Sustainable Tourism Management Plan For Central Philippines

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
countrys 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 sectors 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, tourisms gross contribution to the
Super Regions 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 Regions 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
countrys 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 tomorrows 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 didnt 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

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
110
50
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

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
110
50
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 Regions 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
SDAA: 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
Boracay Island Solid and Liquid Waste Management Capacity Upgrade

Boracay Island Water Supply.
A
A
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
A
A
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
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
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.
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-based forest management in Mt. Kanlaon and Northern Negros Forest Reserve and mangrove
management in Guimaras province.
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.
A
B
A
A
A
A
A
A
B
B
B
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.
Infrastructure
Sector Management
Environ Protection
: 1,468
:
20
:
22
LGU HRD
:10
:20
2.10.3
SDA B; Cebu
Program Description
Sector Management
Update CLUP, designating tourism zones

Develop Cebu as home port for cruise
Destination and air access promotion
Air access promotion.
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 based eco-tourism product development on Olango Island.

Restoration of cultural heritage sites.
Infrastructure
Projects
Key:
Priority
Cebu cruise ship port and international marina.

Upgrade/expand Mactan-Cebu Intl 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)
A
A
B
B
B
A
B
A
B

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.
Infrastructure
Sector Management
Environ Protection
: 3,910
:
100
:
208
LGU HRD
:60
:20
2.10.4
SDA D: Bohol
Program Description
Sector Management
Destination promotion
Formulate and finalise GMPs

Ecological zoning and guidelines preparation.
Rehabilitate cultural heritage buildings and sites.
Tourism awareness programs for communities in Anda peninsula.
Infrastructure
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)
A
C
A
B
A
A
A
A

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;
communities.
Infrastructure
Sector Management
Environ Protection
: 8,266
:
50
:
100
LGU HRD
:10
:20
2.10.5
SDA H: Palawan
Program Description
Sector Management
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 forestry development and watershed management program in San Vicente and Taytay.
Infrastructure
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).
A
A
A
A
A
B
B
A
A
A
A
A

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;
communities.
Infrastructure
Sector Management
Environ Protection
: 3,710
:
30
:
220
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 NPVs 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 (000s)
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
Wout
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 regions 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
Oseas 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 islands 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
Cebus 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
areas 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 areas 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, tourisms 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 industrys

contribution, since employment by tour operators, car rental companies, airlines
etc., are not included. Allowing for employment generated in these sectors, the
tourism industrys 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$2.1 billion. Consequently, international
tourisms direct contribution to GDP was about 2%.
However, it should be noted that tourism receipts are at gross value and strictly
speaking, the imported inputs to tourism sales should be excluded before expressing
them as a proportion of GDP. To the extent, therefore, that direct imports have not
been excluded, tourist receipts as proportion of GDP will be overstated. There are
no published statistics available on the proportion that direct imports represent.
However, on the assumption that direct imports represent between one-third and
1
The number and value of domestic trips are based on the applications of a number of very simplifying
assumptions to the findings of the DOT/National Statistics Office household survey on domestic trips.
The figures should be regarded as indicative of the magnitudes involved rather than precise statistics.
Variable
Foreign Tourists*
Domestic Trips
Total
Arrivals
(000s)
795
28,875
29,670
Spend
US$ (Million)
650
770
1,420
Avg.
Nights
8.5
n/a
-
Source: DOT, Consultants estimates *excluding overseas Filipinos
Contribution to GDRP
In 2005, tourisms gross contribution to the Central Philippines economy was about
US$ 1,420 million, representing almost 7.5% of the Super Regions 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.
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
communitys 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 1500s, 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 Governments 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 1980s. 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.
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

