident population resulting in informal settler communities. Pollution (inadequate solid waste management, untreated waste water, air and noise pollution). Rampant violation of regulations in the use of foreshore lands. Widespread dynamite fishing in the coastal waters of Carabao island will destroy its coral reefs. A range of possibilities arise in considering future growth scenarios for tourism to this SDA. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of infrastructure, utilities, environment and sector management etc. And at the other extreme is a: high growth scenario which can be seen as the rate at which the tourism sector could expand if sufficient public and private sector capital were attracted in developing the necessary supporting infrastructure, facilities and services, coupled with significant improvements in the enabling environment and sector management. These growth scenarios are illustrated on the accompanying figures. Under the high growth development scenario, total tourist numbers are projected to increase from 575,000 in 2006 to 1,750,000 in 2016, representing a growth rate of about 13% yearly. Reflecting this growth, demand for accommodation is projected to expand from 4,000 rooms at present to about 12,000 in 2016. Under the low growth development scenario, total tourist numbers are projected to increase by about 5% yearly, with demand for accommodation increasing to about 6,000 rooms by 2016. 25.1.8 Development Strategy To achieve the high growth development scenario, the following strategic initiatives will need to be put in place: Resolve land ownership issues. Construct international standard airport on Carabao Develop economic infrastructure and utilities on Carabao Implement environmental safeguards on Boracay - protect foreshore lands - waste management improvements Increase power and water supply on Boracay. Establish tourism service centre on mainland. Establish enabling framework to encourage investment in tourism. Private sector to be more pro-active in tourism promotion. Develop image of Boracay and Carabao and promote as stand-alone destination in markets. Improve road access from Kalibo International Airport to Caticlan. Upgrade passenger terminal facilities at Kalibo. Figure 25.1: Tourism Growth Scenarios 25.1.9 Action Program Sector Management 6% 32% 62% 2006 Domestic Foreign Formulate CLUP for Carabao. Provide tax incentives to encourage investment in Carabao. Clarify legal situation in respect of title to land on Boracay. Destination promotion - website development – promote SDA as stand-alone destination in markets. - private/public sector matching funds for destination marketing Air access promotion - increase frequency and use of larger aircraft on routes to Caticlan - promote more international originating flights to Kalibo. Environment Protection and Enhancement Balikbayan 5% 42% 53% 2016 Enforce municipal zoning of the island and issue guidelines and standards for tourism development. Strictly enforce EIA system for all new development projects and monitor compliance of these projects to ECC conditionalities. Implement Solid Waste Management System in all barangays of Boracay and Carabao islands as required by RA 9003. Regulate tricycles on Boracay to minimise noise and air pollution. Prosecute those violating environmental laws and regulation. Bird sanctuary on Boracay. Community Involvement Tourism Awareness and Environmental Protection Programs and Value Formation seminars for communities on Carabao. 12000 Human Resource Development 7000 4000 2006 2011 Legend Boracay Carabao Low Growth Scenario 2016 Capacity building for LGU officials in Carabao in destination planning and sector management. Infrastructure The proposed infrastructure projects are as follows: Projects Priority Improve paving of Caticlan-Kalibo Road Improve and expand terminal facilities at Kalibo airport Boracay Island Solid and Liquid Waste Management Capacity Upgrade Boracay Island Water Supply. Sanitary Landfill in Caticlan Sanitary Landfill (7 hectares) in Southern Tablas (to benefit Carabao Island) Sibalom (Antique) 16.5 MW Villasiga Hydropower Plant Project. Upgrade/develop transmission from Sibalom to Boracay Sector Management Environmental Protection and Enhancement San Jose Airport (north portion of Carabao Island) San Jose Seaport and Terminal (northeast portion of Carabao Island) Upgrading and construction of new roads (30 kilometres) Carabao Island Electrification programme Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years B A A A A C A A A A A A B C 25.1.10 Project Costs and Source Funding SDA Name of Project/Location Type of Project A A A A National Road Environmental Power Generation Power Transmission Sanitary Landfill 140 A A Improve Caticlan-Kalibo Road Section Boracay Island Solid & Liquid Waste Management Capacity Upgrade 16.5 MW Villasiga Hydropower Plant Project (Sibalom, Antique) Upgrade/develop transmission from Sibalom to Boracay 7-hectare Sanitary Landfill to benefit Boracay Island (Located in Caticlan, Malay) Improve and expand passenger terminal facilities at Kalibo Airport Sanitary Landfill site in Southern Tablas Island to benefit Carabao Estimated Cost (PhP Million) 190 800 2,545 800 Airport Sanitary Landfill (50) (140) A A A A A A A A A Sector Management Environmental Protection & Enhancement (Bird Sanctuary) Community Involvement Human Resource Development for LGUs Carabao Island Electrification Program Boracay Island Water Supply San Jose Airport, northern part of Carabao Island San Jose Seaport and Terminal, north-east part of Carabao Island Upgrading and construction of new roads on Carabao Island (30 kms) Marketing Environment Community HRD Power Transmission Water Airport Seaport Road 7* 4 1* 2* 180 700 3,030 40 240 A Code: Blue: projects for ODA assistance * per annum Red: projects for private sector investment Priority Ranking of Projects Priority A - up to 3 years: Addressing immediate basic needs – infrastructure, environment. Priority B - 3 to 5 years: Addressing medium term needs – interconnectivity because of anticipated growth. Priority C - 6 to 10 years: Addressing long term needs. Implementing Agency DPWH LGU‟s PNOC-EDC National Power Corp Malay Municipal Government DOTC Romblon Provincial Government DOT DENR, LGU, DOT DOT DAP Private Developer Private Sector Private Developer Private Developer Private Developer Priority Status Source Funding Proposed Proposed Proposed Proposed Under Implementation Planned Proposed None None None None LGU B A A A A Allocated None A B Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed None None None None None None None None None A A A A B A A A B 25.2 SDA B: ILOILO/GUIMARAS/BACOLOD 25.2.1 Overview This SDA is comprised of the four TDAs: TDA 2.1 (Metro Iloilo-Guimaras) TDA 2.2 (Bacolod – Silay) TDA 2.3 (The Northeast Coast) TDA 2.4 (Mount Kanlaon and Northern Negros Forest Reserve) Metro Iloilo and Bacolod serve as major gateways, tourist service areas and business destinations. Although Metro Iloilo has a small number of tourist sites, its location (close to Guimaras) makes the city an ideal base for the tourists visiting the region. Bacolod is primarily a business centre. Based on the island‟s natural resources, Guimaras has the potential to become an important tourist destination in its own right. Northern Negros Occidental has a number of interesting nature and heritage sites. 25.2.2 Tourism Resources and Access Transport Environmental Resources Active and inactive volcanoes, lowland dipterocarp forest, montane and mossy forest with endangered and endemic wildlife species of birds and mammals. Two National Parks (Mt. Kanlaon and Northern Negros Forest Reserve). Taklong Island Marine Reserve and other small islands with diverse fringing reefs. Fine white beaches, diverse marine life, coral islets, caves, waterfalls and natural springs. Mango plantations. Cultural Heritage Cultural heritage sites including ancestral homes and historic churches th - 19 century churches – Molo church and Jaro Cathedral Special events and festivals Dinagyang, Ati-atihan, Maskara. Museums (Iloilo and Silay). Tourist Attractions and Activities Meetings, conferences and convention centres. Shopping malls. Resorts, restaurants and bars. Dive sites. Four championship golf courses (Sta. Barbara, Iloilo is the oldest course in Philippines). Access Transport Air and sea services adequate for present demand. Both Iloilo and Bacolod – Silay are international standard airports. PAL, Air Philippines and Cebu Pacific have services to Iloilo and Bacolod. 25.2.3 Tourism Infrastructure Accommodation - A range of hotels and other types of accommodation facilities - with about 5,000 rooms. Annual average room occupancy rate in range of 50 to 55%. - 25.2.5 Development Potential Strengths Transport Infrastructure New Iloilo international standard airport in Sta. Barbara. New international standard airport in Silay. Seaports with RO-RO facilities and ferry boat services. Good road network. Other Infrastructure Power generation adequate to meet current demand. Lack of sanitary landfills. Potable water supply problems in remote areas. Lack of waste water/sewerage systems in Iloilo and Bacolod. Poor garbage and solid waste management in many barangays, water based activities (diving, snorkelling) adventure, hiking beach resorts (Dinaras and North Negros) English language learning. golf (golf in Santa Barbara, Bacolod City, Murcia and Victorias). Good sea and air access. Good road network. Areas of unspoilt natural scenery and attractions - two national parks. Concentration of cultural heritage sites. Guimaras has potential to develop beach resorts and improve existing ones. The northeast coast of Negros Occidental has large family estates planted to sugar. There are some good beaches and the availability of large tracts of land owned by single families provides opportunities for large-scale tourism developments. Opportunities Two new international standard airports (Sta. Barbara and Silay City) provide improved access. Waterfront development opportunities in Iloilo. Potential for mountain-based tourism and forest recreation. 25.2.6 Constraints to Development Current Developments Weaknesses Access road from Bacolod to Silay under construction. Seaport improvements in Iloilo City, Pulupandan, Escalante and San Carlos in Negros Occidental, and Sibunag in Guimaras. Proposed Developments The PPA has a pending project - Iloilo Port Development. This is to be accompanied by waterfront revitalization efforts by the Iloilo City Government to include not only ferry and RO-RO improved services but also a mixed use development to become part of the tourism product. 25.2.4 Tourism Product/Markets Current tourist arrivals are mainly Korean, European, Balikbayan and domestic. The current product/markets for all four TDAs are: - MICE - cultural heritage Low level of market awareness. Lack of tourism flagship developments. LGUs lack qualified staff and resources for successful urban and tourism planning functions. Poor conservation of heritage buildings, sites and land marks. Fast craft passenger terminals inadequate at Iloilo and Bacolod. Lack of sanitary landfills. Configuration of airports do not facilitate international visitor arrivals. Threats Uncontrolled, environmentally insensitive developments. Environmental damage (e.g. Guimaras oil spill, sedimentation from sugar mills), Lack of conservation management plan and efforts to preserve heritage buildings, sites and landmarks. Figure 25.3: Tourism Growth Scenarios 25.2.7 Growth Scenarios ` A range of possibilities arise in considering future growth scenarios for tourism to this SDA. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of infrastructure, utilities, environment and sector management etc. 8% 5% 87% And at the other extreme is a: 2006 high growth scenario which can be seen as the rate at which the tourism sector Domestic could expand if sufficient public and private sector capital were attracted in developing the necessary supporting infrastructure, facilities and services, coupled with significant improvements in the enabling environment and sector management. Foreign Balikbayan These growth scenarios are illustrated on the accompanying figures. Under the high growth development scenario, total tourist numbers are projected to increase from 960,000 in 2006 to 2,020,000 in 2016, representing a growth rate of about 8% yearly. Reflecting this growth, demand for accommodation is projected to expand from 4,000 rooms at present to about 12,000 in 2016. 8% 5% 87% 2016 Under the low growth development scenario, total tourist numbers are projected to increase by about 5% yearly, with demand for accommodation increasing to about 9,500 rooms by 2016. 25.2.8 Development Strategy To achieve the high growth development scenario, the following strategic initiatives will need to be put in place: Develop old airport in Iloilo City for large mixed used development incorporating facilities for conventions, conferences, exhibits etc. Upgrade Metro Iloilo seaport/waterfront area including the river as a tourism resource. Restore Iloilo City Port area heritage buildings to become part of tourism product. Improve access to Guimaras. Upgrade status of airports to international classification. Implement environmental safeguards - increase protection for national parks - establish sanitary landfill sites Improve water supply distribution. Develop image and promote as Iloilo/Guimaras stand-alone destination. Improve road accessibility - the Bacolod-Salavador Benedicto-San Carlos City Road, needs to be upgraded to improve accessibility to Bacolod City and to other TDAs in Negros Occidential. - attract flagship tourism investments. Establish additional marine sanctuary in Guimaras. Figure Figure 25.4: 25.4: Projected Projected Accommodation Accommodation (Rooms) (Rooms) Development Developme 12,000 7,750 5,000 2006 Legend 2011 Low Growth Scenario Legend Low Growth Scenario 2016 25.2.9 Action Programme Sector Management Establish tourism development zones and provide investment incentives through the Board of Investments or PEZA. Destination Promotion - website development - promote as stand-alone destination in markets. Establish/strengthen local tourism councils. Environmental Protection and Enhancement Support to PAWB for finalisation of GMP and establish Protected Area Fund (IPAF) for PAs in the SDA. Establish marine reserve on Guimaras and set up sanctuary. GMP for Taklong Island. Community Involvement Community-based forest management in Mt. Kanlaon and Northern Negros Forest Reserve and mangrove management in Guimaras province. Human Resource Development Capacity building for LGU officials in destination planning, conservation and sector management. Infrastructure The proposed infrastructure projects are as follows: Projects Priority Balcolod-Silay new airport access road. Bacolod-Murcia-Don Salvador-San Carlos national road. Metro Iloilo radial road (Zarraga-Iloilo airport road). Guimaras circumferential national road. Improve RO-RO port facilities (Iloilo and Guimaras). Sanitary Landfill for Iloilo City Sanitary landfill for Bacolod City Environmental protection and enhancement. Iloilo river rehabilitation (river parks, heritage buildings and improvement of waterways). New convention centre/mixed use development at Metro Iloilo old airport site which has been sold to a private real-estate developer. Waterfront redevelopment in Metro Iloilo port area. Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 – 5 years 5 to 10 years A B A A A A A A B B B 25.2.10 Project Costs and Source Funding SDA B B B B Name of Project/Location Bacolod - Silay Airport Access Road (Bacolod) Metro Iloilo Radial Road (Zarraga-Iloilo Airport Road) Guimaras Circumferential Road Bacolod-Murcia-Don Salvador Benedicto-San Carlos City Road (Negros Occidental) B Improve RO-RO Port Facilities (Iloilo and Guimaras) B B B B B B B Sanitary Landfill for Iloilo City Area Sanitary Landfill for Bacolod City Area Sector Management Environmental Protection & Enhancement Community Involvement Human Resource Development for LGUs Iloilo River Rehabilitation, river parks, heritage buildings and improvement of water quality B B New Convention facility at Old Airport site Waterfront Redevelopment in the Port Area Code: Blue: projects for ODA assistance * per annum National Road National Road National Road Estimated Cost (PhP Million) 643 1,023 505 Implementing Agency DPWH DPWH DPWH Proposed Proposed Proposed Source Funding None Committed None Secondary National Road 70 DPWH Proposed None Seaport 100 Proposed Environment Environment Marketing Environment Community HRD River Rehabilitation 75 75 2* 22 1* 2* Depends on extent of rehabilitation Philippine Ports Authority (PPA) City Government City Government DOT DENR DENR DOT Iloilo City Government, Business Sector Private Developer Iloilo City Government, Business Sector Type of Project Convention Facility District Rehabilitation 400 Depends on extent of rehabilitation Red: projects for private sector investment Priority Ranking of Projects Priority A - up to 3 years: Addressing immediate basic needs – infrastructure, environment. Priority B - 3 to 5 years: Addressing medium term needs – interconnectivity because of anticipated growth. Priority C - 6 to 10 years: Addressing long term needs. Status Proposed Proposed Proposed Proposed Proposed Proposed Proposed None None None None None None None Priority A A A B A A A A A A B None Proposed Proposed None None B B 25.3 CEBU/MACTAN/SOGOD 25.3.1 Overview This SDA is comprised of the three TDAs: TDA 3.1 (Metro Cebu and Mactan Island-Olango Island). TDA 3.2 (Sogod Resort Area). TDA 3.3 (North Cebu). Even with the already considerable tourism development in Cebu, the area can still accommodate more investment. Market demand supports this and facilities will have to be developed to a high quality as Cebu now serves as a major commercial area and international gateway in the Central Philippines. Mactan Island is the location of the high end tourism facilities. 25.3.2 Tourism Resources and Access Transport Environmental Resources Diversity of migratory birds, mangroves and mud flats on Olango Island. Good reefs around Malapascua Island and Snake Island in northern Cebu. Good beachfronts along north-eastern coast. High number of interesting animals and bird species (some endangered including the Black Shama and Cebu Flowerpecker). Cultural Heritage Fort San Pedro, the oldest fort (1565) in the Philippines is found in Metro Cebu. A wooden cross to commemorate Magellan‟s original planting of cross in 1521 is in Cebu City (fragments of Magellan‟s original cross are incorporated in the later cross). University of San Carlos Museum in Cebu City houses extensive collection of Philippine pre-historic stones, jars, pots and burial coffins. Sinulog festival in Cebu City. Oldest religious icon of Santo Nino is housed in the old San Agustin church in Cebu City. Taoist Temple in Cebu City Tourist Attractions and Activities 25.3 SDA C: CEBU/ MACTAN/ SOGOD International convention centres (2). Range of hotels, resorts. Restaurants and bars. Shopping malls. Guitar factories Butterfly sanctuary. Dive sites. Thresher sharks. Sailing/yachting. Access Transport - Mactan-Cebu International Airport has direct flights to Korea, Japan, Hong Kong, Singapore and Kuala Lumper. Air and sea access services adequate for demand. shopping English language learning ornithology cultural heritage. 25.3.5 Development Potential 25.3.3 Tourism Infrastructure Accommodation A range of hotels, resorts and other types of accommodation with approximately 12,500 rooms. Average annual room occupancy rate of about 70%. Transport Infrastructure Mactan-Cebu International Airport facilities adequate for present passenger demand. - long term requirement for expansion of terminal facilities. Size of Cebu port adequate but configuration can be problematic at peak times. Unsatisfactory road conditions and congestion in urban access. Strengths International gateway. Well-developed tourism industry. Large number of tourist attractions. High level of private sector involvement. Large areas available for future tourism developments/expansion. Well-developed infrastructure. Mature urban centre and tourist services. Opportunities Hub for cruise industry. Marina development. Integrated resorts and hotels. 25.3.6 Constraints to Development Other Infrastructure Although Cebu is well served with infrastructure and utilities, there are deficiences in the northern parts of the islands, particularly with regard to water supply and waste management. Current Developments Several resort developments planned for Mactan and Metro Cebu as well as existing resort upgrades. 25.3.4 Tourism Product/Markets 31-storey Crown Regency Hotel in Cebu City to open in 2008 1000-room Imperial Palace Waterpark Resort and Spa in Mactan Island Additions and/or refurbishing of several hotels in Mactan Island (e.g., Hilton Cebu Resort and Towers, Marco Polo Hotel, and Shangri-La Spa Academy) Proposed Developments Capacity Issues The existing source markets are Asia, Europe, USA, Balikbayan and domestic. The current product markets are: - beach resorts - MICE - golf - dive - yachting - cruise (limited) Shortage of accommodation, particularly during peak season. Shortage of coastal land available for development on Mactan becoming a major issue. Sanitary land fill in Cebu City nearing end of useful life. Mactan island has no sanitary landfill and the capacity of its existing dumpsite will be reached in 2007. With the closure of all dumpsites as required by law (RA 9003), Mactan island has to construct a sanitary landfill or dispose its waste in the sanitary landfill of Cebu City. Weaknesses Inadequate water supply for large-scale development. LGUs have insufficient qualified staff and resources for successful urban and tourism planning functions. Although Bantayan Island has long been identified as a potential major beach destination, the lack of water and utilities limit tourism development possibilities. Lack of solid waste management system in Malapascua as required under RA 9003. Lack of resources to rehabilitate century-old churches and historical landmarks. Figure 25.5: Tourism Growth Scenarios Threats 38% Widespread violation in the use of foreshore lands in many coastal areas in Cebu City, Mactan and Sogod areas. Uncontrolled, environmentally insensitive developments. Water shortage. Destruction of coral reefs due to dynamite fishing and siltation of coastal waters of Bantayan Island and Malapascua Island 2006 2006 Domestic 25.3.7 Growth Scenarios ` 62% Foreign Balikbayan A range of possibilities arise in considering future growth scenarios for tourism to this SDA. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to 1% happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of infrastructure, utilities, environment and sector management etc. 50% And at the other extreme is a: 50% 2016 2016 high growth scenario which can be seen as the rate at which the tourism sector could expand if sufficient public and private sector capital were attracted in developing the necessary supporting infrastructure, facilities and services, coupled with significant improvements in the enabling environment and sector management. These growth scenarios are illustrated on the accompanying figures. Under the high growth development scenario, total tourist numbers are projected to increase from 1,250,000 in 2006 to 4,020,000 in 2016, representing a growth rate of about 13% yearly. Reflecting this growth, demand for accommodation is projected to expand from 12,500 rooms at present to about 40,000 in 2016. Figure 25.6: Projected Accommodation (Rooms) Development Under the low growth development scenario, total tourist numbers are projected to increase by about 4% yearly, with demand for accommodation increasing to about 21,000 rooms by 2016. 40,000 25.3.8 Development Strategy 22,500 To achieve the high growth development scenario, the following strategic initiatives will need to be put in place: Develop Cebu as home port for cruising. Further development of marinas. Upgrade airport at Bantayan Island to open up opportunities for tourism development and improve accessibility to the island. Introduce fast boat services (speed boats) to link northern islands. New sanitary landfill. Promote investment in accommodation and other tourism products. Establish solid waste management system in Malapascua Island Heritage restoration programme Develop reliable water supply and distribution system for northern Cebu. 12,500 2006 Legend 2011 Low Growth Scenario 2016 25.3.9 Action Programme Capacity building for LGU officials in destination planning, conservation and sector management. Sector Management Update CLUP, designating tourism zones Develop Cebu as „home‟ port for cruise Destination promotion - website development – promote SDA as stand-alone destination in markets - private/public sector matching funds for destination marketing. Air access promotion - increase service frequency on routes to Mactan- Cebu International Airport - develop more international routes. Environmental Protection and Enhancement Support to PAWB to prepare/finalise GMPs for PAs in SDA. Establishment of marine sanctuaries off the islands of Bantayan and Malapascua. Protection program for rare species such as Black Shama, Thresher Sharks and Manta Rays. Restoration of cultural and heritage sites. Community Involvement Community based eco-tourism product development on Olango Island. Restoration of cultural heritage sites. Human Resource Development Infrastructure The proposed infrastructure projects are as follows: Projects Priority Cebu cruise ship port and international marina. Upgrade/expand Mactan-Cebu Int‟l Airport passenger terminal. Bantayan Island airport upgrade and expansion. Bantayan Island solid and liquid waste management project (Phase 1). Bantayan Island water supply project. Sanitary landfill in Metro Cebu. Solid waste management system in Malapascua. Water supply and distribution system for Metro Cebu. Liloan-Sogod Road (50 kilometers) Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years A A B B B A B A B 25.3.10 Project Costs and Source Funding SDA Name of Project/Location Type of Project Estimated Cost (PhP Million) Implementing Agency Status Source Funding Priority Port 1,200 PPA Proposed None A Airport Terminal Airport Environmental Water Environmental Environmental Utilities Road Marketing Environment Communities HRD 100 100 600 400 400 10 500 600 10* 208 50 + 1* 2* DOTC - ATO DOTC- ATO LGU LGU City Government LGU Cebu City DPWH DOT DENR DENR, LGU, DOT DOT Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed None None None None None None None None None None None None A B B B A B A B A A A A Cebu Cruise Ship Port and International Marina Project (new) C C C C C C C C C C C C C Upgrade/expand Mactan-Cebu International Airport passenger terminal Bantayan Island Airport Upgrade and Expansion Project Bantayan Island Solid and Liquid Waste Management Projects (Phase 1) Bantayan Island Water Supply Project Sanitary Landfill in Metro Cebu Solid Waste Management System for Malapascua Island Water Supply and Distribution System for Metro Cebu Liloan-Sogod Road (50 kms) Sector Management Environmental Protection and Enhancement Community Involvement Human Resource Development for LGUs Code: Blue: projects for ODA assistance * per annum Red: projects for private sector investment Priority Ranking of Projects Priority A - up to 3 years: Addressing immediate basic needs – infrastructure, environment. Priority B - 3 to 5 years: Addressing medium term needs – interconnectivity because of anticipated growth. Priority C - 6 to 10 years: Addressing long term needs. This SDA is comprised of the three TDAs on the island of Bohol: TDA 4.1 (Tagbilaran City and Panglao Island). TDA 4.2 (South-eastern seaboard from Jagna to Anda). TDA 4.3 (North-western seaboard from Tubigon to Jetafe). The development of Bohol as a tourist destination can be likened to the way Bali has developed. With much of the accommodation facilities concentrated in one area, visitors have a range of options to visit the various attractions in the countryside. This model has proved to be successful in many destinations and aspects can be adopted for Bohol. 25.4.2 Tourism Resources and Access Transport Environmental Resources Attractive beaches and coves. Small islands with excellent coral reefs. Mountains/hills, forests and impressive landscape - Chocolate Hills, (1,268 mounds, each about 30 metres high). River systems, waterfalls Rajah Sikatuna National Park –forest with diverse bird population. Cultural Heritage Numerous heritage attractions - mainly centuries old churches (e.g. in Baclayon and Loboc) and ancestral homes. Festivals and fiestas. Basket weaving. Tourist Attractions and Activities Dolphin and whale watching. Diving. Corella town‟s tarsier visitor centre. Yachting and sailing. Linked with Cebu, the area could become a major yachting/sailing centre for Central Philippines. Access Transport 25.4 SDA D: BOHOL 25.4.1 Overview Air and sea access services adequate for present demand - good air connections from Manila - fast craft 45 minutes from Cebu No direct international services from source markets. RO-RO services adequate, primarily used by domestic travellers. 