UNIVERSITY OF MAKATI

EXECUTIVE MBA PROGRAM

Lunan ng Pamana:
Cultural Conservation Center

A Business Plan presented to the Faculty of the

College of Continuing, Advanced and Professional Studies
of the University of Makati.

In partial fulfilment of the requirements for the executive degree

Master in Business Administration major in
Building Property Management

By

Michelle B. Ting

29 June 2019
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Title Page
Approval Sheet
Table of Contents

List of Tables

List of Figures
List of Appendices
Acknowledgment
Executive Summary
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CHAPTER I
OVERVIEW OF THE BUSINESS PLAN

<Chapter Introduction>

1. Introduction

a. Objectives of the Business Plan

Republic Act no. 10066, known as National Cultural Heritage Act of 2009,
defines cultural heritage as sustained embodiment of human creativity that
reflects their evolving collective beliefs and values which are translated
into localized cultural properties consisting of tangible, movable or
immovable objects or traditions. These objects and customs are either
artistic (possessing unique decorative qualities) or historical (concerning
past events) or both. Types of cultural properties are antique, relic or
artifact. Antiques are usually at least a hundred year old or its production
has ceased. Relics are associated with significant beliefs, period or
personalities and are either intact or broken pieces of a larger whole after a
destruction. Artifacts are simple products crudely made by hands during a
primary period. (Senate of the Philippines 2009)

The rarity or rapid decline due to natural or human-related causes of

remaining patrimony makes preservation of these pamana ng lahi even
more relevant nowadays. Conservation is a profession that consists a set of
procedures to maintain the excellent condition or retard the deterioration of
any cultural property. It includes preservation, restoration, reconstruction,
protection, adaptation or any integration among these. (Senate of the
Philippines 2009)

Conservation is divided into two category: preventive and curative or

interventive. Preventive type is being applied to those collections which
have no visible signs of deterioration and consists of daily inspection,
proper and consistent room maintenance, controlled internal environment,
and disaster management. Curative type is introduced to delay or stop
further deterioration on artworks. (Maronilla-Reyes 2015)

The proposed cultural conservation center aims to provide a quality

treatment process that consists of photo-documentation, assessment and
restoration of an object of value. Conservation is a term used for the
profession of preserving valuable objects while restoration is the technical
process being applied to an object to arrest its deterioration. Photo
documentation is the initial stage of taking photos of the object prior to
restoration. Assessment entails the procedure that should be applied to the
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object and its corresponding cost. Restoration consists of five basic steps
namely: cleaning, chemical and physical stabilization, aesthetic unity and
protection. (Maronilla-Reyes 2015)

The center will also encourage business interdependency among its

surrounding communities through its restoration support service and
promote economic value of any heritage structure by adaptively reusing
them into a different function but is not detrimental to its architectural and
structural integrity.

b. The Significance of the Proposed Business

The center will educate on the practical importance of both preventive and
curative (interventive) conservation of cultural heritage as a catalyst for
improved social inclusivity and economic sustainability.

The difference between a collector and a dealer is the former

accumulates artworks for safekeeping while the latter obtains artworks for
eventual income-generation through disposal. (Senate of the Philippines
2009)

Table 1 Significance of art conservation to various stakeholders

Owner Community Government Nation

(collector, dealer)
1. Improvement 1. Renewed sense 1. Encouragement 1. Nation-
on the of direction to protect building in
marketability and through additional remaining terms of its
life span of an info provided by patrimony overall soul
artwork the artwork through creation development of
of policies not which input and
2. Sense of 2. More defined detrimental to output are non-
delight and sense of identity localized cultures quantitative and
spiritual and more can reach
connection cohesive beyond current
through artistic collective goals lifetime
medium

2. Scope and Limitation

a. Scope
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The proposed cultural conservation center will offer specialized

contracting (curative conservation) and consultancy services (preventive
conservation) on antiques, relics, artifacts and other movable objects
considered as important cultural property specifically painting on canvas,
leather, bas relief and sculpture.
a.1. Specialized contracting services (first aid and full restoration
services)
Art conservation covers processes from photo documentation,
assessment, emergency or full restoration and temporary packaging and
storage. First aid restoration involves either cleaning or stabilizing of
the artwork. It is an option tailored for clients with a large collection of
art. Most of the time, they are still collecting funds to avail of full
restoration package. Full restoration covers cleaning, chemical and
physical stabilization, aesthetic unity and protection. (Maronilla-Reyes
2015)

Table 2 Conservation problems in the tropical environment

Conservation Examples Cause

problems
Surface accumulations dust, insect dung, grime
Not properly enclosed
storage
Biological attack molds, bacteria Relative humidity is
65 above
Chemical fading of color, brown Acidic backing
transformations spots (foxing) (plywood) or adhesive
(rugby, tapes)
Environmental Brittleness, warping Rapid drying, moist
Physical alterations Tears, holes, folds Mishandling, insect
infestation
Human-related causes Vandalism, Wrong use of repair
deterioration, browning material and
techniques
Source: Maronilla-Reyes 2015

