1

TOURISM INDUSTRY CLUSTER BACKGROUND PAPER

1.

Industry Overview
1.1. Definition of the Industry Tourism is a multi-dimensional phenomenon. It involves collaborative relationships arising from the interaction of tourists, business suppliers, host governments, and host communities in the process of attracting and hosting these tourists and other visitors. It is said to be the mother of all industries because it comprises a composite of activities, services and other allied industries that delivers a travel experience: transportation, accommodations, eating and drinking establishments, shops entertainment, activity facilities, and other hospitality service available for individuals or groups that are traveling away from home. Professor Hunziker and Krapf of Berne University, Switzerland defined tourism as the sum of the phenomena and relationships arising from the travel and stay of nonresidents, in so far as they do not lead to permanent residence and are not connected to any earning activity. This definition distinguished tourism from migration which involves taking up permanent residence. Since it necessarily includes both travel and stay, it excludes day tours. The definition of the Tourism Society in Britain was: Tourism is the temporary short-term movement of people to destinations outside the places where they normally live and work and their activities during their stay at these destinations. This definition was reformulated by the Tourism Society in Cardiff: Tourism may be defined in terms of particular activities, selected by choice and undertaken outside the home environment. Burkart and Medik cited five main characteristics of tourism: 1. Because of its complexity, tourism is a combination of phenomena and relationships. 2. It has two essential elements: the dynamic element- the journey and the static element- the stay. 3. The journey and stay are to and in destinations outside the place of residence and work. 4. The movement to destinations is temporary and short-term with the intention to return within a few days, weeks or months. 5. Destinations are visited for purposes not connected with paid work, that is, not to be employed and not for business or vocational reasons. The technical definition of tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercises of an activity remunerated from within the place visited.

Tourism has several classifications as follows: Ecotourism - responsible travel to natural areas which conserves the environment and improves the welfare of the local people. Responsible tourism is a strong commitment to nature and a sense of social responsibility both to the community and the traveler. It emphasizes seeing and saving natural habitats and archeological treasures. It is a purposeful travel to natural habitats to create an understanding of the cultural and natural history pertaining to that environment, emphasizing care not to alter the integrity of the ecosystem, while producing economic benefits to local people and governments that encourage preservation of the inherent resources of the environments there and elsewhere. Business Tourism travel characterized by conventions, meetings, seminars which is frequently combined with one or more of the other types of tourism. Cultural Tourism travel to experience and, in some cases, participate in a vanishing lifestyle that lies within human memory. The picturesque setting or local color in the destination areas are the main attractions. Destination activities, typically, includes meals in rustic inns, costume festivals, folk dance performance, and arts and crafts demonstrations in old-style fashion. Environmental tourism similar to ethnic tourism , also called nature tourism, it is drawing tourists to remote areas but the emphasis is on natural and environmental attractions, rather than ethnic ones. Travel for purposes of getting back to nature and to appreciate (or become sensitive to) people-land relationships falls into this category. It is primarily geographic and includes such destinations that are natural wonders. Typical destination activities include photography, hiking, mountain climbing, canoeing, and camping. Ethnic tourism or Indigenous peoples tourism travel for the purpose of observing the cultural expressions and lifestyles of truly exotic people. Typical destination activities would include visits to native homes, attending dances and ceremonies, and possibly participating in religious rituals, as the community sees acceptable. Historical tourism the museum-cathedral tour that stresses the glories of the past like Rome, Egypt, etc. Guided tours of monuments visits to churches and cathedrals, sound and light performances that encapsulate the lifestyle of important events by a bygone era are favored destination activities. Such tourism is facilitated because the attractions are either in or accessible from large cities. Typically, such attractions seem particularly adaptable to organized mass tourists. Heritage Tourism the educational experience derived from historic and cultural events partnered with recreational activities, theme parks, and the number one pastime: shopping It is an organized process by which people who are not part of the immediate community are persuaded to visit and enjoy the culture, values, objects, structures and programs which make up the heritage preserved

Recreational tourism centers on participation in sports, curative spas, sun bathing and social contacts in a relaxed environment. Such areas often promote sand and sea through beautiful color photographs that make you want to be there in the ski slopes, on palm-fringed beaches, on championship golf courses, or tennis courts. Recreation is the action and activities of people engaging in constructive and personally pleasurable use of leisure time. This may include passive or active participation in individual or group sports, cultural functions, natural or human history appreciation, non-formal education, pleasure travel, sightseeing and entertainment. Rural tourism the agriculture of an area is the interest of visitors- the type of farming conducted livestock, poultry, dairy, crops, vineyards, fisheries, and wine production, fresh fruits and vegetables. Exemplary agricultural systems provide a point of interest for farm groups who may wish to visit a particular industry from another part of the country. Local tours include agricultural developments and services so that visitors can see the agricultural products and operations within a country and perhaps sample some of the products.

1.2. Economic Importance of the Industry

Tourism has become the biggest industry in the world. It offers jobs for 200 million people and contributes 11.7 % to global Gross National Product. Almost 700 million tourist arrivals are expected for this year, and this number is estimated to grow to 1.5 billion by the year 2020. In the Philippines, tourism is still relatively small, but a growing sector of the national economy. Nevertheless, it still contributes significantly to the national economy. It is estimated that in 1993, the national tourism sector generated P 91.38 billion in tourism revenues, accounting for 5.27% of the Gross Domestic Product (GDP) and contributing some P 79.01 billion. The industry also employed an estimated 757,000 people, while earning some $1.65 billion in foreign exchange. The data below shows the countrys tourist arrivals and tourism receipt vis a vis the regions. While the overall tourism receipt experienced a fall, trends show that percentage contribution of Caraga to the national tourism receipt also declined. This is triggered by national and international phenomenon such as former Pres. Joseph Estradas impeachment, Abu Sayaf kidnapping incidence and insurgency problems, the collapse of the World Trade Twin Tower, SARS epidemic and others. The negative travel advisories issued by embassies specifically in Mindanao affected tourists confidence in their visit to Caraga. The Department of Tourism however continuous its aggressive promotional efforts to boost the industry despite these incidence. The Wow Philippines banner program significantly increased tourist arrivals in the region from 285,068 in 2003 to 314,702 in year 2004 recording an estimated tourism receipt amounting to US $ 11.10 million. Caragas percentage share of tourism receipts grew by 0.09% from 2003 to 2004. This trend is expected to rise given the more focused tourism programs at hand.

Year

Philippines Tourist Arrivals Tourism Receipts

( in Million US $)

Caraga Region Tourist Arrivals 244,075 252,006 280,165 277,30 285,068 314,702 Tourism Receipts
( in Million US $)

Caragas % Share to the Country Tourist Tourism Arrivals Receipts

( in Million US $)

1999 2000 2001 2002 2003 2004

2,170,514 1,992,169 1,796,893 1,932,677 1,907,226

(not available) yet

2,553.66 2,133.80 1,722.70 1,740.06 1,522.68 1,990.81

12.92 11.48 8.32 8.35 7.21 11.10

11% 13% 16% 14% 15%

(not yet available)

1% 0.48% 0.48% 0.47% 0.47% .56%

Job generation is an important indicator of tourisms economic impact. Below is a table showing employment generated in tourism-related establishments in Caraga Region.

EMPLOYMENT GENERATED IN TOURISM-RELATED ESTABLISHMENTS Surigao del Sur Surigao del Norte Agusan del Norte Agusan del Sur Butuan City Surigao City Bislig City Total No. of Employees in Caraga Female 122 77 188 392 130 42 763 Male 119 81 116 282 64 41 587 Total 241 158 304 674 194 45 1,616

Below shows data on Tourism-Related Establishments total investments in the region:

TOURISM-RELATED INVESTMENTS IN CARAGA REGION CITY/PROVINCE Butuan City Surigao City Bislig City Agusan del Norte Agusan del Sur Surigao del Norte Surigao del Sur TOTAL TOTAL INVESTMENTS 142,351,045.25 104,870,000.00 8,000,000.00 20,507,500.00 no data 26,180,000.00 93,000,000.59 394,908,546.00 PERCENTAGE SHARE TO CARAGAS TOTAL INVESTMENTS 36.05% 26.56% 2.03% 5.19% no data 6.63% 23.55%

1.3. Status of the Industry (National)

1.3.1 Visitor Arrivals 1.3.1.1 Visitor Arrivals by Country of Residence Between 1999 2003, visitor arrivals to the Philippines grew at an average of -2.14% per annum. The highest volume of visitors was recorded in 1999 with 2,170,514 arrivals while the lowest was registered in 2001 with 1,796,893 arrivals posting a decline of 9.8%. During the past five years, the U.S.A. and Japan constituted the biggest share. 1.3.1.2 Visitor Arrivals by Port of Entry and Mode of Travel Air transportation remained to be the principal mode of travel of incoming visitors to the Philippines. In 2003, 1,880,067 visitors (98.58%) arrived to the Philippines by air while 27,159 (1.42%) by sea. 1.3.1.3 Visitor Arrivals to the Philippines by Nationality The US market topped the visitor to the Philippines in 2002 and 2003 with 434,680 and 431,632 arrivals, respectively. Japanese market followed with 343,014 and 323,098 for the same period. The Korean market which has been remarkably growing over the years ranked third with 288,652 and 303,592 arrivals in 2002 and 2003. 1.3.2 Visitor Arrivals of Former Filipinos The bulk of 67.51% of arrivals of Former Filipinos came from the USA, followed by Canada and Australia with 10.00% and 7.40% share, respectively. 1.3.3 Visitor Arrivals of Overseas Filipinos Overseas Filipino arrivals declined from 199,290 in 1999 to 100,324 in 2003. The bulk of Overseas Filipinos in 2003 came from the USA with 65,772 accounting for 65.56% of the total volume. Overseas Filipinos from Canada comprised 4.66% of the total traffic for a volume of 4,674. 1.3.4 Visitor Profile 1.3.4.1 Visitor Arrivals by Sex For the past five years (1999 2003), male travelers outnumbered female travelers. In 2003, male/female ratio of 1:1.73 was recorded. For Overseas Filipinos, females outnumbered male travelers. 1.3.4.2 Visitor Arrivals by Age Group Most of the visitors to the Philippines were between 35-44 years old. In 2003, visitors within this age bracket totaled to 441,638 while those within the age brackets of 4554 and 25-34 years old numbered 408,275 and 356,950, respectively. The age bracket of 15-19 has the least number of visitors with only 44,341.