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 airports
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.
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 Governments 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 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 KEPCOs 200 MW coal fired power plant in Cebu and PNOCEDCs 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 provinces 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
134
42
66
36
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 regions 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
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 countrys 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 Asias 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 countrys 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 areas 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
St. Pauls University
University of San Agustin
Central Philippines University
La Consolacion College
De La Salle College
University of San Jose - Recoletos
University of Cebu
San Carlos University
TESDA Training Center
Leyte Normal University
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-1990s 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 detre 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 DENRs 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
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 Thailands, Phuket, under these key elements.
The findings are:
Cebu has 72 direct flights per week from 9 unique destinations, versus Phukets
282 flights from 10 unique destinations
In terms of 5* accommodation, Cebu has 3 properties with 1,100 rooms versus
Phukets 20 properties and 3,000 rooms
In terms of 4* accommodation, Cebu has 16 properties with about 1,860 rooms
versus Phukets 61 properties and 12,500 rooms
Phuket has considerably more international hotel brands
- 10 major brands compared to Cebus 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 Cebus 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 countrys 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.
The relationship between Foreign Direct Investment and Tourism: Empirical Evidence from China; Tang,
Selvarthan et al, Tourism Economics, March, 2007
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 tomorrows 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, Brookes 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 didnt 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.
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 Islands 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 Taon 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.

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
Bohols 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.

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 Taon 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.

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
Nio 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 Nio Shrine and Heritage
Center, the Leyte Landing Memorial in Palo and other sites related to Gen.
McArthurs 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

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.
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.
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.
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-1970s 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 Nidos 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 Corporations 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
Pauls Subterranean River. The National Park was recognized by UNESCO as a
World Heritage Site in 1999.
TDA 9.2 Quezon, Aborlan, Brookes 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 (Brookes 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 Rizals 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 Camiguins 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
(2) 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 (Peoples 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%.
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 Internationals 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 regions 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%
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 Internationals 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 Internationals 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 Asias 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 Internationals 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 tomorrows 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 Boeings 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
- 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:
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
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.

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
83
28
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

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
110
50
1,430
190
C.
DOM
358
835
772
170
140
2,275
1,248
3,523

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
110
50
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. Caticlans 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 dont 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.
Boracays 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:

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.
- 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.
Tourism Awareness and Environmental Protection Programs and Value

Formation seminars for communities on Carabao.
12000
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
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.
Sector Management
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:
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)
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)
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
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
LGUs
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 islands 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.
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).
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.

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%.

Strengths
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.
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.
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.
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.
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.

`
A range of possibilities arise in considering future growth scenarios for tourism to this
SDA. At one extreme is a:

8%
5%
87%
2006
Domestic
management.
Foreign
Balikbayan
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
9,500 rooms by 2016.
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.
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-based forest management in Mt. Kanlaon and Northern Negros

Forest Reserve and mangrove management in Guimaras province.
Capacity building for LGU officials in destination planning, conservation and

sector management.
Infrastructure
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;

Up to 3 years
3 5 years
5 to 10 years
A
B
A
A
A
A
A
A
B
B
B
SDA
B
B
B
B
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 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
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

* 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

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.
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 Magellans original planting of cross in 1521 is
in Cebu City (fragments of Magellans 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
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.

Accommodation
A range of hotels, resorts and other types of accommodation with approximately

12,500 rooms.
Average annual room occupancy rate of about 70%.
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.

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.
Several resort developments planned for Mactan and Metro Cebu as well as
existing resort upgrades.
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)
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.
Threats
38%
Widespread violation in the use of foreshore lands in many coastal areas in Cebu
City, Mactan and Sogod areas.
Water shortage.
Destruction of coral reefs due to dynamite fishing and siltation of coastal waters
of Bantayan Island and Malapascua Island
2006
2006
Domestic

`
62%
Foreign
Balikbayan
1%

50%
50%
2016
2016
management.
1,250,000 in 2006 to 4,020,000 in 2016, representing a growth rate of about 13%
Figure 25.6: Projected Accommodation (Rooms) Development
21,000 rooms by 2016.
40,000

22,500
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

sector management.
Sector Management
Update CLUP, designating tourism zones

Develop Cebu as home port for cruise
- 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.
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 based eco-tourism product development on Olango Island.

Restoration of cultural heritage sites.
Infrastructure
Projects
Priority
Cebu cruise ship port and international marina.

Upgrade/expand Mactan-Cebu Intl 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)

Up to 3 years
3 to 5 years
5 to 10 years
A
A
B
B
B
A
B
A
B
SDA
Type of Project
Estimated Cost
(PhP Million)
Implementing
Agency
Status
Source
Funding
Priority
Port
1,200
PPA
Proposed
None
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

* per annum

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.

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.
Dolphin and whale watching.