Support services offered by the center entails production or repair of

stretcher and backscreen. Client can avail of this support service
provided that they also get include the package on painting stabilization
(first aid restoration) as well.

a.2. Consultancy services

Preventive conservation will be offered by the center into two forms:
monthly and seasonal. Monthly consultancy service is applicable for the
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spatial and internal environment control of museums, storages, art

galleries, and ancestral houses that retain original function or adaptively
reuse into a profitable new function but still houses antiques. Seasonal
consultancy service in the form of talks and seminars can be held in the
center or other institution venues.

b. Limitations
The center will not render any photo documentation, assessment or
restoration service to movable artwork labeled with distinction of National
Cultural Treasure and other objects made from textile and paper materials
due to its requirement of large equipment like dehumidification chamber
which consumes more electricity and imposes heavy dead load on the
structural system of the center’s wooden upper storey.

Logistics for the transfer and return of artwork to respective owners

will be taken care of by a separate external provider.

3. Research Methodologies

a. Research Methods and Design

Methods to be adapted for primary data collection will be interviews and

surveys on identified key areas in region IV-A or CALABARZON region

Table 3 List of interviewees and scope of interview

Type of interviewee Objectives Respondents

Government to collate all existing Provincial Capitols
institutions and pending for (Rizal, Batangas,
signature national Cavite, Quezon,
statutes regarding Laguna), Taal
cultural heritage Municipal Hall
preservation
Heritage organization/ to learn culture and Quezon Heritage
individuals multi-sectoral Council, Mr. Ernesto
collaborative efforts Villavicencio
in various localities
through its respective
private heritage
preservation
advocates
Educational to analyze how Taal National
Institutions cultural heritage topic Highschool, Rizal
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can be integrated in College of Taal, Holy

school curriculum Child Jesus College
Gumaca
Museums to be aware and Museo ng Gumaca,
improve the current Apacible Museum,
practiced museum Agoncillo Museum
maintenance and
environmental control
Adaptive reuse house to immerse on the Goco Ancestral House
Filipino system of
storing or displaying
family heirlooms

b. Summary Results of the Research

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CHAPTER II
ANALYSES OF THE EXTERNAL ENVIRONMENT

<Chapter Introduction>

1. Macroenvironmental Analysis

a. Social and Cultural Analysis

Cultural heritage of any place are divided into two different but
complementing parts. Intangible cultural heritage is the collective beliefs,
norms, oral traditions, practices, indigenous knowledge and craftsmanship,
together with movement arts of a certain group or community. (Senate of
the Philippines 2009) Tangible cultural heritage is the aspect that has
physical manifestations which can be perceived by the five senses. The
latter is a byproduct of a long time collective belief or set of beliefs by a
certain group or community.

Based on Official Talapamana of NCCA, there are 7,143 documented

tangible and intangible cultural properties in the entire Philippines.

Table 4 NCCA Official Talapamana of Philippine Tangible and Intangible

Heritage

Types of heritage Quantity

Tangible 6,112
Intangible 1,030
Total 7,142

Concentrating in to one of the towns rich in historicity in CALABARZON

region, the Taal town in Batangas has sixty-five built (immovable) heritage
properties. Presidential Decree 375 signed in 1974 included the two-
hundred year old Basilica among the then newly declared national shrines
the lists of national landmarks and monuments. (Official Gazette 1974)
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Table 5 Categories and Quantities of Heritage Structures in Taal

Category Number of structures

Institutional 4
Commercial 5
Museum 3
Residential 53
Total 65
Source: NCCA Official Talapamana

Table 6 Taal Built Heritage (Institutional category)

No. Name Year built Description

Minor Basilica of St. biggest Catholic
1 1878
Martin de Tours basilica in Asia;
made up of coral
Our Lady of Caysasay stones, has Chinese
2 1639
Church influence through
octagon windows
made up of adobe and
coral stones, has
3 Sta. Lucia well 1611 double wells, very
ornate reliefs on
arched walls
constructed out of
4 San Lorenzo Ruiz Steps 17th c
massive adobe blocks

Table 7 Taal Built Heritage (Commercial category)

No. Name Year built Description

massive house with
1 Casa Villavicencio 19th c
capiz windows
ornate bracket on
2 Galleria Taal 19th c window and
colonettes
has capiz windows
3 Villa Severina 19th c and ornate calado in
the interior
homey and spacious
interior with ornate
4 Casa Conchita 20th c
arch between sala and
dining, has balcony
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massive posts,
5 Casa Punzalan 19th c horseshoe main
staircase

Table 8 Taal Built Heritage (Museum category)

No. Name Year built Description

Villavicencio wedding gift colorful and very
1 19th c
house ornate
2 Apacible Museum 19th c Art deco style
Marcela Agoncillo massive with spacious
3 19th c
Museum interior

Table 9 Taal Built Heritage (Residential category)