1.3.4.3 Visitor Arrivals by Occupation Most of the travelers that visited the Philippines in the last five years were professional/managerial/administrative workers which comprised 32.31% of the total tourist traffic. This was followed by student/minor (8.15%) and clerical/sales and services workers (6.62%) 1.3.4.4 Visitor Arrivals by Civil Status Most of the visitors to the Philippines were married with an average share of 72.74% from 1999 to 2003 as compared to singles average share of 25.78% for the same period. 1.3.4.5 Visitor Arrivals by Highest Educational Attainment University/College degree holders comprised an average of 72.58% share in the last five years followed by High School graduates (14.84%), post graduates (7.56%) and vocational course graduates (4.58%). 1.3.5 Travel Characteristics 1.3.5.1.1 Visitor Arrivals by Purpose of Visit

In the last five years, the bulk of visitors who came to the Philippines were on holiday trip (41.63%), followed by those who visited their friends and relatives (28.27%) and on business trip (17.21%). 1.3.5.1.2 Visitor Arrivals by Travel Arrangement

In the past five years, majority (61.30%) of the visitors arranged their own trip while (18.05%) availed of package tours. Arrivals from the East Asian region were predominantly on package tours. 1.3.5.1.3 Visitor Arrivals by Frequency of Visit

During the period in review, majority of the arrivals were repeat visitors (53.57%). Visitors from Vietnam, China, Korea, Taiwan, Commonwealth of Independent States and Poland were predominantly first-time visitors. 1.3.5.1.4 Visitor Arrivals by Type of Accommodation

For the last five years, most of the visitors preferred to stay in hotels (30.12%). Staying with friends and relatives, and rented homes, apartments were the second (23.94%) and third (11.76%) preferences. Proportion of Overseas Filipinos staying with relatives and friends (70.48%) was higher than those staying in hotels and other rented accommodations (9.92%). 1.3.5.1.5 Visitor Arrivals by Purpose of Visit and Sex

In 2002 and 2003, majority of male visitors came for holiday, business, official mission, convention, incentive travel, and to visit their relatives and friends. The ratio of

visitors who came for business purposes were 7:1 in favor of males. On the other hand, visitors who came to visit friends and relatives were almost equally distributed (1.02:1) between the male and female visitors. 1.3.5.1.6 Visitor Arrivals by Sex and Travel Arrangement

Males dominated females both for independent or package tour. In 2003, 65.60% of the 63.01% who came as independent travelers was male while 55.96% of the 19.05% on package tour was male. 1.3.5.1.7 Visitor Arrivals by Purpose of Visit and Travel Arrangement

Most of the travelers in 2002 and 2003 were independent visitors especially those who came for business, convention, official mission and to visit their relatives and friends. On the other hand, significant number of holiday travelers availed of package tour. 1.3.5.1.8 Visitor Arrivals by Purpose and Frequency of Visit

Visitors whose purpose of visit was for business, official mission, convention, and incentive were on repeat visit. On the other hand, almost 41.91% in 2002 and 40.94% in 2003 of holiday arrivals were first time visitors to the country. 1.3.5.1.9 Visitor Arrivals by Purpose of Visit and Age Group

Majority of visitors under 25 years and above 65 years of age came to visit relatives and friends and were on holiday. Visitors whose purpose were business, official mission and those who attended convention belonged to the 25 54 age bracket. 1.3.5.1.10 Average Length of Stay (in nights) The average lengths of stay in nights registered annually from 1999 2003 were 8.91, 8.79, 9.53, 9.12 and 9.17, respectively. Overseas Filipinos stayed longer with an average of 18.62, 20.25, 18.36, 17.38 and 17.74 nights for the same period. The average length of stay of foreign visitors posted at 8.50, 8.30, 9.16, 8.78 and 8.91 nights during the period in review. 1.3.5.1.11 Average Daily Expenditure on Major Items per Person The bulk of expenditure of foreign visitors was for accommodation (38.95%) followed by food& beverage (19.02%), shopping (16.78%), and entertainment (10.21%). On the other hand, Overseas Filipinos spent mostly on shopping (29.90%) and food and beverage (21.96%). 1.3.6 Visitor Receipts 1.3.6.1. Estimated Visitor Receipts The highest total earnings gained from tourism during the last five years was recorded in 1999 with an estimated receipts of US$ 2.55 billion. Of the total, 90.43% was generated from foreign visitors and the rest from Overseas Filipinos. On the

other hand, 2003s tourism receipts of US$ 1.52 billion was the lowest registered in the last five years. This could be attributed to the decline of tourist arrivals and the low average daily expenditure of foreign visitors at US$ 89.45 (from US$ 134.87). 1.3.6.2. Overall Average Daily Expenditure of Visitors For the last five years, accommodation accounted for the largest share of the total expenditure of tourists in the country at 40.91%. This is followed by food and beverage (20.29%), shopping (15.67%) and entertainment & recreation (13.95%). Foreign visitors spent almost 38.49% of their total expenditure on accommodation in the last five years. On the contrary, Overseas Filipinos spent mostly on shopping (27.01%) and food & beverage (23.19%) 1.3.6.3. Overall Average Length of Stay of Visitors (In nights) The lowest length of stay was recorded at 8.79 nights in 2000. Overseas Filipinos spent longer days in the Philippines with an average of 18.47 nights in the past five years as compared to foreign visitors average of 8.73 nights. 1.3.6.4 Visitor Arrivals by Average Daily Expenditure The highest average daily expenditure in the last five years was recorded in 1999 with US$ 132.26 while 2003 recorded the lowest at US$ 88.25. Foreign travelers spent an average of US$ 110.55 compared to that Overseas Filipinos of US$ 54.08. Per regional grouping, travelers from the ASEAN region were the top spender with an average of US$ 133.58 while travelers from the East Asian region spent the least with an average of US$ 107.37. Travelers from Brunei were the highest spender with an average daily expenditure of US$ 171.05. On the other hand, travelers from Cambodia were the least spender with an average daily expenditure of US$ 36.54. 1.3.7 Preferences / Psychographic Profile 1.3.7.1 Motivating Factor in Choosing Philippines as a Place to Visit The warmth and friendliness of the Filipino people remained the top motivating factor for visitors in choosing the Philippines as a place to visit. 1.3.7.2 Places Visited in the Philippines Outside Metro Manila Over the years, Cebu was the favorite destination/place to visit by foreign and overseas outside Metro Manila. Other favorite destinations were Tagaytay/Cavite, Davao, Batangas and Baguio. 1.3.7.3 Shopping Places Among foreign visitors, the most popular shopping places were department stores followed by duty free shops, Overseas Filipinos preferred to buy/shop in Divisoria /Quiapo/Baclaran/Central Market and other flea markets.

1.3.7.4 Items Purchased in the Philippines Food and delicacies, handicrafts, souvenir items and gifts for relatives , apparel/textile and garments were the most sought after items by tourists in the Philippines. 1.3.7.5 Things Liked Most About the Visit to the Philippines The warm hospitality and kindness of the Filipinos was cited as the most appealing factor for visiting the country. Other factors that impressed visitors were beautiful scenery, nice beaches, good food/liquor, and fruits. 1.3.7.6 Things Disliked Most About the Visit to the Philippines Heavy traffic, air & water pollution, dirty environment, and bad roads were consistently cited by visitors as things they disliked about their stay in the Philippines. Other dislikes given were: crime incidents, poor peace and order, wide spread poverty, beggars, unemployment, cheating and reckless/dishonest taxi drivers.

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VISITOR ARRIVALS IN THE PHILIPPINES BY COUNTRY OF RESIDENCE

1999 2003 2000 Country of Residence ASIA Asean Brunei Darussalam Cambodia* Indonesia Lao PDR** Malaysia Myanmar Singapore Thailand Vietnam*** Sub-Total East Asia China (PROC) Hongkong Japan Korea Taiwan Sub-Total South Asia Bangladesh India Iran Nepal Pakistan Sri Lanka Sub-Total Middle East Bahrain Egypt Israel Jordan Kuwait Saudi Arabia United Arab Emirates Sub-Total AMERICA North America Canada Mexico USA Sub-Total South America Argentina 1999 2001 2002 2003

2,056 400 16,446 345 49,667 2,218 51,244 16,097 2,856 141,329 21,220 160,152 387,513 133,068 143,810 845,763 1,509 18,637 639 1,249 1,882 2,004 25,920 1,003 717 3,242 540 1,058 11,428 1,122 19,110

1,827 321 16,272 199 42,067 2,314 50,276 15,652 3,814 132,742 14,724 146,858 390,517 174,966 75,722 802,787 1,037 18,570 388 996 1,167 1,934 24,092 911 482 2,808 299 1,007 10,444 1,568 17,519

1,786 738 16,307 427 30,498 2,394 44,155 15,063 4,198 115,566 18,937 134,408 343,840 207,957 85,231 790,373 1,537 15,391 707 1,018 1,998 1,542 22,193 1,068 868 2,470 404 1,164 10,409 2,160 18,543

2,136 1,054 15,352 475 31,735 1,982 57,662 18,817 4,577 133,790 27,803 155,964 341,867 288,468 103,024 917,126 1,457 14,826 633 974 1,591 1,341 20,822 1,358 580 2,062 292 1,469 11,341 3,460 20,562

2,070 1,040 17,051 502 31,161 2,149 51,257 20,399 5,507 131,136 32,039 139,753 322,896 303,867 92,740 891,295 1,546 15,644 604 897 1,428 1,424 21,543 1,379 576 1,720 185 1,449 9,842 3,305 18,456

64,986 1,534 463,600 530,120 828

61,004 1,175 445,043 507,222 603

54,942 880 392,099 447,921 512

54,563 1,315 395,323 451,201 432

53,601 901 387,879 442,390 448

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Brazil Colombia Peru Venezuela Sub-Total EUROPE Western Europe Austria Belgium France Germany Luxembourg Netherlands Switzerland Sub-Total Northern Europe Denmark Finland Ireland Norway Sweden United Kingdom Sub-Total Southern Europe Greece Italy Portugal Spain Union of Serbia & Montenegro**** Sub-Total Eastern Europe Commonwealth of Independent States Poland Sub-Total OCEANIA Australia Guam Nauru New Zealand Papua New Guinea Sub-Total AFRICA Nigeria South Africa Sub-Total

2,276 527 275 454 4,360

2,029 400 311 297 3,640

1,724 364 231 256 3,087

1,256 395 182 201 2,466

876 245 171 134 1,874

8,563 6,995 24,462 62,044 263 17,188 16,587 139,102 11,603 2,980 3,135 7,872 10,604 88,920 125,114 1,368 13,880 2,700 7,478 745 26,171 2,260 833 3,093

7,761 6,536 19,179 51,131 221 16,150 14,710 115,688 10,239 2,955 2,678 7,726 9,197 74,507 107,302 1,347 12,454 1,445 7,486 668 23,400 2,487 510 2,997

6,548 5,450 13,918 40,605 248 13,540 12,268 92,577 7,902 2,016 2,323 6,650 7,330 60,147 86,368 940 8,994 856 5,624 577 16,991 1,793 1,616 3,409

6,281 5,512 12,498 39,103 307 12,015 12,145 87,861 7,164 1,597 1,864 7,025 6,612 48,478 72,740 1,031 8,483 636 6,349 582 17,081 3,562 604 4,166

6,264 5,371 11,549 38,684 262 11,441 11,917 85,488 6,584 1,528 1,977 6,886 6,592 47,447 71,014 944 7,711 568 6,026 250 15,499 3,068 549 3,617

77,732 151 298 10,404 1,185 89,770

75,706 741 129 9,078 784 86,438

68,541 2,746 37 7,832 846 80,002

70,735 25,013 21 6,569 1,185 103,523

69,846 29,220 12 6,164 867 106,109

305 1,519 1,824

269 923 1,192

288 1,397 1,685

272 1,193 1,465

303 1,139 1,442

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OTHERS & UNSPEDIFIED RESIDENCES

TOTAL OVER SEAS FILIPINOS***** Grand Total * ** *** **** *****

22,548 1,971,224 199,290 2,170,514

16,764 1,841,783 150,386 1,992,169

19,347 1,698,062 98,831 1,796,893

16,120 1,848,923 83,754 1,932,677

17,039 1,806,902 100,324 1,907,226

- Prior to January 1999, statistics from Cambodia was lumped under Others - Prior to January 1999, Lao PDR and Myanmar arrivals were lumped under Others - Prior to August 1995, statistics from Vietnam was lumped under Others - Prior to April 2003, statistics from this country includes Slovenia, Croatia, Bosnia, and Macedonia - Philippine Passport holders permanently residing abroad; exclude Overseas Filipino Workers

Sources of data: Arrival/Departure Cards and Shipping Manifests

2.0 Market Situation (Caraga Region) 2.1 Tourist Arrival Caraga Regions tourist traffic is generally ascending. In the last ten years, it experienced a dramatic increase. The trends of tourism in Caraga however is relatively influenced by economic and political situations in the country and in the international arena. Tourist arrivals dropped from 252,333 in year 1998 to 244,075 in year 1999. A -3.27% decrease was recorded. Significantly, it was the transition period for the new leadership under then Pres. Joseph Ejercito Estrada. The countrys economic atmosphere dwindled as investors lost confidence over the new administration. Likewise, the tourism program under the Estrada Administration dubbed as Rediscovery Program was limited to major specific areas which excluded Caraga Region. This somehow weakened the tourism promotions initiative resulting to a fall in the tourist arrival data in 1999. The same year was the height of kidnapping incidence by the notorious Abu Sayaf group. Mindanao was declared as a hotspot. Embassies issued negative travel advisories. The south was blacklisted as among unsafe places to be visited by foreigners. It pulled down the tourist arrivals in the region. An increase in tourist arrivals was experienced in 2000 by 3.25%.The same year, then Vice-President Pres, Gloria Macapagal-Arroyo took over as new president. Investors confidence improved as tourism slowly recovered. This was felt in the region. The industry experienced a boost in 2001when Sec. Richard Gordon sat as new DOT Secretary. Tourism in the region recovered. The figures improved by 11.17% in 2001 with the WOW Philippines tourism program. In year 2002, the recorded number of visitors in Caraga fell by 1.04%. The September 11, 2001 bombing of terrorists in the United States was a major event that hit tourism badly. It was followed by terrorist attack threats in third world counties known to have Al Queda support. Its effects were felt in the early part of 2002.