25.4.3 Tourism Infrastructure Accommodation - 25.4.5 Development Potential Approximately 2,500 rooms. Average annual room occupancy rates of about 60%. Currently, high-end accommodation concentrated on Panglao Island. Anda peninsula has a few small dive resorts. Sufficient land available for development of integrated beach/golf resorts. Strengths Transport Infrastructure Capacity Issues Power generation can only meet current demand. No sewerage network on Panglao Island. Abundant freshwater in northern Bohol but poor distribution. No sanitary landfill site. Proposed Development The existing tourist clientele are European, Asian, American, Balikbayan and domestic. The current product/markets for Bohol are: - beach resorts - nature tours (Chocolate Hills, rivers etc) - wildlife tours (birds, dolphins etc) - activities (scuba diving, snorkelling, caving) - adventure - hiking Panglao Island reaching saturation level with present level of infrastructure. Congestion and poor management of popular tourism sites (e.g., Chocolate Hills, Loboc River). Weaknesses Some additions/renovations to room stock (e.g., Eskaya, Belleview Park). Bohol Circumferential Road (phase 2) proposal covering the Anda Peninsula area – feasibility study completed and funding committed. Proposed new airport for Panglao Island (expected to open 2011). Feasibility Study for proposed Cruise Ship Port in Catagbaran, Loon. 25.4.4 Tourism Product/Markets Anda peninsula is a potential major tourist destination. However, access is a major consideration as the area is more than two hours from Tagbilaran City. Cruise ship calls on Loon 25.4.6 Constraints to Development Current Developments Well-established holiday resorts. Increasing interest by private sector investors. Active involvement of LGUs in tourism development. Unique landscape with numerous heritage features. Opportunities Tagbilaran and Tubigon are the main port gateways for tourists. Airport passenger terminal facilities very poor. - short runway which cannot be lengthened. On the south-eastern Bohol seaboard, the port town of Jagna provides sea access to Northern Mindanao. On the north-western Bohol seaboard, the port towns of Tubigon and Jetafe provide sea access to Metro Cebu and the islands of Cebu, Mactan and Olango. The towns along the coast are linked by a newly completed circumferential road. Other Infrastructure health and wellness meetings and conferences. Inappropriate development of tourism facilities in coastal areas. Land consolidation issues, particularly in Panglao. Limited air access capacity/airport inadequate. Inadequate water distribution system. Inadequate solid waste management system. No wastewater treatment facility. Poor enforcement of environmental laws and regulations and poor compliance with easement and foreshore lands regulations. Absence of a sanitary landfill to properly dispose of solid waste. 25.4.7 Growth Scenarios ` A range of possibilities arise in considering future growth scenarios for tourism to this SDA. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of infrastructure, utilities, environment and sector management etc. And at the other extreme is a: high growth scenario which can be seen as the rate at which the tourism sector could expand if sufficient public and private sector capital were attracted in developing the necessary supporting infrastructure, facilities and services, coupled with significant improvements in the enabling environment and sector management. Figure 25.7: Tourism Growth Scenarios These growth scenarios are illustrated on the accompanying figures. Under the high growth development scenario, total tourist numbers are projected to increase from 220,000 in 2006 to 785,000 in 2016, representing a growth rate of just under 14% yearly. Reflecting this growth, demand for accommodation is projected to expand from 2,500 rooms at present to about 9,000 in 2016. 20% 3% 77% Under the low growth development scenario, total tourist numbers are projected to increase by about 4% yearly, with demand for accommodation increasing to about 4,000 rooms by 2016. 2006 25.4.8 Development Strategy Domestic To achieve the high growth development scenario, the following strategic initiatives will need to be put in place: Foreign Balikbayan Develop cruise ship port and marina to add to the product offering and along with Cebu, to position the area as a major cruise ship destination. 2% 32% Strengthen appeal of nature and heritage sites. 66% Establish international airport at Panglao. 2016 Develop the road infrastructure in Panglao. Establish solid and liquid waste management system and infrastructure. Improve water and power supplies. Figure 25.8: Projected Accommodation (Rooms) Development 9,000 4,750 2,500 2006 Legend 2011 Low Growth Scenario 2016 25.4.9 Action Programme Sector Management Destination promotion - website development Promote Bohol as stand-alone destination in markets. Establish/strengthen local tourism councils. Environmental Protection and Enhancement Formulate and finalise GMPs and establish Integrated Protection Area Management Fund Ecological zoning and guidelines preparation. Rehabilitate cultural heritage buildings and sites. Community Involvement Tourism awareness programs for communities in Anda peninsula. Human Resource Development Capacity building for LGU officials in destination planning, conservation and sector management. Infrastructure The proposed infrastructure projects are as follows: Projects Priority Tagbilaran airport lighting and ILS project to accommodate international flights over the period 2007 – 2011. Cruise ship port and marina project. Panglao international airport. Panglao Island road capacity upgrade and Causeway improvement project. Panglao Island solid and liquid waste management project. Bohol backbone power transmission project. Tagbilaran solid waste management project. Sanitary landfill sites (for the towns of Tubigon, Ubay, Jagna, Sagbayan) Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years A C A B A A A A 25.4.10 Project Costs and Source Funding Airport Port National Road Estimated Cost (PhP Million) 600 450 900 Panglao Island Solid & Liquid Waste Management Project Environment 600 Panglao International Airport Tagbilaran Solid Waste Management Facility (10 hectare landfill) Bohol Backbone Power Transmission Project Sanitary Landfill Sites (for Tubigon, Ubay, Jagna, Sagbayan) Sector Management Environmental Management Community Involvement Human Resource Development LGUs Airport Environment Power Environment Marketing Environment Community HRD 2,500 100 2,966 150 5* 100 1* 2* SDA Name of Project/Location D D D Tagbilaran Airport Lighting and ILS Projects Loon Cruise Ship Port and Marina Project (new) Panglao Island Road Capacity Upgrade & Causeway Improvement Project D D D D D D D D D Code: Blue: projects for ODA assistance * per annum Type of Project Red: projects for private sector investment Priority Ranking of Projects Priority A - up to 3 years: Addressing immediate basic needs – infrastructure, environment. Priority B - 3 to 5 years: Addressing medium term needs – interconnectivity because of anticipated growth. Priority C - 6 to 10 years: Addressing long term needs. Implementing Agency DOTC - ATO PPA DPWH National Government DOTC - ATO LGU NAPOCOR LGU DOT, LGU LGU, DENP-PAWB NCCA, LGU DOT Status Proposed Proposed Proposed Proposed On-going FS Proposed Proposed Proposed Proposed Proposed Proposed Proposed Source Funding None None None None None PTA & MIAA None None None None None None Priority A C B A A A A A A A A A 25.5.1 Overview This SDA is comprised of the three TDAs: TDA 8.2 (El Nido – Taytay Area) TDA 8.3 (San Vicente-Roxas Area) TDA 9.1 (Puerto Princesa City) Puerto Princesa City is the provincial capital of Palawan. It is also the largest city in Central Philippines in terms of geographical area and serves as a tourist service center. The city can absorb more tourism development given the large amount of land available. Outside of Puerto Princesa the area has experienced modest growth in tourism. A number of destination resorts are already established in El Nido and Taytay. Looking to the future, the planned international standard airport in San Vicente will facilitate growth in visitor numbers to the area. 25.5.2 Tourism Resources and Access Transport Environmental Resources Mountains, forests, hot spring, waterfalls and impressive landscape. Subterranean National Park which was recognized by UNESCO as a World Heritage Site in 1999. The Honda Bay Area and associated small islands. Puerto Princesa City is a gateway point to the more remote areas in the Philippines like the Kalayaan Islands (considered the Philippines‟ most western outer reaches), the Balabac Islands on the southern tip of Palawan, and the Tubbataha Reefs National Park (included in the UNESCO World Heritage Sites List). The Tubbataha Reefs is a world-famous dive site southeast of Puerto Princesa City in the Sulu Sea. San Vicente has some of the longest undeveloped white sand beaches in North Palawan. San Vicente‟s beaches can be developed for low-density beach resorts. Small islands with fine white sand beaches, lagoons and sea coves in El Nido. Cultural Heritage Rich in indigenous culture Tourist Attractions and Activities Mix of resorts, restaurants, bars Dolphin and whale watching Excellent dive sites Nature based activities Crocodile farm Access Transport 25.5 SDA H: NORTH PALAWAN Air and sea access services to Puerto Princesa adequate - 2 ferry services per week from Manila Limited air access to El Nido - difficult to expand air services as the El Nido airport is privately owned - provincial airport at Sandoval 25.5.3 Tourism Infrastructure 25.5.5 Development Potential Strengths Accommodation Approximately 2,000 rooms in hotels, resorts and inns/lodges, majority of which located in Puerto Princesa. Average annual room occupancy rate about 50%. Palawan is marketed as the Philippines‟ premier ecotourism destination. Thus, its important to ensure that provisions are made to mitigate any negative impacts on the environment and local communities. High quality and beauty of environment. Presence of high-end destination resorts. Active private sector and LGU involvement. High degree of environmental awareness and protection by communities. Transport Infrastructure Opportunities Puerto Princesa airport has alternate international classification. Passenger terminal facilities at Puerto Princesa airport poor. Sea port adequate. Road network adequate. Other Infrastructure Insufficient power supply (San Vicente, El Nido & Taytay have rotating power supply). No sewerage network. - major problems in El Nido Inadequate water supply. Lack of liquid and solid waste disposal facilities in municipalities outside of Puerto Princesa. San Vicente has long white sand beaches and land available for the development of a mix of integrated resorts. 25.5.6 Constraints to Development Capacity Issues Congestion of tourists at popular sites (e.g. Subterranean River). Weaknesses Difficult access to most sites (El Nido, San Vicente). As Taytay and El Nido are designated Protected Areas, the lack of an approved GMP for these areas inhibits tourism development. Uncontrolled environmentally insensitive developments Poor condition of San Jose/Port Barton access road. Current Developments Threats Construction of the San Vicente Airport. Work on expansion of passenger terminal at Puerto Princesa airport. Upgrading of Roxas-Taytay Road which will improve access between TDAs 8.3 and 8.2. Amanpulo Resort and Dos Palmas Resort are building additional rooms. 25.5.4 Tourism Product/Markets Existing tourist clientele are Asian, European, American, Balikbayan and domestic. The current product/markets are: - beach resorts - eco tourism - water based activities (including diving, snorkelling) - nature (hiking) - LGU study tours - meetings and conferences. Incompatible land uses/ activities such as mining. Uncontrolled, environmentally insensitive developments. Figure 25.9: Tourism Growth Scenarios 25.5.7 Growth Scenarios ` A range of possibilities arise in considering future growth scenarios for tourism to this SDA. At one extreme is a: low growth scenario which can be interpreted as to what would be likely to 26% 74% happen if no initiatives are undertaken and tourism development continues to be constrained by the existing shortcomings in respect of infrastructure, utilities, environment and sector management etc. 2006 And at the other extreme is a: Domestic high growth scenario which can be seen as the rate at which the tourism sector could expand if sufficient public and private sector capital were attracted in developing the necessary supporting infrastructure, facilities and services, coupled with significant improvements in the enabling environment and sector management. Foreign Balikbayan 1% These growth scenarios are illustrated on the accompanying figures. Under the high growth development scenario, total tourist numbers are projected to increase from 190,000 in 2006 to 700,000 in 2016, representing a growth rate of just under 15% yearly. Reflecting this growth, demand for accommodation is projected to expand from 2,000 rooms at present to about 6,000 in 2016. 37% 62% 2016 Under the low growth development scenario, total tourist numbers are projected to increase by about 7% yearly, with demand for accommodation increasing to about 3,000 rooms by 2016. 25.5.8 Development Strategy Figure 25.10: Projected Accommodation (Rooms) Development To achieve the high growth development scenario, the following strategic initiatives will need to be put in place: Upgrade Puerto Princesa and Sandoval airports. Improve and upgrade road network. Puerto Princesa port to be upgraded to facilitate cruise ship calls. Sustain the strong focus on ecotourism, strengthening the area‟s strong environmental image. Implement projects to sustain and enhance the environmental quality of the area. Improve power and water supply. Establish solid and liquid waste management systems. Attract flagship resorts. 6000 3500 2000 2006 Legend 2011 Low Growth Scenario 2016 25.5.9 Action Program Sector Management Destination promotion - website development - promote SDA-H as stand-alone destination Environmental Protection and Enhancement Formulate and establish GMPs for PAs. Implementation of ECAN zoinging management plan for El Nido. Enforce Solid Waste Management Act (RA 9003) in all SDA municipalities. Puerto Princesa Subterranean River Conservation. Community Involvement Community forestry development and watershed management program in San Vicente and Taytay. Human Resource Development Capacity building for LGU officials in destination planning, conservation and sector management. Infrastructure The proposed infrastructure projects are as follows: Projects Priority Upgrade Puerto Princesa Airport Upgrade Puerto Princes Seaport to accommodate cruise ship calls Construction of Jetty at Sabang (access to Puerto Princesa Subterranean River). Construction of Jetty at Puerto Princesa Subterranean River Upgrade Roxas-Taytay National Road. Babuyan Small Hydropower Project. Langogan Small Hydropower Project. Water Supply and Distribution Project for Puerto Princesa City. Solid Waste Management System with Sanitary Landfills in San Vicente and El Nido. Upgrading of Salvacion to Cabayugan Road. Upgrading of San Jose to Port Barton Road (about 40 kilometers). Upgrade Itabiak to San Vicente Road (about 20 kilometers). Key: Blue projects – Public Sector; Red projects – Private Sector A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years A A A A A B B A A A A A 25.5.10 Project Costs and Source Funding SDA H H H H H H Name of Project/Location Upgrade Roxas-Taytay Road Babuyan Small Hydropower Project (Palawan) Langogan Small Hydropower Project (Palawan) Upgrade Puerto Princesa Airport Terminal Upgrade Puerto Princesa Seaport to accommodate cruise ship calls Construction of jetty at Sabang (access point to Puerto Princesa Subterranean River) H Construction of jetty at Puerto Princesa Subterranean River H Water Supply and Distribution in Puerto Princesa City. H H H H H H H H Solid Waste Management Systems (with Sanitary Landfills) in San Vicente and El Nido Upgrade of Salvacion to Cabayugan Road (Access to Underground River). Upgrade of San Jose to Port Barton Road (about 40 kilometers) Upgrade of Itabiak to San Vicente Road (about 20 kilometers). Sector Management Environmental Protection & Enhancement Community Involvement Human Resource Development for LGUs Code: Blue: projects for ODA assistance * per annum National Road Power Generation Power Generation Airport Terminal Port Estimated Cost (PhP Million) 981 922 813 80 100 Jetty 2 Jetty 2 Water Supply 250 Environment 80 Road Road Rooad Marketing Environment Community HRD 30 300 150 3* 220 50 + 1* 2* Type of Project Red: projects for private sector investment Priority Ranking of Projects Priority A - up to 3 years: Addressing immediate basic needs – infrastructure, environment. Priority B - 3 to 5 years: Addressing medium term needs – interconnectivity because of anticipated growth. Priority C - 6 to 10 years: Addressing long term needs. Implementing Agency DPWH NPC-SPUG NPC-SPUG DOTC - ATO PPA Provincial Government Provincial Government City Government, LWUA Provincial Government DPWH DPWH DPWH DOT DENR, DOT DOT DOT Proposed Proposed Proposed Proposed Proposed Proposed Source Funding None None None None None None Proposed None Proposed None Proposed None Proposed Proposed Proposed Proposed Proposed Proposed Proposed None None None None None None None Status Priority A B B A A A A A A A A A A A A A 26. SUPPORT AND CROSS CUTTING PROGRAMS AND PROJECTS During the course of the fieldwork a number of programs and projects were identified which will have significant benefits across the Central Philippines and at the same time address a number of the key issues constraining tourism development in the Super Region. As described in Ch. 19, these relate to: (i) (ii) (iii) (iv) (v) 26.1 Access transport connectivity Product expansion and development Environmental Planning and Protection Marketing connectivity Capability building for LGUs and Communities. The completion of the air transport connectivity platform requires improvements to passenger facilities (such as passenger terminals, boarding bridges and baggage conveyors); airport facilities (such as runways, taxiways, control towers and operation buildings); and navigational equipment to cater to night and all weather landings and take-offs. The cost of these improvements is estimated to be about PhP 5 billion. Table 26.1: Summary of Proposed Airport-Related Improvements/ Projects CLUSTER AIRPORT/ AIR ACCESS 1 North PanayRomblon 2 South Panay- Negros Occidental Kalibo Airport, Aklan Province 3 Cebu Island IMPROVED ACCESS TRANSPORT CONNECTIVITY Transport connectivity is one of the basic pillars of tourism development. Good connectivity involves integrating and interconnecting the three basic components of the transport system: the nodes (i.e., airports and seaports), the links (i.e., roads, air and sea routes), and the mode (i.e., aircrafts, ships, automobiles). Transport connectivity is intrinsically linked to economic prosperity and competitiveness, with positive benefits for inbound tourism, inward investment and job creation. The benefits of improving transport connectivity include reducing travel time, ensuring efficient movement of tourists, optimizing use of intermodal and transfer facilities, and in standardizing, integrating and enhancing related technologies (i.e., intermodal network and facility design, advanced equipment and vehicles and information services). Transport connectivity in the Central Philippines is a challenge because of the region‟s geographical characteristics. Its archipelagic nature makes it difficult to transfer from one point to another. Government acknowledges this challenge and is supportive of initiatives and measures to improve transport connectivity. Transport connectivity is at the centre of this Tourism Management Plan for the Central Philippines. Air Transport International standard airports are the gateways to the tourism destinations. For the Super Region, an efficient air transport connectivity platform is taking shape. Three airports (Mactan-Cebu, Puerto Princesa and Kalibo) cater for international flights. Two international standard airports have recently been completed (Iloilo and Bacolod-Silay) and one under construction, San Vicente (Palawan). International standard airports are also planned in Bicol, Panglao and Carabao Island. 4 Bohol Island 5 Negros Oriental Siquijor 6 Leyte – Samar 7 Bicol 8 North Palawan 9 South Palawan PROPOSED IMPROVEMENT/ PROJECT for the AIRPORT Improve and expand Passenger Terminal COST (PhP M) 50.0 Iloilo-Santa Barbara Airport, Iloilo Province None, airport is new 0.0 Bacolod-Silay Airport, Negros Occidental Province None, airport is new 0.0 Mactan-Cebu Airport, Cebu Province Tagbilaran Airport, Bohol Province Panglao Airport, Bohol Province Dumaguete Airport, Negros Oriental Province Upgrade and expand Passenger Terminal Lighting and ILS None 0.0 Tacloban Airport, Leyte Province Catbalogan Airport, Samar Province Guian Airport, Eastern Samar Province Legazpi-Daraga Airport, Albay Province Pili-Naga Airport, Camarines Sur Province None, funds for improvements have already been allocated Upgrade and expand airport 0.0 250.0 Construction of new airport 200.0 San Vicente Airport, Palawan Province Puerto Princesa Airport, Palawan Province Puerto Princesa Airport, Palawan Province None, Construction of new airport is already underway See South Palawan (next row) Construction of a new airport None, Construction of new airport is already underway Relocate airport site and build new airport Upgrade Passenger Terminal 100.0 600.0 2,500.0 0.0 1,000.0 0.0 80.0 Sea and Surface Transport The Super Region‟s Nautical Highway System is at the heart of the intermodal transport network of the Central Philippines, providing arterial connections and linking the various islands and regions together. The nautical highway system establishes an intermodal transport corridor through the integration of roads, ports and ferry services. To complete the sea and surface transport connectivity platform requires further expansion to the nautical highways. Expansion of the three nautical highways (i.e., Western, Eastern and Central) is underway with the establishment of the PanayLeyte route, the Negros-Southern Leyte route, the Panay-Sorsogon route, the Palawan-Luzon route, and the Palawan-Visayas route. RO-RO facility improvements in the form of additional ramps, the provision of back-up areas and passenger terminal building at strategic ports along these new routes should be prioritized and additional ferry services should be established. The completion of vital road links of the Nautical Highway System must also be undertaken as a priority to improve inter-regional connectivity. Road linkages to airports, tourist destination areas and urban centers must be enhanced as well. Priority development projects are: the construction of new airport access roads to Iloilo and Bacolod-Silay airports; rehabilitation of access roads to Caticlan, Kalibo and San Vicente airports; new road from Busuanga airport to Coron town; improvement of access roads to Caramoan Peninsula in Camarines Sur, improvement of access roads to beach resorts in Cebu and Sipalay, Negros Occidental, improvement of access roads to national parks in Negros Oriental and Sorsogon; construction of bypass roads in the urban centers of Iloilo, Bacolod, and Cebu; upgrading of circumferential roads in Siquijor, Guimaras, Camiguin, Siargao and Panglao Islands. Improvement costs for sea/surface transport is estimated at about PhP 10 billion. Table 26.2: Summary of Proposed Seaport-Related Improvements/ Projects CLUSTER 1 North PanayRomblon 2 South PanayNegros Occidental 3 Cebu Island 4 Bohol Island 5 Negros Oriental - Siquijor SEAPORT/ ACCESS BY SEA Caticlan Port, Aklan Province RO-RO Ports in Iloilo City and in Jordan on Guimaras Province Cebu Cruise Ship port and International Marina Project, Cebu Province Loon Cruise Ship Port and Marina Project, Bohol Province Dumaguete Seaport, Negros Oriental Province 6 Leyte – Samar Tacloban Seaport, Leyte Province 7 Bicol Legaspi Port, Albay Province 8 North Palawan 9 South Palawan San Antonio Port in Pilar, Sorsogon Province, in Liloan, Albay Province, and Pasacao Port in Camarines Sur, Upgrade Puerto Princesa Seaport, Palawan Province Upgrade Puerto Princesa Seaport, Palawan Province PROPOSED IMPROVEMENT/ PROJECT for the AIRPORT None, funds for improvements have already been allocated Improve Roll on – Roll off facilities and ferry facilities on both ports COST (PhP M) 0.0 100.0 Construction of new facilities 1,200.0 Construction of new facilities 450.0 Improvement of port facilities and construction of passenger terminal None, funds for improvements have already been allocated 40.0 None, port improvements already on-going None, all ports have either ongoing improvements or funds committed 0.0 0.0 0.0 See South Palawan (next row) Upgrade port facilities to accommodate cruise ships 100.0 26.2 PRODUCT EXPANSION AND DEVELOPMENT 26.2.1 Cruise The cruise market has been one of the fastest growing tourism products in recent times. Since 1980 the cruise industry has experienced an average passenger growth rate of 8.5% yearly. With the expansion of the cruise fleet, passenger numbers are expected to have been 15 million worldwide in 2006 (compared with 13.8 million in 2000) and to reach 20 million by 2012. Size of Cruise Ships Cruise ships range in size from the small „discovery‟ luxury type with 100 to 300 passenger capacity to the large Genesis class with 5,400 passengers and 1,500 crew. Typical medium sized cruise ships have 2,000 to 3,000 passenger capacity in addition to 780 to 1,000 crew on board. Infrastructure To develop the cruise product it is necessary to have a „home‟ port – port location where cruise itineraries begin and end. The port must have berthing facilities for a number of cruise ships, as well as good air access, hotel accommodation, retail opportunities and a range of attractions (day tours etc). Product Typically, a cruise is a 7 to 10 day itinerary, which means that there must be a „necklace‟ chain of ports at interesting destinations, each within a day‟s sail. These destinations must be able to offer local tours to various national and cultural/heritage sites, as well as offering retail opportunities, art galleries etc. Being archipelagic, the Central Philippines is a natural cruising area that can offer 5 to 10 day cruising itineraries to destinations which have different product offerings. Expenditure by Cruise Passengers Excluding the cost of the cruise package, passengers typically spend between US$10 and US$30 per head at each destination – on local tours, purchases, meal and drinks etc. Expenditure by Cruise Ships Expenditure by cruise ship companies includes port charges, provisioning (water, fuel, food, and uptake) and cruise taxes (each port usually charges a tax for each passenger on board). Cruise Circuit 2 Project Costs Project Component Establishment of Home Port Cruising Facilities in Cebu City Development of port or appropriate embarkation and visitor facilities in cruising destination which include, but not limited to the following areas: Puerto Princesa (Palawan), Pilar (Sorsogon), IIoilo, Negros Occidental, Southern Leyte and Bohol Preparation of Feasibility and Technical Studies Indicative Cost (PhP M) 1,200.0 500.0 50.0 Destination Cebu Iloilo/Guimaras Puerto Princesa Coron Boracay Pilar, Sorsogon Cebu Attractions Homeport, retail, guitar factories Churches and ancestral houses, mango plantation in Guimaras Subterranean river, Honda bay Diving, snorkeling, cultural attractions Beach, retail Donsol for whale sharks interaction, birdwatching in Pilar Homeport 26.2.2 Scuba Diving Scuba diving is one of the major strengths of Central Philippines. Being located in the middle of the „coral-triangle‟ (the richest coral reef area in the world), there are numerous high quality dive sites in the Super Region. Moreover, these sites offer a range of diving experiences – from simple leisure diving, to walls, wrecks, thresher sharks, etc., as illustrated on the accompanying map. The market is driven by the dive shops, dive publications and dive shows/exhibitions in the various source markets, with the web sites of the destinations and destination dive operators playing a leading role in marketing the product. Project Costs Project Component Recompression chamber facility in Puerto Princesa, Palawan Establishing additional marine protected areas and inclusion of scuba diving and related recreation activities Comprehensive research on existing and potential scuba diving sites More extensive marketing campaigns Indicative Cost (PhP M) 20.0 50.0 30.0 20.0 26.3 ENVIRONMENTAL PLANNING AND PROTECTION Background Under the NIPAS Act, every protected area (PA) is required to have a general management plan (GMP) which determines what parts of the PA can be used for tourism development and what parts for other purposes. The GMP is prepared by the PAMB, which consists of representatives of the relevant stakeholders in the PA (NGOs, barangays, municipalities etc) and assisted by the DENR-PAWB. Absence of an approved GMP is a significant constraint to tourism development in a PA as investors would not have the assurance of the legality of the location of their development in the area. Status of General Management Plans (GMPs) in Protected Areas (PAs) Located in Priority SDAs/TDAs in Central Philippines Based on the Protected Area (PA) list of DENR-PAWB, there are 32 designated PAs in the priority SDAs/TDAs (including the Camotes Islands). The list of these PAs is given on Table 26.3. SDA - D (Bohol) has 17 PAs; SDA - A (Boracay/Carabao) has none; SDA – B (Iloilo/Bacolod) has 6 PAs; SDA - C (Cebu) has 4; SDA - H (Palawan) has 5 PAs. None of the PAs within the priority SDAs has an approved GMP Of the 32 PAs, 18 (56%) have no GMPs. Only 4 PAs (12%) have draft GMPs but these have not yet been approved by DENR-PAWB. The PAs with draft GMPs include: Mt. Kanlaon Natural Park, Olango Wildlife Sanctuary, Malampaya Sound Protected Landscape and Seascape, and El Nido Managed Resource Reserve. Based on DENR-PAWB records, there is no information available on the status of GMPs in 9 of the 32PAs. Table 26.3: Status of General Management Plans (GMPs) in Protected Areas (PAs) Located in Priority SDAs SDA/TDA SDA A – TDA 1.1 Boracay Island SDA A – TDA 1.2 Carabao Island SDA B – TDA 2.1 Metro Iloilo – Guimaras SDA B - TDA 2.2 Bacolod-Silay SDA B – TDA 2.3 The Northeast Coast SDA B – TDA 2.4 Mount Kanlaon SDA C – TDA 3.1 Metro Cebu – Mactan Island – Olango Island SDA C – TDA 3.2 Sogod SDA C – TDA 3.3 North Cebu SDA D – TDA 4.1 Tagbilaran City – Panglao Island Preparation of GMPs The preparation of GMPs and their subsequent approval by their respective PAMBs would represent a major improvement to environmental planning and protection as well as the business environment for tourism development. The approved GMPs would guide and legitimize tourism development in PAs, thus enabling development projects to proceed without any legal encumbrances or technical ambiguities. Moreover, the preparation and approval of these GMPs would ensure the protection and conservation of PAs and at the same time sustain tourism development in these areas. Cost and Time Frame The cost of preparing 32 GMPs is estimated at PhP 50 million and would take approximately three (3) years to complete. SDA D – TDA 4.2 Southeast Seaboard from Jagna to Anda SDA – D TDA 4.3 Northwest Seaboard from Tubigon to Jetafe Protected Areas With Approved GMP With GMP but not yet approved Without GMP None None X Taklong Island Marine Reserve Patag National Park Northern Negros Forest Reserve Sagay Protected Landscape and Seascape (Sagay City) Bago River Watershed Forest Reserve (Mt. Silay – Mt. Mandalagan) Mt. Kanlaon Natural Park No info available No info available Island of Bantayan Wilderness Area (Visayan Sea in Cebu) Bantayan island Wilderness Area Balicasag Island Marine Reserve Pamilacan island Marine Reserve Island of Panglao Mangrove Forest Swamp Forest Reserve (From the west of Loboc River to the Municipality of Labaya) Alijawan-Cansuhay-Anibongan River Watershed Forest Reserve Rajah Sikatuna National Park Candijay Mangrove Swamp Forest Reserve (MSFR) Candijay group of islands Wilderness Area (WA) Wahig-Inabanga River Watershed Forest Reserve Tubigon Group of Islands MSFR and WA Clarin group of islands WA Albuquerque-Loay-Loboc No info available No info available No info available X X X X Olango Wildlife Sanctuary Sogod Bay No info available No info available No info available No info available No info available No info available No info available X No info available No info available No info available No info available No info available No info available X X X X X No info available No info available No info available X No info available No info available No info available X Outside of SDA/TDA Camotes, Bohol SDA H – TDA 11.3 San Vicente – Roxas Area SDA H – TDA 12.1 Puerto Princesa City TDA 12.2 El Nido Whole of Palawan 26.3 Protected Landscape/Seascape Jetafe group of islands MSFR and WA Loboc Watershed Forest Reserve Inabanga MSFR Inabanga group of islands WA Island of Pamasuan, Handayan, Majanay Mangrove Swamp Forest Reserve; Islets of Banoon and Lapinig, Chico; Mangrove Area of East Soon River, Pampang (Camotes, Bohol) Island of Banacon Wilderness Area (Camotes Sea, Bohol) Malampaya Sound Protected Landscape and Seascape Puerto Princesa Subterranean River National Park Palawan Flora, Fauna and Watershed Forest Reserve (Parcels I and 2) El Nido Managed Resource Reserve Palawan Game refuge and Bird Sanctuary and Wildlife Sanctuary (GRBS) X X X No info available No info available No info available The third factor is that the DOT determines and implements the national marketing strategy. The DOT determines the source markets which should be targeted, the country‟s brand image in these markets, the products/destinations featured in advertising and publicity campaigns, the promotional activities undertaken and the budgets allocated. Consequently, the Central Philippines‟ approach must be to dovetail its marketing strategy and plan with that of the DOT‟s, while at the same time using the DOT‟s marketing activities as „platforms‟ to mount its own promotional campaign. 26.4.2 Marketing Plan X X In formulating the Super Region‟s marketing plan we recommend the following: branding of the individual destinations X produce range of collaterals X sustained promotional campaign develop e-marketing and e-distribution X X MARKETING CONNECTIVITY 26.4.1 Strategic Approach In formulating a marketing strategy and plan, three factors have a determining influence. The first is that the DOT does not have the resources to undertake general consumer marketing campaigns. Consequently, in the short/medium term the (relatively) small scale of the Central Philippines tourism product offering requires that to be effective and get the best returns on expenditure, the promotion must be targeted at niche product segments and make greater use of e-marketing, e-distribution and ecommerce. The second factor is that, internationally, few people have heard of the Central Philippines; little is known about the Region. However, Boracay and Palawan are known internationally. Indeed, based on findings of two travel industry surveys conducted by the business publication, Asian Wall Street Journal, and the Internetbased travel magazine SmartTravelAsia.com, Boracay and Palawan are among the top 10 destinations of Asian holiday seekers. As in the case of Bali the key is destination recognition – not country or region recognition. undertake market research. Destination Branding Each SDA would be branded separately, reflecting its unique characteristics – Palawan‟s identification with nature and „get-away-from-it-all‟ ambience; Boracay/Carabao with its „party‟ atmosphere and so on. The SDAs would be promoted as „stand-alone‟ destinations in the market place. Produce Range of Collaterals For each SDA, these should include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) destination image brochure accommodation listing „what‟s on‟ and calendar of events library of photo images video (12 to 15 mins for use at travel fairs, road shows etc) maps and posters smaller brochures on selected niche products - scuba dive, golf, hiking, sports, birding, etc product manual - lists all niche products and associated ground tour operators (ix) (x) touring map/brochure (funding by car rental/petrol companies) specialty literature for the business meetings market where relevant. Sustained Promotional Campaigns For each destination, the marketing activities to be undertaken to include: (i) (ii) (iii) (iv) (v) travel trade shows representation at travel shows in Japan, Korea, Russia, UK, etc. advertising limited general advertising in specific print media selected web sites (Second Life) educational trips for journalists, travel writers public relations/representation press releases, advertorials press trips promotions to clubs and specialist associations (scuba dive etc). Develop E-Marketing and E-Distribution visitor surveys to determine tourist profiles (where from, what they do etc) data base of intermediaries (for each niche market, identifying the relevant associations, media channels etc) product inventory (number of hotel rooms etc) market segmentation studies to match products with markets for domestic, and international markets. Project Costs over 5 Years Project Component Destination Branding Collaterals Trade Promotions Web-Site Development and Maintenance Market Research Total Indicative Cost (PhP M) 50 50 50 35 15 200 26.5 CAPABILITY BUILDING FOR LGUs AND COMMUNITIES 26.5.2 LGUs The creative use of technology is crucial to the development of tourism to the Central Philippines. The Internet provides the technology platform for the Super Region to establish itself in niche markets on an equal footing with it‟s competitors, at comparatively modest costs. Adequate resources must be allocated for this activity – not only for the development and management of the web sites, but equally important, to recruit the necessary skills to maintain and further develop the sites. Priorities are: construct a virtual world of the Central Philippines inviting potential tourists to tour the different destinations to see what‟s on offer, how to get there etc construct web-site more as vacation planner rather than information source list and link product packages list and link foreign tour operators who feature these packages in their brochures list and link Filipino ground tour operators who have packages show how to get to the Central Philippines and the SDAs; links to the airlines and travel bookers slide show on products links to reservations sites and systems sell advertising space (banners, pop-ups, etc). achieve search engine optimisation Undertake Market Research To monitor and guide the Central Philippines‟ marketing and product development strategy, market research should be undertaken on an ongoing basis to include: At local government level the main issue is that very few LGU officials have the appropriate professional training in tourism management, planning and development. To address this issue an on-going training programme is proposed covering: destination marketing culture and heritage preservation environmental conservation and management institutional-building and linkages. Over a five year period the estimated cost of implementation is about PhP 10 millions. 26.5.3 Communities Capability building at community level would involve the delivery of training programs in following fields: Community leadership and management training. Community-based skills development training. Women‟s advocacy for socio-cultural impact management. Community enterprise building.cooperative training. Home-stay project management. Craft village management training. Coastal resources management. Over a five year period the estimated cost of implementation is about PhP 10 million. PART VI PROGRAM EVALUATION, STRATEGY AND IMPLEMENTATION 27. ECONOMIC ASSESSMENT .......................................................... 28. DEVELOPMENT STRATEGY, PROGRAM SELECTION AND FICHES.................................................................................. 29. PROGRAM IMPLEMENTATION .................................................... 30. INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTATION ..................................................................147 27. ECONOMIC ASSESSMENT The purpose of the economic evaluation is to measure the costs and benefits of the five priority SDA growth scenarios from the point of view of the Central Philippines‟ regional economy and the national economy to determine whether, in general, they are economically viable. Government has to decide how much additional weight should be given to other factors, such as employment generation, tax revenues, etc. In this regard Government will have to compare the net benefits from investments in tourism with other investment opportunities in other sectors of the economy in prioritizing its investment program. This, however, is outside the scope of the study. Initially, the economic costs of tourism development in the five priority SDAs of the Central Philippines are estimated and the associated economic benefits are then quantified. With this information, the economic returns to the economy over the lifetime of the five priority SDA growth scenarios (2008 – 2030) are calculated. 27.1 METHODOLOGY AND BASIC ASSUMPTIONS 27.1.1 Scope of the Assessment For the economic assessment only the five priority Destination Areas were considered– thus excluding the economic effects on other areas within the Central Philippines. As the findings indicate, a positive net benefit to these areas result from tourist development, although the assessment understates the total beneficial economic contribution of tourism development in the SDAs to the regional and national economies. 27.1.2 Methodology One method of computing the net economic benefits to the citizens of a region or country from a project is by estimating its Net Present Value (NPV) to society, i.e., the discounted value of the estimated future benefits and future project/program costs to the country‟s and Central Philippine‟s economies. Net Present Value (NPV) Costs: The economic costs include the capital costs of providing the required infrastructures, new accommodations, new facilities etc., as well as the sector management costs to meet the projected increases in tourism in the SDAs. Benefits: The benefits accruing from the growth in tourism are calculated by forecasting tourist arrivals on a with and without project/program basis and estimating the visitors‟ expenditure in the SDAs. This expenditure includes spending not only in hotels, resorts etc., but also on tours, purchases of curios, etc. Since each scenario involves a dispersed stream of costs and benefits through time, it is necessary to use a discounting factor representing the estimated opportunity cost of capital (OCC) on the project/program costs and benefits to determine their present values. The difference between the sum of the discounted benefits and the discounted costs, is the Net Present Value (NPV), which represents either the surplus or deficiency in economic benefits after paying back the original investment and other recurring costs. It is good measure, therefore, of the purely economic viability of the different scenarios. Any scenario which results in a positive NPV, is, in prima facie economic terms, worth pursuing. It is also important to note that the benefit-cost streams calculated are the incremental benefits and costs over and above what would have arisen in the absence of the proposed new investments. This is because a level of tourism already exists in the SDAs – they are not „greenfield‟ situations. The choice of discount rate, often referred to as the Opportunity Cost of Capital, is crucial to the analysis. Bearing in mind the supply of and the demand for investible funds in Philippines, discount rates of 15% and 18% have been selected and applied to the stream of costs and benefits (measured in constant 2006 money values). Economic Internal Rate of Return The Economic Internal Rate of Return (EIRR) is based on the net incremental benefit streams over the lifetime of the project computed using different discount rates. The EIRR refers to the discount rate wherein the present value of the benefits accruing to society is equal to the present value of the project/program cost streams. It is an approach favoured by JBIC, the Asian Development Bank (ADB), World Bank (WB), other multilateral funding agencies and the National Economic and Development Authority (NEDA) when evaluating projects/programs. Benefits: As indicated earlier, the main source of project/program benefits is increased tourist traffic resulting in higher total expenditures by vacation and business visitors to the SDAs. Costs: Costs associated with the generation of the above benefits relate to new capital investments, production of goods and services, repair and maintenance, sector management costs, environmental protection & enhancement costs, community project costs, etc. The costs and benefit streams, in terms of constant prices, can then be calculated for each of the SDA growth scenarios. After adjustments (for shadow pricing and the proportions of new investments (in infrastructure) attributable to tourism have been made) the EIRR for the project can be computed. Shadow Pricing 27.2 In project/program economic analysis, we use economic values based on society‟s willingness to pay for the inputs and outputs that are involved. However, economic values may differ from financial values for a variety of reasons, such as market failure. Because of these facors, the prices actually paid may differ from what people would be willing to pay for these same items. For example, because of subsidies, consumers may pay less than they would be willing to pay. If we took the financial price as the indication of the real value of that item, we would end up undervaluing the item. When the prevailing market/financial price of any good or service is changed to make it more closely represent the opportunity cost (the value of a good or service in its next best alternative use) to the society, the new value assigned becomes the “shadow price”. In the strictest sense, a shadow price is any price that is not a market/financial price, but it also carries the connotation of an estimate of the economic value of the good or service in question. In the Philippines, shadow pricing involves the application of adjustment factors on the financial/market prices of specifically two items – unskilled wage rates and foreign exchange. These adjustment factors are as follows: Item Shadow wage rate for unskilled labor Shadow foreign exchange rate (from US$ to PhP) Adjustment Factor 0.6 * prevailing minimum wage rate 1.2 * prevailing official exchange rate SDA TOURISM GROWTH SCENARIOS The growth scenarios, along with the associated public and private sector investment costs are summarised on Table 27.1 following. Table 27.1: SDA Growth Scenarios and Associated Public and Private Sector Investment Costs Bednights (000‟s) SDA Baseline 2006 A. Boracay/ Carabao B. Iloilo/ Guimares/ Bacolod C. Cebu D. Bohol H. Palawan Dom For Dom For 1,075 650 1,310 400 With Invest 2016 2,790 2,350 3,500 940 Dom For Dom For Dom For 3,100 1,910 680 245 420 150 7,640 18,040 2,110 1,310 1,305 1,315 W‟out Invest 2016 1,755 945 2,720 650 5,030 3,120 1,120 340 885 255 Public Sector Capital Investment Peso (M) Public Private Sector Sector Current Capital 5,179 100 3,490 1,490 50 400 4,168 130 n/a 8,366 80 n/a 3,980 60 n/a Legend: D – domestic tourists; F – foreign tourists, including Balikbayan Public Sector Capital Investment Public Sector Current Investment - capital infrastructure project costs current expenditures on sector management, environmental protection & enhancement etc over the period 2006 – 2016. These adjustment factors are normally applied in project/program analysis. Since foreign tourists are projected to account for a specific proportion of total visitors in the SDAs, only this proportion of visitor expenditure has been adjusted using the „shadow‟ exchange rate. On the costs side, the „foreign exchange‟ elements of the capital costs have been estimated and shadow priced at the same rate as above. Non-Economic Cost Items Deleted from the Financial Cost Items Cost items not considered as valid economic costs for project/program analysis are a) direct transfer payments (such as taxes, direct subsidies, loans amortization of loan principal), b) price contingencies, and c) insurance. 27.3 DIRECT ECONOMIC BENEFITS – TOURISM REVENUES The main source of project benefits is increased tourist traffic resulting in greater total expenditures. In the estimates, we have distinguished between increased tourist traffic to the SDAs and increased tourist traffic to the Central Philippines and the Philippines as a whole. The benefits arising from the latter effect have been excluded. Direct beneficiaries of the project include the operators of the accommodations, transport, tours and facilities. Government stands to benefit from direct (VAT) and indirect (import duties) taxes. Employees in the tourist facilities and services and the producers of crafts and souvenirs will benefit from increased job opportunities and incomes. Roads Expenditure per tourist per bednight is estimated at PhP 5,000 (US$115) for foreign tourists and PhP 3,000 (US$70) for domestic tourists as follows: Unless to or within a Tourism Site, roads usually get more usage from local residents and other economic sectors than from tourism. Table 27.2: Breakdown of Tourist Expenditure, per person, per night Item Accommodation Incidentals & Food & Beverage Tours & Other Services Other Purchases Expenditure (Peso) Domestic Foreign 1,000 2,000 1,000 500 1,500 1,000 500 500 Airports Comments Weighted average of single & double room occupancy incl. taxes but excl. discounts to tour operators. Meals in restaurants, including taxes Tours, transportation, guide services etc with the SDA. Crafts, misc. within the SDA. Airports get considerable usage by tourists. However, it must be borne in mind that the projected tourist numbers and associated bednights used in this study refer to tourists who use „paid‟ accommodation. Other tourists (largely domestic tourists staying with friends and relatives) and day trippers (business people) are excluded from the calculations. 27.5 Note: (i) exchange rates: US$ = 43 Peso; € = 65 Peso (ii) based on rate of €150 for double/twin room, less 20% discount to tour operators/group organisers = €120 per night = €60 per night on the basis of 2 people per room. 27.4 ECONOMIC COSTS Costs associated with the generation of the above benefits relate to investments in accommodation, roads, airports, utilities, other facilities and amenities, replacement of investment, operating costs, and repair & maintenance etc, along with the sector management costs. All proposed (new) investment costs, whether funded by the Government of the Philippines, other Governments or Multilateral agencies by way of loans or grants, or private sector investment should be taken into account in the calculation of the economic returns. Many of the proposed investments, particularly infrastructure and utilities, will benefit not just tourists (whether domestic or international) but also the local resident population and other sectors of the economy. In the economic costs, the cost of each infrastructure and non-infrastructure investments including those made by the private sector as given in the list of investment projects were considered in its entirety. Accommodations On the face of it, the cost of all private sector investment in accommodations should be fully charged against benefits arising. However, it should be noted that hotels are also used for other purposes by local populations – weddings and other private events. EVALUATION OF GROWTH SCENARIOS The net present values of the five SDA growth scenarios are summarised on Table 27.3. The assumptions underlying the economic analysis along with the detailed calculations of the NPVs for the different SDA growth scenarios are outlined in Ch. 34 (Working Papers). At the discount rates, the NPV‟s are positive for all five SDAs. This indicates that each scenario is economically viable. Table 27.3: Computed Net Present Values and Economic Rates of Return for the Priority SDAs (Peso Million at 2006 Prices) SDA SDA A SDA B SDA C SDA D SDA H SDA A – H EIRR 34.7% 36.7% 77.6% 25.6% 37.2% 40.3% ENPV @ 15% d.r. 14,708.5 5,601.8 33,503.9 6,864.5 6,059.6 66,738.28 @ 18% d.r 9,299.2 3,716.3 23,701.7 3,848.6 3,962.9 44,528.78 It should be noted that „shadow pricing‟ was not used. Neither were any allowances made to either the costs or benefits arising from the usage of the investments by other economic groups. This approach was considered prudent in the light of the fact that the estimated costs and benefits can only be regarded as indicative of the magnitudes involved rather than precise figures. 27.6 ASSESSMENT OF ECONOMIC BENEFITS The benefits emanating from the project are not as readily quantified but they are significant in the context. spent on domestic goods and services, and so provides further domestic income in the next round. The more income that leaks away in tax payments, savings or expenditure on imports, the less there is to spend on the home market. Very little work has been done on the estimation of tourism income multipliers for the Philippines or, indeed, for the national economy. These include: Studies on tourism in different countries estimated tourism multiplier coefficients within the range of 0.9 to 4.3. Contribution to incomes. Increased GNP through the multiplier effect. Contribution to employment. Contribution to foreign exchange earnings and the balance of payments. Contribution to government revenues through direct and indirect taxation. On the basis of a tourism income multiplier of about 1.8, it is suggested that the initial addition of just under Php 103 billion, to incomes arising from international tourist spending in all of the SDAs by 2016 would lead through successive waves of spending to an ultimate increase of about PhP 185 billion to regional income. When the additional spending by these tourists in other parts of the Philippines during the remainder of their stay is also included, the total increase to national income would be significantly greater. Contribution to environmental conservations and enhancement. Tourist Spending and Employment Improved transport connectivity. Promotion of regional economic development and greater equality of income. Increased demand for the output of linked suppliers, including communities. Perhaps the most important effect of tourism, both international and domestic, is that it generates employment. It is widely accepted that tourism is a relatively labour intensive and compares favourably with other economic activities as a generator of employment. The actual size of the employment effects of tourism depends first and foremost on the absolute magnitude of primary tourist spending. Contribution to higher living standards among communities. The major problem in any analysis of the economic significance of tourism is trying to define the industry. A broad definition of the industry would include not only the hotel sector, but also part of the retail sector (craft shops), part of the public transport sector and so on. A narrow definition of the industry might just be confined to the accommodation and air-transportation sectors. Tourist Spending and Incomes The importance of tourism to the Central Philippines and the country as a whole is due to the fact that expenditure by tourists constitutes income for its direct recipients – i.e., those who are concerned with the production and sale of products and services to tourists. Tourist Spending and the Multiplier Effect on National Income The contribution of visitor expenditure cannot be evaluated in terms of the visitor‟s spending alone. Account must be taken of the consequent multiplier effect of this expenditure as it spreads throughout the region and national economy. The power of the multiplier effect depends on the proportion of each increment of income that is The other major determinant of the number of jobs created by tourism is the size of the employment multiplier – i.e., the number of jobs created in secondary sectors as a result of an injection of tourist spending. While the size of this will in part depend on the level of imports of goods (and hence export of jobs) of a region or country, the nature of the production processes in the secondary demand sector and their labour requirements is also very important. The issue here is how to measure all the employment effects of tourist spending, whether primary or secondary. Ideally this should be done by means of an employment multiplier which would assess the amount of employment generated by both the primary and later effects of tourist expenditure. The resulting employment figures would then indicate the full contribution of tourism to total employment, in the cases where there is spare employment capacity (i.e. unemployed labour) for tourism generated activity to absorb. Direct employment generated in the five SDAs is estimated on Table 27.4. Shortage of data has meant that we have been unable to calculate the multiplier employment effects on related sectors (construction, food, transport etc.). Table 27.4: Employment Generated in Priority SDAs Priority SDA A. Boracay/Carabao B. Illilo/Guimaras/Bacolod C. Cebu D. Bohol H. Palawan Total SDAs Current „06 4,000 5,000 12,500 2,500 2,000 26,000 Rooms With inv 2016 12,000 12,000 40,000 9,000 6,000 79,000 With Inv. 2016 6,000 9,500 21,000 4,000 3,000 43,500 Tourism and Environmental Protection and Enhancement Incr. direct tour employment Accom Other Total 17,000 5,000 38,000 10,000 6,000 71,000 7,500 3,000 23,000 6,000 3,500 43,000 19,500 8,000 61,000 16,000 9,500 114,000 Based on a rate of 2.0 employees per room, approximately 71,000 jobs will be created in the accommodation sub sector in the five priority SDAs with the implementation of the proposed public and private sector investment programs. Based on the analysis of Ch. 6 earlier, a further 43,000 will be created in the other sub sectors of the tourism industry (restaurants, tour companies etc). Tourism can be a means of environmental protection and enhancement. User fees and entry charges to national parks, reserves and other protected areas will help defray not only the management costs of these areas but also contribute to their development and enhancement. Tourism and “Backward” Linkage Effect with Communities and other Sectors Tourist spending in the region will stimulate existing industries such as agriculture through increased demand for vegetables, etc. Moreover, the same tourist expenditure may also induce the creation of other industries allied to, or dependent on, tourism. For example, the growth of tourism to a region may encourage the production of local handcraft goods by communities to be sold to visitors as souvenirs. Tourism and Living Standards Tourism Spending and Balance of Payments Effects The flow of foreign exchange from tourism depends on the volume of tourists and upon how much they spend. The projected volumes of tourism are indicated in the scenarios. The exchange rates used are those pertaining in November 2006. An outflow of funds associated with this inflow stems from the construction costs and replacement of investments, operating costs, repair and maintenance and debt servicing. While the outflow will inevitably be relatively higher in relation to investment costs, it should be considerably lower where operating costs are concerned. Because of the lack of reliable data on the import content of tourist expenditure it hasn‟t been possible to calculate the net foreign exchange earnings arising from the growth scenarios. Nevertheless, it is considered to be substantial. Tourism and Regional Economic Development Unlike other forms of consumption, tourism – whether domestic or foreign – occurs at the point of production. Thus, the geographical impact of tourism has an added dimension in so far as it helps to reduce regional disparities in income levels. Tourist spending can have a significant impact – for example, the purchase of PhP 2,500 worth of crafts can represent a significant proportion of a local villager‟s income. It should be noted that these figures would be even higher if multiplier effects were taken into account. It might also be contended that not only does tourism bring revenue to the less developed regions but it spreads the benefits over a wide range of business activities with small businesses as well as the larger benefiting in the process. Related to the previous point, it should be noted that catering for the needs of the tourist implies by definition, the provision of an infrastructure of “tourism plant” involving such facilities as hotels, resorts etc., which may be used by the resident local population for events etc. The development of these amenities improves living standards and thereby effects an increase to the economic welfare of the community as a whole. 