No. Name Year built Description

imposing façade, has
1 Agoncillo White House 19th c
antique pieces
massive ground floor
and spacious upper
2 Goco Ancestral House 19th c
floor’ has antique
pieces
3 Clemencia Banaag House 19th c in the research process
4 Mercedes Cosico House 19th c in the research process
Aguido & Antonia Medina 19th c Art Deco style,
5
Cabrera House lantern-like façade
6 Joselito Reyes House 19th c in the research process
7 Baldomero Morales House 19th c in the research process
8 Ernesto Alvarez House 19th c in the research process
9 Clemencia Banaag House 19th c in the research process
Jose Punzalan Noche 19th c
10 in the research process
House
11 L.M. Abacin House 19th c in the research process
Carmino Ylagan and 19th c
12 Ambrocia Noble Ylagan in the research process
House
Martin Solis Ancestral 19th c
13 in the research process
House
Consuela Quijano and 19th c
14 in the research process
Joaquin Atienza House
Estelita Eder Arcibal 19th c
15 in the research process
House
16 Celerino Orlina House 19th c in the research process
17 Agido Mendoza House 19th c in the research process
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18 J. De Ala House 19th c in the research process

19 Joselina Dela Vega House 19th c in the research process
Iluminado Villalobos Sr. 19th c
20 in the research process
House
Zenaida Martinez Atienza 19th c
21 in the research process
House
22 B. Maullon House 19th c in the research process
23 Benito Reyes House 19th c in the research process
24 Eugenio Monica House 19th c in the research process
Sixto and Amalia Garcia 19th c
25 in the research process
House
Dr. Vicente Martinez 19th c
26 in the research process
House
Maria and Miguel Fillado 19th c
27 in the research process
House
28 Lucadia Garcia House 19th c in the research process
Dr. Emiliano Dela Rosa 19th c massive ground floor
29 and Dionesia Dela Rosa with buttresses, ornate
House windows
30 Danding Siscar House 19th c in the research process
31 Ramon Caraos House 19th c in the research process
Vandida Atienza Noche
32 19th c in the research process
House
33 Vicente Orlina House 19th c capiz windows
S. Ilagan and O. Ilagan
34 19th c in the research process
House
Pedro Ilagan and 19th c
35 Potenciana Mercado in the research process
House
36 Paulo Cabrera House 19th c in the research process
37 L. Tadigue House 19th c in the research process
38 L. De Leon House 19th c in the research process
39 Gloria Puyo House 19th c in the research process
40 E. Noble House 19th c in the research process
41 Canalog House 19th c in the research process
J. Esteban and V. Villostas 19th c
42 in the research process
Loyola House
Bernales and Calanog 19th c
43 in the research process
House
44 Andronico Castillo House 19th c in the research process
45 Agapito Gaa House 19th c in the research process
46 O. Claro House 19th c in the research process
47 Mercedes Macatangay 19th c in the research process
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House
48 L.G. Anibersaryo House 19th c in the research process
49 Agaton Mendoza House 19th c in the research process
50 Emilio Villostas House 19th c in the research process
Leonarda Medina 19th c
51 in the research process
Mangubat House
52 Antonio Marquinez House 19th c in the research process
Ramon Tamayo and 19th c
53 in the research process
Matilde Reyes House

b. Political and Legal Analysis

There are two types of national recognition which can be bestowed to any
movable and tangible cultural heritage. National cultural treasure is
officially declared as a distinct cultural property found locally possessing
outstanding historical, cultural, artistic and/or scientific value for the
Philippines. Important cultural property is culturally, artistically and
historically significant to the Philippines as declared by the National
Museum and/or National Historical Institute. These are works made by a
Manlilikha ng Bayan; a National Artist, unless declared by the National
Museum; national heroes; archaeological and traditional ethnographic
materials, unless declared by the NHI; and, archival material/document
dating at least 50 years old. (Gov.Ph 1974)

Table 10 Existing Philippine laws on cultural preservation

Short name of Law Year signed Description
R. A. 4368 June 19, An act to establish a national
1965 historical commission, to
define its powers and
functions, authorizing the
appropriation of funds
therefor, and for other
purposes
R. A.4846 1966 An act to repeal act
Cultural Properties Preservation numbered thirty eight
and Protection Act
hundred seventy four, and to
provide for the protection and
preservation of Philippine
cultural properties
P. D. 105 1974 Declaring national shrines as
sacred (hallowed) places and
prohibiting desecration
thereof
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P. D. 374 1974 Amending certain sections of