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Tourism figures gained momentum in 2003 with 2.28% increase of visitor arrivals. It was sustained in 2004 as percentage increased to 10.40%. New programs/projects were added to the regular activities of DOT. The Caraga Madyaw Kardajao The Best of Region 13 showcase in Intramuros, Lake Mainit Grand Festival and the Lanuza Surfing Event were launched in year 2003. Its effects were reaped in 2004 with 314,702 tourist arrivals.

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ANNUAL TOURIST ARRI VALS FROM 1995 TO 2004 - Clustered

350,000 300,000 250,000 200,000 150,000 100,000 50,000 DOMESTIC/BALIKBAYAN ARRI VALS FOREIGN ARRI VALS

1995 129,101 4,559

1996 142,683 4,702

1997 217,205 9,127

1998 241,897 10,436

1999 233,730 10,345

2000 240,925 11,081

2001 271,893 8,272

2002 269,427 7,827

2003 277,272 7,796

2004 303,521 11,181

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2.2 Capacity Utilization The regions tourism capacity utilization is best described on the data below which summarize the Regional Occupancy Rates in year 2002 and 2003. Caraga Region Occupancy Rates from 2002-2004 Classifications Caraga Region Occupancy Rates 2002 2003 2004 (Estimated) 33% 39.73% 44.20% 43.88% 59.17% 32.21% 32.20% 34.02% 40.65% 34% 36%% 36.28% 42.61% 44.41% 25.23% 38.64% 42.83% 35.01%

Standard Economy Resorts Pension & Motels Inns Grand Total

An increase of 4.19% was reflected in year 2003 in the regions occupancy rate. This denotes a very positive trend for the industry. There are more tourists occupying our hotels and accommodation facilities in 2003, thereby much has been contributed to Caragas treasury in as far as tourism is concerned. However, in year 2004, occupancy rate declined by 7.82%. The financial crisis in the country is one factor that attributed to the fall of the figure.

Below is Caraga Regions Accommodation Capacity Tourism-related Establishments Accredited Non-Accredited Total Particulars Total Number of Beds Total Number of Rooms 2.3 Major Tourism Market The local tourism market still dominates Caraga Region. In the recent data collated in 2004, there were 301,190 recorded local tourists out of the 314,702 total tourist arrivals. Only 4.29% comprises the foreign tourists which totals to 13,512. Number of Tourism Related Establishments 11 202 213 Capacity 4,878 2,239

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The table below shows the top three foreign tourists from 1995-2004 YEAR 1995 TOP THREE FOREIGN MARKETS US American Japanese Australian Total US American Japanese Australian Total 1997 US American Japanese Australian Total US American Australian Japanese Total US American Japanese Australian Total US American Australian English Total US American Australian Canadian Total US American Japanese Australian Total US American Australia Japanese Total US American Japanese Australia Total VOLUME 893 575 703 2171 871 554 825 2,250 1988 1001 1981 4,970 2747 1704 1217 5,668 2154 1305 1550 5,009 3236 1501 1066 5,803 1993 1318 822 4,133 2200 1020 788 4,008 1921 814 1618 4,353 3098 1305 1299 5,702

1996

1998

1999

2000

2001

2002

2003

2004

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COMPARATIVE TOURIST ARRIVALS FROM YEAR 1995-2004

Balikbayans Domestic TOTAL

1995 504 128,597 133,660

1996 276 142,407 147,385

1997 590 216,615 226,332

1998 567 241,330 252,333

1999 814 232,916 244,075

2000 402 240,523 252,006

2001 396 271,497 280,165

2002 1,396 268,029 277,254

2003 1,159 276,113 285,068

2004 2,331 301,190 314,702

PERCENTAGE GROWTH OF TOURIST ARRIVALS FROM 1996-2004

Foreign Balikbayans Domestic Overall

1996 3.14% -45.24% 10.74% 10.27%

1997 94.11% 113.77% 52.11% 53.57%

1998 14.34% -3.90% 11.41% 11.49%

1999 -0.87% 43.56% -3.49% -3.27%

2000 7.11% -50.61% 3.27% 3.25%

2001 -25.35% -1.49% 12.88% 11.17%

2002 -5.38% 253.03% -1.28% -1.04%

2003 -0.40% -17.10% 3.02% 2.28%

2004 43.42% 101.12% 9.08% 10.40%

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2.4. Major Tourism Competitors Visitor arrivals are largely influenced by the interplay of existing tourism products and facilities in a given area. Adventure Caraga offers primarily ecotourism and heritage destinations. It is home to Asias surfing paradise, exotic wild life, pristine white sand beaches, exciting islands, tumbling waterfalls, caves, lakes, other natural attractions and repository of ancient relics. Nearby regions also offer similar attractions to tourists. While some are exclusively unique to Caraga, its being an ecotourism and heritage destination is also borne by other regions such as Region 11s Garden City of Samal, Region 10s ecoadventure activities and Region 9s heritage destinations. Davao City, Cagayan de Oro and Zamboanga are admittedly more advanced in terms of its existing infrastructure support and facilities that respond to tourists basic needs. These areas are considered Caragas major competitors. The data on the Distribution of Regional Travelers in the Philippines shows how these regions fair with Region 13s tourist traffic.

19

DISTRIBUTION OF REGIONAL TRAVELERS IN THE PHILIPINES 1999-2003

Region/Province/City CAR Abra Apayao Baguio City Benguet Ifugao Kalinga Mountain Province Region I Ilocos Norte Ilocos Sur La Union Pangasinan Region II Batanes Cagayan Isabela Quirino Nueva Vizcaya Santiago City Tuguegarao Region III Aurora Bataan Bulacan Nueva Ecija Pampanga Tarlac Zambales Region IV Aurora Batangas Cavite Laguna Mindoro Occidental Mindoro Oriental Marindoque Palawan Quezon Rizal Romblon SUB- TOTAL 1999 1,043,431 12,592 652 896,347 35,210 47,257 11,510 39,863 255,449 113,801 19,675 74,689 47,284 476,259 253,972 1,106,174 3,135,258 2000 1,139,375 12,767 635 986,230 37,396 49,441 11,373 41,530 289,723 119,385 32,186 84,975 53,177 443,770 319,811 51,476 44,607 27,876 234,359 12,918 32,550 11,972 95,765 6,396 74,758 3,146,912 2,569 40,370 1,073,149 60,117 1,739 60,510 5,330 126,958 1,767,508 4,330 4,335 5,254,136 2001 1,240,125 13,562 636 1,077,401 40,034 53,277 11,558 43,657 344,709 170,510 29,924 85,514 58,761 545,064 346,396 58,948 47,245 37,408 55,067 262,430 11,988 29,643 15,372 111,113 3,808 90,506 4,483,874 2,740 63,581 1,889,912 2,026,761 253 143,367 80,590 78,455 180,590 17,630 477 6,876,202 2002 1,278,251 4,291 321 1,182,690 27,553 31,816 4,482 27,096 355,575 179,310 35,759 79,608 60,898 582,528 302,863 71,925 67,900 62,932 76,908 338,676 10,961 33,880 16,825 130,229 2,942 143,839 4065,265 169,240 2,022,065 1,208,007 137,369 86,887 113,831 326,915 951 6,620,259 2003 961,404 8,661 155 812,526 54,957 40,352 16,853 27,900 307,409 176,160 36,169 34,560 60,520 595,627 249,935 80,665 85,037 77,501 102,489 351,392 9,976 37,110 17,427 126,886 10,651 149,342 3693,089 151,782 908,265 1,322,830 733,550 0 127,081 449,581 5,908,921

20

Region V Albay/Legaspi City Catanduanes Daet/Camarines Norte Iriga City** Naga City/Camarines Sur Sorsogon Masbate Region VI Aklan Antique Capiz Province Guimaras Iloilo Province Negros Occidental Region VII Bohol Cebu City Negros Oriental Siquijor Region VIII Biliran East Samar Leyte Ormoc City Southern Leyte Tacloban City Region IX Dipolog Zamboanga City & Basilan Province Zamboanga del Norte & Dapitan City Zamboanga del Sur & Pagadian City Region X Bukidnon Cagayan de Oro Camiguin Gingoog City Misamis Occidental Ozamis SUB-TOTAL

340,743 106,617 2,665 59,221 101,632 40,339 30,269 560,884 189,215 319 156,030 215,320 930,686 82,798 751,076 82,854 13,958 116,147 271,635 31,497 131,297 34,097 74,744 591,630 42,422 337,711 172,433 5,669 33,395 2,811,725

356,724 117,180 8,046 52,627 101,979 48,463 28,429 570,898 231,602 18,681 169,352 151,263 1,005,071 68,336 823,498 88,060 25,177 135,637 2,202 1,220 4,804 15,684 6,723 105,004 243,866 24,341 130,139 10,331 79,055 546,208 39,040 272,692 192,062 5,764 36,650 2,858,404

367,856 123,101 5,037 50,026 107,260 51,178 31,254 629,243 273,662 4,615 22,805 78,802 159,885 89,474 1,013,711 81,040 817,373 86,556 28,742 175,027 2,896 1,285 10,130 29,559 6,354 124,803 233,103 37,999 103,943 10,906 80,255 506,066 42,421 261,704 176,161 7,490 18,290 2,925,006

389,718 114,229 16,718 54,654 108,111 62,646 33,360 836,395 316,292 7,165 26,363 109,430 207,780 169,365 1,063,398 92,752 836,371 94,319 39,956 175,467 2,587 2,587 11,950 27,568 6,469 123,938 200,691 25,585 91,820 3,948 79,338 550,709 44,638 271,011 209,774 7,057 18,229 3,216,378

408,973 131,682 16,613 56,221 113,716 47,451 37,627 952,580 359,163 13,446 26,588 116,880 214,690 221,813 1,157,597 128,899 887,115 105,278 36,305 185,412 2,383 2,383 8,207 33,329 5,543 133,338 218,577 30,636 102,047 8,018 77,876 588,640 48,087 231,642 244,277 10,462 54,208 3,511,779

21

Region XI Compostela Davao City Davao del Sur Davao Oriental General Santos City Samal Island Davao del Norte/Tagum South Cotabato Region XII*** Cotabato City Iligan City Marawi City Kidapawan City Lanao del Norte Sultan kudarat Region XIII Agusan del Norte Agusan del Sur/ San Francisco Butuan city Surigao City Surigao del Norte/ General Luna/ Dapa Surigao del Sur SUB-TOTAL GRAND TOTAL

586,051 1,347 358,629 30,677 23,566 89,834 10,695 33,903 37,400 235,307 45,261 57,559 40,066 35,076 28,076 28,516 244,039 4,014 22,912 142586 60,134 2,349 12,044 1,065,397 7,012,407

560,957 12,846 333,063 21,811 23,661 87,352 19,779 32,026 30,419 203,682 252,006 1,066 13,644 155,473 70,871 1,046 9,906 1,016,645 9,129,185

638,865 10,416 417,915 25,833 17,884 89,999 14,937 34,599 27,282 317,765 280,165 2,045 30,808 161,945 66,808 6,712 11,847 1,236,795 11,038,003

540,359 11,248 431,354 22,326 18,615 18,555 38,261 425,174 277,306 3,194 25,188 168,100 70,174 1,102 9,548 1,242,839 11,079,512

597,016 9,470 496,906 30,026 13,741 20,622 26,251 545,624 285,075 1,719 18,333 183,645 64,870 8,676 4832 1,427,715 10,848,415

Caraga Region ranks 12th among the 14 regions of the country in terms of tourist traffic in 2003. It shares 16% of the total tourist arrivals in the Philippines which is 1,793,548. This is considerably good taking into account its being the newest region.