28. DEVELOPMENT STRATEGY, PROGRAM SELECTION AND FICHES 28.2 28.1 PROGRAM SELECTION DEVELOPMENT STRATEGY The total public sector investment program for the priority SDAs is estimated at just under PhP 23.5 billion. As resources may not be available to carry out the required investment program simultaneously in all five SDAs the following criteria were used in ranking the investment program(s) for implementation. To achieve the projected growth in tourist numbers and expenditures over the next decade, the Central Philippines will have to: Move to an investment driven strategy The investment program should: Outside of Cebu and Boracay, little investment has taken place in recent years in the Super Region‟s tourism sector. The result is that the tourism industry is totally reliant on its natural attractions as the motivation for tourists to visit. But the natural attractions, though unique in many ways, are not sufficiently strong in themselves to attract the numbers required to support a significant tourism sector. This is a primary factor driven strategy and characterized by infrastructure inadequacies, limited investment in product, insufficient accommodation, medium to low quality product and inadequate airlift. build on existing structures, taking development to a higher level rather than providing infrastructure for start-up areas include all the projects within the development program rather than „cherrypicking‟ projects. Investing in just one or two projects of a particular SDA program will not bring about the projected growth. There has to be a critical mass of investment for substantive development to occur The Central Philippines is not alone in this regard. All destinations, where the core products are nature and culture based but are not considered world class (such as the Galapagos, Egypt, Greece) face this problem. The strategy that many destinations which do not have „world class‟ nature and cultural attractions have pursued, is to invest heavily in related products – golf, health and wellness, cruise, yachting, marinas, conference and incentive etc. These destinations have seen their tourism sectors prosper and grow. have a high rate of economic return (NPV & ERR) and produce significant socioeconomic benefits in terms of contribution to job creation, incomes, tax receipts to government To move on to the next stage of development requires an investment driven strategy, with sustained investment in all aspects of tourism – infrastructure, utilities, new products, destination marketing, human resource development etc. be affordable in that the investment resources required do not „crowd-out‟ other development opportunities in the medium term. contribute to environmental protection and enhancement through projects which mitigate any adverse environmental impacts on the one hand and on the other, contribute to enhancing the environment The application of the above criteria indicated that the following sequencing of the SDA investment programs for optimum returns. Figure 28.1: Tourism Development Strategy 1st: 2nd: 3rd: 4th: 5th: Tourist No.s / Revenue 28.3 2006 PROGRAM/PROJECT FICHES In this section a composite program fiche is outlined for the five priority SDAs as a whole along with fiches for each SDA. The individual project fiches are described in Ch. 33 (Annexes). Investment Driven Primary Factor Driven SDA – C: Cebu SDA – A: Boracay/Carabao SDA – D: Bohol SDA – H: Palawan SDA – B: Iloilo/Guimaras 2016 28.3.1 Priority SDAs 28.3.2 Boracay and Carabao PROGRAM TITLE CENTRAL PHILIPPINES „SUPER REGION‟ TOURISM DEVELOPMENT PROGRAM PROGRAM TITLE SDA – A: BORACAY AND CARABAO SDA/TDAs SDA–A: Boracay/Carabao; SDA-B: IIlilo/Guimares; SDA-C: Cebu; SDA-D: Bohol; SDA-H: Palawan TDAs TDA 1.1 Boracay Island, Malay, Nabas TDA 1.2 Carabao Island Description Because of the unique quality of its beach, Boracay is one of the Central Philippines more successful tourism destinations in terms of development and market attractiveness. However, due to the relatively small size of the island coupled with the fragility of its eco-system any significant development puts great pressure on the environment. There is a need therefore to rationalize the development of the island to ensure the sustainability of the tourism industry. A CLUP for the island is currently being prepared by DOT. Description The Central Philippines „Super Region‟ includes the provinces of Palawan, Ramblon and Dapitan, the Islands of Siargao and Camiguin, and Regions V, VI, VII and VIII. Although the Super Region has a wealth of ecological and cultural attractions, it has failed to translate these touristic resources into a substantial tourism industry. The purpose of the program is to establish the Central Philippines as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Justification Some 24.5 million Filipinos live in the Super Region, representing about 28% of the population. As regional output (GDRP) per head is 30% below that of the country as a whole, the region is characterised by a significant incomes „gap‟. Moreover, unemployment and underemployment are high. Carabao Island to the north has had very limited development to date but has the potential to become a major resort development to absorb much of the increasing numbers of visitors to the region. The purpose of the program is to establish Boracay/Carabao as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Justification Both Boracay and Carabao have considerable tourism development potential. Access is adequate and the tourism sector is well organised. A new airport on the northern part of Carabao island is planned, along with major resort developments. Moreover, there are private sector proposals to develop and operate Caticlan airport involving runway extension, new passenger terminal etc. Benefits & Impacts The investment program is expected to generate increased earnings of PhP 8.5 billion from international tourism and PhP 5.1 billion from domestic tourism. Benefits arising include new job creation (min of just under 20,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Capitalising on its natural resource base, tourism can be developed as a driver of economic activity, generating incomes and creating employment within the Region, thus contributing to closing the gap in living standards with the rest of the nation. Benefits & Impacts Estimated Costs (PhP M) Time Lines Implementation Agencies The investment program is expected to generate increased earnings of PhP 103 billion from international tourism and just over PhP 32 billion from domestic tourism. Benefits arising include new job creation (min of 114,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Infrastructure Sector Management Environ Protection : 22,529 : 270 : 554 Community Development LGU HRD :150 :100 Estimated Costs (Php M) Infrastructure Sector Management Environ Protection : 5,175 : 70 : 4 Community Development LGU HRD Time Lines 10 years. Implementation Agencies DOT in association with other relevant agencies. 10 years. DOT in association with other relevant agencies. :10 :20 28.3.3 Iloilo/Guimaras/Bacolod 23.3.4 Cebu PROGRAM TITLE SDA – B: IKOILO/GUIMARAS/BACOLOD TOURISM DEVELOPMENT PROGRAM PROGRAM TITLE CEBU TOURISM DEVELOPMENT PROGRAM TDAs TDA 2.1: Metro Iloilo-Guimaras; TDA 2.2: Bacolod-Silay TDA 2.3: The Northeast Coast; TDA 2.4: MT Kanlaon TDAs TDA 3.1: Metro Cebu, Mactan Island, Olango Island TDA 3.2: Sogod Resort Centre; TDA 3.3: North Cebu Description Metro Iloilo and Bacolod cities serve as major gateways, tourist service areas and business destinations. Although Metro Iloilo has a small number of tourist sites, its location (close to Guimaras), makes the city an ideal base for the tourists visiting the region. Bacolod city is primarily a business centre. Description Even with the already considerable tourism development in Cebu, the area can still accommodate more investment. Market demand supports this and facilities will have to be developed to a high quality as Cebu now serves as a major commercial area and international gateway in the Central Philippines. Mactan Island is the location of the high end tourism facilities. Based on the island‟s natural resources, Guimaras has the potential to become an important tourist destination in its own right. Northern Negros Occidental has a number of interesting nature and heritage sites. The purpose of the program is to establish Cebu as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. The purpose of the program is to establish the area as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Justification With two national parks, the area has large tracts of unspoilt natural scenery and attractions. Two new international standard airports (Sta. Barbara and Silay City) provide improved access. Justification Cebu has considerable tourism development potential. In addition to the development opportunities in areas around Sogod and Northern Cebu, there is the potential to develop Cebu as a hub/home port for cruise ships along with marina development for yachting/sailing. Benefits & Impacts The investment program is expected to generate increased earnings of PhP 2.7 billion from international tourism and just under PhP 6.6 billion from domestic tourism. Benefits arising include new job creation (min of 8,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Benefits & Impacts The investment program is expected to generate increased earnings of just over PhP 80.6 billion from international tourism and PhP 13.6 billion from domestic tourism. Benefits arising include new job creation (min of 61,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 1,468 : 20 : 22 Community Development LGU HRD :10 :20 Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 3,910 : 100 : 208 Community Development LGU HRD Time Lines 10 years. Time Lines 10 years. Implementation Agencies DOT in association with other relevant agencies. Implementation Agencies DOT in association with other relevant agencies. :60 :20 28.3.4 Bohol 28.3.5 Northern Palawan PROGRAM TITLE BOHOL TOURISM DEVELOPMENT PROGRAM PROGRAM TITLE NORTH PALAWAN TOURISM DEVELOPMENT PROGRAM TDAs TDA 4.1: Tagbilaran and Panglao Island TDA 4.2: South-eastern Seaboard from Jagna to Anda TDAs TDA 8.2: El Nido – Taytay; TDA 8.3: San Vicente – Roxas TDA 9.1: Puerto Princesa City Description The purpose of the program is to establish Bohol as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Description The purpose of the program is to establish North Palawan as a significant destination offering international access, seamless interconnectivity and world-class tourist facilities and products. This will be achieved through an investment program which addresses the current deficiencies in infrastructure, marketing, product development, environmental protection & enhancement and human resource development. Justification Access will be improved with the construction of the planned new international standard airport by 2011, thus facilitating the development of Bohol as a stand-alone tourist destination. Another proposed development is a cruise-ship port in Catagbacan, Loon. Justification Access to north Palawan will be considerably improved with the completion of the international standard airport at San Vicente, an area which has long, white sand beaches and land available for the development of a mix of integrated resorts. Benefits & Impacts The investment program is expected to generate increased earnings of PhP 5.3 billion from international tourism and PhP 4.3 billion from domestic tourism. Benefits arising include new job creation (min of 16,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Benefits & Impacts The investment program is expected to generate increased earnings of PhP 5.8 billion from international tourism and just under PhP 2.6 billion from domestic tourism. Benefits arising include new job creation (min of 9,000); increased incomes; contribution to foreign exchange earnings; environmental conservation and enhancement; higher living standards among communities. Estimated Costs (PhP M) Time Lines Implementation Agencies Infrastructure Sector Management Environ Protection : 8,266 : 50 : 100 Community Development LGU HRD :10 :20 Estimated Costs (PhP M) Infrastructure Sector Management Environ Protection : 3,710 : 30 : 220 Community Development LGU HRD 10 years. Time Lines 10 years. Implementation Agencies DOT in association with other relevant agencies. DOT in association with other relevant agencies. :60 :20 29. PROGRAM IMPLEMENTATION Indicative time frames and associated costs of program implementation are shown for each of the priority SDAs. SDA A (Boracay and Carabao Islands) PROJECTS Improve Paving of Caticlan-Kalibo Road Section Boracay Island Solid & Liquid Waste Management Capacity Upgrade Boracay Island water supply 16.5 MW Villasiga Hydropower Plant Project (Sibalom, Antique) Upgrade/develop transmission from Sibalom to Boracay 7-hectare Sanitary Landfill to Benefit Boracay Island (Located in Caticlan, Malay) Improve and expand terminal facilities at Kalibo Airport Sanitary Landfill site in Southern Tablas Island to benefit Carabao Sector Management Environmental Protection & Enhancement LGU Human Resource Development Carabao Island Electrification Program San Jose Airport, northern part of Carabao Island San Jose Seaport and Terminal, north-east part of Carabao Island Upgrading and construction of new roads on Carabao Island (30 kms) Community Involvement YEAR Yr 1 Yr 2 Yr 3 Yr 4 190 million Yr 5 Yr 6 Yr 7 Yr 8 800 million 700 million 2,545 million 800 million 140 million 50 million 140 million 70 million 4 million 20 million 180 million 3,030 million 40 million 240 million 10 million Yr 9 Yr 10 SDA B (ILOILO-GUIMARAS-BACOLOD) PROJECTS Bacolod - Silay Airport Access Road (Bacolod) Metro Iloilo Radial Road (Zarraga-Iloilo Airport Road) Guimaras Circumferential Road Bacolod-Murcia-Don Salvador Benedicto-San Carlos City Road (Negros Occidental) Improve Ro-Ro Port Facilities (Iloilo & Guimaras) Sanitary Landfills for Iloilo City Area Sanitary Landfills for Bacolod City Area Sector Management Environmental Protection & Enhancement Community Involvement LGU Human Resource Development Iloilo River Rehabilitation, river parks, heritage buildings & improvement of water quality New Convention facility in site of Old Airport Waterfront Redevelopment in the Port Area YEAR Yr 1 Yr 2 643 million 1,023 million 505 million Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 70 million 100 million 75 million 75 million 20 million 96 million 10 million 20 million Depends on Extent 400 million Depends on Extent SDA C (CEBU/MACTAN/SOGOD) YEAR PROJECTS Yr 1 Port of Cebu Cruise Ship Port & International Marina Project (new) Upgrade and expand Cebu-Mactan Airport passenger terminal Bantayan Island Airport Upgrade and Expansion Project Bantayan Island Solid & Liquid Waste Management Projects Phase 1 Bantayan Island Water Supply Project Sanitary landfill in Metro Cebu Solid Waste Management System in Malapascua Water Supply and Distribution System for Metro Cebu Liloan-Sogod Road (50 kms) Sector Management Environmental Protection and Enhancement Community Involvement LGU Human Resource Development Yr 2 Yr 3 Yr 4 Yr 5 1,200 million 100 million 100 million 600 million 400 million 400 million 10 million 500 million 600 million 100 million 200 million 60 million 20 million Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 SDA D (BOHOL) PROJECTS YEAR Yr 1 Tagbilaran Airport Lighting & ILS Projects Cruise Ship Port & Marina Project (new) Panglao Island Road Capacity Upgrade & Causeway Improvement Project Panglao Island Solid & Liquid Waste Management Projects Panglao International Airport Tagbilaran Solid Waste Management Facility (10 hectare-landfill) Bohol Backbone Power Transmission Project Sanitary Landfill Sites (for Tubigon, Ubay, Jagna, Sagbayan) Sector Management Environmental Management Community Involvement LGU Human Resource Development Yr 2 600 million Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 9 Yr 10 450 million 900 million 1,600 million 2,500 million 100 million 1,966 million 150 million 50 million 100 million 10 million 20 million SDA E (NORTH PALAWAN) PROJECTS Upgrade Roxas-Taytay Road Babuyan Small Hydropower Project (Palawan) Langogan Small Hydropower Project (Palawan) Upgrade Puerto Princesa Airport Construction of jetty at Sabang (access point to St. Paul's Subterranean River) Construction of jetty at Puerto Princesa Subterranean River Water Supply & Distribution in Puerto Princesa City. Solid Waste Management System (with Sanitary Landfill) in San Vicente and El Nido Upgrade of Salvacion to Cabayugan Road (Access to Underground River). Upgrade of San Jose to Port Barton Road (about 40 kilometers) Upgrade of Itabiak to San Vicente Road (about 20 kilometers). Sector Management Environmental Protection & Enhancement Community Involvement LGU Human Resource Development YEAR Yr 1 Yr 2 981 million Yr 3 Yr 4 922 million 813 million 80 million 2 million 2 million 250 million 60 million 30 million 300 million 150 million 30 million 222 million 60 million 20 million Yr 5 Yr 6 Yr 7 Yr 8 30. INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTATION 30.1 Figure 30.1: Proposed Organizational Structure of the Inter-Agency Tourism Program Coordination, Monitoring and Evaluation ORGANISATIONAL ARRANGEMENTS Inter-Agency Tourism Program Coordination, Monitoring and Evaluation Committee – Central Philippines [IATPCMEC-CP] The institutionalization of an effective and functional program coordination, monitoring and evaluation organizational structure is imperative to enable the Department of Tourism to coordinate the various inter-sector programs and projects, regularly report on its progress to the oversight agencies and funding institutions and assist the agencies involved resolve any inter-agency issues on program/project implementation. The proposed organisational arrangement for program coordination, implementation, monitoring and evaluation for tourism and tourism-related programs/projects in the Central Philippines is illustrated in Figure 30.1. IATPCMEC-CP Secretariat PROGRAM DIRECTOR DOT CP Program Coordinating Unit Recognizing the various cross-cutting issues in tourism which the proposed projects seek to address, project implementation responsibilities will involve various agencies of the national government including the local government units. To avails delays in implementation and/or inefficient use of resources it is important that possible interagency conflict is avoided. Through clear designation of lines of responsibility, the proposed organizational arrangement vests on these agencies responsibility for projects within their mandate. Central Philippines Project Management Office (Consultant and DOT Counterparts) The DOT is the overall program coordinator, monitor and evaluator of the various proposed tourism-related projects under the proposed Central Philippines Tourism Development Program and implementor of projects within its purview. For projects under the responsibility of the local government units (LGUs), DOT and the national agencies involved will provide technical assistance to the LGUs, given their limited financial and manpower resources and technical capability and experience. However, the responsibility for the implementation of such projects remains solely with these LGUs. 30.2 SDA TWGs KEY AGENCIES As illustrated on Fig 30.1, the key agencies are Inter-Agency Tourism Program Coordination, Monitoring Committee – Central Philippines (IATPCMEC-CP) IATPCMEC-CP Secretariat DOT-CP Program Coordinating Unit Central Philippines Project Management Office SDA Technical Working Groups Implementing Agencies and Evaluation SDA A SDA B SDA C SDA D SDA H MEMBERS OF EACH SDA TWG* DOT, DPWH, DENR, DOTC, DILG, DTI, CHED, DOST, PCVC, PTA, PPA, BOI, TESDA, NCCA, National Museum, LGUs (Province/City), Communities * - The membership in each SDA Technical Working Group will depend on the number and type of projects and their location in the specific SDA.. 30.2.1 Inter-Agency Tourism Program Coordination, Monitoring and Evaluation Committee (IATPCMEC-CP) 30.2.2 IATPCMEC-CP Secretariat The role of the Secretariat is to: The IATPCMEC-CP is already established, its functions being to: Formulate, agree and commit to a Tourism Development Implementation Plan for the Central Philippines Supervise the implementation of the Plan, the IATPCMEC-CP being the Supervisory Authority Ensure the coordination of the necessary resources for the implementation of the agreed actions Convene meetings of the IATPCMEC-CP Organise agenda for meetings ensure all relevant papers, reports etc are distributed to committee members in advance of meetings record deliberations and decisions of committee meetings communicate decisions of committee to implementing agencies, stakeholders. 30.2.3 DOT-CP Program Coordinating Unit Monitor plan implementation, resolving any inter-agency issues which adversely affect implementation Within DOT, a Central Philippines Program Coordinating Unit has been established. The functions of the Coordinating Unit are to: Determine procedures and modalities for effective reporting by the various implementing agencies Undertake regular progress reviews, recommending changes to directors, projects etc as appropriate Communicate effectively with all stakeholders, including implementing agencies, on progress, changes of direction etc., through the dissemination of reports, publication of newsletters, setting up of website etc. Composition of the IATPCMEC-CP is as follows: Position Chairman Vice-Chairman Members Representative/Office Secretary, Department of Tourism Secretary, Department of Environment and Natural Resources Undersecretaries Department of Public Works and Highways (DPWH) Department of Transportation and Communications (DOTC) Department of Interior and Local Government (DILG) Department of Trade and Industry (DTI) Department of Science and Technology (DOST) Heads of Office Air Transportation Office (ATO) Philippine Ports Authority (PPA) Philippine Tourism Authority (PTA) Philippine Convention and Visitors Corporation (PCVC) Commission on Higher Education (CHED) Technical Education and Skills Development Authority (TESDA) Board of Investments (BOI) National Commission on Culture and the Arts (NCCA) National Museum Coordinate the implementation of the Tourism Development Program Prepare papers, reports etc as requested by the IATPCMEC-CP Implement decisions/recommendations of the IATPCMEC-CP Manage the consultancy component of the program, preparing terms of reference and contracting appropriate consultancy services Maintain close co-operation and collaborations with implementing agencies, LGUs etc. In effect, the DOT Program Coordinating Unit is the executive arm of the IATPCMEC-CP. 30.2.4 Project Management Office (PMO) The role of the PMO is to: Ensure that the objectives of the Tourism Development Program are achieved Manage and implement the program in an efficient and effective manner Coordinate the activities of the SDA Technical Working Groups (TWGs) Monitor and evaluate the implementation of the program, addressing problems/issues that may arise Provide secretariat services to the individual SDA TWGs. 30.2.5 SDA Technical Working Groups (SDA TWGs) A Technical Working Group will be established for each SDA, the role of the TWG being analogous to the IATPCMEC-CP at SDA level viz to: Agree and commit to the Tourism Development Plan for the SDA Supervise the implementation of the plan at local level Ensure the coordination of the necessary resources for the implementation of the agreed actions Monitor plan implementation, resolving any inter-agency issues which adversely affect implementation Determine procedures and modalities for effective reporting by the various implementing agencies Undertake regular progress reviews, recommending changes to direction, projects etc., as appropriate Communicate effectively with all stakeholders, including implementing agencies on progress, changes of direction etc., through the dissemination of reports, publication of newsletters, setting up of website etc. PART VII ANNEXES 31. PROJECT TERMS OF REFERENCE ............................................ 32. INFRASTRUCTURE PROJECTS IN EMERGING SDAs ............... 33. PROJECT FICHES......................................................................... 34. WORKING PAPERS ...................................................................... 1. OBJECTIVES 3. The project aims to formulate an integrated ecotourism management plan for the Central Philippines. It also seeks to identify viable critical environmental, infrastructure and community-based projects to link and integrate the tourism development of the area. 2 EXPECTED OUTPUTS (i) Integrated Sustainable Tourism Management Plan for the Central Philippines (ii) Detailed implementation program for viable projects/activities on infrastructure, environmental management and micro tourism enterprises projects in identified development areas. (iii) Estimated cost involved in implementing the recommended program of projects and actions. SCOPE OF WORK (i) Review and evaluate existing plans to determine gaps and interventions needed to promote sustainable tourism development in the target Cluster areas. Among the documents to be reviewed are the National Tourism Action Plan, National Ecotourism Strategy and other tourism development plans. The Study on Environmentally Sustainable Tourism Development, the SAPROF Study for Northern Palawan and the SEMP-NP project outcomes. (ii) Consult and interview key stakeholders in the target areas to validate initial desk top assessment as well as to gather more information and data to determine the technical, economic and institutional viability of proposed projects. (iii) Identify tourism development zones in the target areas and prepare outline feasibility studies of critical projects. (iv) Validate environmental, social, cultural, infrastructure, and tourism products in the target areas to identify projects that will address critical concerns to protect the natural and cultural resources, enhance tourist accessibility and mobility as well as expand tourist expenditure and length of stay. (v) Identify community-based tourism projects that will enable local residents to take active role in environmental protection and cultural conservation while benefiting from tourism development through supplemental livelihood and micro tourism enterprises. (vi) Assess the skills of tourism stakeholders in the target areas and identify capacity building needs most especially on ecotourism planning, project development and management, promotions and monitoring. (vii) Review marketing plans in the target areas and recommend appropriate marketing and promotions strategy to link the promotion efforts for identified areas in the Central Philippines to attract not only tourists but also investments, tourists and retirees in the identified development areas which can generate jobs and livelihood opportunities for local people. (viii) Formulate an institutional development plan that will link the proposed projects through technical cooperation with other international and regional organisations, research centers for greater learning and exchange of information or best practices. (ix) Prepare implementation program for identified projects based on the NEDA and JBIC format. 