Republic Act no. 4846,
otherwise known as the
“Cultural Properties
Preservation and Protection
Act”
P. D. 1505 1978 Amending presidential
decree no. 260, as amended,
by prohibiting the
unauthorized modification,
alteration, repair and
destruction of original
features of all national
shrines, monuments,
landmarks and other
important historic edifices
Proc. no. 250 1988 Declaring the period from
July 3-9, 1988 and thereafter
the second week of July of
every year as “Cultural
Communities Week”
Proc. no. 329 1988 Declaring the period
1988 to 1998 as the
Philippine Decade of
Culture, and creating a
committee for its
appropriate observance.
Proc. no. 683 1991 Declaring the month of
February of every year as
National Arts Month
Proc. no. 798 1991 Declaring the month of
October of every year as
Museums and Galleries
Month
R. A. 7356 Law creating the April 3, 1992 An act creating the National
National Commission for Culture Commission for Culture and
and the Arts
the Arts,
Establishing national
endowment fund for culture
and the arts, and for
other purposes
R. A. 7355 Manlilikha ng Bayan April 3, 1992 An act providing for the
Act recognition of national living
treasures, otherwise known

Executive Order No. 80
R. A. 9105 Art Forgery Act of
2001
R. A. 10066 National Cultural
Heritage Act of 2009
R.A. 10086 Strengthening
Peoples’ Nationalism through
Philippine History Act
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as the Manlilikha ng Bayan,
and the promotion and
development of traditional
folk arts, providing funds
therefor, and for other
purposes
March 5, transferred the Cultural
1999 Center of the Philippines
(CCP),
Commission on Filipino
Language (CFL), National
Museum (NM), National
Historical Institute
(NHI), The National Library
(TNL), and Records
Management and Archives
Office (RMAO) to the NCCA
for policy coordination
2001 An act defining the crime of
art forgery, providing
penalties, and
institutionalizing the
mechanism for art
authentication, appropriating
funds therefor and for other
purposes
March 26, An act providing for the
2010 protection and conservation
of the national cultural
heritage, strengthening the
National Commission for
Culture and the Arts
(NCCA), and its affiliated
cultural agencies, and for
other purposes
May 12, An act strengthening peoples'
2010 nationalism through
Philippine history by
changing the nomenclature of
the National Historical
Institute into the National
Historical Commission of the
Philippines, strengthening its
powers and functions, and for
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other purposes
Source: Official Gazette

Table 11 Pending bill on cultural preservation

Short name of Law
Senate Bill no. 1528
Source: Official Gazette
Year signed Description
An Act establishing the
Department of Culture,
which shall be the primary
policy-formulating, planning,
coordinating, implementing,
and administrative entity of
the executive branch of the
National Government that
will implement the pertinent
provisions of the Constitution
regarding culture and arts as
well as the aforementioned
policy of the State.

Table 12 Existing Guidelines for Preservation of Catholic Churches & Properties

Title Date Content
Opera Artis April 11, 1971 Circular Letter on the
care of the Church’s
historical and artistic
heritage
Inter apostolicam sedem et April 17, 2007 Agreement between
Philippinarum the Holy See and
Rempublicam de cura Republic of the
bonorum culturae Philippines on the
catholicae ecclesiae cultural heritage of the
catholic church

c. Economic Analysis

Table 13 Household Final Consumption Expenditure by Purpose

National Accounts of the Philippines

Unit in million pesos
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Annual 2013 to 2015

At current prices
Annual
Expenditure group
2013 2014 2015
Household Final Consumption 8,
9,167,580 9,822,457
Expenditure 463,826
1. Food & non-alcoholic beverages 3,602,777 3,870,513 4,139,099
2. Alcoholic beverages, tobacco 110,059 126,588 137,400
3. Clothing & footwear 116,635 127,205 127,987
4. Housing, water, electricity, gas &
1,062,100 1,164,092 1,184,581
other fuels
5. Furnishings, household,
equipment & routine household 326,101 350,161 366,643
maintenance
6. Health 222,833 247,182 266,493
7. Transport 894,369 988,200 1,098,869
8. Communication 264,863 275,249 298,846
9. Recreation & culture 154,391 165,846 183,742
10. Education 331,844 374,233 408,366
11. Restaurants & hotels 318,553 345,168 383,195
12. Miscellaneous goods & services 1,059,301 1,133,144 1,227,237
Source: Philippine Statistics Authority

The creation of economic value for immovable (built) heritage structures is

affected by the value of the land where the former is situated. Oftentimes,
its existing utilization is not compatible with conservation principles. In
some cases of urban development wherein heritage preservation is also
integrated like the heritage zones in Vigan, Iloilo, Malolos, San Fernando
and Pila, they have specialized property tax and zoning rules and carefully
studied economic activity than Manila and other cities.

However, economic valuation for movable artistic and historic objects

is different. Appraised value per artwork varies depending on the date the
art was made, prominence of the artist (if he is nationally recognized),
uniqueness both on concept and medium, and current condition of the art.
The value of any work of art is given by an appraiser and only limited to
the person or corporation that hired them and is usually not accessible to
the public unless a person not part of the client’s organization also works
with them on a project basis. The information stated below is based on
actual cases the researcher encountered while working in various
conservation projects.