22

DISTRIBUTION OF REGIONAL TRAVELLERS IN THE PHILIPPINES 2003

CARAGAs SHARE
285,075

CAR REGION I REGION II REGION III REGION IV REGION V REGION VI REGION VII REGION VIII REGION IX REGION X REGION XI REGION XII CARAGA

While we capitalize on the tourism assets as a competitive advantage, let us look into the various attractions that the region offers to tourists. Below is an inventory of existing tourism attractions: Beaches Waterfalls Caves Lakes Springs Archeological/Historical sites Mountains Islands Industrial Plant Parks Forest Wildlife Reserve Rivers Festivals Events/Adventure Others Total 102 72 45 32 27 25 18 36 11 39 5 3 10 34 9 55 499

23

2.5. Average Expenditure of Tourist & Length of Stay Average Expenditure of Tourist and Length of Stay vary from year 1999 to year 2003. These are generally influenced by tourist confidence over Caraga given the existing situations both in the international, national, and regional arena.

COMPARATIVE TOURISM RECEIPTS OF CARAGA FROM 1999-2002

Year Foreign Visitors Number Ave. Daily Expen. Overseas Filipinos Number Ave. Ave. Daily Length Expen. Stay Grand Total Tourism Receipt (in Million US $) 12.92 11.48 8.32 8.35 7.21

Ave. Length Stay

Total Receipts (in Million US $) 11.86 11.07 7.96 7.07 6.21

Total Receipts (in Million US $) 1.06 0.41 0.36 1.28 1

1999 2000 2001 2002 2003 3

10,345 11,081 8,272 7,827 7,796

134.87 120.37 105.17 102.89 89.45

8.50 8.30 9.16 8.78 8.91

814 402 396 1,398 1,159

69.95 50.23 49.06 52.67 48.49

18.62 20.25 18.36 17.38 17.74

Industry Structure (Caraga Region) 3.1 Local Players Tourism is a dynamic industry that involves the interaction of various local players. The private sector serves as the engine for tourism development. They are the following major local players: 3.1.1 Tourism-Related Establishment Associations Tourism-related Establishments or TRE as forefront providers of tourism services undergo accreditation process to ensure that standards of operations are followed to meet the maximum satisfaction of tourists. This procedure is instituted by the Department of Tourism. In an effort to strengthen private sectors involvement to the industry, DOT initiated the creation of an organization that will give stronger identity to TRE operators and help them in their promotional efforts. This gave birth to the following associations: Butuan and Agusan del Norte Hotel and Restaurant Association or BAHARA Surigao City Association of Hotels and Restaurants Inc. or SCAHARI Surigao del Sur Hotel and Restaurant Association or SSHARA

24

3.1.2

Homestay Providers The Homestay Program was initiated by the Department of Tourism in areas where accommodation facilities are limited. Owners of houses who can accommodate visitors to stay for a night or two were inspected and went through accreditation procedures. They were subjected to basic tourism services trainings. The following have established homestay areas: Dapa, Surigao del Norte Jabonga, Agusan del Norte San Agustin, Surigao del Sur Cagwait, Surigao del Sur Lanuza, Surigao del Sur Nonoc Island, Surigao City Burgos, Siargao Island Sta. Monica, Siargao Island Zaragoza, Surigao City Bunawan, Agusan del Sur San Francisco, Agusan del Sur

3.1.3

Tour Operators Caraga has a very limited number of local tour operators. There are only six tour operators in the region, based in Butuan City and two from Surigao City. Their services offered are mostly limited to air and sea ticketing only. Butuan City Kahimunan Travel Almont Tours and Travels Purple Horizon Butuan Travel and Tours Mazaua Bay Travel Adventure Tours Surigao City Fare Travel & Tours Nickel City Travel & Tours Geografika Travel & Tours Agusan del Norte Adventure Specialist Caraga Bislig City Sheillahs Travel & Tours

3.2 Industry Concentration The bulk of tourist arrivals in the region are from Butuan City. In 2004, records show that 66.08% constitutes tourists that visit Historic Butuan. Obviously, this is explained by the major role of the city as the Regional Center of Caraga. It serves as the M.I.C.E. (Meetings, Incentives, Conventions and Entertainment) destination. Being

25

the Regional Center, it is also the major gateway to the region by sea, air and land. Surigao City ranks next in terms of tourist traffic with 21.56%. It is the sub-service center of the region. It enjoys spill-over effects of tourists who come to Butuan City for business meetings or conventions. It has major points of entries such as airport, seaport and the Lipata Terminal. Siargao Island is also considered as an area of concentration. It is one of the regions major destinations being venue to the annual International Surfing Event. Eventually, it gained an undisputable name for Siargao as Asias Surfing Paradise. It has become a surfing hub for foreign and local surfers. In terms of readiness, the island has established a number of Tourism Related Establishments and other facilities responding to tourists basic needs. These are highly concentrated in General Luna.

26

DISTRIBUTION OF TOURIST ARRIVALS PER LGU in 2004

Butuan City FOREIGN DOMESTIC 6,440 201,656 Bislig City 223 2,055 Surigao City 3,819 64,064 Surigao Sur 2,062 9,810 Surigao Norte 1,023 4,912 Agusan Norte 163 6,915 Agusan Sur 9 11,759

PERCENTAGE DISTRIBUTION OF TOURIST ARRIVALS IN CARAGA REGION BY LGU in 2004

No. of tourist arrivals Overall percentage City Province FOREIGN % DOMESTIC %

208,096 66.08% 74.79%

2,278 0.72% 0.82%

67,883 21.56% 24.40%

11,872 3.77% 32.39%

5,935 1.88% 16.19% 7.45% 1.63%

7,078 2.25% 19.31% 1.19% 2.30%

11,768 3.74% 32.11% 0.07% 3.90%

46.87% 66.96%

1.62% 0.68%

27.80% 21.27%

15.01% 3.26%

27

28

3.3. Level of Employment 3.3.1 Number of employment generated and size of employers in the cluster Full Time # of establishment 1 8 2 2 3 1 17 9 3 2 Office Total Male Female Part Time Male Female Seasonal Male Female

Butuan City Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL Bislig City Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL # of establishment 2 1 Office Total

5 6 9 5

25

44 56 23 7 6 3 139 54 15 3

10 23 6 7 2 2 50 38 12

5 2 2 9 49

7 1 2 2 4

8 71 2

72 Full Time Male

50

49 Part Time

73 Seasonal Male Female

Female

Male

Female

11

11

28

28

12

3 5

11

11

28

28

12

29

Surigao City Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others: Carenderia Caterers TOTAL # of establishment 28 4 Office Total 33

Full Time Male 116 Female 300

Part Time Male 45 Female 98

Seasonal Male 118 Female 67

32 15

33

116

300

45

98

118

67

1 2 32 13 63 Full Time # of establishment 26 Office Total Male Female Part Time Male Female Seasonal Male Female

Surigao del Norte

Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL

81

77

26 12

81

77

9 15

36

30

Surigao del Sur Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL # of establishment 10 Office Total

Full Time Male Female

Part Time Male Female

Seasonal Male Female

71

67

13

32

26

15

10 7

71

67

13

32

26

15

Agusan del Norte Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL # of establishment 2/4 3 Office Total

Full Time Male Female

Part Time Male Female

Seasonal Male Female

2 5

3 17

3 26

1 7

5 3

20 12

29 10

8 2

4 3

12

10

31

Agusan del Sur Type of Business Accommodation Resort Hotel Inn Lodging House Pension House Motel TOTAL Dining & Bars Restaurant Bar Food Chain Travel Agency Pasalubong Center Others TOTAL 3.4. Tourism Flow # of establishment 3 5 Office Total 11

Full Time Male 28 Female 8

Part Time Male 4 Female 7

Seasonal Male 4 Female 5

8 3

11

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3.4.1. Inter-Market Connectivity The basic element of tracing tourism flow is to look into important transport nodes, particularly at airports and other major passenger terminals. These major nodes are: Metro Manila Cebu City/Mactan Cagayan de Oro Davao City Butuan City Surigao City Tandag

These nodes generated a total traffic of 2.24 million passengers for the period 1993-1997, equivalent to an annual traffic of 456,733 or an annual daily traffic (AADT) of 1,252.4 The existing internal traffic generated within the Cagayan de Oro-Caraga land-based and port-based transport system was estimated at 6,233 passengers/arrivals as follows: Land-based transport system * CDO - Butuan -900 overland passengers daily * Butuan - DVO -1,000-1,300 overland passengers daily * Butuan - Surigao -700 estimated overland passengers daily Seaport-based transport system * Surigao, Dapa, Lipata Tandag seaports -1,235,807 arrivals (1996) equivalent to: -102,984 arrivals per month or -3,433 arrivals per day

32

Leyte

Surigo City Butuan City SDS

(Tandag)

Surigao Norte

Cebu Manila
Agusan Norte

33

Cagayan De Oro
Bxu

ADS

SDS Cotabato

Zamboanga

Davao
Bislig

General Santos

34

3.4.1.1 The General Target Market Businessmen, executives and professionals with regular business in the Region Professionals who regularly go on family (and even office) holiday breaks and vacations. The scientific and academic community, including research organizations, professional associations and donor agencies. Balikbayans and their tag-along friends from the Region planning to visit the country.

a. The Domestic Market Segment The major target market is the domestic market. It will be recalled that Caragas tourism market is generally dominated by domestic tourists accounting to 95.71% of the total arrivals. The domestic market could be segmentized according to the following groups: Family Market. Family or community outings should be encouraged to visit the scenic beauties of Caraga. This is addressed not only to families in the Region but to adjoining areas and regions including Metro Manila. Such activity is another means of maintaining family solidarity. Short Break Market. This is directed to business executives in and outside of the region to enable them to relax and get out of the maddening pressures from work and the metropolis. Special Interest Market. A number of groups or association specifically organized around an interest area could be targeted. These include scientific/research organizations, societies including the academic institutions.

b. The Foreign Market Segment Although the foreign market segment of Caraga visitors is relatively smaller compared to the domestic segment, the former has experienced encouraging growth rates and tend to spend more for activities planned prior to departure. Among the top foreign arrivals, are the US American, Japanese and Australia. They dominated the foreign tourist. Most of the foreign visitors to Caraga are surfers (who come for maybe five days during the surfing season), balikbayans friends or on business-related trips. Some visit to marry Filipino fiancees/fiances while others visit as a side-trip on the way to or from other destinations. Information about the Region was obtained by these visitors from their friends by word of mouth and from special interest magazines. However, it is obvious that a remaining large percentage of this market is either still unaware of the existence of Caraga and its tremendous tourism potentials or have insufficient information as to remain unconvinced of the virtue of visiting. An intensive information and awareness campaign focused at attracting the attention and interest of this remaining segment is in order.