32. INFRASTRUCTURE PROJECTS FOR EMERGING SDAs This chapter contains a description of the Emerging SDAs, along with our recommendations on the infrastructure projects required to lay the foundations for sustainable tourism development. SDA – E (Cluster 5) Overview This SDA is comprised of the two TDAs: TDA - 5.1 Dumaguete – Sibulan – Tambobo Bay TDA - 5.3 Bais Bay Area Although existing attractions are primarily scuba diving in the Tambobo Bay Area, and dolphin and whale interaction in the Bais Bay Area, the area has the natural resource base of fine beaches, the Twin Lakes National Park, the Southern Negros Forest Reserve etc., which can support a wider range of tourism products to include integrated resorts, yachting, sports fishing and nature based activities (hiking, ornithology etc). The constraints to tourism development are: Lack of basic infrastructure Poor access. Absence/lack of flagship tourism investments Low market awareness Limited range of tourism products offered Low level of tourism industry development Loss of beach resulting from poorly-designed infrastructure development Pollution of coastal areas by industrial facilities (e.g. uncontrolled sedimentation caused by sugar mills) Loss of wildlife and habitats as a result of over-hunting and logging Table 32.1: Proposed Infrastructure Projects Name of Project/Location San Carlos (Negros Occidental)Dumaguete Road (Negros Oriental) Rehabilitation of Palinpinon Geothermal Power Plant Improvement of Dumaguete Seaport and Construction of Passenger Terminal Water Supply & Distribution project in Sibulan and Dauin Solid Waste Management System (including MRF and sanitary landfill) for Dumaguete Area Legend: Type of Project Est. Cost (Peso M) Significance Level of Priority Improves accessibility between San Carlos City (SDA B) and Dumaguete City (SDA E) Additional capacity to cater for tourism development National Road 570 Power Generation 2,310 Passenger Terminal 40 Improve tourist comfort and convenience B Water Distribution 40 Improve water supply distribution in towns adjacent to Dumaguete B Solid Waste Management 140 Improves/ conserves natural environment B A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years B A SDA – F (Cluster 6) Overview This SDA is comprised of the two TDAs: TDA - 6.1 (Samar - Leyte Interface) TDA - 6.4 (Southeastern Samar) Tacloban City in Leyte is the gateway for the entire Leyte Island and for certain parts of Samar Island proximate to the San Juanico Bridge. The Tacloban City Area in TDA 6.1 has the Santo Niño Shrine and Heritage Center, the Leyte Landing Memorial in Palo, and other sites related to General Douglas MacArthur‟s landing during World War II. The number of visitors to these sites has dwindled in the last 10 to 15 years. However, TDA 6.1 has other touristic attractions (e.g., Sohoton Natural Bridge National Park, Marabut Islands) that can be developed. Calicoan Island in TDA 6.4 (Southeastern Samar) is, a potential tourism haven because of its white sand beaches. However, its exposed position in relation to the Pacific Oceans typhoons is a constraint to development. The constraints to tourism development are: Situated in the typhoon belt Poor accessibility of the attractions from the tourist service area (Tacloban City) Lack of middle-to-high end tourist facilities Low level of tourism industry development Low level of private sector participation Inadequate utility infrastructure Illegal fishing practices (e.g., dynamite fishing, cyanide, collection of marine species as souvenirs) Degradation of environment through loss of natural areas or habitats. Table 32.2: Proposed Infrastructure Projects Name of Project/Location Catbalogan Airport Upgrade and Expansion Project Western Samar Coastal Road (Allen to Sta. Rita) Traffic Management & Safety Projects Guian Airport Project (new) Sta. Rita - Quinapundan 69 kV T/L Project (Sta. Rita - MacArthur) Solid Waste Management System (including MRF and sanitary landfill) for Tacloban and adjacent municipalities Legend: Type of Project Estimated Cost (Peso M) Airport 250 Improve access to Western Samar National Road 800 Improve safety and surface access via National Highway. Airport 200 Power Transmission 500 Solid Waste Management 140 Level of Priority Significance Improve access to Calicoan peninsula (components such as runway are under construction) Improve power supply to Eastern Samar Area Improve/ conserve environment natural A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years B B A A B SDA – G (Cluster 7) Overview This SDA is comprised of the three TDAs: TDA 7.2 (Naga City - Pili Area) TDA 7.5 (Iriga City Area) TDA 7.6 (Albay - Sorsogon Area) This SDA has a range of attractions – extreme sports at the Camsur Water Sports Complex (CWC) in Pili; hiking, climbing and adventure in the Mount Isarog National Park; whale shark interaction at Donsol; diving off Ticao Island in Masbate; beach/island resorts in the Albay Gulf. A new airport in Daraga in Albay Province by 2010 will supplant Legazpi City (the present tourist service area) as the main tourist/ visitor air gateway for Region V (Bicol Region). The constraints to tourism development are: Situated in typhoon belt and active volcanic area Inadequate tourism infrastructure Low level of tourism industry development Low market awareness Incompatible industries such as mining (e.g., Cagraray Island in Albay) Table 32.3: Proposed Infrastructure Projects Name of Project/Location National Road (Sorsogon to Camarines Norte) Upgrade, Traffic Management & Safety Projects Pili-Naga Airport Relocation Project Mainline South Railway (Southrail) Project: Phase 1B Lucena-Legaspi Mainline South Railway (Southrail) Project: Phase II: Extension to Sorsogon Region V Multi-Modal & Terminal Projects San Fernando-Oas Pan Philippine Highway Section Camarines Sur-Albay Diversion Road 41 MW Rangas Geothermal Project Steamfield Development (Sorsogon) 40 MW Tanawon Project, Sorsogon Bicol Emergency Power Restoration Solid Waste Management System (including MRF and sanitary landfill) for Legazpi and surrounding municipalities Legend: Type of Project Estimated Cost (Peso M) Significance National Road 1,600 Improve accessibility/ Mobility in Region V (Bicol Region) Airport 1,000 Rail 22,460 Rail 15,970 Transit 1,800 National Road 2,180 Power Generation Power Generation Power Transmission Solid Waste Management 4,210 5,000 1,120.00 140 Level of Priority Improve air access Improve Accessibility/ Mobility in Region V (Bicol Region) Improve accessibility/ Mobility in Region V Improve accessibility/ Mobility in Region V Improve accessibility/ Mobility in Region V Increase Capability of Region V to Accommodate Tourists Increase Capability of Region V to Accommodate Tourists Increase Capability of Region V to Accommodate Tourists Improve/ conserve environment natural A – immediate priority ; B – medium term priority; C – long term priority Up to 3 years 3 to 5 years 5 to 10 years C B B B B B A 33. PROJECT FICHES B 33.1 SDA-A: BORACAY AND CARABAO ISLANDS B 33.1.1 A Infrastructure REF 1 PROJECT TITLE TDA(s) Description IMPROVE AND EXPAND PASSENGER TERMINAL FACILITIES AT KALIBO AIRPORT TDA 1.1 The Kalibo Airport is currently the main gateway to Boracay and the rest of Aklan province as it receives regular flights from Metro Manila. International chartered flights from Hong Kong and Seoul also land at the Kalibo Airport. REF 2 PROJECT TITLE TDA(s) Description An expanded international passenger terminal (IPT) facility at the Kalibo Airport would cater to the increasing air passenger demand, thereby further boosting the tourism industry in Boracay and the rest of Aklan Province. Due to limited space and facilities of the passenger handling areas at the Kalibo Airport, it is unable to receive a larger number of passengers comfortably, particularly arrivals. The proposed expansion of the passenger handling areas would provide a more comfortable and warm welcome to ever-increasing volumes of foreign tourists who fly in direct from international points of origin. Benefits & Impacts Justification Promotion of Boracay, Aklan Province and the Central Philippines Super Region through a modern and efficient international airport passenger facility. Estimated Costs (PhP M) PhP 50 million Time Lines 2008-2011 Implementation Agencies Department of Transportation and Communications (DoTC) Air Transportation Office (ATO) TDA 1.1 A solid waste management system involves recycling and reduction of solid waste. It is also about collection, handling, processing, and disposal of solid waste. A responsive solid waste management system has to be planned in order to preserve the natural environment and sustain tourism on Boracay Island. An effective collection and handling system will ensure that solid waste is processed and brought to either a Materials Recovery Facility (MRF) or a sanitary landfill site. Both facilities will have to be located on the mainland of Malay municipality (Aklan province) where land for such purposes would be cheaper to acquire. (See Sanitary Landfill Site as a separate Project Sheet). A docking area which serves as a transfer station for boats to pick up and bring solid wastes to the mainland will have to be constructed. This project aims to provide a modern and efficient IPT facility for foreign and local tourists and visitors to Aklan and the rest of the Central Philippines super region. Justification BORACAY ISLAND SOLID & LIQUID WASTE MANAGEMENT CAPACITY UPGRADE The steady increase of tourist arrivals on the island will also bring about a corresponding increase in generated liquid wastes that would exceed the capacity of the existing sewage treatment plant (STP). The liquid waste management project would address the estimated increase in volume of liquid wastes on the island in the next ten years. A solid waste management system will help eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, and seas. It will also change the attitudes of resort operators and residents and encourage them to reuse, recycle and reduce solid waste. Benefits & Impacts With the expected increase in tourist arrivals, a sewerage system for the proper collection and disposal of liquid wastes on the island will be needed to help preserve the natural beauty of the island. Solid and liquid wastes can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health and preserves the island environment Estimated Costs (PhP M) PhP 400 million for Solid Waste Management System and about P 400 million for the expanded sewerage system. Time Lines 2008-2012; Construction and operation of a Solid Waste Processing Area and an expanded Boracay Island Sewerage System Implementation Agencies Local Government of Malay, Philippine Tourism Authority, DENR REF 3 PROJECT TITLE 7-HECTARE SANITARY LANDFILL TO BENEFIT BORACAY ISLAND (LOCATED IN CATICLAN, MALAY) REF 4 PROJECT TITLE SANITARY LANDFILL SITE IN SOUTHERN TABLAS ISLAND TO BENEFIT CARABAO ISLAND TDA(s) TDA 1.1 TDA(s) TDA 1.2 Description An important component of the solid waste management system for Boracay Island is the Sanitary Landfill which is to be located on the mainland of Malay municipality (Aklan Province). Description In anticipation of a significant increase in tourism activity in Carabao Island and tourism sites on Southern Tablas Island in about 5 years, a sanitary landfill will be an important facility in the disposal of solid waste. The proposed sanitary landfill should be located on the southern part of the Tablas Island where it can serve not just Carabao Island (San Jose Municipality) but Santa Fe, Looc, and Alcantara municipalities as well. The increasing number of tourist arrivals on Boracay Island has strained its capacity to handle generated solid waste. An engineered sanitary landfill on the mainland of Malay municipality will assure that solid waste from Boracay Island and the rest of Malay municipality will be disposed of in a safe manner in the next ten years. Justification Benefits & Impacts The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the increasing volume of solid waste in the island and Caticlan (mainland) where the local seaport and airport are located. Also, this will eliminate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas. Solid wastes can be disposed of properly Environmental protection and promotion Cleaner environment brings good health and preserves the tourism environment Estimated Costs (PhP M) PhP 140 million (Acquisition of land, and construction and operation of the landfill) Time Lines 2008-2012; Construction and operation of Sanitary Landfill on the mainland of Malay municipality Implementation Agencies Local Government of Malay Municipality and the Aklan Provincial Government A sanitary landfill for a cluster of municipalities will allow the sharing of costs of acquiring land, building the facility, and also operating it. Justification The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the increasing volume of solid waste in the southern municipalities of Tablas Island and the resort island of Carabao. A disposal site will help eliminate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas. Benefits & Impacts Estimated Costs (PhP M) PhP 140 million (Acquisition of land, and construction and operation of the landfill) Time Lines 2010-2015;Construction and operation of Sanitary Landfill on southern Tablas Island Implementation Agencies Local Governments of San Jose, Santa Fe, Looc, and Alcantara municipalities and the Romblon Provincial Government Solid wastes can be disposed of properly Environmental protection and promotion Cleaner environment brings good health and preserves the tourism environment REF 5 PROJECT TITLE UPGRADE/DEVELOP TRANSMISSION FROM SIBALOM TO BORACAY REF 6 PROJECT TITLE IMPROVE CATICLAN-KALIBO ROAD SECTION TDA(s) TDA 1.1 TDA(s) TDA 1.1 Description The project aims to connect Boracay Island to the proposed Villasiga Hydropower Plant Project located in Sibalom, Antique which has a capacity of 16.5 MW (See separate Project Sheet) through high-powered transmission lines. The distance between the proposed hydropower plant and Boracay Island is about 100 kilometers. Description The Caticlan-Kalibo Road involves pavement improvement of about 70 kms of national roads. The project is part of the National Roads Improvement Management Project (NRIMP) for Panay Island. The increase in the number of resorts and hotels on Boracay Island will result in a considerable increase in demand for power, that can be supplied by the proposed Villasiga Hydropower Plant. Several municipalities in Antique between Sibalom and Boracay also stand to benefit from the upgrading of the transmission lines. Justification Power is essential for the continued operation of tourism hotels, resorts, and facilities on Boracay Island. The Villasiga Hydropower Plant has the capacity to supply the projected future demand for power of Boracay Island. Justification The National Roads Improvement and Management Project (NRIMP) aims to support the Government's reform program in the road sector, which seeks to address management and financing issues of national roads, and in particular to develop sustainable financing, to improve monitoring of road conditions and involvement of road users, as well as to improve key business processes within the Department of Public Works and Highways (DPWH). The road is also a vital link of the Western Nautical Highway System. Benefits & Impacts A reliable supply of power can sustain tourism activity on Boracay Island for the next ten years as tourist arrivals are expected to increase further. Benefits & Impacts The proposed project is expected to sustain competitiveness of regional economies and social well being of people by eliminating traffic bottlenecks along strategic national road corridors; and to enhance road sector management capacity. Estimated Costs (PhP M) PhP 800 million Estimated Costs (PhP M) PhP 190 million Time Lines 2010 – 2012 Time Lines 2008 -2010 Implementation Agencies National Power Corporation Implementation Agencies Department of Public Works and Highways (DPWH) REF 7 PROJECT TITLE BORACAY ISLAND WATER SUPPLY REF 8 PROJECT TITLE 16.5 MW VILLASIGA HYDROPOWER PLANT PROJECT (SIBALOM, ANTIQUE) TDA(s) TDA 1.1 TDA(s) TDA 1.1 Description This project is proposed to ensure the provision of safe and adequate water supply in Boracay Island. The project will involve technical and financial assistance for the development of potable water supply systems (Levels I and II) and rehabilitation and expansion of the existing Level III water supply system. Description The Villasiga Hydropower Plant Project located in Sibalom, Antique has a capacity of 16.5 MW. Justification Safe and potable water is a fundamental need of the community. It is a vital component of economic growth and a catalyst to alleviate poverty. Adequate and sustainable water is crucial to improve the quality of life especially those in the rural areas. Justification The project is an important component of the program of the government to implement critical and strategic energy infrastructure to promote energy independence. Benefits & Impacts The project is expected to enhance access of the urban population to sustainable water supply and reduce waterborne diseases, thus improving public health, socioeconomic conditions and quality of life in Boracay. Benefits & Impacts The project is expected to augment the total capacity of power in Panay Island to avert power shortages in the region, and to ensure sufficient and efficient distribution of electricity. This would ultimately result in a reduction of the cost of electricity. Estimated Costs (PhP M) PhP 700 million; Funding source: None Estimated Costs (PhP M) PhP 2,545 million Time Lines 2008-2009 Time Lines 2008-2009 Implementation Agencies Provincial Government Implementation Agencies Philippine National Oil Company - Energy Development Corporation (PNOC-EDC) 33.1.2 Sector Management REF 1 PROJECT TITLE STRENGTHENING OF TOURISM SECTOR MANAGEMENT FOR CEBU 3.1.3 Environmental Protection and Enhancement REF 1 PROJECT TITLE BIRD SANCTUARY TDA(s) TDA 1.1 Boracay Island, Malay, Nabas TDA 1.2 Carabao Island TDA(s) Aklan Province. Boracay Island, Barangay Yapak Description Description The project involves the declaration of the Yapak bird sanctuary by the DENR as a critical habitat. It will also undertake an information and education campaign for the local residents, business establishments and the tourists on the importance of the bird sanctuary and its contribution in ecotourism. Lastly, the project will provide the facility fund for the protection of the remaining forest cover and bird sanctuary through monitoring and enforcement of environmental laws. It will also undertake the development of the bird sanctuary as a tourism product. Justification Although the provisions of economic infrastructure is a necessary condition for successful tourism development, it is not a sufficient condition. Sound sector management involving the appropriate enabling environment, destination promotion, visitor information, custom research, effective institutional arrangements and cooperation with the private sector, must also be in place, Justification The land where the bird sanctuary is located is a titled land. However, there is an urgent need to declare the area as a critical habitat with the agreement of the land owner so that the necessary measures to protect the area can immediately be put in place before the sanctuary is transformed into a built-up area. The bird sanctuary can be a tourist attraction and will generate revenues for the local government with a share given to the land owner. Benefits & Impacts Growth in foreign tourist arrivals (including overseas Filipinos) from 217,000 in 2006 to 820,000 in 2016; growth in domestic tourist arrivals (staying at „serviced‟ accommodation establishments) from 358,000 in 2006 to 930,000 in 2016. Benefits/ Impacts The project will preserve the remaining forest in Boracay and the diverse species of birds found in it. It will also generate awareness among local residents, business establishments and tourists on the importance of the bird sanctuary and their role in maintaining it. The sanctuary can be developed into a tourism product and generate revenues for the local government and land owner Estimated Cost (PhP M) PhP 4.0 million Time Lines Two Years. Years 1 and 2 will cover the declaration of the bird sanctuary as a critical habitat and protected area. Year 2 will launch an intensified education and information campaign and protection measures. Implementing Agency(cies) DENR and LGU Develop CLUP for Carabao Clarify legal situation in respect of title to land on Boracay Prepare Destination Management Plan Destination Promotion - web-site development - collateral production - consumer & trade promotions Research and Statistics Estimated Costs (PhP M) PhP 70 million in total. (PhP 7 million per year). Time Lines 10 years. Implementation Agencies DOT. 33.1.4 Community Involvement REF 1 PROJECT TITLE COMMUNITY INVOLVEMENT 33.1.5 LGU Human Resource Development REF 1 PROJECT TITLE LGU HRD PROGRAM Type Leadership and community organization Type Training TDA(s) Boracay and Carabao TDA(s) Boracay and Carabao Description As integral part of preparing the communities for tourism development, the community involvement action program aims to lay the basis for pro active involvement by all stakeholders in the community, including those involved in preventing further degradation of the environment. Description The program consists of three seminars/training modules designed to build capacity among LGU officials in the tourism sector. Justification Local government officials have limited capacity and experiences in tourismrelated topics. They recognize the need for training, especially in tourism sector management and marketing. In addition, the promotion of cultural heritage in the tourism industry results in some unavoidable negative impacts because of the exposure of the archaeological sites, historical monuments or indigenous communities to visitors. Benefits/ Impacts As a result of the program it is expected that the LGU officials will become knowledgeable as to how they can promote their destinations effectively to visitors and potential investors. They will learn how to devise appropriate and cost-effective marketing strategies. The creation of an integrated, welldesigned, Local Government Cultural Tourism Program (CTP) for example involving all the interested cities and municipalities in the SDA will address the situational need to deter the depletion of cultural and historical heritage. This Cultural Tourism Program will complement and link-up the tourism development plan of the municipalities. Justification Community-based tourism must involve the participation of the local leaderships and population in the tourism development partnership. These include the setting up appropriate mitigating and management measures in the identified environmentally critical sites for the community to implement. Benefits/ Impacts The community will benefit from these programs through the capacity strengthening of competent local leadership able to make sound decisions for the community‟s benefit; the organization of the community into a cohesive people‟s association; the improvement or enhancement of the community‟s economic activities; and the local community in general through the prevention of environmental deterioration. Estimated Cost (PhP M) PhP 10 million – Php 1 million per year over 10 year period. Time Lines These programs are to be implemented prior to or immediately before the implementation of other tourism-related project/s in the community Estimated Cost (PhP M) PhP 20 million - PhP 2 million per year over 10 year period. Implementing Agency(cies) DOT, DENR in collaboration with the LGU and an accredited NGO. Time Lines This program are to be conducted on a continuing basis in view of the high turn-over of government workers involved in the tourism sector Implementing Agency(cies) DOT in collaboration with the Development Academy of the Philippines (DAP), the National Commission for Culture and Arts (NCCA) and the National Historical Institute (NHI). 33.2 SDA – B: ILOILO/GUIMARAS/BACOLOD 33.2.1 Infrastructure REF 1 PROJECT TITLE IMPROVE RO-RO PORT FACILITIES (ILOILO & GUIMARAS) TDA(s) Description REF 2 PROJECT TITLE IMPROVE RO-RO PORT FACILITIES (ILOILO & GUIMARAS) TDA(s) The proposed project involves the improvement of two Ro-Ro facilities on both sides of the Guimaras Strait to allow more efficient movement of people and goods between Iloilo City and Guimaras Island. The province of Guimaras has many sites for beach resorts and agriculture-tourism while Iloilo City has the airport, seaport, and many hotels. Description A sanitary landfill for Iloilo City and its neighboring municipalities would ensure that the solid wastes in the area will be disposed of in an environmentally acceptable manner. Iloilo City is considered the tourist service center of TDA 2.1, and therefore is expected to receive a large number of tourists. A sanitary landfill as a means of disposing solid waste will help keep Iloilo City and surrounding municipalities clean. Constructing and operating a single sanitary landfill for a cluster of cities and municipalities will be more economical than operating several independent sanitary landfills. A feasibility study will have to be conducted to determine the most suitable and economical site for the sanitary landfill. Justification The upgrading of existing Ro-Ro facilities and passenger terminals in Iloilo City and Jordan, Guimaras, will make movement of tourists across Guimaras Strait more efficient and comfortable. Justification The proposed sanitary landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of solid waste in and around Iloilo City. This area (TDA 2.1) is where main seaport and airport are located. A sanitary landfill will eliminate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas. . Benefits & Impacts Solid wastes can be disposed of properly Environmental protection and promotion Cleaner environment brings good health and preserves the tourism environment Estimated Costs (PhP M) PhP 75 million (Acquisition of land, and construction and operation of the landfill) The proposed improvement of Ro-Ro facilities will effectively increase the capacity of vehicle transfers and the number of passengers ferried across the Guimaras Strait. This will boost tourism in both Iloilo province and Guimaras province. Benefits & Impacts Promotion of Iloilo province, Guimaras province and the Central Philippines Super Region through an efficient Roll-on Roll-off system. Estimated Costs (PhP M) PhP 50 million for the Iloilo Ro-Ro facility and P50 million for the Guimaras Roll-on Roll-off facility. Time Lines 2008-2011 Time Lines 2008-2012; Construction and operation of Sanitary Landfill in one of the municipalities around Iloilo City. Implementation Agencies Philippine Ports Authority (PPA) Implementation Agencies Iloilo City Government, local governments of other municipalities included in the cluster, and the Iloilo Provincial Government. REF 3 PROJECT TITLE SANITARY LANDFILL FOR BACOLOD CITY AREA TDA(s) Description REF 4 PROJECT TITLE BACOLOD-SILAY AIRPORT ACCESS ROAD (BACOLOD) TDA(s) In anticipation of a significant increase in tourism activity in Bacolod City and its neighboring LGUs (e.g. Talisay City, Silay City, Granada), a sanitary landfill will be an important component of a solid waste management system. Description The project is under the Road Network Improvement for Development of Regional Growth Centers for Metro Bacolod. It involves the construction of a 10.1 km access road that will connect Bacolod and the new Bacolod-Silay Airport. Justification The project is vital to avoid traffic bottlenecks along McKinley Road, which connects Silay and the provincial capital, Bacolod. It would be more economical and efficient to build and operate a single sanitary landfill for a cluster of LGUs rather than having several landfills operating independently. A sanitary landfill for a cluster of municipalities will allow the sharing of costs of acquiring land, building the facility, and also operating it. A feasibility study has to be conducted to find the most suitable site for the sanitary landfill. Justification The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the growing volume of solid waste in Bacolod City, Talisay City, Silay City (where the new airport is located) and other LGUs that will be included in the cluster. A disposal site will help eliminate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas. . Benefits & Impacts Solid wastes can be disposed of properly Environmental protection and promotion Cleaner environment brings good health and preserves the tourism environment Benefits & Impacts Opening up the new access road will cut travel time for those going to the airport from Bacolod City as they will no longer have to pass through the city proper of Silay. Estimated Costs (PhP M) PhP 75 million (Acquisition of land, and construction and operation of the landfill) Estimated Costs (PhP M) PhP 643.20 million Time Lines 2008-2012; Construction and operation of Sanitary Landfill in one of the municipalities around Bacolod City. Time Lines 2008-2010 Implementation Agencies Bacolod City Government, local governments of other municipalities included in the cluster, and the Negros Occidental Provincial Government. Implementation Agencies Department of Public Works and Highways (DPWH) REF 5 PROJECT TITLE GUIMARAS CIRCUMFERENTIAL ROAD REF 6 