Murals of Botong Francisco can be valued in millions. A 5-meter by 2-

meter mural of Enteng Manansala is valued 150 million pesos while his
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mural almost double that size would amount to 250 million pesos. A 15-
inch by 20-inch painting on canvas of Amorsolo can be sold 2 million
pesos while bond paper size watercolor on paper art of his uncle and
mentor, Fabian dela Rosa, can be sold from 20,000 pesos up. These
amounts are based on unrestored status.

If any conservation treatment has been done to a damaged art especially

if the painter is a national artist, the restored mural or painting cost will be
double or 50% more than its pre-restored value.

What is the value of restoration treatment?

Table 14 Restoration cost based on damage and material composition of artwork

minimum
type of artwork damage treatment type cost (in
PhP)
fumigation, mechanical &
mold growth,
oil/acrylic on canvas chemical cleaning, aesthetic ~ 10,000
stains
unity
craquelures,
loose paint
oil/acrylic on canvas consolidation, aesthetic unity ~ 30,000
layers, missing
paint layers
weakened deacidification, application of
oil/acrylic on canvas ~20,000
acidic backing strip or full lining
oil/acrylic on canvas holes and tears patching ~10,000
oil/acrylic on canvas warping hand pressing & restretching ~10,000
losses,
in-filling of losses &
wooden sculpture/relief scratches, loose ~20,000
aesthetic unity
joints
metal sculpture/relief corrosion chemical cleaning & sanding ~20,000
breakage, consolidation & aesthetic
clay sculpture/relief ~20,000
scratches unity

d. Environmental and Ecological Analysis

The proposed center will be housed in an adaptively reused ancestral

house. Since the utilized structure is already existing for a long time, the
center will not create large amount of carbon footprint and disturb the
earth through another construction. It will also safeguard the historicity of
the site, street fabric continuity, and integrity of its structure and
authenticity of its architecture (Senate of the Philippines 2009).

The chemicals used in the fumigation, cleaning and protection solutions

of the center are non-carcinogenic and are not included in the list of
controlled chemical list under R. A. 9165 of the Philippine Drugs
Enforcement Agency.
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Table 15 3rd Revised Priority Chemical List

No. Philippine Inventory of Chemicals and Chemical Substances

(PICCS) name
1 1, 4-CHLOROBENZENE
2 1,2-DIBROMOETHANE
3 0-DICHLOROBENZENE
4 1,4-DICHLOROBENZENE
5 1,2-DICHLOROETHANE
6 1,2 DIPHENYLHYDRAZINE
7 3-HYDROXYPHENOL
8 3,5,5-TRIMETHYL-2-CYCLOHEXAEN-1-ONE
9 ACETONE
10 ACROLEIN
11 ACRYLONITRILE
12 AZO-BIS-ISOBUTYRONITRILE
13 AZIRIDINE
14 AMMONIUM CHLORIDE
15 ANTIMONY PENTACHLORIDE
16 ARSENIC COMPOUNDS
17 BENZENE
18 BERYLLIUM COMPOUNDS
19 BORAX DECAHYDRATE
20 CADMIUM COMPOUNDS
21 CALCIUM SULFATE DIHYDRATE
22 CARBON BLACK
23 CHLORINATED ETHERS
24 CHLOROFORM
25 CHLOROPICRIN
26 CHLOROSULFONIC ACID
27 CHROMIUM COMPOUNDS
28 COCOAMINDOPROPYLBETAINE
29 COPPER SULFATE PENTAHYDRATE
30 DIETHYL SULFATE
31 DIETHYLENE GLYCOL
32 DIISONONYL PHTHALATE
33 DIMETHYL SULFATE
34 DISTANNOXANE HEXABUTYL
35 ETHYLENE DIBROMIDE
36 ETHYLENE DIAMINE
37 ETHYLENE DIAMINETETRAACETIC ACID
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38 ETHYLENE GLYCOL
39 ETHYLENE OXIDE
40 GLUTARALDEHYDE
41 FORMAMIDE
42 HEXACHLOROBENZENE
43 HEXACHLOROETHANE
44 HEXANE
45 HYDRAZINE
46 HYDROCHLORIC ACID
47 HYDROGEN PEROXIDE
48 ISOPROPANOL
49 MBT
50 MERCAPTAN, PERCHLOROMETHYL
51 METHYL ALCOHOL
52 METHYL CHLORIDE
53 MIREX
54 N-PROPANOL
55 NICKEL (II) NITRATE
56 NICKEL SULFATE HEXAHYDRATE
57 NICOTINE SULFATE
58 OXALIC ACID
59 OXIRANE (CHLOROMETHYL)
60 PENTACHLOROPHENOL
61 PERCHLOROETHYLENE
62 PHENIC ACID
63 PHOSGENE
64 PHOSPHORUS OXYCHLORIDE
65 PHOSPHORUS PENTACHLORIDE
66 PHOSPHORUS TRICHLORIDE
67 PHTHALIC ANHYDRIDE
68 POLYBROMINATED BIPHENYLS
69 POTASSIUM NITRATE
70 PRECIPITATED SILICA
71 PROPELENE OXIDE
72 PROPELENEMINE
73 SILICA
74 SODIUM CHLORITE, >40%
75 SILICON CARBIDE
76 SODIUM BROMIDE
77 SODIUM PERBORATE MONOHYDRATE
78 TOLUENE
79 TOLUENE DIISOCYANATE
80 TOLUHYDROQUINONE
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81 TRICHLOROETHYLENE
82 TRIBUTYLTIN
83 SELENIUM
84 VINYL ACETATE
85 VINYL ACETATE ETHYLENE POLYMER
86 VINYL CHLORIDE
87 ZINC SULFATE
Source: DENR 2018