35

3.4.1.2. The General Market Profile The general profile of the Regions visitor arrivals are summarized below: Purpose of Visit. Among domestic tourists, commercial/business was the primary reason for the visit (29.5%); for the foreign tourists, pleasure/holiday were the primary motivation for the visit. Level of Education. Travelers to the Region were a well-educated lot with 63% (foreign) and 68% (domestic) having had university/college degrees and from 13% (foreign) and 15% (domestic) having post-graduate degrees. Occupation. About 42% of the domestic tourists were employees or personnel of private firms (21.5%) and government (20.1%). The managers, executives and businessmen accounted for 23.8% while the professionals and students accounted for 13.7% and 11.2%, respectively, of the total domestic tourists. Among the foreign arrivals, more than 1/3 or 37.3% were employees of private firms (19.5%) and government (civilian and military, 17.8%). The managers, executives and businessmen accounted for 23.5% -- the same proportion as their local counterparts. Source of Information. Nearly 70% among the local tourists sourced their information about the place visited from friends/relatives and/or previous visit. Among foreign visitors, information were sourced from friends/relatives (33.6%), travel publications and/or brochures (28.3%) and previous visit (15.9%). It is interesting to note that some foreigners married to Filipina women own and operate some of the interesting island/beach resorts/destinations in Surigao. Most of the general information were adopted from the results of the UP-AIT Tourism studies (1993 and 1997). Travel Arranger / Form of Travel. Most of the travels made were self-arranged (51.4% for domestic tourists and 60.4% for foreign travelers). Most of these travels were also not-on-package. Mode of Transport. For both (domestic and foreign) tourist groups, air transport represented the most common mode used. Among the land-based transport system, the private car was the dominant mode used by local tourist although the use of public bus is not far behind. About the same proportion (21.1%) of foreign travelers also used the public bus.

36

Product Development 4.1 Strategic Thrusts

The strategic thrusts for tourism product development will focus on the following: Historical sites Potential ecotourism sites and destinations Major ecotourism destinations Quality support facilities such as hotels, restaurants, handicrafts/souvenir shops, rest areas and roads leading to sites and destinations Intensified government-community participation in the management of tourism activities through the creation/operationalization of tourism councils and cooperatives The specific type and sites for the above are summarized in the table below. The primary responsibility for the development and maintenance of tourism products (sites and facilities) are summarized below: Type of Tourism Product Historical sites Archeological sites Ancestral Homes Cultural Villages Ecotourism sites (Protected Area) Other ecotourism sites Other destinations Access Support facilities Institutional mechanism Primary Center of Responsibility Government Government Government /private Government Government/PAMB Private sector Private sector Government/private sector Private sector Government/private sector partnership

Table - Summary of strategic thrust for tourism development by zone, Caraga

TOURISM PRODUCT AND FACILITIES Historical Sites & Ecofacts Butuan Agusan Norte Zone * Balanghai Shrine * Archeolo gical sites * Regional Museum * Magellan Landing Site * Ancestral Homes * Ancestral Burial sites Surigao Island Zone Japanese Retreat Site/ Marker (Waloe) TOURISM ZONE Surigao Island Zone South Caraga Zone Northeastern Caraga Zone Ancestral Homes

Ecotourism Sites and Destinations

*Lake Mainit

* Siargao Island Protected Seascape

* Agusan Marsh Wildlife

37

Establishment of Cultural Village

* @ Lusong, Puting Bato, Cabadbaran, ADN

Sanctuary * @ Salug, Esperanza, ADS

Support Facilities

Activities/ Events

* 5-Star Resort Hotel *Convention facilities * Shopping Malls * Telecom facilities *Commemoration of the 1st Mass

* 5-Star Resort Hotel *Convention facilities * Shopping Malls * Telecom facilities *Commemoration of the Battle of Surigao Strait

*Dive/Beach Resorts * Telecom facilities

* Floating cottages * Telecom facilities

* @/within the boundary of Lanuza, Tandag and San Miguel, SDS *Accommodations * Telecom facilities

Surfing

4.2 Facilities and Site Development Accommodations There is a need to immediately improve the quality of accommodations and the services offered. Additional capacities need to be put up to cope with the foreseen increase in visitor traffic. Special/Upscale Facilities The development of high-end/upscale and complex sites and areas including facilities is consistent with the above thrust. The examples of special sites and facility development are given below. 1. Dive Resorts, Dinagat Island Establishment of resort facilities consisting of accommodation rooms, dining area, dive information center and other basic amenities Construction of a dive shop that will house diving equipment and supplies Acquisition of dive boats and equipment Training of manpower Promotion campaign in coordination with the LGUs, DENR and DOT. Provision of a cruise boat for sightseeing tours which may be operated and managed by a separate private investor. The estimated cost largely depends on the scope of planned are of operation which will require a detailed study to determine the number and the type of accommodation rooms and facilities, dive boats, equipment, etc. 2. Beach Resorts These will be for Dinagat Island and Siargao Island. They will have the following elements:

38

a recreation area and clubhouse complete with sports facilities convention hall that includes function rooms and restaurant 15 individual beach cottages each with an area of 300 square meters marina and swimming pools ample parking space The estimated cost is Php 37.27 million 3. 5-Star Resort Hotel. This will be for Butuan City and Surigao City. Features of the resort-hotels include: 2-storey main building, a pavilion/clubhouse and ten units of cottages restaurant, souvenir shops, business offices and kitchen at the first floor with an estimated area of 1,152 sqm 25 accommodation rooms classified into ordinary, suite, family and VIP at the second floor with an estimated floor area of 1,095 sqm a roof deck which will serve as function room swimming area consisting of one pool, a wading pool, picnic huts and bath/dressing rooms. The estimated cost is Php 33.7 million. 4. Agusan Marsh Ecotourism Project 4.1 Access to the Marsh The three existing jump-off points to the marsh will be improved: The Bunawan wharf, IPAS complex and Sabang Kawayanan Junction. These will involve the construction of docks which will ensure the safe embarkment/disembarkment of tourists to motorized bancas that will ferry them to the Agusan Marsh tour. 4.2 Infrastructure and facilities/equipment 4.2.1 Rehabilitation of the ASSCAT Guest House

This will include the renovation of existing Community Outreach Center (COC) of ASSCAT. The COC has a 30-bed capacity (12 for females and 18 for males) with comfort rooms and air-conditioning units. The improvement should meet the standard accommodation of the tourists. 4.2.2 Bunawan Wharf Improvement As the gateway to Agusan Marsh, all tourists and guests will pass through the existing wharf that is situated in Barangay San Teodoro. Various facilities will be constructed to ensure better services to the tourists. These include: 1. Construction of Municipal Tourism and Display Center.

39

The center should be constructed in the existing wharf with the design bearing semblance of ethnic culture. This will provide tourists with the information regarding Agusan Marsh and other tourist attractions in Bunawan. Likewise, the center will sell products of the IPs and Bunawan residents. 2. Construction of Comfort Rooms To maintain sanitation, two constructed for each gender. 4.3. Improvement of the IPAS Complex The Integrated Protected Area System (IPAS) complex was established to protect and preserve the marsh. The complex will serve as the briefing area for visitors (thru multi-media presentation). It will also provide lodging for guests who will stay overnight in the area. The improvement of the complex will involve: 4.3.1 Construction of floating boat deck easy and safe embarkment and comfort rooms will be

The dock will allow disembarkment of guests. 1.

Construction of lodging house Made of native/indigenous materials, the house will accommodate 30-50 guests.

2. 3.

Establishment of mini-theatre with complete audiovisual equipment (computer-based AV equipment, screen, etc.) Establishment of a Display Corner for souvenir items available in the area.

4.4. Development of Sabang Kawayan Junction Due to its strategic location, (crossroad to Agusan Marsh) Sabang Kawayan will be developed as a major stop-over center to cater to the various needs of the visitors. Facilities to be provided include: 4.4.1 Construction of floating restaurant with amenities

The floating restaurant will also serve as the wharf. The design of the restaurant will make use of native materials like logs and bamboos as floats, sapling for posts and skeleton of the cottage, sasa, a clopped flattened bamboo for walls and nipa for roofing. Also in this structure, visitors may transfer to smaller bancas or canoes in exploring the marsh.

40

4.4.2

Construction of floating cottages

Four (4) floating cottages, made of native/indigenous materials (bamboos, anahaw, nipa shingles) with a capacity of 5-8 persons per cottage shall be constructed to accommodate tourists who will stay overnight in the Marsh. This will allow the guests to enjoy the tranquility and the moving scenery of the Marsh. It shall have standard beddings and other amenities such as kitchen, dining and portalet comfort room. The floating restaurant and cottages will be provided with a generator set to ensure electricity especially in the evening. 4.5 Construction of viewing decks/watch towers with accessories Four units of view decks (3 meters above the water level) will be constructed. Each view deck has a carrying capacity of 10-15 persons. The decks will be established in the Bunawan part of the Agusan Marsh: Lake Mihaba, Lake Malawan, Lake Dinagat and Lake Tikgon. The view deck is a structure where the panoramic view of the Marsh can be seen. Through a binocular, the guests will have clear pictures of the flora and fauna of the marsh. Portable toilets for both genders will be made available the four identified areas of the view decks. 4.6. Establishment of Waterways To allow the unhampered access of the view decks by the motorized bancas and canoes, four (4) floating waterways will be constructed. The waterways will keep water lilies from obstructing the bancas and canoes. 4.7. Procurement of motorized rubber boat The motorized rubber boat will be used by the marsh guard to monitor the safety of tourists and visitors by providing them with prompt assistance during emergencies. 4.3 Other Programs and Projects The development of program and projects will be done simultaneously in the different tourism zones consistent with their resource endowments and distinctive character. The table below provides illustrative examples of programs and projects for the different zonal clusters. Program/Projects 1. Municipal Recreation Parks ( All Forms ) 2. Local Training for Community Hosting & Services ( Service Center & Jump-off Points TOURISM ZONE (TZ) SCNM SI NC

BAN

SC

41

3. Miscellaneous Programs & Projects Bamboo Farming Crocodile Farming Training School For Tour Guides Center for Performing Arts Fish Culture in Lakes Transport Terminal & Exhibit Center Observation Decks & Viewpoint Adventure Facility & Themed Sites Cultural Village Palm Farms & Arboretums 4.4. Infrastructure 4.4.1. Transport Development a. Caraga Road Network Development Upgrading and rehabilitation of transport infrastructure is of immediate importance not only for tourism but for the overall development of the region. At present, network formation is incomplete. Most roads branch off from a trunk road without forming a network. There are minimal linkages between major roads due to the lack of east-west links. Lack of transport efficiency is primarily due to inadequate linkages. The road improvement projects which may contribute largely to tourism development were identified as follows: Surigao-Tandag-Bislig Coastal Road is roughly 270 kilometers in length. It isestimated to cost approximately P=2.16 billion for concreting and bridge construction. Funding for the road project is needed to pursue improvement works. Paving of the Bayugan-Tandag Road will provide access to the tourist areas located in the east. Improvement of three kilometer PASu Office Access Road to the Agusan Marsh jump-off point Concreting of east-west laterals, such as the San Francisco - Barobo road, and the Trento - Bislig road. b. Air Transportation The lack of facilities at airport terminals pose a constraint to air transport development. Modernization of navigational equipment, widening of runway, and the improvement of airport terminal buildings are some of the required improvements to upgrade airport facilities to meet international standards. Airline operations along the trunk and secondary routes have begun to shift to bigger and wider- bodied aircraft, mostly Airbus 300 and Boeing 737. To address this development, the airports in the region will need to be improved to accommodate these aircrafts. Major construction works are necessary to make operational the Bislig Airport. The resumption of operations at the Bislig Airport will promote tourism development. The Butuan Airport is among the six city airports programmed for improvement and expansion under ADBs Third Airports Development Loan. The project will expand and