Diving.
Corella towns 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.

Accommodation
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
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.
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
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.
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.


management.
220,000 in 2006 to 785,000 in 2016, representing a growth rate of just under 14%
20%
3%
77%
4,000 rooms by 2016.
2006

Domestic
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.
9,000
4,750
2,500
2006
Legend
2011
Low Growth Scenario
2016

Sector Management
Promote Bohol as stand-alone destination in markets.
Formulate and finalise GMPs and establish Integrated Protection Area

Management Fund
Ecological zoning and guidelines preparation.
Rehabilitate cultural heritage buildings and sites.
Tourism awareness programs for communities in Anda peninsula.

sector management.
Infrastructure
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)

Up to 3 years
3 to 5 years
5 to 10 years
A
C
A
B
A
A
A
A
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
Human Resource Development LGUs
Airport
Environment
Power
Environment
Marketing
Environment
Community
HRD
2,500
100
2,966
150
5*
100
1*
2*
SDA
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

* per annum
Type of Project

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
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.
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 Vicentes 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
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

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.
Opportunities
Puerto Princesa airport has alternate international classification.

Passenger terminal facilities at Puerto Princesa airport poor.
Sea port adequate.
Road network adequate.
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.

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.
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.
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.


26%
74%

2006

Domestic
management.
Foreign
Balikbayan
1%
190,000 in 2006 to 700,000 in 2016, representing a growth rate of just under 15%
37%
62%
2016
3,000 rooms by 2016.
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 areas 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
- promote SDA-H as stand-alone destination
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 forestry development and watershed management program in San

Vicente and Taytay.

sector management.
Infrastructure
Projects
Priority

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).

Up to 3 years
3 to 5 years
5 to 10 years
A
A
A
A
A
B
B
A
A
A
A
A
SDA
H
H
H
H
H
H
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)
Construction of jetty at Puerto Princesa Subterranean River
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

* per annum
National Road
Power Generation
Power Generation
Airport Terminal
Port
Estimated Cost
(PhP Million)
981
922
813
80
100
Jetty
Jetty
Water Supply
250
Environment
80
Road
Road
Rooad
Marketing
Environment
Community
HRD
30
300
150
3*
220
50 + 1*
2*
Type of Project

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
regions 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 Regions 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 days 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
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
countrys 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 DOTs, while at the same
time using the DOTs marketing activities as platforms to mount its own promotional
campaign.
26.4.2 Marketing Plan
X
X
In formulating the Super Regions marketing plan we recommend the following:

branding of the individual destinations
produce range of collaterals
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
Palawans 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
whats 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 its 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 whats 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:
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.
Womens 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 countrys and Central Philippines 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 societys

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 (000s)
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
Wout
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 NPVs 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 visitors
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 hasnt 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 villagers 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 Regions 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
SDAA: 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
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.
Infrastructure
Sector Management
Environ Protection
: 22,529
:
270
:
554
LGU HRD
:150
:100
Estimated
Costs (Php M)
Infrastructure
Sector Management
Environ Protection
: 5,175
:
70
:
4
LGU HRD
Time Lines
10 years.
Implementation
Agencies
10 years.
: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 islands 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
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
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.
Estimated
Costs (PhP M)
Infrastructure
Sector Management
Environ Protection
: 1,468
:
20
:
22
LGU HRD
:10
:20
Estimated
Costs (PhP M)
Infrastructure
Sector Management
Environ Protection
: 3,910
:
100
:
208
LGU HRD
Time Lines
10 years.
Time Lines
10 years.
Implementation
Agencies
Implementation
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

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
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
Benefits &
Impacts
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
LGU HRD
:10
:20
Estimated
Costs (PhP M)
Infrastructure
Sector Management
Environ Protection
: 3,710
:
30
:
220
LGU HRD
10 years.
Time Lines
10 years.
Implementation
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)
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
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)
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
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
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
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)
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
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.
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
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
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
Water
Distribution
40
Improve
water
supply
distribution
in
towns
adjacent to Dumaguete
Solid Waste
Management
140
Improves/ conserves natural

environment

Up to 3 years
3 to 5 years
5 to 10 years
SDA F (Cluster 6)
Overview
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 Nio Shrine and Heritage Center, the Leyte Landing
Memorial in Palo, and other sites related to General Douglas MacArthurs 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.
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 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.
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)
(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