No. Name of Controlled Chemicals

ACETIC ANHYDRIDE
N-ACETYLANTHRANILIC ACID
ERGOMETRINE
ERGOTAMINE
ISOSAFROLE
LYSERGIC ACID
3,4-METHYLENEDIOXYPHENYL-2-PROPANONE
NOREPHEDRINE
PHENYLACETIC ACID
1-PHENYL-2-PROPANONE
alpha-PHENYLACETOACETONITRILE (APAAN)
PIPERONAL
POTASSIUM PERMANGANATE
SAFROLE
ACETONE
ANTHRANILIC ACID
ETHYL ETHER
HYDROCHLORIC ACID
METHYL ETHYL KETONE
PIPERIDINE
SULPHURIC ACID
TOLUENE
THIONYL CHLORIDE
1, 2-DIMETHYL-3-PHENYL AZIRIDINE (and its cis and
trans isomers)
Source: PDEA April 2017

Table 16 Material sources for cleaning

Materials Function Source
cleans stubborn stains,
CS 2 – 4 chemicals local
thick browned varnishes
EG chemical cleans, final protection local
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fumigant remove biological growth local

metal polishing powder clean local
art gum clean back of painting local
blotting paper fumigation vehicle local

Table 17 Material sources for chemical and physical stabilization

Materials Function Source
RK-0 consolidate foreign
Chiangmai consolidate foreign
BEVA consolidate foreign
BEVA film reinforce foreign
Fish glue consolidate foreign/local
catcha & linen reinforce local

Table 18 Material sources for aesthetic unity

Materials Function Source
harmonize/in fill of paint
acrylics foreign
losses
protection post-
UV-stable matte varnish foreign
conservation
protect against entry of
backscreen local
insects from the back
terelyn cover/fumigation buffer local
nylon cloth cover/fumigation buffer local

e. Technological Analysis

The Philippines utilizes the following tests for authentication of artworks

particularly paintings. FTIR spectroscopic test, SEM microscopy and UV
light analysis are offered by private testing laboratories while fiber
analysis is available in Philippine Textile Research Institute. Some
conservation laboratories like UST are being offered by the former for
certain projects.

Table 19 Technologies used in the Philippines to analyze artwork

Technology Purpose Object applicability
paint identification based on
FTIR spectroscopic test painting, 3D objects, reliefs
elements present
Scanning Electron breakage, composition and
painting, 3D objects, reliefs
Microscopy topography
identification of previous
UV light analysis restoration works/ painting, 3D objects, reliefs
overpainting
Fiber analysis dating painting
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2. Industry and Market Analyses

a. Definition of Industry
Creative Economy is a strong and resilient catalyst for global socio-
economic progress. It is an inter-disciplinary sector that brings together
economy, culture, automation and social components of diverse industries
and its subsectors. It thrives on inventiveness of products and services
bearing creative substance, tangible and intangible heritage merit and
business goals. (United Nations Institute for Training and Research n.d.)

Table 20 List of creative industries and its sub-sectors

Creative Industries
Heritage Arts Media Functional
Creations
Traditional cultural Visual arts Publishing and Design
expressions printed media
painting interior
art crafts sculpture books graphic
festival antique newspaper fashion
celebrations photography press jewelry
publications toys
Cultural sites Performing arts Audio-visuals Creative services

historical live music film architecture

monuments theater television advertising
museums dance radio creative R & D
libraries opera broadcasting cultural services
archives puppetry New media digital services
circus
digitized
content
software
video games
animations
Source: United Nations Institute for Training and Research

The conservation center falls under cultural services which is defined as

supply system that supports the promotion and preservation of tangible and
intangible cultures. It belongs to creative services sub-sector comprising of
architecture, advertising, creative R & D and digital services and its main
sector is functional creations. Define more.

Locally, the Philippine Standard Industry Classification of 2009

categorizes that the art restoration service is under section R. Arts,
Entertainment and Recreation. It consists of activities for the appreciation
of subjective arts such performance arts, movable artworks exhibited in the
museum; sports and gambling; and large scale recreation activities. Its sub-
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category is division 90 entitled creative, arts and entertainment activities,

group no. 900 and class no. 9000. It includes physical infrastructure that
will house the aforementioned activities for public viewing,
training/production venues for the preparation of each performances and
the backdoor facilities of the production team or support services while the
shows are ongoing.