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improve civil aviation infrastructure to conform with international standards. The project will upgrade and extend runways, improve air navigation and safety facilities; expand cargo capacities; build new passenger terminals; rehabilitate existing facilities as well as provide equipment for airfield maintenance, communications, navigation, meteorology, crash and fire response and rescue. Total project cost is estimated at $167 million, with the European Investment Bank expected to provide co-financing of $29 million. Just recently, the Department of Transportation and Communications (DOTC) invited Constructors to apply for pre-qualification and bid for the Butuan Airport runway widening and improvement of access road. c. Water Transportation Upgrading seaport facilities are also necessary to meet standards required for international trade. Port development and expansion projects are required for all the major ports in the region. The Philippine Ports Authority is encouraging private sector participation specifically in the form of Build-Operate-Transfer agreements or Joint Venture agreements. Table 4.1 - Transport Infrastructure Development Projects Project Airports Siargao Feeder Airport Development Project Tandag Airport Development Projects Location Description Cost ( In M ) Implementing Agency

Del Carmen, Siargao Island Awasian

Terminal building and runaway expansion Extension of 30mx100m Runway and installation of lighting and water facilities Develop cargo handling and passenger terminal infrastructure and facilities Improvement and expansion of ROO facilities Ongoing under a 25-year development plan. Works to be undertaken include: general rehabilitation of the

17.40/19.9 193.75/ 193.8

DOT/ATO DOT/LGU

Seaports Siargao Port Development Project Lipata Ferry Terminal

Siargao Island

40.00

PPA PPA

Lipata, Surigao City

10.00

Tandag Port Development Project

Barangay Bongtud Tandag, SDS

121.00

PPA/DOTC/LG U

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Nasipit Port Expansion Project

Nasipit Agusan Del Norte

Bislig Port Development Project Surigao Port Expansion Project

Bislig, Surigao del Sur Surigao City

Aras-Arasan Port Development Project

Cagwait, Surigao del Sur

port dredging of the water bed along side docks for a 10-m draft extension of inward RC wharf water and administration facilities Improvement and expansion of facilities of existing port. As of June 1997, FS with Master Plan was to have been prepared Improvement and expansion of facilities of the existing port As a June 1997, PPA was looking for a developer willing to go into a BOT or JV agreement Projects entails the improvement and expansion of facilities bat the existing port located in Bilang Bilang Bay Development of required port infrastructure and facilities including RORO ramp and passenger terminal facilities to accommodate inter-island ferry vessels. Projects still at conceptual stage and subject to BOT or JV agreement

PPA

50.00

PPA

PPA

80.00

PPA

Road Infrastructure Surigao-Davao Surigao del Coastal Road Norte, Surigao del Sur

Construction, improvement and

10.00/ 2,170.0

DPWH/LGU

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rehabilitation Butuan B. Tandag Road Agusan del Norte, Agusan del Sur and Surigao del Sur 4.4.2. Telecommunications 10.00 National Government

Telecommunication facilities are already available at the major service centers of the region. Communication services consist mainly of radio communications, telegraph/telex, and telephone services. Service connections are very limited in most of the municipalities and mostly centralized in the urbanized centers. However, the expansion of service connections is necessary to enhance telecommunications service. Moreover, in order to advance telecommunications in the region, thrusts should be geared towards the establishment of modern technology. Modern systems offer vast opportunities for global communications, using satellite, cellular or microwave technology. 4.4.3. Power and Energy

The current generating capacity of the National Power Corporation (NPC) is sufficient to supply the requirements of the industries that will locate in the region in the future. Needless to say, the power requirements for the development of tourism will be minimal as compared to the future supply. Thus, the availability of power supply to support tourism development will not pose a serious problem in the future. Nevertheless, there still remains the need to develop alternative sources of power to ensure stable supply. Heavy dependence on a single source may cause massive problems in the future. Transmission facilities may have to be expanded to handle increased demand. Sites identified for tourism development should have access to power. Though this might prove incompatible with eco-tourism, the proper design and planning of such facilities may even enhance the attractiveness of certain tourist destinations. 4.4.4. Water Supply

Since the supply of water does not seem to pose a constraint for future development, proper management should be exercised so as not to drain the potential of water sources. Similar to power, distribution systems need to be expanded and upgraded to ensure stable supply and to maintain the standards of water quality. 4.4.5. Sanitation and Waste Management

Proper garbage and waste disposal is an important element of a healthy environment. Solid waste collection systems are sorely lacking in most areas of the region. Open dumping and disposal would pose environmental hazards in the future. Before this situation grows into an alarming, it is necessary to institutionalize a waste management disposal system at all levels of local government units in the Region. 4.4.6. Indicative Cost

The strategic objectives of the Caraga Tourism Master Plan is to position the Region as a key tourist destination and to optimize its development potentials for

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sustainable tourism development. These require the development of the various sectors and the installation of development management systems to transform Caraga as a worthwhile destination and as added spur for regional growth and development. To achieve these require financial investments from the public and private sectors, an estimated amount of P 21.604 billion financial resources is required to carry out the Plan. These are summarized in the following tables below:

DEVELOPMENT PROGRAM INFRASTRUCTURE DEVELOPMENT Roads and Bridges Airports Seaports Other infrastructures and Utilities TOURISM FACILITY DEVELOPMENT CULTURAL PRESERVATION & ENHANCEMENT ENVIRONMENT MANAGEMENT MARKETING & INVESTMENT PROMOTIONS INSTITUTIONAL DEVELOPMENT & POLICY SUPPORT TOTAL
(Annexes for details- Table 4.4)

IMPLEMENTATION PERIOD 1ST 5 Years 2nd 5 Years 3rd 5 Years 8,800.0 1,787.1 4,249.6 60.0 2,703.3 300.4 5.6 10.3 8.4 11.8 9,136.5 8,607.2 1,787.1 3,955.8 161.0 2,703.3 510.6 0.6 5.3 1.3 11.0 9,136.0 2,803.2 19.9 80.0 2,703.3 1,321.6 0.6 5.3 1.3 11.0 3,332.1

TOTAL 20,210.4 3,574.1 8,225.3 301.0 8,110.0 6.8 21.0 11.0 33.8 21,604.6

4.5. Existing Structures and Mechanisms a. Organization The Department of Tourisms (DOT) Regional Office in Butuan City is the primary government agency tasked to promote the development of tourism in the Region. It is a newly established office coincident with the creation in 1995 of Caraga as the thirteenth Administrative Region of the country. In accordance with the Local Government Code of 1991, tourism services, among with other basic services, have been devolved to local government units. Correspondingly, the LGUs organized tourism offices, or their equivalent units, for the purpose. The set up of tourism offices or units vary from one LGU to the other. For example: Butuan City and the province of Surigao del Norte each has a Tourism Office manned by organic staff; Surigao City has a Tourism Assistance Center (TAC) under the City Planning and Development Office (CPDO); Surigao del Sur. A Tourism Assistance Center (TAC) was set up under the Office of the Governor; Agusan del Norte. The tourism development functions are subsumed within the Civil Affairs Office (CAO) under the Office of the Governor; and, Agusan del Sur: A tourism unit is integrated within the Provincial Planning and Development Office (PPDO).

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There are no tourism offices at the municipal level. Tourism development functions are subsumed within those performed by the Municipal Planning and Development Offices (MPDOS). Tourism councils have been organized at the city and provincial levels. Presently, municipal tourism councils exist only in designated growth areas of Economic Development Clusters and those within the program scope of CIA-LISP capability building program on community-based tourism development. In addition to the DOT and the different city and provincial government units, practically the entire government machinery is involved in the tourism sector. At least 20 line departments, authorities, commissions, councils and government-owned or controlled corporations are involved. About the same number of institutional groups and associations are involved from the private sector. These do not include the individual tourism facility operators and services providers (see attached partial list of development actors involved in the tourism sector). b. The Coordination Mechanisms Integrative and coordination mechanisms exist at various organizational levels: Regional level: The Regional Development Council (Caraga or RDC XIII) for developmental planning. NEDA NRO XIII acts as the Technical Secretariat of the RDC. Regional Tourism Council - for tourism promotions and coordination. The RDC is composed of the heads of regional offices of the national government, congressmen and senators in the region, provincial governors, presidents of the regional federation of the league of municipal/city mayors and barangay chairmen and representatives from private sector and the non-government organizations. The RDC Chair is elected by the members. The NEDA Regional Director serves as Vice Chair. There are a number of committees that tackle specific sectors, e.g.: agriculture, infrastructure, tourism, etc. An Executive Committee exists and is empowered to act for and in behalf of the Council when the latter is not in session. The RDC Chair and the NEDA Regional Director chair and co-chair the ExCom. The Regional Tourism Council is composed mostly of representatives from the private sector with tourism and tourism-related activities as the main line of business or concern. The DOT Regional Director sits in the Council with DOT R-XIII as the Councils Technical Secretariat. Provincial level: Provincial Development Councils (PDCs) of each province - for the integration of development programs and projects.

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Provincial Tourism Councils for each province - for the promotion and development of tourism in the province. The PDCs are composed of the Governor as Chair, congressmen from the province, municipal mayors, president of the Association of Barangay Chairmen and representatives of non-government organizations. Like the RDC, the PDCs have sectoral committees and Executive Committees. The Provincial Tourism Councils are likewise organized from representation mostly of tourismrelated organizations and establishments in the province. City/Municipal level: City Development Councils (CDCs) for each city and the Municipal Development Councils (MDCs) for each municipality - for the integration of development programs and projects at the city and municipal levels. City Tourism Councils (CTCs) and Municipal Tourism Councils (MTCs) - for the promotion and development of tourism-related projects and activities at the city and municipal levels. The CDCs/MDCs are composed of the City/Municipal Mayors, representatives of the Congressman covering the city/municipality, barangay chairmen and representatives from the nongovernment organizations. The CDCs/MDCs also have sectoral committees and Executive Committees. 5. Industry Support 5.1 Financing Options a. Modes Public finance. This is usually borne by government, through its various line/operating departments and/or agencies. Self-financing. This is by the project proponents, individual entrepreneurs, partnerships, corporations or joint ventures. A distinctive feature of this mode is the use the proponents-owned resources to undertake the projects. Joint Venture Agreements (JVAs). These are institutional agreements between various parties, normally public and private, for a joint venture in pursuing a development project. Build-Operate-Transfer (BOT)/Build-Operate-Own (BOO). These are recent variants of the JVA. In this instances, a private group undertakes the development initiative under prior consent of government within a set or framework of arrangements. The private groups uses its own resources, pays the government the corresponding dues (rentals, levies, franchise, etc). For its side, government allows the proponent to operate the facility, charge service fees to recoup investment and operating expenses.