Up to 3 years
3 to 5 years
5 to 10 years
B
B
A
A
SDA G (Cluster 7)
Overview
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).
Situated in typhoon belt and active volcanic area
Inadequate tourism infrastructure
Low market awareness
Incompatible industries such as mining (e.g., Cagraray Island in Albay)
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
(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)
in Region V
in Region V
in Region V
Increase Capability of Region
V to Accommodate Tourists
Improve/ conserve
environment
natural

Up to 3 years
3 to 5 years
5 to 10 years
C
B
B
B
B
B
A
33.
PROJECT FICHES
33.1
SDA-A: BORACAY AND CARABAO ISLANDS
33.1.1
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)

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
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

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)
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

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
- web-site development
- collateral production
- consumer & trade promotions
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
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 communitys benefit; the organization of the community into a cohesive
peoples association; the improvement or enhancement of the communitys
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

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

Estimated
Costs (PhP M)
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
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

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

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)
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
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 governments 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
Implementation
Agencies

REF
1
PROJECT
TITLE
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

Justification

Benefits & Impacts
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
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
REF
1
PROJECT
TITLE
REF
1
Type
Type
TDA(s)
Iloilo/Guimaras/Bacolod
TDA(s)
Description

Justification

Benefits/ Impacts
Estimated
Cost (PhP M)
PhP 10 million; PhP 1 million per year over 10 year period.
Time Lines

Implementing
Agency(cies)
PROJECT
TITLE
LGU HRD PROGRAM
Training
Description

Justification
Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines

Implementing
Agency(cies)

33.3 SDA C: CEBU

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

Implementation
Agencies

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.
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

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

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.

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.
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

Benefits & Impacts

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

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

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
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
Air access promotions
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
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.
meetings.
these areas.
PhP 8 million
REF
1
PROJECT
TITLE
Type
TDA(s)
Metro Cebu and islands, Sogod, San Remigio, and Bantayan and
Malapascua islands.
Description

Justification

Benefits/ Impacts
Estimated
Cost (PhP M)
PhP 1 million per year over 10 year period.
Time Lines

Implementing
Agency(cies)
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 1980s 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

REF
1
PROJECT
TITLE
LGU HRD PROGRAM
Type
Training
TDA(s)
Metro Cebu and islands, Sogod, San Remigio, and Bantayan and
Malapascua islands.
Description

Justification
Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines

Implementing
Agency(cies)

33.4
SDA D: BOHOL
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)

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)

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 Bohols 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)

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

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

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

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

Benefits/ Impacts

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)
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

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
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

collateral production
consumer & trade promotions
Justification

Benefits & Impacts
Estimated
Costs (PhP M)
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
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
Type
SDA D
Bohol
Description

Justification

Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines

Implementing
Agency(cies)
REF
3
PROJECT
TITLE
TDA(s)
Description
Justification
Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines
Implementing
Agency(cies)

meetings.
these areas.
PhP 20 million
PREPARATION AND APPROVAL OF GENERAL MANAGEMENT PLANS

(GMPS) FOR PROTECTED AREAS AND ESTABLISHMENT OF
INTEGRATED PROTECTED AREA FUND
REF
1
REF
1
PROJECT
TITLE
PROJECT
TITLE
Justification
Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines

Implementing
Agency(cies)

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)

Type
Training
SDA D
Bohol
Description

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

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

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
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 Palawans 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)
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)
Implementing
Agency(cies)
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

independence.
Justification

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
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
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)

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

Justification

Benefits & Impacts
Estimated
Costs (PhP M)
Time Lines
10 years.
Implementation
Agencies
DOT.
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 municipalitys 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
projects investment will serve as a catalytic fund that will be sustained by
the City Government after the project is withdrawn.
LGU and DENR
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
meetings.
these areas.
PhP 5 million
REF
1
PROJECT
TITLE
Type
SDA H
Northern Palawan
Description

Justification

Benefits/ Impacts
Estimated
Cost (PhP M)
Time Lines

Implementing
Agency(cies)
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

Justification
Benefits/ Impacts
Estimated
Cost (PhP M)
Estimated
Cost (PhP M)
PhP 50.00 million
Time Lines

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)

Implementing
Agency(cies)
PCSDS, LGUs and DENR

Sustainable Tourism Management Plan For Central Philippines

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TABLE OF CONTENTS

Abbreviation and Acronyms

SHAPING THE FUTURE .......................................................................................