Provide table on Philippine Standards

b. Definition of Market
The business is targeting a niche market composed of lower middle class
to upper class people and institution that keep art without intention of
selling it (heirloom owners, collectors, religious congregations,
educational institutions, and the like) and dealers (people who trades
artworks for profit).

The proposed center will offer specialized contracting and consultancy

services focusing on movable cultural properties that will provide end-to-
end conservation process starting from control of the environment where
these specified artworks are displayed or stored, photo documentation and
assessment upon the arrival of artwork, the five-step full restoration
process and the post-conservation stage of temporary packaging and
storing of the treated objects except for its delivery which will be
outsourced to a logistics company trained in handling precious arts.

c. Intensity of Rivalry among Existing Competitors

As of June 2019, the following government, non-government

organizations, educational and religious institutions are conducting
conservation for specific object types and market. The intensity of rivalry
among existing competitors is very little considering that the center will
cater to areas outside the catchment area of the existing organizations and
private collections that are not declared as National Cultural Treasure.
Table 21 List of operating conservation laboratories in the Philippines
Name of
Type Object type accepted Market catered
Organization
National government
movable objects of
Historical museums & offices
Government nationally-declared
Commission of in the entire
historical value
the Phils. Philippines
historical documents
government
National like colonial period
museums & offices
Archives of the Government architectural plans,
in the entire
Phils. correspondences
Philippines
from national heroes
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Intramuros
government IA collections IA
Administration
Ortigas Non-government archival books,
foundation, public
Foundation, Inc. organization maps, documents
UST Antonio
Vivencio del Private educational books, maps, UST Library
Rosario Heritage institution documents
Library
UST Museum of UST Museum of
Private educational
Arts and Sciences paintings Arts and Sciences,
institution
Conservation Lab public in NCR
Roman Catholic
Archdiocese of Private religious archival documents
RCAM
Manila institution of RCAM
Conservation Lab
Private religious Pasig Cathedral and
Domus painting
institution public in NCR
MMR Cultural private individuals
artwork on paper/
Heritage sole proprietor and organizations
canvas, sculpture,
Restoration business generally based in
textile
Consultancy NCR

Provide separate chart for individuals

d. Threat of New Entrants

Businesses with higher developed capabilities tend to be harder to compete

with, as such, will have higher revenues (Summers 2015). The center will
offer restoration treatments in conformance to the three principles of
conservation namely minimalism, reversibility and compatible stability.
The first principle is application of necessary treatment to the damaged
areas only. Second principle refers to removability of the applied treatment
without causing damage to the affected area. The last principle emphasizes
that the material to be applied onto the artwork should be of lesser strength
than the existing chemical or physical condition of the latter. (Maronilla-
Reyes 2015)

Table 22 Threat of new entrants

Barriers to entry
Economies of scale
brand loyalty
Capital requirements
Cumulative
experience
Government policies
Switching costs
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Table 23 Rivalry among existing competitors

No. of competitors
Diversity of
competitors
Industry
concentration
Industry growth
Quality of
differences
Brand loyalty
Barriers to exit
Switching costs

The threat to new entrants is slim for a conservation laboratory and

consultancy center should be operated by a manpower with a diverse
experience of various artwork materials, very knowledgeable of alternative
methods in restoration whenever the primary option cannot be executed,
skilled in application of restoration treatment to artworks with
consideration on the prevailing climate, weather conditions and disaster
risk based on location of the Philippines and most importantly, adept in
recognizing the prioritizing what type of restoration process to be applied
based on existing budget of client without under treatment.

e. Threat of Substitutes

The center will have lower threat of substitutes because of the customized
restoration chemicals and the highly climatized conservation process
which involves five basic steps in conservation that was discussed orally
by a renowned art and stone conservator, Prof. Maronilla-Reyes. Client
can still opt for substitute treatment but the quality of the restoration is
substandard and might cause further damage to the material of the artwork
in the long run due to the existing material physical compatibility and
chemical reaction to the newly introduced unapproved substitute
treatment.

Table 24 Threat of substitute products

No. of substitute
products available
Buyer propensity to
substitute
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Relative price
performance of
substitute
Perceived level of
product
differentiation
Switching cost

Table 25 Five basic steps in conservation by Prof. Maronilla-Reyes

Steps in conservation Purpose Conservation material used
to remove dirt, grime and CS and EG chemicals, art
Cleaning
stubborn stains gum
to stabilize loose paint
Chemical stabilization RK-0, BEVA, fish glue
layers and craquelures
Physical stabilization to stabilize the canvas BEVA, linen/catcha
Aesthetic unity to infill missing paints acrylic
to protect against dirt and
Protection UV radiation from UV-stable matte varnish
sunlight

f. Bargaining Power of Buyers

The buyer of this creative support industry is represented by a niche

market composed of the lower middle to upper class art collectors and
dealers, either as individuals or as a group such as corporations or
partnerships. The widening base of the buyer is attributed to more
population are getting higher education, more access to learning that art
collection is a lucrative business (art monetary value appreciation) and the
directly proportionality of financial capability in relation to the buying
power of the consumer elastic supply like art (McCarthy et al. 2005:106).