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b. Sources Generally, the sources of financing development projects and activities are the (i) public sector, represented by the government through its various instrumentalities, (ii) private sector [banks, investment houses, or owned capital], and/or (iii) foreign donor institutions. Government, through: appropriations as (i) Subsidy, (ii) Technical Assistance, (iii) Capital Outlay or (iv) Equity or Capital to a line agency or government-owned or controlled corporation, whichever is the case, to enable it to perform its obligations, by itself or in joint venture with a private group; Guarantee in the form of a Fund or sourced from an existing Guarantee Fund; and Credit tranches, relending operations or Credit Windows coursed through its GFIs (Government Financing Institutions). Private through either any or all of the following: Equity Participation Equity Loan-Financing Joint Venture Arrangements Donor Assistance The following provide some of the concepts and examples of the modes/sources of investment finance for tourism-related projects. Projects Open to Purely Private Sector Financing: Projects which are business-oriented and inclined to make profits are those which interest the private sector. Most tourism projects are private-sector type of projects, although some, particularly those which support tourism development, may be jointly financed by the government and the private sector. Some infrastructure projects, which were formerly government-funded, are now open for private sector financing. Certain types of tourism projects are recommended for purely private sector financing, among others: construction of tourist accommodations and facilities such as resorts, hotels, hostels, inns, motels, camping grounds and other types of lodging places; recreational establishments such as theaters and movie houses, museums and galleries, music halls, swimming pools, bowling alleys and billiard halls, casinos and game rooms, golf courses, sports complexes, shopping malls and the like; restaurants, fastfood establishments, cafes, bake shops, carenderias, snack bars, ice cream parlors, bars and lounges and other eating places; tourism-related establishments such as travel agencies and booking offices, tour arrangers and reservation offices, seminar and conference halls, sports rental and training establishments such as dive shops, foreign-exchanges, souvenir shops, and the like; and tourism service providers such as caterers, hotel service personnel agencies, training agencies, security offices, laundry shops and laundromats, postal and package couriers, vehicle rental agencies, etc.

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Certain types of infrastructure projects may also be purely private sector funded. Examples of these projects which are supportive of tourism development are: communication projects such as the provision of telephone, cellular, beeper and other telecommunication services, FAX and e-mail services, postal services, establishment of public calling stations; roads and bridges subject to toll fees, weighbridge stations and road construction, repair and maintenance services; construction, modernization, expansion and management of ports and airports; transport services such as bus, shipping and airline services; water supply and distribution services; power generation and distribution services; and waste disposal and collection services. Financing for private sector projects come in various forms and from various sources and in combinations: purely capital, loans, equity-loan combinations or technical assistance from NGOs, NGAs or ODA. Equity Participation: Equity may come in the form of capital (stocks), land, building, equipment or technology. The establishment of tourism accommodations, facilities and related establishments are generally purely private sector endeavors (although some projects utilizing natural assets such as waterfalls, lakes and caves have government participation in order that the government is assured of sustainable use of the natural asset). The extent of equity participation from foreign partners is determined by the type of project but, under current investment laws, may be allowed up to 100%. Foreign equity participation may be limited in certain projects in order to ensure that the project is Filipino-owned. Equity-Loan Financing: This scheme is resorted to mostly for projects requiring bigger capitalization. When capital is insufficient, this is, almost always, complimented by loans from banks and other financing institutions. Loans are often secured from private banks but may also be provided by government financing institutions (GFIs) for qualified projects, such as SME projects or tourism projects. When the capitalization is extremely high such as for infrastructure projects or when the private-sector project is government-sponsored or supported, loans may also be secured from international agencies such as the Asian Development Bank. Most loans are collateralized, especially those from banks and GFIs while others are provided guarantees by the government such as from the Guarantee Fund for Small and Medium Enterprises (GFSME). Loans are often secured for major capital expenditures such as the purchase of land and the construction of the tourism facility (hotels). These are normally longterm collateralized loans. Expansion, modernization, diversification and restoration projects also require long-term loans. However, short-term loans may also be obtained for the purchase of raw materials, equipment, transport facilities and for working capital. Joint Venture Arrangements: When there is a need for new or added capitalization, new technology or new markets, the private sector seeks out joint

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venture (JV) partners. JV agreements are also inked with local partners when international chains of establishments desire to establish branches in the country. Joint venture partners may come from other provinces, other regions, other countries or other tourism sub-sectors. Oftentimes, joint venture agreements are entered into to (i) expand existing markets in order to cover those of the JV partners, (ii) to cover new destinations such as newly-discovered beaches, (iii) to complement current tours. JV agreements are also resorted in order to import new schemes, technologies, processes or equipment into the country. Projects Open to Purely Government Financing Some projects are understood to be the realm of government but at present, these same projects are opened for private sector financing due to the lack of funds. Some projects may be undertaken by the NGAs such as the DOT, LGU such as the Provincial Government. Government corporations or revenue generating agencies such as the Philippine Tourism Authority, National Power Corporation and the Local Water Utilities Authority may also open projects for private sector financing. Examples of tourism and tourism-related or supported projects that may be purely government funded are, among others: o o o o o o o o regional tourism planning, monitoring and impact evaluation; establishment of tourism planning, monitoring and impact evaluation agencies; environmental projects such as coastal resource management; regional tourism product planning and development; regional tourism marketing and promotion projects; sectoral training and capability building projects; construction of farm-to-market roads, bridges, seawalls and riverwalls; and construction of wharves, ports, jetties and airports.

Financing for purely government-funded projects may come from different sources. The funding sources may be varied or combined, depending on the activity or the project. Funding for projects of regular government agencies may be sourced from regular budgetary appropriations, special funds such as those for the National Centennial Celebration, grants and aids from the USAID or loans from the ADB or the World Bank for sector loans. Local government units may fund projects from regular budgets, IRAs, Congressional contributions, NGA budgets especially for road construction, from bond flotation (in the case of Cebu), from the sale of assets such as of government land or from loans. LGUs, under the Local Government Code of 1991, may also incur loans on its own. The Development Bank of the Philippines (DBP) opened Window III specifically for LGUs: the DBP's Lending Program for LGUs. To be eligible for the program, LGUs need to meet the following criteria: Has beneficiary population of approximately 100,000; Performed important local, commercial, transportation, industrial, educational or similar activities; Has a gross average annual income of at least P 3.0 MM over the last 3 years; Has a balance or surplus prospective income stream for the next 3 years duly validate by DBP;

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Has no adverse findings from banks or suppliers, both for the LGU or current Executive or Treasurer; and Has shown efficiency in the collection of real estate and other local taxes. To qualify for the loan program, projects to be financed should have passed through the first and second readings and shall be included in the approved local development plan and public investment programs, duly endorsed by the local development council through a resolution. Moreover, priority is given to income generating projects such as, but not limited to, transport terminals, municipal water systems, storage/refrigeration facilities. public markets and slaughterhouses. Priority is given to projects which are income generating projects and those which will be operated by the LGU. Loanable amounts have no limits but are based on total project costs with at least 85:15 debt-equity ratio. Interest rates depend on funds sourced from the DBP shall be based on super prime rates, renewable quarterly or annually. Maximum terms of 12 years inclusive of 2 years grace period are based on project requirement and projected cash flows in monthly, quarterly, semi-annual or annual payments. Loans are to be secured by real estate and/or chattel mortgages, assignment of a specified portion of the IRA allotment in the amount equivalent to one (1) amortization payment and insurance policies must be endorsed in favor of the DBP. The government may also directly participate in or support but indirectly financially support the project. Such support may come in various forms such as: Guarantees and Guarantee Funds: The government may either directly guarantee a project or set aside a guarantee fund for sets of projects. Some government projects requiring large capitalization, especially those financed by loans from international banks, require a government guarantee and this may be provided by the sponsoring NGA or LGU. For some loans of the Philippine government, the government is required by the loan covenant to set aside in the National Treasury a stand-by guarantee fund that will be utilized in case of subproject amortization defaults. The Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for Small and Medium Enterprises (GFSME) may be accessed for private sector tourism projects undertaken by SMEs. SME and Livelihood Financing: Government financing programs are set aside to encourage the development of specific sectors, such as the SME sector, or specific activities such as livelihood and entrepreneurial activities. Special financing lines have been set aside for qualified projects. Tourism and tourismrelated projects may qualify for most of these lines. Examples of these lines are the Tulong-sa-Tao Micro-Credit Program and Livelihood Corporation funds. Most government financing institutions have also allocated certain funds for SMEs due to the recognized contribution of SMEs to regional distribution of wealth and catalyzing regional economic development. Technical Assistance: Although government support may come in cash, most come in the form of direct assistance, generally in the form of direct service delivery and technical assistance. Technical assistance in tourism projects may come in the following forms, among others: product development, standards setting and accreditation; manpower development such as in curriculum development and skills and entrepreneurial training delivery and/or subsidy; development of marketing and promotional programs, strategies and schemes;

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site identification and planning, land acquisition and conversion; technology, machinery and equipment, process, funds, skilled manpower and raw material sourcing; joint venture, partnering, negotiations and contract formulation; and institutional development such as for the organization of tourism NGOs and PVOs. Joint Private-Public Sector Financing Some projects require partnerships between the government and the private sector, not only to include the business sector but the NGO/PO community as well. These projects generally have the following characteristics: require extremely huge costs which the private sector is unwilling to fully shoulder such as for major infrastructure projects; require government exposure to encourage the private sector to invest such as for the development of rural infrastructure; require a substantial government contribution such as in the form of land; require provision or improvement of accessibility such as for projects very far from existing roads; require government share in the risks such as for projects with high social components; require the delivery of a set of services that are mandates of both the public and private sectors such as for manpower development; and require government participation in management to ensure adherence to certain covenants such as environmental sustainability. Government participation also comes in various forms such as outright equity contributions, in-kind equity shares such in the case of land and buildings as equity share, government guarantees for loans, government loans as equity share, counterpart funding or subsidies in planning and development stages such as in the funding of prefeasibility/ feasibility studies, site plans or EIAs and technical assistance in project development or implementation such as through the provision of technical experts. Government in project management is dictated by the extent of participation but must ideally be limited to minority shares. It is also recommended that an eventual government participation phase-out plan be part of the joint venture agreement. Examples of projects recommended for joint private-public sector financing include, among others: establishment of income-generating infrastructure projects such as construction, expansion, modernization of ports and airports; development and generation of new energy sources, preferably of nonconventional sources such as solar power; construction of infrastructure projects with high social components development of tourism sites not readily accessible to major road networks; manpower development programs such as the development of a sufficient pool of qualified skilled manpower where the government leads in manpower planning, training of trainors and curriculum development while the private sector leads in training delivery;

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conduct of marketing and investment promotion activities such as investment missions where both sectors cost-share in eligible counterpart costs; piloting of new technologies, processes, equipment and machineries where the government funds research and development and the private sector funds piloting and experimental expenditures; construction of museums and cultural/historical display centers where the government funds the site acquisition and construction of buildings while the private sectors donates lends its artifacts, heirlooms, antiques and similar art pieces; restoration of historical and cultural assets where the government shoulders restoration costs and the private sector donates its technical expertise or companies sponsor some costs; conduct of researches and studies where the government carries operational costs and the private sector acts as resource persons and key informants for free; and conduct of tourism events such as festivals where the government and the private sector both offer sponsorships of certain cost components. LGU-Private Sector Partnership The Local Government Code of 1991 enables the local government to undertake business activities and this allows LGUs to partner with a private sector in purely business activities. Huge infrastructure projects with income generating capabilities may also have joint LGU-private sector equity participation, with the LGU usually having minority share but sufficient management voice. In addition, government, as a strategy, puts in seed capital in order to entice the private sector to invest in the project. BOT and BOT Schemes In order to encourage the private sector to participate in priority economic projects which were historically not of private sector interest, the government developed the BOT Program through the passage of the BOT Law. Since then, the private sector has been actively involved in major infrastructure projects such as the construction of the MRT lines and other road projects, power generation and distribution and the Metro Manila water supply improvement and upgrading project. The Build-Operate-Transfer (BOT) program has generated encouraging results such that variances such as the Build-Operate-Own and the Build-Transfer-Operate schemes have been developed. Examples of tourism or tourism-related or -supportive projects which are more popularly acceptable to BOT and BOT-variations are, among others: power generation and/or distribution, especially for regional, municipal and estate types of projects; transport projects such as toll roads and highways, port and airport expansion, modernization, facilities operation and service provision; transport services, including bus and other transport terminals; municipal water supply systems; telecommunication services; municipal waste disposal systems; public markets, slaughterhouses and abattoirs;

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nature parks management and eco-tourism estates; health delivery and health management; and tech-voc education and skills training institutions.