PART IV THE WAY FORWARD VISION AND PLANNING FRAMEWORK

TOURISM VISION 2016 AND DEVELOPMENT CONCEPT .............................. 60

FRAMEWORK FOR TOURISM PLANNING ...................................................... 62

PART I TOURISM TO THE CENTRAL PHILIPPINES TODAY

TOURISM CLUSTERS AND STRATEGIC DESTINATION AREAS .................. 68

SOCIO-ECONOMIC STRUCTURE ...................................................................... 9

PART V DEVELOPMENT PLAN FOR THE CENTRAL PHILIPPINES

TOURISM DEMAND .......................................................................................... 10

MAIN TOURISM DESTINATIONS ..................................................................... 12

ECONOMIC VALUE OF TOURISM ................................................................... 15

PART II TOURISM SECTOR REVIEW

SUCCESSFUL TOURISM DEVELOPMENT ...................................................... 18

TOURISM BUSINESS OUTLOOK ..................................................................... 90

GROWTH SCENARIOS ..................................................................................... 94

PLANS, PROGRAMS AND PROJECTS IN PRIORITY SDAs ........................... 96

SUPPORT AND CROSS CUTTING PROGRAMS AND PROJECTS .............. 124

PART VI PROGRAM EVALUATION, STRATEGY AND IMPLEMENTATION

NATURAL RESOURCES AND CULTURAL HERITAGE .................................. 22

ECONOMIC INFRASTRUCTURE ...................................................................... 26

ECONOMIC ASSESSMENT ............................................................................ 134

DEVELOPMENT STRATEGY, PROGRAM SELECTION AND FICHES ......... 139

PROGRAM IMPLEMENTATION ..................................................................... 140

INSTITUTIONAL ARRANGEMENTS FOR IMPLEMENTATION ..................... 141

TOURISM PRODUCTS AND FACILITIES ......................................................... 36

VISITOR FACILITATION ................................................................................... 39

ACCESS TRANSPORT ..................................................................................... 40

ENABLING ENVIRONMENT ............................................................................. 42

PART VII ANNEXES

SECTOR MANAGEMENT ................................................................................. 48

PROJECT TERMS OF REFERENCE .............................................................. 144

PART III TOURISM PERFORMANCE

INFRASTRUCTURE PROJECTS IN EMERGING SDAs ................................. 145

MARKET COMPETITIVENESS ......................................................................... 54

PROJECT FICHES ................................................................................................

DESTINATION & PRODUCT COMPETITIVENESS .......................................... 56

WORKING PAPERS ..............................................................................................

CAPITAL INVESTMENT COMPETITIVENESS ................................................. 57

KEY ISSUES CONSTRAINING DEVELOPMENT ............................................. 58

ABBREVIATIONS AND ACRONYMS

Association of Southeast Asian Nations

Negros Forests and Ecological Foundation Incorporated

In particular the Tourism Management Plan will

provide a comprehensive planning framework for the development of tourism so

President Gloria Macapagal-Arroyo in her State of the Nation Address (SONA) in

elaborate a vision of the future direction and content of tourism development,

Table 1.1: Administrative Areas of Central Philippines Super Region

The Central Philippines possesses a wealth of ecological and cultural attractions

AIMS OF THE TOURISM MANAGEMENT PLAN

As specified in the project Terms of Reference, the objective of the Tourism

SHAPING THE FUTURE

IMPORTANCE OF TOURISM TO THE CENTRAL PHILIPPINES

TOURISM VISION 2016

Figure 2.1: Ideal Tourism Destination in Central Philippines

THE DEVELOPMENT CHALLENGE

access through strategically located international gateways

Figure 2.2: Tourism Development Concept

DESIGNATION OF THE STRATEGIC DESTINATION AREAS (SDAs)

The criteria used for evaluating the SDAs were as follows:

critical mass of attractions, facilities and services in the area

Significant existing tourism base.