PROJECT TITLE BACOLOD-MURCIA-DON SALVADOR BENEDICTO-SAN CARLOS CITY ROAD (NEGROS OCCIDENTAL) TDA(s) TDA(s) Description The Guimaras Circumferential Road is composed of the construction of 38.78 kms and rehabilitation of 14.54 kms of national, provincial, municipal and barangay roads. This includes the construction and upgrading of bridges, major and minor drains, and other appurtenances along the proposed road. Description The Bacolod-Murcia-Don Salvador Benedicto-San Carlos City Road (Negros Occidental) involves the rehabilitation of about 70 kms of secondary national roads, including the upgrading of bridges, and other appurtenances. Justification The project will address transport accessibility problems in Negros Occidental in conjunction with the national government‟s thrust to alleviate poverty particularly in the rural areas. Also, it is one of the major links of the Western Nautical Highway and the proposed East-West (Panay-Leyte) Expansion Route. Justification The project is envisioned to address the acute accessibility problem of Guimaras, and to address the transport problem of the province in conjunction with the national government thrust to alleviate poverty particularly in the rural areas. Benefits & Impacts Among the perceived direct impacts of the project are faster travel time and reduced travel costs. Therefore, the project is expected to increase the influx of tourists and intensify tourism activities in the island. Benefits & Impacts The perceived impacts of the project are faster travel time and reduced travel costs, thus, increasing tourist movements and tourism activities in the island. PhP 505.00 million Estimated Costs (PhP M) PhP 70 million Estimated Costs (PhP M) Time Lines 2008-2010 Time Lines 2008-2010 Implementation Agencies Department of Public Works and Highways (DPWH) Implementation Agencies Department of Public Works and Highways (DPWH) 33.2.2 Sector Management REF 1 PROJECT TITLE 33.2.3 Environmental Protection and Enhancement STRENGTHENING OF TOURISM SECTOR MANAGEMENT FOR ILOILO/GUIMARAS/BACOLOD TDA 2.2 Balocold City – Silay City TDA 2.4 Mt. Kanlan Nature Park TDA(s) TDA 2.1 Metropolitan Iloilo-Guimaras TDA 2.3 North-east Negros Coast Description Establish tourism development zones and provide investment incentives through REF 1 TDA(s) PROJECT TITLE Description Establish and manage marine sanctuaries in the municipalities of Buena Vista and San Lorenzo to enhance the coastal and marine attractions for ecotourism and fisheries resources production. The project activities include: 1) coastal resources assessment of areas for establishment of marine sanctuaries; 2) passage of ordinances and conduct of information and education campaign on marine sanctuaries; 3) patrolling and monitoring of marine sanctuaries; and 4) development of tourism products in the coastal areas. Justification Establishment of marine sanctuaries will increase fisheries stocks in the coastal fishing grounds of the two municipalities, which are currently facing depletion due to habitat destruction, overfishing and illegal and destructive fishing methods. Remaining coral reefs in good to excellent conditions will be protected through the establishment of the marine sanctuaries. Moreover, seagrass beds and mangrove forests in the area will be part of the marine sanctuaries thereby also protecting them from massive extraction. Ecotourism in the area will be enhanced with the establishment of marine sanctuaries and offering of tourism products which are non-obtrusive to coastal habitats such as snorkeling, SCUBA diving, swimming and kayaking. Benefits/ Impacts Protection of coastal habitats will improve fisheries production and harvest in areas adjacent to the marine sanctuaries thereby benefiting the marginal fishermen by increasing their income. By keeping the good coral reefs protected in the marine sanctuaries, more divers would be attracted to visit the island municipalities. The marine sanctuaries will also serve as ecotourism sites for activities enjoyed by visitors such as snorkeling, kayaking and swimming. Estimated Cost (PhP M) PhP 10.00 million Time Lines Three years. Establishment of the marine sanctuaries, passage of ordinance and conduct of IEC will be undertaken in Year1. IEC will continue until Year 2 while the patrolling and monitoring of marine sanctuaries will start in the same year and is expected to be institutionalized within DENR and LGUs before the project is terminated in Year 3. By the third year, the DENR and LGUs will continue and sustain the efforts of the project. Tourism product development will start in Year 2 and will start to be promoted and offered by Year 3 by the Peoples Organization in partnership with the private investors. Implementing Agency(cies) DENR, DOT and LGUs the Board of Investments or PEZA Establish/strengthen local tourism councils Prepare Destination Management Plan Destination Promotion - web-site development - collateral production - consumer & trade promotions Research and Statistics Justification Although the provisions of economic infrastructure is a necessary condition for successful tourism development, it is not a sufficient condition. Sound sector management involving the appropriate enabling environment, destination promotion, visitor information, custom research, effective institutional arrangements and cooperation with the private sector, must also be in place, Benefits & Impacts Growth in foreign tourist arrivals (including overseas Filipinos) from 125,000 in 2006 to 270,000 in 2016; growth in domestic tourist arrivals (staying at „serviced‟ accommodation establishments) from 835,000 in 2006 to 1,750,000 in 2016. Estimated Costs (PhP M) PhP 20 million in total. (PhP 2 million per year). Time Lines 10 years. Implementation Agencies DOT. MARINE SANCTUARY ESTABLISHMENT AND MANAGEMENT IN GUIMARAS PROVINCE Guimaras Province. Municipalities of Buena Vista and San Lorenzo 33.2.4 Community Involvement REF 2 PROJECT TITLE GMP FOR TAKLONG ISLAND AND MANAGEMENT ZONING REF 3 PROJECT TITLE TDA(s) TDA(s) Guimaras Province. Municipality of Nueva Valencia Description The project will involve the following major activities and components: 1) Preparation of management zoning and plan for Taklong island and its marine reserve for better management; 2) Implementation of the zoning scheme and management guidelines; 3) Patrolling and monitoring of the protected area; and 4) Ecotourism promotion and marketing. Justification Taklong island was proclaimed a National Marine Reserve because of its richness and diversity in terrestrial and marine resources. The island is used by marine turtles to lay their eggs. The area is also a sanctuary of endangered bird species such as the famous Tabon birds. Protection of the terrestrial and marine resources of the island becomes imperative because of the increasing incidence of poaching of the eggs of marine turtles and Tabon birds. These wildlife species are one of the main tourist attractions of the island and their decimation will weaken ecotourism in the area. Description Benefits/ Impacts Through the project, the endangered species of terrestrial and marine wildlife which serve as natural attractions for tourists will be protected. Thus, ecotourism in the island will be enhanced and possibly draw more visitors and correspondingly increase revenues from tourism. By better management and protection of the resources in the marine reserve, fisheries production and yield are expected to increase. Improvement of ecotourism in the island will also provide livelihood to marginal fishermen. Estimated Cost (PhP M) PhP 6.0 million Time Lines Three years. Year 1 will be devoted to the preparation of the management zoning and plan for the island. Year 2 will cover the implementation of the management zoning and guidelines and the start of patrolling and monitoring of the marine reserve. Year 3 will be spent for an intensive promotion and marketing of the island as a satellite destination site in the province and region. Implementing Agency(cies) Justification Benefits/ Impacts Estimated Cost (PhP M) Time Lines DENR, LGU and DOT. Implementing Agency(cies) SUPPORT TO PAWB FOR PREPARATION AND APPROVAL OF GENERAL MANAGEMENT PLANS (GMPs) FOR PROTECTED AREAS AND ESTABLISHMENT OF INTEGRATED PROTECTED AREA FUND Protected Areas in Priority SDAs without GMPs and those with GMPs but not yet approved by PAWB or PAMB The project will involve the following key activities: 1) review of the status of GMPs in PAs located in priority SDAs; 2) extend technical assistance to PAWB in the preparation of GMPs in PAs without these plans; or provide technical assistance in the refinement and finalization of existing GMPs; 3) extend technical and financial assistance to PAMBs in the review and approval of GMPs; and 4) establishment if IPAF. Preparation of GMPs will involve the identification, delineation and mapping of ecological management zones of the PAs. It will also involve the preparation of guidelines on the proper use, conservation, protection and development of the different zones, and the identification of environmental management programs to conserve and enhance natural attractions. IPAF funds will be established following the policy and guidelines set by PAWB. The absence of GMPs in many PAs constrains the development of ecotourism in the tourism destination areas located within Protected Areas (PAs) because suitable sites for various types of development are not identified. The identification, delineation and mapping of management zones of PAs will identify areas which can be developed for tourism. These management zones include Tourism Management Zone and Sustainable Use Zone. The guidelines that would be prepared by the project would also serve to guide the development of the different ecological management zones thereby ensuring the sustainability of tourism in these areas. The project would enable the preparation of GMPs that would guide the ecotourism development of suitable sites located within PAs. The project would also facilitate the review and approval of GMPs by the PAMBs by providing them the technical and logistic support to conduct workshops and meetings. The approved GMPs would guide and legitimize tourism development in PAs, thus enabling development projects to proceed without any legal encumbrances or technical ambiguities. Preparation and approval of GMPs would ensure the protection and conservation of PAs and at the same time sustain tourism development in these areas. 4 PAs x PhP 1.5 million per PA = PhP 6 million Three years. Year 1 – identification of PAs without GMPs and with nonapproved GMPs and selection of priority PAs. Determination, delineation and mapping of ecological management zones. Year 2 – Preparation of GMPs or Refinement of Existing GMPs and establishment of the IPAF. Year 3 – Processing and approval of GMPs by PAWB and PAMB. Issuance of ordinances or legislative instruments adopting the GMPs. DENR-PAWB and Regional Offices, LGUs and DOT 33.2.5 LGU Human Resource Development REF 1 PROJECT TITLE COMMUNITY INVOLVEMENT REF 1 Type Leadership and community organization Type TDA(s) Iloilo/Guimaras/Bacolod TDA(s) Description As integral part of preparing the communities for tourism development, the community involvement action program aims to lay the basis for pro active involvement by all stakeholders in the community, including those involved in preventing further degradation of the environment. Justification Community-based tourism must involve the participation of the local leaderships and population in the tourism development partnership. These include the setting up appropriate mitigating and management measures in the identified environmentally critical sites for the community to implement. Benefits/ Impacts The community will benefit from these programs through the capacity strengthening of competent local leadership able to make sound decisions for the community‟s benefit; the organization of the community into a cohesive people‟s association; the improvement or enhancement of the community‟s economic activities; and the local community in general through the prevention of environmental deterioration. Estimated Cost (PhP M) PhP 10 million; PhP 1 million per year over 10 year period. Time Lines These programs are to be implemented prior to or immediately before the implementation of other tourism-related project/s in the community Implementing Agency(cies) PROJECT TITLE LGU HRD PROGRAM Training Description The program consists of three seminars/training modules designed to build capacity among LGU officials in the tourism sector. Justification Local government officials have limited capacity and experiences in tourismrelated topics. They recognize the need for training, especially in tourism sector management and marketing. In addition, the promotion of cultural heritage in the tourism industry results in some unavoidable negative impacts because of the exposure of the archaeological sites, historical monuments or indigenous communities to visitors. Benefits/ Impacts As a result of the program it is expected that the LGU officials will become knowledgeable as to how they can promote their destinations effectively to visitors and potential investors. They will learn how to devise appropriate and cost-effective marketing strategies. The creation of an integrated, welldesigned, Local Government Cultural Tourism Program (CTP) for example involving all the interested cities and municipalities in the SDA will address the situational need to deter the depletion of cultural and historical heritage. This Cultural Tourism Program will complement and link-up the tourism development plan of the municipalities. Estimated Cost (PhP M) PhP 20 million; PhP 2 million per year over 10 year period. Time Lines This program are to be conducted on a continuing basis in view of the high turn-over of government workers involved in the tourism sector Implementing Agency(cies) DOT in collaboration with the Development Academy of the Philippines (DAP), the National Commission for Culture and Arts (NCCA) and the National Historical Institute (NHI). DOT, DENR in collaboration with the LGU and an accredited NGO. 33.3 SDA – C: CEBU 33.3.1 Infrastructure REF 1 PROJECT TITLE CEBU CRUISE SHIP PORT AND INTERNATIONAL MARINA PROJECT REF 2 TDA(s) Description Justification Benefits & Impacts PROJECT TITLE BANTAYAN ISLAND AIRPORT UPGRADE AND EXPANSION PROJECT TDA(s) A cruise ship port cum international marina in the capital city of Cebu (eastern Cebu Province) shall serve as a key entry and exit point for the Central Philippines Super Region. The project could accommodate vessels ranging from small yachts to huge international cruise ships carrying local and international tourists, visitors and guests. The project aims to provide efficient and highly accessible 24-7 water transport services to both local and foreign tourists. An international standard cruise ship port coupled with an international marina in the Port of Cebu can considerably address the growing tourist water transport demand in the Central Philippines Super Region. The cruise ship port and marina shall serve as the main ones for the super region and shall interconnect the smaller ones proposed at Loon, Bohol and in the other islands in the area. More tourists will be attracted and enticed to visit the Central Philippines Super Region since water transport is one of the most affordable and more pleasurable ways in getting to and out of the region. Port improvements will induce the economic development of the affected and neighboring island provinces. Through the Port of Cebu, the Central Philippines Super Region becomes highly accessible from any part of the Philippines and Southeast Asia or even the Pacific rim. Description The Batayan Island airport must be upgraded to accommodate larger aircraft i.e. 40-seaters and above. This would create added access options since larger groups of tourists from Manila or Cebu City can easily access the island. This project aims to provide convenient and highly accessible air transport services to both local and foreign tourists, quite possibly on a 24-7 basis if runway lighting and an instrument landing system (ILS) could be installed in the future (not part of this proposal). Justification The airstrip needs to be improved to allow more tourists to visit Bantayan Island, direct from the Mactan International Airport or from other airports in the country. Benefits & Impacts Higher mobility and access of tourists and visitors to Bantayan Island; The Bantayan Island Airport can spur further development in the northern island towns and barangays of Cebu Province as more tourists can access these sites. Estimated Costs (PhP M) PhP 100 million Estimated Costs (PhP M) PhP 1,200 million Time Lines 2008 – 2012 Time Lines 2008-2010 Implementation Agencies Department of Transportation and Communications (DoTC) Philippine Ports Authority (PPA) Implementation Agencies Department of Transportation and Communications (DoTC) Air Transportation Office (ATO) REF 3 PROJECT TITLE MACTAN-CEBU UPGRADE/EXPAND AIRPORT PASSENGER TERMINAL PROJECT TDA(s) REF 4 PROJECT TITLE BANTAYAN ISLAND SOLID AND LIQUID WASTE MANAGEMENT PROJECT PHASE 1 TDA(s) Description An expanded international passenger terminal (IPT) facility at the Mactan international airport would cater to the ever-increasing air passenger demand, thereby boosting the tourism industry not only in Cebu Province but also in the newly-established Central Philippines Super Region. This project aims to provide modern and efficient IPT facility for foreign and local tourists and visitors to the super region on a 24-7 basis. Justification Due to limited space and facilities of the passenger handling areas at the Mactan international airport, it is unable to a larger number of passengers comfortably, particularly arrivals. The proposed expansion of the passenger handling areas would be the answer to the ever-increasing volumes of foreign tourists who fly in direct from international points of origin. Description Justification An engineered landfill to be located in Bantayan Island can help manage the solid waste disposal requirements of an important destination area in northern Cebu Province while a counterpart liquid waste management project would address the expected large volume of liquid wastes as the island is rapidly developing into a major tourist and commercial destination. This project aims to establish a comprehensive waste management program that shall address and complement the development of Bantayan Island as it emerges as a new tourist destination for the country. The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of solid and liquid wastes in the island. Also, this will help eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of the island dwellers. Due to the expected development on the island as it becomes a new tourist destination, there is a need to come up with the sewerage management plan to guide engineers, urban planners and other physical planning professionals, developers and investor on the design of sanitary and sewerage systems for the proper disposal of liquid wastes in the island. Benefits & Impacts Estimated Costs (PhP M) PhP 200 million (Phase 1 only); expected total project cost at about P 600 million (all phases) 2008 – 2010 Time Lines 2008-2012; Construction and operation of Engineered Landfills and the Bantayan Island Sewerage Management System Department of Transportation and Communications (DoTC) Air Transportation Office (ATO) Implementation Agencies Provincial Government of Cebu (PGC) Benefits & Impacts Promotion of Cebu Province and the Central Philippines Super Region through a modern and efficient international airport passenger facility. Estimated Costs (PhP M) PhP 100 million Time Lines Implementation Agencies Solid and liquid wastes can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health REF 5 PROJECT TITLE SANITARY LANDFILL IN METRO CEBU TDA(s) Description Justification REF 6 PROJECT TITLE SOLID WASTE MANAGEMENT PROJECT FOR MALAPASCUA ISLAND TDA(s) An engineered landfill for Cebu City (and Metropolitan Cebu) can help manage the solid waste disposal requirements of key areas in the central areas of the province. However, in order to share the required financial resources and manpower, a clustered approach to include the surrounding towns is proposed. The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of generated solid waste in the Metropolitan Cebu area. Also, these will eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of the populace. Description Justification An engineered landfill to be located in Malapascua Island can help manage the solid waste disposal requirements of another important destination area in northern Cebu Province. This project aims to help establish a comprehensive waste management program that shall address and complement the development of Malapascua Island as it emerges as a new tourist destination for the country. It is more important that the generation of solid waste on the island is reduced, and that whatever solid waste is generated – a substantial amount should be recycled. The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of solid and liquid wastes in the island. Also, this will help eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of the island dwellers. Benefits & Impacts Solid waste can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health Benefits & Impacts Solid waste can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health Estimated Costs (PhP M) PhP 400 million Estimated Costs (PhP M) PhP 10 million Time Lines 2008-2012; Construction and operation of the Engineered Landfill Time Lines 2008-2010; Construction and operation of Engineered Landfill Implementation Agencies Local Government Unit (LGU) of Cebu City (and the other component towns of Metropolitan Cebu) Implementation Agencies Provincial Government of Cebu (PGC) REF 7 PROJECT TITLE LILOAN-SOGOD ROAD (50KM) REF 8 PROJECT TITLE BANTAYAN ISLAND WATER SUPPLY PROJECT TDA(s) TDA(s) Description Justification Benefits & Impacts The Liloan-Sogod Road is part of the proposed Cebu City-Bogo Road improvement project identified by the government as one of the priority road projects. It involves the construction of about 50 kms of national roads, including upgrading of bridges and other appurtenances. Description This project is proposed to ensure the provision of safe and adequate water supply to the island of Bantayan, Cebu. The project involves technical and financial assistance for the development of potable water supply systems. The project is an important link of the Central Nautical Highway System, and therefore, improvement of all roads including permanent bridges is a priority of the government. Justification Safe and potable water is a vital component of economic growth and a catalyst to alleviate poverty. Adequate and sustainable water is crucial to improve the quality of life especially those in the rural areas. The expected impacts of the project are faster travel time and reduced travel costs. The project is also perceived to increase and intensify tourism activities in the northern part of Cebu. Benefits & Impacts Expected project benefits are reduced waterborne diseases, and enhanced access of the rural population to sustainable water supply. This would then result to an improvement of public health, socio-economic conditions and quality of life in the island of Bantayan, Cebu. Estimated Costs (PhP M) PhP 400 million Time Lines 2008-2010 Implementation Agencies Provincial Government Estimated Costs (PhP M) PhP 600 million Time Lines 2008-2010 Implementation Agencies Department of Public Works and Highways (DPWH) 33.3.2 Sector Management REF 9 PROJECT TITLE WATER SUPPLY AND DISTRIBUTION SYSTEM FOR METRO CEBU TDA(s) REF 1 PROJECT TITLE STRENGTHENING OF TOURISM SECTOR MANAGEMENT FOR CEBU TDA(s) TDA 3.1 Metro-Cebu; TDA 3.2 Sogod TDA 3.3 San Remigio, Bantayan Island and Malcpasaue Island Description This proposed project would augment the provision of safe and adequate water supply in Metro Cebu to be achieved through the implementation of Level III water supply systems. Description Justification Safe water is a vital component of economic growth and a catalyst to alleviate poverty. Adequate and sustainable water is crucial to improve the quality of life in urban areas. Justification Although the provisions of economic infrastructure is a necessary condition for successful tourism development, it is not a sufficient condition. Sound sector management involving the appropriate enabling environment, destination promotion, visitor information, custom research, effective institutional arrangements and cooperation with the private sector, must also be in place, Benefits & Impacts The project is expected to enhance access of the population to safe and potable water supply, thus improving public health and quality of life in Metro Cebu. Benefits & Impacts Growth in foreign tourist arrivals (including overseas Filipinos) from 478,000 in 2006 to 2,010,000 in 2016; growth in domestic tourist arrivals (staying at „serviced‟ accommodation establishments) from 772,000 in 2006 to 2,010,000 in 2016. Estimated Costs (PhP M) PhP 500 million Estimated Costs (PhP M) PhP 100 million in total. PhP 10 million per year. Time Lines 2008-2009 Time Lines 10 years. Implementation Agencies Cebu City Government Implementation Agencies DOT. Update CLUP Develop Cebu as „home‟ port for cruises Prepare Destination Management Plan Destination Promotion - web-site development - collateral production - consumer & trade promotions Research and Statistics Air access promotions 33.3.3 Environmental Protection and Enhancement REF 1 PROJECT TITLE TDA(s) ESTABLISHMENT OF MARINE SANCTUARIES FOR BANTAYAN AND MALAPASCUA ISLANDS REF 2 PROJECT TITLE PROTECTION OF RARE SPECIES OF WILDLIFE SUCH AS BLACK SHAMA, THRESHER SHARKS AND MANTA RAYS TDA(s) Cebu (Malapascua island, Central Cebu, and Tanon strait) Description The project will have the following components and activities: 1) Mapping and field validation of the identified location of the rare species of animals such as Black Shama, Thresher sharks and Manta Rays in Cebu terrestrial and marine waters; 2) Preparation and implementation of protection programs; 3) Development of ecotourism products for the viewing of Black Shama, Thresher Sharks and Manta Rays as part of the tourism package for Cebu. Justification Rare species of wildlife in Cebu province are being threatened of extinction unless they protected and conserved. These wildlife species of bird (Black Shama) and marine organism (Thresher shark and Manta rays) are potential tourist attractions and their habitat can become part of the tourist destination sites of Cebu province. When developed and packaged into tourism products revenues will be generated which can also be used as funds for their long-term protection. Moreover, making them tourism products will generate employment and income for local communities who will serve as touring guides. Benefits/ Impacts The project will be an effective intervention mechanism to preserve/conserve rare and threatened species of wildlife which have high touristic drawing potentials. When developed into tourism products, viewing and observing these rare wildlife species will generate added revenues for tourism and create employment for local communities. PhP 50 million Bantayan and Malapascua islands (Cebu-Mactan-Sogod SDA) Description The coastal resource management project will involve the protection and rehabilitation of the ecologically fragile coastal habitats in island ecosystems of Bantayan and Malapascua. Its components will include: a) carrying capacity studies, mapping and management zoning of the islands; b) organization and social mobilization of local communities in rehabilitating degraded areas and in protecting pristine areas for ecotourism and fisheries productivity; c) surveillance and patrolling of coastal waters against illegal fishing and destruction of mangrove areas; d) conduct of alternative livelihood projects for coastal fishing communities project; e) establishment of marine sanctuaries; and f) information and education campaign on coastal resources conservation and protection directed at local communities. Justification The project will conserve coastal resources and protect critical coastal habitats and marine wildlife from misuse and abuse by local fishing communities. It will preserve the beauty of natural attractions in the islands‟ coastal areas such as beaches, swimming waters, coral reefs, and mangrove forest areas. Aside from enhancing ecotourism in these islands, the project will also improve the productivity of fisheries in areas around sanctuaries. Benefits/ Impacts The project will bring about the following benefits: 1) improve productivity of fishing grounds near marine sanctuaries; 2) maintain and enhance tourism attractions such as coral reefs and mangrove forests; and 3) generate employment and income from ecotourism and alternative livelihood. Estimated Cost (PhP M) PhP 100.00 million Time Lines Five Years. Mapping and management planning, community organization and mobilization will start in Year 1. Rehabilitation of mangroves and establishment of marine sanctuaries will be undertaken in Year 2 and completed in Year 4. Information and education campaign on coastal resource management will start in Year 2 and continue until Year 5. It is expected that DENR and the LGUs will sustain the IEC efforts after the project is terminated. Marine sanctuary protection measures will start in Year 1 and