The center can recommend the type of restoration treatment to be

applied on the artwork but the financial capacity of buyer (art
collector/dealer) will somehow dictate the kind of treatment that can be
done whether to opt for full or first aid restoration. However, the buyer can
only dictate the option but not affect the processes and materials included
in the option because the standard process is necessary to follow to achieve
best restoration output.

Table 26 Bargaining power of buyers

No. of customers
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Size of each
customer order
Differences between
competitors
Price sensitivity
Buyer’s ability to
substitute
Buyer’s information
availability
Switching costs

g. Bargaining Power of Suppliers

The center will use cleaning chemicals and supplies that are available
locally and are blended in the laboratory as per advised guidelines of Prof.
Maronilla-Reyes or can be ordered online (foreign sources).

When materials are coming from special suppliers like foreign stores,
there might be instances when ordered supplies arrive past the targeted
delivery date or the arrived materials are not what was actually ordered.
When these occasions happen, the center can already fill in the gap created
by the supply by creation of acceptable alternative options.

Table 27 Bargaining power of suppliers

No. and size of

suppliers
Uniqueness of each
supplier’s products
Focal company’s
ability to substitute

Table 28 Details of foreign conservation material suppliers

Supplier Type of location Materials supplied
Paper Nao foreign RK papers
Thailand foreign chiangmai
Blick Art foreign acrylics, brushes
Kremer foreign fish glue
CSC foreign BEVA

Table 29 Details of local conservation material suppliers

Supplier Type of location Materials supplied
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Chemical store in NCR local EG, CS, cleaning powders

nylon, catchapal, catchapis,
Divisoria local
linen, chiffon, and other cloths

h. Summary of Assessment

The proposed center will be competitive enough to sustain operations in

case external market challenges occur. There will be a low rivalry level
with the existing competitors due to different catchment area for target
market and the kind of artwork to be accepted for various conservation
process. Center will be operated by an individual that has more than five
year experience on conservation of movable objects in a tropical setting.
The length of experience and actual scenarios of material reaction to
environment and temperature cannot be easily duplicated by a newly
established centers especially if the source of knowledge is coming from
non-tropical countries. Substitute treatment and price dictation by buyers
will not affect the profitability of the center because former can affect the
long term condition of artwork and might even cost more to treat once
damage manifest. The latter option will not be feasible because the center
will uphold to its acceptable standard of conservation. The possible delay
or wrong delivery of materials from other countries will be countered by
contingency plans of the center.

3. Synthesis and Assessment of the Opportunities and Threats

The proponent should derive the opportunities and threats based on the
discussions in this chapter (sections 1and 2).
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References

Maronilla-Reyes. M. B., 2015. ‘Conservation Program of the Antonio

Vivencio del Rosario UST Heritage Library’, in A. Aparicio (ed.), Lumina
Pandit, pp. 356, 357, 365, 395, UST Miguel de Benavidez Library and
UnionBank of the Philippines, Hongkong.

McCarthy, K., Ondaatje, E., Brooks, A., Sz ntó, A., 2005, ‘A portrait
of the visual arts: Meeting the challenges of a new era’, Research in the
Arts, 106, viewed 14 June 2019, from
https://www.rand.org/content/dam/rand/pubs/monographs/2005/RAND_M
G290.pdf

National Statistical Coordination Board, 2009, 2009 Philippine Standard

Industrial Classification, Makati, Philippines.

Philippine Statistics Authority, 2015, Household final consumption

expenditure by purpose, viewed 13 June 2019, from
http://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2B__NA__AN__H
F/0132B5CHFA1.px/?rxid=e25a26e4-6fc9-414b-b920-d27902b3df4a

Senate of the Philippines 2009, RA 10066, viewed 10 May 2019, from

https://www.senate.gov.ph/republic_acts/ra%2010066.pdf

Gov.Ph 1974, Presidential decree no. 375, s 1974, viewed 5 June 2019,
from http://www.officialgazette.gov.ph/1974/01/14/presidential-decree-no-
375-s-1974/

Summers, K., 2015, ‘A Framework to Analyze Industry Competition’ in

Anders CPAs + Advisors, viewed 14 June 2019, from
http://anderscpa.com/a-framework-to-analyze-industry-.competition/

United Nations Institute for Training and Research n.d., What is the creative
economy, viewed 15 May 2019, from https://www.unitar.org/ksi/what-creative-
economy

References
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Appendices
One-Pager Biography
Certification of Editing
Results of the Similarity Index/Plagiarism Free Test
Source/s of Information and or Data Received
Letter/s Sent-Received
Pictures and other documentation samples
Canvasses and basis for cost estimates
Other relevant appendices deemed important
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