continue until Year 5. Livelihood projects will be undertaken in Year 2 until Year 5. Implementing Agency(cies) DENR and LGU Estimated Cost (PhP M) Time Lines Five Years. Year 1 will be spent in mapping and validating in the field the identified location of the rare wildlife species. Years 2 to 5 will be devoted to the preparation and implementation of the protection program (monitoring and environmental law enforcement). Years 3 to 5 will cover the packaging of tourism products and their promotion and offering to the tourism market, targeting a particular market segment. Implementing Agency(cies) DENR and LGUs REF 3 PROJECT TITLE RESTORATION OF CULTURAL AND HERITAGE SITES REF 4 PROJECT TITLE TDA(s) TDA(s) Metropolitan Cebu Description Description The project will have the following components and activities: 1) Identification and selection of cultural heritage for restoration and rehabilitation; 2) Restoration of historical buildings, monuments and cultural icons and religious relics; and 4) Promotion and marketing of cultural heritage sites. Justification The project is meant to arrest the further deterioration of cultural resources, preserve and restore cultural heritage to enhance tourism in Metropolitan Cebu which hosts a lot of these cultural resources. It will also address the lack of promotion and marketing of cultural tourism in the province. The project will also provide training of professional guides who are very much lacking in these provinces. Benefits/ Impacts Justification Development and promotion of cultural tourism will attract a particular segment of tourists in the international market, thus increasing tourism receipts in Cebu. The project will preserve priceless historical and cultural heritage for posterity and create better awareness and appreciation of local cultures and tradition. Benefits/ Impacts Estimated Cost (PhP M) PhP 50 million Time Lines Five Years. Year 1 will involve the identification and selection of cultural heritage for restoration and rehabilitation. Years 2 to 4 will commence the restoration and rehabilitation works of selected cultural heritage buildings, monuments and other structures. Year 3 will involve the start of promotion and marketing of cultural tourism in the two provinces. Implementing Agency(cies) NHI, NCCA, LGUs Estimated Cost (PhP M) Time Lines Implementing Agency(cies) SUPPORT TO PAWB PREPARATION AND APPROVAL OF GENERAL MANAGEMENT PLANS (GMPS) FOR PROTECTED AREAS AND ESTABLISHMENT OF INTEGRATED PROTECTED AREA FUND Protected Areas in SDA without GMPs and those with GMPs but not yet approved by PAWB or PAMB The project will involve the following key activities: 1) review of the status of GMPs in PAs located in priority SDAs; 2) extend technical assistance to PAWB in the preparation of GMPs in PAs without these plans; or provide technical assistance in the refinement and finalization of existing GMPs; 3) extend technical and financial assistance to PAMBs in the review and approval of GMPs; and 4) establishment if IPAF. Preparation of GMPs will involve the identification, delineation and mapping of ecological management zones of the PAs. It will also involve the preparation of guidelines on the proper use, conservation, protection and development of the different zones, and the identification of environmental management programs to conserve and enhance natural attractions. IPAF funds will be established following the policy and guidelines set by PAWB. The absence of GMPs in many PAs constrains the development of ecotourism in the tourism destination areas located within Protected Areas (PAs) because suitable sites for various types of development are not identified. The identification, delineation and mapping of management zones of PAs will identify areas which can be developed for tourism. These management zones include Tourism Management Zone and Sustainable Use Zone. The guidelines that would be prepared by the project would also serve to guide the development of the different ecological management zones thereby ensuring the sustainability of tourism in these areas. The project would enable the preparation of GMPs that would guide the ecotourism development of suitable sites located within PAs. The project would also facilitate the review and approval of GMPs by the PAMBs by providing them the technical and logistic support to conduct workshops and meetings. The approved GMPs would guide and legitimize tourism development in PAs, thus enabling development projects to proceed without any legal encumbrances or technical ambiguities. Preparation and approval of GMPs would ensure the protection and conservation of PAs and at the same time sustain tourism development in these areas. PhP 8 million Three years. Year 1 – identification of PAs without GMPs and with nonapproved GMPs and selection of priority PAs. Determination, delineation and mapping of ecological management zones. Year 2 – Preparation of GMPs or Refinement of Existing GMPs and establishment of the IPAF. Year 3 – Processing and approval of GMPs by PAWB and PAMB. Issuance of ordinances or legislative instruments adopting the GMPs. DENR-PAWB and Regional Offices, LGUs and DOT 33.3.4 Community Involvement REF 1 PROJECT TITLE COMMUNITY INVOLVEMENT Type Leadership and community organization TDA(s) Metro Cebu and islands, Sogod, San Remigio, and Bantayan and Malapascua islands. Description As integral part of preparing the communities for tourism development, the community involvement action program aims to lay the basis for pro active involvement by all stakeholders in the community, including those involved in preventing further degradation of the environment. Justification Community-based tourism must involve the participation of the local leaderships and population in the tourism development partnership. These include the setting up appropriate mitigating and management measures in the identified environmentally critical sites for the community to implement. Benefits/ Impacts The community will benefit from these programs through the capacity strengthening of competent local leadership able to make sound decisions for the community‟s benefit; the organization of the community into a cohesive people‟s association; the improvement or enhancement of the community‟s economic activities; and the local community in general through the prevention of environmental deterioration. Estimated Cost (PhP M) PhP 1 million per year over 10 year period. Time Lines These programs are to be implemented prior to or immediately before the implementation of other tourism-related project/s in the community Implementing Agency(cies) DOT, DENR in collaboration with the LGU and an accredited NGO. REF PROJECT 2 TITLE TDA(s) Description Justification Benefits/ Impacts Estimated Cost (PhP M) Time Lines Implementing Agency(cies) COMMUNITY-BASED ECOTOURISM PRODUCT DEVELOPMENTS Cebu Province. Olango Island Olango island is a wildlife sanctuary and a RAMSAR site or wetland of international importance. It became a popular tourist destination area for bird watching starting in the early 1980‟s because of the many species of migratory birds from Russia, Japan, China and Siberia that stop over in the island to feed before they continue their journey to Australia and New Zealand. The island offers also other ecotourism amenities such as swimming, diving and nature walking. The project on Community-based Ecotourism Product will organize, train and provide financial support to local communities who will serve as tourist guides and hosts and at the same time enforce environmental laws and undertake conservation and protection measures of the migratory birds in the island. The project will also establish bird watching stations in suitable sites and improve access around mangrove areas through boardwalks. To contain the waste disposal problem in the island, a solid waste management component will be included in the project package. This component will involve the construction of waste disposal facilities and provide support to waste collection and recycling systems to be established. The community-based ecotourism project will provide alternative livelihood to the local communities living in the island and establish the necessary measures for the protection of migratory birds and the wetland environment from environmental degradation and threats of destructive human activities. It will also strengthen the cooperative providing touring services in the island through competence building in the field of ecotourism management. The cooperative presently providing touring services in the island is breaking apart because of poor organization, financial mismanagement and inappropriate systems and policies. The problem on solid waste disposal in the island, which affects its sanitation and aesthetic value, will also be addressed. Considering its three pronged-thrusts, the project will ensure the long-term sustainability of ecotourism in the island. The project will provide alternative livelihood to the marginalized communities thriving in the island. About 200 households are expected to benefit from the impacts of the project by providing them employment and additional income. The coastal habitats in the island such as the wetland, mangrove forest, coral reefs and seagrass beds will be protected and conserved through the project thereby further enhancing the environment for ecotourism and making it a more conducive place for migratory birds. PhP 50 million Two Years. The project will be implemented for two years and after that, the cooperative is expected to be self-sustaining in providing better touring services and in maintaining the facilities provided under the project. Cooperative organization strengthening and competence building will be undertaken during the first year of project implementation. Solid waste management facilities and disposal systems will also start in year 1. Protection measures and enforcement of laws will start during the second year. DOT, DENR and LGU 33.3.5 LGU Human Resource Development REF 1 PROJECT TITLE LGU HRD PROGRAM Type Training TDA(s) Metro Cebu and islands, Sogod, San Remigio, and Bantayan and Malapascua islands. Description The program consists of three seminars/training modules designed to build capacity among LGU officials in the tourism sector. Justification Local government officials have limited capacity and experiences in tourismrelated topics. They recognize the need for training, especially in tourism sector management and marketing. In addition, the promotion of cultural heritage in the tourism industry results in some unavoidable negative impacts because of the exposure of the archaeological sites, historical monuments or indigenous communities to visitors. Benefits/ Impacts As a result of the program it is expected that the LGU officials will become knowledgeable as to how they can promote their destinations effectively to visitors and potential investors. They will learn how to devise appropriate and cost-effective marketing strategies. The creation of an integrated, welldesigned, Local Government Cultural Tourism Program (CTP) for example involving all the interested cities and municipalities in the SDA will address the situational need to deter the depletion of cultural and historical heritage. This Cultural Tourism Program will complement and link-up the tourism development plan of the municipalities. Estimated Cost (PhP M) PhP 20 million; PhP 2 million per year over 10 year period. Time Lines This program are to be conducted on a continuing basis in view of the high turn-over of government workers involved in the tourism sector Implementing Agency(cies) DOT in collaboration with the Development Academy of the Philippines (DAP), the National Commission for Culture and Arts (NCCA) and the National Historical Institute (NHI). 33.4 SDA – D: BOHOL 33.4.1 Infrastructure REF 1 PROJECT TITLE TAGBILARAN AIRPORT LIGHTING AND ILS PROJECT REF 2 PROJECT TITLE LOON CRUISE SHIP PORT AND MARINA TDA(s) TDA(s) Description A runway lighting system and an instrument landing system (ILS) would considerably upgrade the capabilities of the Tagbilaran City airport. This project aims to provide convenient and highly accessible 24-7 air transport services to both local and foreign tourists Justification The Project would enable the existing airport to operate beyond 5:30 p.m., when non-lighted runways are required to cease operating. The upgrades would also allow the airport to receive direct commercial or charter tourist or business flights from South Korean cities such as Seoul. Once the airport is shut down to give way to the new Panglao international airport, both the runway lights and ILS could be reused elsewhere, preferably in Ubay, Northern Bohol Province. Benefits/ Impacts Higher mobility and access of tourists and visitors to Bohol Province; hence, more tourists and investors can visit and put up businesses in Bohol Province while the Panglao international airport project is under implementation. Estimated Cost (PhP M) P 600 million Time Lines Phase 1 (2008) - Preparation of Plans and Conduct of Studies Phase 2 (2008-2011) – Implementation and Usage Implementing Agency(cies) Department of Transportation and Communications (DoTC) Air Transportation Office (ATO) Description A cruise ship port cum marina in the town of Loon (western Bohol Province) can serve as a key entry and exit point for Bohol. The project could accommodate vessels ranging from small yachts to medium cruise ships carrying local and international tourists, visitors and guests. The project aims to provide efficient and highly accessible 24-7 water transport services to both local and foreign tourists. Justification Aside from the domestic base port of Tagbilaran City, there are presently four (4) major terminal ports that function significantly in transporting tourists, visitors, locals and cargoes in different parts of Bohol Province. These are Tubigon (also on the western side of Bohol, across Cebu Province), Talibon and Ubay on the northern part of Bohol (across Leyte Province), and Jagna (across Mindanao). To date, these 4 seaports are in generally poor to only satisfactory condition and still lacking many facilities for international standards of travel. An international standard cruise ship port and marina in Loon town can considerably address the growing tourist water transport demand in Bohol. Benefits/ Impacts More tourists will be attracted and enticed to visit Bohol Province since water transport is one of the most affordable and more pleasurable ways in getting to and out of the Province. Port improvements will induce the economic development of the affected and neighboring towns. Bohol becomes highly accessible from any part of the Philippines and Southeast Asia or even the Pacific rim. Estimated Cost (PhP M) PhP 450 million Time Lines 2008 – 2011 Implementing Agency(cies) Department of Transportation and Communications (DoTC) Philippine Ports Authority (PPA) REF 3 PROJECT TITLE PANGLAO INTERNATIONAL AIRPORT PROJECT TDA(s) Description REF 4 PROJECT TITLE PANGLAO ISLAND SOLID AND LIQUID WASTE MANAGEMENT TDA(s) A new international airport that would cater to the increasing air passenger demand in Bohol, thereby boosting the tourism industry not only in the Province of Bohol but also in the newly-established Central Philippines Super Region. This project aims to provide a modern and efficient international airport that can bring in safely and comfortably, foreign and local tourists and visitors to Bohol Province on a 24-7 basis. The project consists of the following components: Airport Site Development Construction of Airport Terminal Building, Runways, Taxiways and other airport facilities Justification Due to limited space and facilities of Tagbilaran Airport in the capital city of Bohol, it could not accommodate bigger and international standard passenger and cargo airplanes. There is therefore a need to develop not just a domestic airport, but an international airport at the Panglao airport site, which is proximate to the pristine Panglao Island beaches, Tagbilaran city and other key tourist destinations within Bohol Province. The proposed Panglao international airport would be the answer to the ever-increasing volumes of foreign tourists who can fly in direct from Japan, Korea, USA and European countries and who visit Bohol‟s high-quality tourist destination and heritage sites. Benefits/ Impacts Promotion of Bohol and its world-class tourist attractions in the whole province through a modern and efficient international airport as gateway. Economic development of the province as the proposed international airport would invite more national and foreign investors Additional employment opportunities as the airport would require a large number of staff and crew working directly or indirectly for the travel and tourism industries. Estimated Cost (PhP M) PhP 2,500 million Time Lines 2008 – 2011 Implementing Agency(cies) Department of Transportation and Communications (DoTC) Philippine Ports Authority (PPA) Description An engineered landfill to be located in Panglao Island can help manage the solid waste disposal requirements of an important destination area in Bohol Province while a counterpart liquid waste management project would address the expected large volume of liquid wastes as the island is rapidly developing into a major tourist and commercial destination. This project aims to establish a comprehensive waste management program that shall address and complement the development of Panglao Island as it emerges as a major tourist and commercial destination not only in Bohol but in the country. Justification The proposed engineered landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of solid and liquid wastes in Bohol Province. Also, this will help eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of Boholanos. Due to the expected massive development in the island of Panglao as it becomes the premier tourist destination and summer capital of the Philippines, (not to mention the proposed Panglao International Airport), there is a need to come up with the sewerage management plan to guide engineers, urban planners and other physical planning professionals, developers and investor on the design of sanitary and sewerage system for the proper disposal of liquid wastes in the island. Benefits/ Impacts Solid and liquid wastes can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health Estimated Cost (PhP M) PhP 600 millions Time Lines 2008-2012; Construction and operation of Engineered Landfills and the Panglao Sewerage Management System Implementing Agency(cies) Department of Environment and Natural Resources (DENR) and the Philippine Tourism Authority (PTA) REF 5 PROJECT TITLE TAGBILARAN SOLID WASTE MANAGEMENT FACILITY (10.0 HECTARE LANDFILL) TDA(s) REF 6 PROJECT TITLE SANITARY LANDFILL SITES (FOR TUBIGON, UBAY, JAGNA AND SAGBAYAN) TDA(s) Description An engineered landfill for Tagbilaran City can help manage the solid waste disposal requirements of key areas in Bohol Province. However, in order to share the required financial resources and manpower, a clustered approach to include the surrounding towns is proposed. The estimated minimum landfill requirement needed for Bohol Province stands at 38.0 hectares (has). Description Engineered landfills to be located at the towns of Tubigon, Ubay, Jagna and Sagbayan can help manage the solid waste disposal requirements of key areas in Bohol Province. However, in order to share the required financial resources and manpower, a clustered approach for the said municipalities and the towns surrounding them is proposed. The estimated minimum landfill requirement needed for Bohol Province stands at 38.0 hectares (has). Justification The proposed engineering landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of generated solid waste in Bohol Province. Also, these will eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of Boholanos. Justification The proposed sanitary landfills are in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfills address the ever-increasing volume of generated solid waste in Bohol Province. Also, these will eradicate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas i.e. all acts that are clearly detrimental to the environment and health of Boholanos. Benefits/ Impacts Solid waste can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health Benefits/ Impacts Solid waste can be disposed of and managed properly Environmental protection and promotion Cleaner environment brings good health Estimated Cost (PhP M) PhP 100 million Estimated Cost (PhP M) PhP 150 million Time Lines 2008-2010; Construction and operation of the Engineered Landfill Time Lines 2008-2009; Construction and operation of Engineered Landfills at Identified Municipalities Implementing Agency(cies) Bohol Provincial Government (BPG) in cooperation with the Local Government nit (LGU) of Tagbilaran City Implementing Agency(cies) Bohol Provincial Government (BPG) REF 7 PROJECT TITLE PANGLAO ISLAND ROAD CAPACITY UPGRADE AND CAUSEWAY IMPROVEMENT REF 8 PROJECT TITLE BOHOL BACKBONE TRANSMISSION PROJECT TDA(s) TDA(s) Description The Panglao Island Road Capacity Upgrade involves the construction of about 36 kilometers of roads to improve access and to complement the new international airport being planned in the island. It also includes the improvement of the causeway for the island. Justification The project, when completed, is envisioned to provide fast and reliable access to Panglao Island as well as complement the Panglao International Airport Project. Benefits/ Impacts Completion of the roads will reduce travel time and costs, and is expected to intensify tourism activities in the island. Estimated Cost (PhP M) PhP 900 million Time Lines 2008 – 2010 Implementing Agency(cies) Department of Public Works and Highways (DPWH) Description The Bohol Backbone Transmission Project will augment the existing transmission backbone to meet generation capacity addition. The project intends to prevent overloading of Ubay-Trinidad 69 kV line during outage of Ubay-Alicia 69 kV line. Justification The project is an important component of the program of the government to ensure sufficient and reliable power supply and system efficiency improvement. Benefits/ Impacts The project is expected to augment the total capacity of power in Bohol to avert power shortages in the island, and to ensure sufficient and efficient distribution of electricity. This would ultimately result in a reduction of the cost of electricity. Estimated Cost (PhP M) PhP 2,966.00 million Time Lines 2009-2011 Implementing Agency(cies) TransCo 33.4.2 Sector Management REF 1 PROJECT TITLE STRENGTHENING OF TOURISM SECTOR MANAGEMENT FOR BOHOL TDA(s) TDA 4.1 Tagbilaran City, Pangalao Island & Balicasag Island TDA 4.2 Jagna to Anda TDA 4.3 Tabigon to Jetafe Description Establish/strengthen local tourism councils Prepare Destination Management Plan Destination Promotion - web-site development - collateral production consumer & trade promotions Research and Statistics Justification Although the provisions of economic infrastructure is a necessary condition for successful tourism development, it is not a sufficient condition. Sound sector management involving the appropriate enabling environment, destination promotion, visitor information, custom research, effective institutional arrangements and cooperation with the private sector, must also be in place, Benefits & Impacts Growth in foreign tourist arrivals (including overseas Filipinos) from 48,000 in 2006 to 260,000 in 2016; growth in domestic tourist arrivals (staying at „serviced‟ accommodation establishments) from 170,000 in 2006 to 520,000 in 2016. Estimated Costs (PhP M) PhP 50 million in total. PhP 5 million per year. Time Lines 10 years. Implementation Agencies DOT. implementation of the management zoning and guidelines that will involve the training of concerned LGU officials in the integration of the zoning and plan into their comprehensive land use and development plan (CLUP and CDP). Year 3 will cover the passage of a provincial ordinance adopting the ecological zoning and management plan for the province. Implementing Agency(cies) REF 2 33.4.3 Environmental Protection and Enhancement REF 1 PROJECT TITLE Bohol Province Description The project will involve two major components: 1) Preparation of management zoning and plan for Bohol Province; and 2) Imple-mentation of the zoning scheme and management guidelines. Benefits/ Impacts Conservation and protection of the critically-sensitive natural attractions in the province would require the ecological zoning of these areas which would define their allowable and prohibited uses. Ecological zoning will serve as the basis for preparing the environmental management plan for the province that will guide its long-term sustainable development. The project will provide the instruments necessary for the management of the natural endowments of the province. The ecological zoning and management plan will guide the sustainable development of the province and further enhance ecotourism by ensuring that its natural attractions are properly protected. Estimated Cost (PhP M) PhP 30 million Time Lines Three years. Year 1 and half of Year 2 will be devoted to the preparation of the management zoning and plan for the island. Year 2 and 3 will cover the REHABILITATE CULTURAL HERITAGE BUILDINGS TDA(s) Bohol Province Description The project will have the following components and activities: 1) Identification and selection of cultural heritage for restoration and rehabilitation; 2) Restoration of historical buildings, monuments and cultural icons and religious relics; and 4) Promotion and marketing of cultural heritage sites. Justification The project is meant to arrest the further deterioration of cultural resources, preserve and restore cultural heritage (e.g., Baclayon and Loboc century old churches)to enhance tourism in the province of Bohol. It will also address the lack of promotion and marketing of cultural tourism in the province. Benefits/ Impacts Development and promotion of cultural tourism will attract a particular segment of tourists in the international market, thus increasing tourism receipts in Bohol province. The project will preserve priceless historical and cultural heritage for posterity and create better awareness and appreciation of local cultures and tradition. Estimated Cost (PhP M) PhP 50 million Time Lines Five Years. Year 1 will involve the identification and selection of cultural heritage for restoration and rehabilitation. Years 2 to 4 will commence the restoration and rehabilitation works of selected cultural heritage buildings, monuments and other structures. Year 3 will involve the start of promotion and marketing of cultural tourism in the two provinces. Implementing Agency(cies) NHI, NCCA, LGUs ECOLOGICAL ZONING AND GUIDELINES PREPARATION TDA(s) Justification PROJECT TITLE DENR, LGU and DOT. REF 1 PROJECT TITLE COMMUNITY INVOLVEMENT Type Leadership and community organization SDA D Bohol Description As integral part of preparing the communities for tourism development, the community involvement action program aims to lay the basis for pro active involvement by all stakeholders in the community, including those involved in preventing further degradation of the environment. Justification Community-based tourism must involve the participation of the local leaderships and population in the tourism development partnership. These include the setting up appropriate mitigating and management measures in the identified environmentally critical sites for the community to implement. Benefits/ Impacts The community will benefit from these programs through the capacity strengthening of competent local leadership able to make sound decisions for the community‟s benefit; the organization of the community into a cohesive people‟s association; the improvement or enhancement of the community‟s economic activities; and the local community in general through the prevention of environmental deterioration. Estimated Cost (PhP M) PhP 1 million per year over 10 year period. Time Lines These programs are to be implemented prior to or immediately before the implementation of other tourism-related project/s in the community Implementing Agency(cies) DOT, DENR in collaboration with the LGU and an accredited NGO. REF 3 PROJECT TITLE TDA(s) Description Justification Benefits/ Impacts Estimated Cost (PhP M) Time Lines Implementing Agency(cies) assistance in the refinement and finalization of existing GMPs; 3) extend technical and financial assistance to PAMBs in the review and approval of GMPs; and 4) establishment if IPAF. Preparation of GMPs will involve the identification, delineation and mapping of ecological management zones of the PAs. It will also involve the preparation of guidelines on the proper use, conservation, protection and development of the different zones, and the identification of environmental management programs to conserve and enhance natural attractions. IPAF funds will be established following the policy and guidelines set by PAWB. The absence of GMPs in many PAs constrains the development of ecotourism in the tourism destination areas located within Protected Areas (PAs) because suitable sites for various types of development are not identified. The identification, delineation and mapping of management zones of PAs will identify areas which can be developed for tourism. These management zones include Tourism Management Zone and Sustainable Use Zone. The guidelines that would be prepared by the project would also serve to guide the development of the different ecological management zones thereby ensuring the sustainability of tourism in these areas. The project would enable the preparation of GMPs that would guide the ecotourism development of suitable sites located within PAs. The project would also facilitate the review and approval of GMPs by the PAMBs by providing them the technical and logistic support to conduct workshops and meetings. The approved GMPs would guide and legitimize tourism development in PAs, thus enabling development projects to proceed without any legal encumbrances or technical ambiguities. Preparation and approval of GMPs would ensure the protection and conservation of PAs and at the same time sustain tourism development in these areas. PhP 20 million Three years. Year 1 – identification of PAs without GMPs and with nonapproved GMPs and selection of priority PAs. Determination, delineation and mapping of ecological management zones. Year 2 – Preparation of GMPs or Refinement of Existing GMPs and establishment of the IPAF. Year 3 – Processing and approval of GMPs by PAWB and PAMB. Issuance of ordinances or legislative instruments adopting the GMPs. DENR-PAWB and Regional Offices, LGUs and DOT 33.4.4 Community Involvement PREPARATION AND APPROVAL OF GENERAL MANAGEMENT PLANS (GMPS) FOR PROTECTED AREAS AND ESTABLISHMENT OF INTEGRATED PROTECTED AREA FUND Protected Areas in SDA without GMPs and those with GMPs but not yet approved by PAWB or PAMB The project will involve the following key activities: 1) review of the status of GMPs in PAs located in priority SDAs; 2) extend technical assistance to PAWB in the preparation of GMPs in PAs without these plans; or provide technical 33.4.5 LGU Human Resource Development REF 1 REF 1 PROJECT TITLE PROJECT TITLE Justification Local government officials have limited capacity and experiences in tourismrelated topics. They recognize the need for training, especially in tourism sector management and marketing. In addition, the promotion of cultural heritage in the tourism industry results in some unavoidable negative impacts because of the exposure of the archaeological sites, historical monuments or indigenous communities to visitors. Benefits/ Impacts As a result of the program it is expected that the LGU officials will become knowledgeable as to how they can promote their destinations effectively to visitors and potential investors. They will learn how to devise appropriate and cost-effective marketing strategies. The creation of an integrated, welldesigned, Local Government Cultural Tourism Program (CTP) for example involving all the interested cities and municipalities in the SDA will address the situational need to deter the depletion of cultural and historical heritage. This Cultural Tourism Program will complement and link-up the tourism development plan of the municipalities. Estimated Cost (PhP M) PhP 20 million; PhP 2 million per year over 10 year period. Time Lines This program are to be conducted on a continuing basis in view of the high turn-over of government workers involved in the tourism sector Implementing Agency(cies) DOT in collaboration with the Development Academy of the Philippines (DAP), the National Commission for Culture and Arts (NCCA) and the National Historical Institute (NHI). LGU HRD PROGRAM UPGRADE PUERTO PRINCESA AIRPORT TERMINAL TDA(s) Description The Puerto Princesa Airport is the main gateway to Puerto Princesa City and the rest of Palawan province as it receives regular flights from Metro Manila and Cebu City. International chartered flights from Hong Kong, Shanghai, and Seoul are also known to land at the Puerto Princesa Airport. This project aims to provide a modern and efficient passenger terminal facility for foreign and local tourists and visitors to Palawan. An expanded and improved international passenger terminal (IPT) facility at the Puerto Princesa Airport would meet the air passenger demand in the next ten years, thereby further boosting the tourism industry in SDA-H and the rest of Palawan Province. Justification Due to limited space and facilities of the passenger handling areas at the Puerto Princesa Airport, it is unable to receive and process a larger number of passengers comfortably. The proposed expansion of the passenger handling areas would provide a more comfortable and warm welcome to the increasing volumes of foreign tourists who fly in direct from international points of origin. Benefits/ Impacts Promotion of Palawan Province and the Central Philippines Super Region through a modern and efficient international passenger facility. 33.5 Estimated Cost (PhP M) PhP 80 million Time Lines 2008-2011 Implementing Agency(cies) Department of Transportation and Communications (DoTC) Air Transportation Office (ATO) Type Training SDA D Bohol Description The program consists of three seminars/training modules designed to build capacity among LGU officials in the tourism sector. SDA – H: PALAWAN 33.5.1 Infrastucture REF 3 PROJECT TITLE SOLID WASTE MANAGEMENT SYSTEM (WITH SANITARY LANDFILL) IN SAN VICENTE AND EL NIDO REF 4 TDA(s) TDA(s) Description A sanitary landfill for San Vicente, El Nido, Roxas, and Taytay would ensure that the solid wastes in the area will be disposed of in an environmentally acceptable manner. El Nido and Taytay are established ecotourism-adventure destinations known for their pristine environments. Although the number of tourist arrivals has been limited because of the lack of access in the last ten years, the expected completion of the new airport in San Vicente and the new roads from Puerto Princesa will inevitably see a sharp increase in the next few years. A solid waste management system with a shared sanitary landfill as a means of disposing solid waste will help preserve the natural environment of San Vicente, El Nido, Roxas, and Taytay. Constructing and operating a single sanitary landfill for three or more municipalities will be more economical than operating several independent sanitary landfills. A feasibility study will have to be conducted to determine the most suitable and economical site for the sanitary landfill. Justification The proposed sanitary landfill is in support of the Ecological Solid Waste Management Act (Republic Act or R.A. No. 9003). The landfill shall address the ever-increasing volume of solid waste in the San Vicente - Roxas (TDA 11.3) and El Nido - Taytay (TDA 11.2) Areas. The project will eliminate the common practices of garbage disposal, which include burning, indiscriminate throwing and dumping in waterways, rivers and seas. Benefits/ Impacts Solid wastes can be disposed of properly Environmental protection and promotion Cleaner environment brings good health and preserves the tourism environment Estimated Cost (PhP M) PhP 60 million; Acquisition of land, and construction and operation of the landfill; Acquisition of trucks for hauling garbage; Processing and recycling of recyclable materials Time Lines 2008-2012; Construction and operation of Sanitary Landfill in any of the municipalities in either TDA 11.2 or TDA 11.3. Implementing Agency(cies) Local governments of involved municipalities and the Palawan Provincial Government. PROJECT TITLE REF 2 CONSTRUCTION OF JETTY AT SABANG (ACCESS POINT TO PUERTO PRINCESA SUBTERRANEAN RIVER) PROJECT TITLE Description TDA(s) Description Justification UPGRADE PUERTO PRINCESA SEAPORT TO ACCOMMODATE CRUISE SHIP CALLS The Puerto Princesa Subterranean River Area is one of the most popular ecotourism sites in Puerto Princesa City. The Sabang area is currently where the resorts and restaurants are located as overnight stays are not allowed in the Underground River Area. Tourists and to stay overnight at cruise Sabang Upgrading the Puerto Princesaarrive Seaport accommodate ships will and havemake to take tripand to reach the Underground River. The Super thethe cityout-rigger one of theboat entry exit points for the Central Philippines transfer of visitors by boats is made difficult because of the absence of a jetty Region. The project would allow calls by international cruise ships carrying on both ends of theand boat trip. both local international tourists, visitors and guests. Cruise ships bring in thousands of tourists and encourage them to travel to other areas within the A jetty onCentral Sabang will facilitate boarding and disembarking from the boats, Philippines Super Region. thereby making the boat trip more pleasant for tourists. An international standard cruise ship port in Puerto Princesa City will help attract the growing cruise market to the Central Philippines Super Region. The cruise ship port shall interconnect with other cruise ship ports in the Central Philippines and even other Southeast Asian cities. Justification The jetty project will provide a more efficient, safe and comfortable means of boarding and disembarking boats in this Tourism Site. It will allow ease of setting off even during low tide. Benefits/ Impacts More tourists will be attracted and enticed to visit the Central Philippines Super Region since leisure cruises is one of the more pleasurable ways of getting to and out of the region. Port improvements will induce the economic development of Puerto Princesa City and neighboring municipalities. Benefits/ Impacts The project is expected reduce travel time and of travel, Through the toimproved seaport, the increase Central comfort Philippines Super Region which maybecomes result to increased tourist arrivals in the area. highly accessible from any part of the Philippines and East Asia. Estimated PhP 100 million Cost (PhP M) Estimated PhP 2 million Cost (PhP M) Time Lines 2010 – 2012 Implementing Philippine Ports Authority (PPA) Time Lines Agency(cies) 2008 - 2010 Implementing Agency(cies) Puerto Princesa City Government, Provincial Government REF 5 PROJECT TITLE CONSTRUCTION OF JETTY AT PUERTO PRINCESA SUBTERRANEAN RIVER AREA TDA(s) Description REF 6 PROJECT TITLE UPGRADE OF SALVACION - CABAYUGAN ROAD (ACCESS TO UNDERGROUND RIVER) TDA(s) The Puerto Princesa Subterranean River Area is one of the most popular ecotourism sites in Puerto Princesa City. The Sabang area is currently where the resorts and restaurants are located while the Underground River Area is where the ecotourism activities are experienced. Description The Salvacion to Cabayugan Road Project involves the upgrading of about 20 kilometers of access roads to the Puerto Princesa Underground River National Park. Tourists stay overnight and take off from Sabang by boat to reach the Underground River Area. The docking of boats and disembarking of visitors are made difficult because of the absence of a jetty in the Underground River Area. After the tour of the Underground River is over, boarding is likewise an inconvenience as visitors often have to wade on water to get on board the out-rigger boats. A jetty at the Underground River Area will facilitate boarding and disembarking from the out-rigger boats, thereby making the ecotourism experience more pleasant. Justification The jetty project will provide a more efficient, safe and comfortable means of boarding and disembarking boats in this Tourism Site. It will allow ease of setting off even during low tide. Justification The road project will provide reliable access to one of Palawan‟s major tourist destinations. The project is also envisioned to alleviate poverty in the rural areas traversed by the road. Benefits/ Impacts The project is expected to reduce travel time and increase comfort of travel, which may result to increased tourist arrivals in the area. Benefits/ Impacts The project is expected to reduce travel time and increase comfort of travel, which will result in increased tourist arrivals in the area. Estimated Cost (PhP M) PhP 2 million Estimated Cost (PhP M) PhP 30 million Time Lines 2008 - 2010 Time Lines 2008 - 2010 Implementing Agency(cies) Puerto Princesa City Government, Provincial Government Implementing Agency(cies) Department of Public Works and Highways (DPWH) REF 7 PROJECT TITLE SAN JOSE – PORT BARTON ROAD (NORTHERN PALAWAN) TDA(s) REF 8 PROJECT TITLE ITABIAK – SAN VICENTE ROAD (NORTHERN PALAWAN) TDA(s) Description The San Jose – Port Barton Road Project involves the upgrading of about 40 kilometers of national roads including the construction of bridges, drainage and other appurtenances. Description The Itabiak to San Vicente Road Project involves the upgrading of about 20 kilometers of roads including the upgrading of bridges and drainage along the road. Justification The project is envisioned to improve accessibility to the western side of the province, and if completed, can serve as an alternative route for travelers using Port Barton as their take-off and/or jumping point. The road also connects to the proposed Palawan-Luzon Expansion Route of the Nautical Highway System. Justification The project is envisioned to improve accessibility to the northwestern side of Palawan, especially to the San Vicente airport currently being developed. The road is expected to connect to the proposed Palawan-Luzon Expansion Route of the Nautical Highway System. Benefits/ Impacts Benefits/ Impacts Among the perceived impacts of the project are faster travel time and reduced travel costs. The project is also expected to increase the influx of tourists in the San Vicente Area of Northern Palawan. Among the perceived impacts of the project are faster travel time and reduced travel costs, which could result to increased tourist arrivals and activities in the area. PhP 300 million Estimated Cost (PhP M) PhP 150 million Estimated Cost (PhP M) Time Lines 2008 – 2010 Time Lines 2008 – 2010 Implementing Agency(cies) Department of Public Works and Highways (DPWH) Implementing Agency(cies) Department of Public Works and Highways (DPWH) REF 9 PROJECT TITLE BABUYAN SMALL HYDROPOWER PROJECT TDA(s) REF 10 PROJECT TITLE LANGOGAN SMALL HYDROPOWER PROJECT TDA(s) Description The Babuyan Small Hydropower Project in Palawan is part of the Proposed Various Mini and Micro Hydropower Projects in Small Power Utilities Group (SPUG) Areas. Description The Langogan Small Hydropower Project in Palawan is part of the Proposed Various Mini and Micro Hydropower Projects in Small Power Utilities Group (SPUG) Areas. Justification The project is an important component of the program of the government to implement critical and strategic energy infrastructure to promote energy independence. Justification The project is an important component of the program of the government to implement critical and strategic energy infrastructure to promote energy independence. Benefits/ Impacts The project is expected to augment the total capacity of power in Palawan to avert power shortages in the area, and to ensure sufficient and efficient distribution of electricity. This would ultimately result in a reduction of the cost of electricity. Benefits/ Impacts The project is expected to augment the total capacity of power in Palawan to avert power shortages in the region, and to ensure sufficient and efficient distribution of electricity. This would ultimately result in a reduction of the cost of electricity. Estimated Cost (PhP M) PhP 922 million Estimated Cost (PhP M) PhP 813 million Time Lines 2008 - 2009 Time Lines 2008 - 2009 Implementing Agency(cies) National Power Corporation – Small Power Utilities Group (NPC-SPUG) Implementing Agency(cies) National Power Corporation – Small Power Utilities Group (NPC-SPUG) 33.5.2 Sector Management REF 11 PROJECT TITLE WATER SUPPLY AND DISTRIBUTION IN PUERTO PRINCESA CITY PROJECT TITLE TDA(s) TDA(s) Description This project is proposed to ensure the provision of safe and adequate water supply in Puerto Princesa City. The project involves technical and financial assistance for the development of potable water supply systems and rehabilitation and expansion of the existing Level III water supply system. Justification Adequate and sustainable water is crucial to improve the quality of life and is a vital component of economic growth and a catalyst to alleviate poverty. Benefits/ Impacts The expected project benefits are reduced waterborne diseases, and enhanced access of the rural population to sustainable water supply, thus improving public health, and socio-economic conditions. Estimated Cost (PhP M) PhP 250 million Time Lines 2008 - 2009 Implementing Agency(cies) REF 1 LGU/LWUA STRENGTHENING OF TOURISM SECTOR MANAGEMENT FOR NORTHERN PALAWAN TDA 8.2 El Nido – Taytay TDA 8.3 San Vicente – Roxas TDA 9.1 Puerto Princesa City Description Prepare Destination Management Plan Destination Promotion - web-site development - collateral production - consumer & trade promotions Research and Statistics Justification Although the provisions of economic infrastructure is a necessary condition for successful tourism development, it is not a sufficient condition. Sound sector management involving the appropriate enabling environment, destination promotion, visitor information, custom research, effective institutional arrangements and cooperation with the private sector, must also be in place, Benefits & Impacts Growth in foreign tourist arrivals (including overseas Filipinos) from 50,000 in 2006 to 265,000 in 2016; growth in domestic tourist arrivals (staying at „serviced‟ accommodation establishments) from 140,000 in 2006 to 435,000 in 2016. Estimated Costs (PhP M) PhP 30 million in total. PhP 3 million per year. Time Lines 10 years. Implementation Agencies DOT. 33.5.3 Environmental Protection and Enhancement REF PROJECT 1 TITLE TDA(s) Description Justification Benefits/ Impacts Estimated Cost (PhP M) Time Lines Implementing Agency(cies) IMPLEMENTATION OF THE ECAN ZONES MANAGEMENT PLAN FOR EL NIDO Northern Palawan, El Nido Municipality The proposed project will implement the ECAN Zones Management Plan (EZMP) formulated under the JBIC funded project on SEMP – ECAN Zoning Component (2002-2006). The EZMP was approved and adopted by the El Nido LGU in 2006 and is now ready for implementation. The overall purpose of the ECAN Zones Management Plan (EZMP) is to guide the implementation of ECAN Zoning in the Municipality of El Nido. The Plan defines the priority concerns and actions that are needed in the conservation of natural resources and the protection of ecological life support services so that the municipality‟s communities can enjoy in a sustainable manner the benefits of their natural resources and the amenities of a healthy environment. The management prescriptions provided in the Plan are strategically designed to ensure the proper use of land and aquatic resources as natural capital and the development of human, institutional and physical capital for the attainment of sustainable development in the locality. The EZMP primarily aims to provide directions to PCSDS and ECAN Boards in their decision-making, planning and implementation of ECAN zoning, socioeconomic development and environment and natural resources management and tourism development programs and projects. ECAN zoning is an indispensable management tool that will guide the longterm sustainable development of the municipality. Without ECAN zoning in place, the environmental resources and life support ecosystems of the municipality will be indiscriminately utilized resulting in further acceleration of their despoliation and leading to greater impoverishment of the local people. The EZMP is also an indispensable management tool for the sustainability of tourism development in the municipality. Implementation of the EZMP will ensure the environmental soundness of tourism development in El Nido. It will also improve the socioeconomic living conditions of the local communities while at the same time enhancing the natural amenities of the locality making it more attractive and globally competitive as a tourism destination site. PhP 200million Ten years (Gantt chart and details of the activities are given in the EZM Plan) PCSDS and El Nido LGU REF 2 PROJECT TITLE SUBTERRANEAN RIVER CONSERVATION TDA(s) Description Puerto Princesa City The project will protect and conserve the 22,202 hectares terrestrial and the 292 hectares marine resources of the Puerto Princesa Subterranean River National Park. Its four components and activities are: 1) park protection and conservation including monitoring and law enforcement; 2) staff capability building; 3) enhancement of park facilities and amenities; and 4) park promotion. Justification The subterranean river national park, which is about 8.2 km long, is the leading tourism attraction of the City of Puerto Princesa and a UNESCO World Heritage site. Hence, the protection and conservation of this national treasure is the primary concern of the City government. Benefits/ Impacts The project will address the problems on the degradation of the natural attractions in the subterranean river and its environs. It will enhance tourism in the area and attract more visitors once its facilities are improved and its overnight accommodation capacity is increased. Estimated Cost (PhP M) Time Lines PhP 15.0 million Implementing Agency(cies) Three Years. Protection work will be intensified in Year 1 of project implementation. Staff capability building will also start in Year 1 and will be completed by Year 3. Park promotion and enhancement of park facilities such as lodging and toilets will commence in Year 2. It is expected that the project‟s investment will serve as a catalytic fund that will be sustained by the City Government after the project is withdrawn. LGU and DENR 33.5.4 Community Involvement REF 3 PROJECT TITEL TDA(s) Description Justification Benefits/ Impacts Estimated Cost (PhP M) Time Lines Implementing Agency(cies) PREPARATION AND APPROVAL OF GENERAL MANAGEMENT PLANS (GMPS) FOR PROTECTED AREAS AND ESTABLISHMENT OF INTEGRATED PROTECTED AREA FUND Protected Areas in SDA without GMPs and those with GMPs but not yet approved by PAWB or PAMB The project will involve the following key activities: 1) review of the status of GMPs in PAs located in priority SDAs; 2) extend technical assistance to PAWB in the preparation of GMPs in PAs without these plans; or provide technical assistance in the refinement and finalization of existing GMPs; 3) extend technical and financial assistance to PAMBs in the review and approval of GMPs; and 4) establishment if IPAF. Preparation of GMPs will involve the identification, delineation and mapping of ecological management zones of the PAs. It will also involve the preparation of guidelines on the proper use, conservation, protection and development of the different zones, and the identification of environmental management programs to conserve and enhance natural attractions. IPAF funds will be established following the policy and guidelines set by PAWB. The absence of GMPs in many PAs constrains the development of ecotourism in the tourism destination areas located within Protected Areas (PAs) because suitable sites for various types of development are not identified. The identification, delineation and mapping of management zones of PAs will identify areas which can be developed for tourism. These management zones include Tourism Management Zone and Sustainable Use Zone. The guidelines that would be prepared by the project would also serve to guide the development of the different ecological management zones thereby ensuring the sustainability of tourism in these areas. The project would enable the preparation of GMPs that would guide the ecotourism development of suitable sites located within PAs. The project would also facilitate the review and approval of GMPs by the PAMBs by providing them the technical and logistic support to conduct workshops and meetings. The approved GMPs would guide and legitimize tourism development in PAs, thus enabling development projects to proceed without any legal encumbrances or technical ambiguities. Preparation and approval of GMPs would ensure the protection and conservation of PAs and at the same time sustain tourism development in these areas. PhP 5 million Three years. Year 1 – identification of PAs without GMPs and with nonapproved GMPs and selection of priority PAs. Determination, delineation and mapping of ecological management zones. Year 2 – Preparation of GMPs or Refinement of Existing GMPs and establishment of the IPAF. Year 3 – Processing and approval of GMPs by PAWB and PAMB. Issuance of ordinances or legislative instruments adopting the GMPs. DENR-PAWB and Regional Offices, LGUs and DOT REF 1 PROJECT TITLE COMMUNITY INVOLVEMENT Type Leadership and community organization SDA H Northern Palawan Description As integral part of preparing the communities for tourism development, the community involvement action program aims to lay the basis for pro active involvement by all stakeholders in the community, including those involved in preventing further degradation of the environment. Justification Community-based tourism must involve the participation of the local leaderships and population in the tourism development partnership. These include the setting up appropriate mitigating and management measures in the identified environmentally critical sites for the community to implement. Benefits/ Impacts The community will benefit from these programs through the capacity strengthening of competent local leadership able to make sound decisions for the community‟s benefit; the organization of the community into a cohesive people‟s association; the improvement or enhancement of the community‟s economic activities; and the local community in general through the prevention of environmental deterioration. Estimated Cost (PhP M) PhP 1 million per year over 10 year period. Time Lines These programs are to be implemented prior to or immediately before the implementation of other tourism-related project/s in the community Implementing Agency(cies) DOT, DENR in collaboration with the LGU and an accredited NGO. 33.5.5 LGU Human Resource Development REF 2 PROJECT TITLE WATERSHED MANAGEMENT AND REHABILITATION TDA(s) Taytay and San Vicente Description The project will involve the field verification of identified and previously mapped critically-denuded areas in Taytay and San Vicente under the ECAN project. Reforestation will comprise the bulk of the project activities supported by monitoring and enforcement of environmental laws and regulations. Justification Benefits/ Impacts Denuded areas in Taytay and San Vicente cause erosion of top soil and siltation of coastal waters. These environmental phenomena negatively affect upland agroforestry and coastal fisheries production. Allowing the situation to continue would also affect ecotourism in Taytay and San Vicente municipalities which are frequented by tourists for their beautiful beaches, intact coral reefs and dense forest. The rehabilitation of denuded and degraded portions of forest ecosystem is warranted to arrest further expansion and deterioration of the natural endowments in ecotourism areas. Sustaining the conservation and protection of critical watershed would also require that a system of surveillance, monitoring, enforcement of environmental laws, apprehension and prosecution of violators be undertaken. The project will bring about the following benefits and impacts: 1) restore the productivity and ecological services of forest and coastal marine ecosystems; 2) protect and enhance natural attractions for ecotourism; and 3) provide employment and improve the income of upland farmers and coastal fishers. REF 1 PROJECT TITLE LGU HRD PROGRAM Type Training SDA D Northern Palawan Description The program consists of three seminars/training modules designed to build capacity among LGU officials in the tourism sector. Justification Local government officials have limited capacity and experiences in tourismrelated topics. They recognize the need for training, especially in tourism sector management and marketing. In addition, the promotion of cultural heritage in the tourism industry results in some unavoidable negative impacts because of the exposure of the archaeological sites, historical monuments or indigenous communities to visitors. Benefits/ Impacts As a result of the program it is expected that the LGU officials will become knowledgeable as to how they can promote their destinations effectively to visitors and potential investors. They will learn how to devise appropriate and cost-effective marketing strategies. The creation of an integrated, welldesigned, Local Government Cultural Tourism Program (CTP) for example involving all the interested cities and municipalities in the SDA will address the situational need to deter the depletion of cultural and historical heritage. This Cultural Tourism Program will complement and link-up the tourism development plan of the municipalities. Estimated Cost (PhP M) PhP 20 million; PhP 2 million per year over 10 year period. Estimated Cost (PhP M) PhP 50.00 million Time Lines This program are to be conducted on a continuing basis in view of the high turn-over of government workers involved in the tourism sector Time Lines Five Years. Year 1 will cover the field verification of critical areas for reforestation. Years 2-5 will involve nursery establishment and reforestation work including maintenance of seedlings. During the same period, monitoring and enforcement of environmental laws will be intensified. A monitoring and surveillance system will be put in place. A prosecutor and judge will also be arranged through the project. Implementing Agency(cies) DOT in collaboration with the Development Academy of the Philippines (DAP), the National Commission for Culture and Arts (NCCA) and the National Historical Institute (NHI). Implementing Agency(cies) PCSDS, LGUs and DENR