Overseas Development Assistance (ODA) ODA may come in the form of donation of buildings, machineries, equipment, tools, computers and other hardware, grants in the form of technical assistance from experts, subsidized or soft loans or the provision of services such as construction management and free medical care. ODA may come from other governments such as the EEC, international development organizations such as the UNDP, private sector organizations such as the World Tourism Organization, sectoral organizations such as International Travel Agents Associations, international loan agencies such as ADB, special government assistance windows such as the JICA and international civic organizations such as the international Rotary chapters. ODA may come in one form or may come in combinations. ODA may be purely technical assistance, may be a loan with a technical assistance component, may be purely in the form of a loan. Some ODAs come without any Philippine counterpart contributions while some ODA may come with Philippine counterpart requirements such as in the form of the following: contributions in terms of land, building, personnel services, local transport for expatriates and project operations; provision of office space, furniture, fixtures and equipment and project supplies; provision of local counterpart experts; outright project fund contributions; subsidies as for purchase of local raw material inputs; policy or program support commitments; provision of loan counterpart funds; and guarantees for foreign and local loans. Tourism and tourism-related or -supportive projects recommended for Overseas Development Assistance include: tourism planning, monitoring and impact evaluation, including the conduct of researches and studies; tourism data banking and establishment of a regional tourism data bank and MIS; development of tourism marketing and promotional programs and projects; site assessment, development and planning for government-owned, -sponsored or -supported projects; product development such as for developing new or expanded tourism destinations or tour clustering and multi-activity tours; institutional and organizational development such as for the conduct of tourism study tours and observation missions; manpower development and capability building; social development such as improvement of health delivery services; transport planning; tourism environmental studies; conduct of historical and cultural researches, studies, programs and projects, including for IPs; and establishment of cultural and historical centers such as museums.

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Official ODA may be accessed only through government channels. International development agencies and those from other governments require the endorsement of the National Government, often through NEDA, through the form of a government-togovernment agreements. Such covenants spell out the terms of the ODA related to what is expected from both governments, the implementing agencies and the project beneficiaries, the expected project outputs and results and sometimes even follow-on activities. The contents of the ODA agreements take the form of commitments and are necessarily binding. Loan and financing ODA with Philippine counterpart funds, subsidies or guarantees require Department of Finance, Department of Budget and Management and National Treasury certifications that the counterpart funds are indeed officially appropriated and deposited in trust with the National Treasury solely for specified project purposes. The ODA agreement also specifies fund withdrawals and other deposit and withdrawal preconditions, roles and responsibilities of concerned parties and repayment/availment schedules of project beneficiaries. Monitoring and impact assessment schemes accompanying ODA agreements cover targets and deliverables. ODA from private sector business, civic and sectoral organizations do not take the nature of official documents but are nevertheless binding on all parties concerned. However, agreements covering such types of ODA are equally binding, albeit the fact that these are spearheaded by the private sector. Although the local lead agencies are counterpart private sector organizations, certain government agencies play active roles in their implementation and such participation infuse a semi-official nature on the agreement and in project implementation. 5.2. Tourism Investment Incentives As the Philippine tourism industry is expected to continue to grow, there will invariably be greater demand for tourism superstructures, facilities and services. Hotels, resorts and other types of accommodation facilities especially in the regions will have to be built to address the lodging requirements of both foreign and domestic travelers. The need for improved accessibility will likewise open investment opportunities in air, water and land transport operations. In response to worldwide demand for integrated tourism development, The Department of Tourism is also encouraging investments in tourism estates, historico-cultural heritage projects and ecotourism and agri-tourism projects. The investment incentives framework for tourism development in Caraga is governed by and contained in existing policy framework, to wit: a. Executive Order No. 63 This Executive Order grants incentives to foreigners investing at least US $50,000 in a tourist-related project or in any tourist establishment as determined by the Committee created in the same law. E.O. 63 grants the foreign investor a Special Investors Resident Visa (SIRV) for as long as the investment subsists. The E.O. also recognizes the right of the investor to remit earnings from his investment in the currency in which the investment was originally made and at

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the exchange rate prevailing at the time of remittance. In case of liquidation, the investor is also allowed to repatriate the entire proceeds f the liquidation of the investment in which the investment was originally made. Lastly the right of succession is also recognized. An investor may apply for SIRV at the Philippine Embassy or Consulate in his home country or place of residence. If already in the Philippines, the investor may file the application at the Department of Tourism for endorsement to the Bureau of Immigration. b. Omnibus Investment Code(Executive Order No. 226) This Executive Order authorizes the Board of Investments to grant fiscal and non-fiscal incentives for local and foreign investors engaged in tourism activities listed under Investments Priorities (IPP). Incentives granted included income tax holiday (4-6 years for non-pioneer and pioneer projects, respectively) and the employment of foreign nationals. c. Foreign Investment Act of 1991 (Republic Act No. 7042 as Amended by Republic Act No. 8179) With the passage of Foreign Investment Act, foreign nationals are now allowed to invest up to 100% equity participation in new or existing economic activities including restaurant operations that are incidental to the hotel business. Foreign equity participation of up to 40% is allowed in the operation and management of utilities (i.e. land, air and water transport). d. Build-Operate-Transfer (BOT) Law (Republic Act No. 6957 As Amended by Republic Act No. 7718) The BOT Law authorizes the financing, construction, operation and maintenance of infrastructure projects by the private sector. It allows national implementing agencies and local government units to enter into BOT arrangement as a means of encouraging the participation of foreign and local companies in the countrys infrastructure development program. Tourism estates including related infrastructure facilities and utilities are among the priority projects eligible for BOT implementation. Backed up by a wide range of credit enhancement and investment incentives, the BOT Law opens to the private sector another window of investment opportunity. Salient points of the amended BOT Law include the following: Provides flexibility to both the government and private sector allowing the use of variety of arrangements under the BOT scheme to suit specific conditions; Broadens the type and variety of projects that can be implemented under the BOY process; Recognizes the need for private investors to realize rates of return reflective of market conditions; Institutionalizes government support for BOT projects; and

57

Allows government agencies and local government units accept unsolicited proposals.

(LGUs) to

The BOT Law mandates the BOT Center to coordinate and monitor all projects undertaken under RA 7718. The BOT Center is empowered to actively promote all modes of private sector participation in the implementation of development projects in the country. Under the Administrative Order 67, the BOT Center expands the coverage of the program to include the BOT scheme, joint venture agreement, concession agreement, lease and contractual management, among others. The BOT Center specifically involved in: Project Development Policy advocacy Institution-Building Marketing and promotions Monitoring

e. Special Economic Zone Act of 1995 (Republic Act No. 7916) This Republic act provides for the legal framework and mechanism for the creation, operation, administration and coordination of Special Economic Zones in the Philippines, creating for this purpose, the Philippine Economic Zone Authority (PEZA) and for other purposes. On October 7, 2002, the DOT entered into a Memorandum of Agreement (MOA) with PEZA that will grant Special Economic Zone status to tourism development zones and tourism estates upon registration with PEZA subject to the issuance of the required Presidential Proclamation. The PEZA consider for registration tourist-oriented enterprises to be located in PEZAregistered tourism development zones/tourism estates which are endorsed by the DOT as enterprises that will be established and operated with foreign tourists as primary clientele. Incentives available are: a. Up to 100% foreign ownership of locator-enterprises; b. Income tax holiday (ITH) for six years for pioneer firms and four years for nonpioneer firms. If a non-pioneer firm is located in a less developed area, it shall be entitled to six years ITH; c. After the ITH period, the option to pay a Special 5% Tax on Gross Income, in lieu of national and local taxes except real property taxes; d. Tax and duty-free importation of capital equipment required for the technical viability of registered tourism activities; e. Special Investors Resident Visa; f. Employment of foreign nationals; g. Other incentives as may be determined by the PEZA Board f. Retail Trade Liberalization Act of 2000 (Republic Act No. 8762)

This is an act liberalizing the retail trade business, repealing for the purpose Republic Act No. 1180, as amended, and for other purposes.

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With the enactment of implementation of the Trade Liberalization Act of 2000, up to 100% foreign equity participation in restaurants is now allowed for enterprises with a paidup capital of US $ 2.5 million 6 THE CLUSTER MAP Understanding the cluster map is parallel to understanding the Industry Clustering concept. By definition, Industry Clustering is the tendency for like-minded firms and talents to cluster in specific geographic areas to achieve synergy, facilitate business transactions and to utilize hard and soft infrastructure. Michael Foster defined a cluster as a geographically proximate group of interconnected companies and associated institutions in a particular field. One major benefit of Industry Clustering is that cluster relationships and inter-linkages facilitate collaboration to overcome shared problems and obstacles, and maximize resources. With these, it is important that elements of the tourism cluster and its corresponding functions/roles be properly identified to be able to interpret its relationships. The diagram below shows the components of the tourism cluster.

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Tourism Cluster Map

Customers Domestic Foreign Tourists Excursionist

Marketing & Promotion Support

Product & Service Providers Supporting Industries

Hotel Operator

Resto Operator

Resort Operator

Homestay Operators

Tour Operator

BrgyTour Operator

Transportation Services

Souvenir Shops Communicatio n Services

Food & Beverage

Entertainment/ Recreations Facilities (Bars, theatres)

Wellness (Spas, Massage services

Specialized Infra

Govt. ( DOT, DENR , TESDA, DTI LGU PNB

Academe

Financial Institution.

Industry Associations

Airports & Sea Ports

Roads

Water

Power

Hospitals

NGOS

POs

Civic & Religious G

Tri-Media ( Tourism Press Core)

Business Org. Tourism Champions )

Tri-media (Tourism Press Corps)

Business Organizations

Culture & Arts

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7. SWOT Analysis 7.1.Strengths and Advantages The development of the Regions tourism industry draws strength from and is favored by the abundance and quality of its natural and man-made resources -habitat of exotic wildlife, rich cultural and historical past and strong local initiatives to develop the sector. The following summarizes Caragas strengths and advantages for tourism development: a. Natural Resource Endowments for Tourism-Related Activities World-class white sand beaches, lagoons, waterfalls and complex of caves; Extensive forest cover (natural and commercial) including the presence of other industrial crop plantation, e.g., oil palm; Mountain peaks and ranges and extensive valleys of rich biodiversity; and, Islands, coves and marshlands of diverse features.
Picture 5.1. Caraga is famous for its white sand beaches comparable to Boracay and Bali. Above shows the Cagwait White Sand Beach in Cagwait, Surigao del Sur.

b. Rich Historical and Cultural Heritage Caragas prehistory could be dated back 500,000 years ago; the Balanghays discovered in Libertad, Butuan City are carbon-dated at 320 B.C. Masawa, Butuan City has already been recognized and declared by Vatican as the seat of the First Mass in Mindanao. The biggest naval battle in the Philippines during the Second World War occurred in the Surigao Straits. Indigenous people still roam the Regions hinterlands. c. The Gateway to Luzon and Visayas and Strategic Location Within the Context of the Emerging Mindanao Pacific Rim Growth Corridor The Maharlika Highway connecting Mindanao and Luzon via the Ferry in Surigao del Norte, passes through and practically bisects the region. It fringes the Mindanao Pacific Rim Growth Corridor, an emerging growth center for regional cooperation with its outlying Pacific neighbors, particularly Palau, Federated States of Micronesia, Guam, Northern Mindanao and

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Pohnpei, on one hand, and Australia and New Zealand, on the other. Strategic development actions are ongoing to operationalize such initiative. d. Strong National and Local Partnership for Tourism Development There now exist tourism councils at the provincial and city levels; a number of such councils have also been organized in some municipalities, especially those designated as growth centers. Since 1993, tourism development planning and promotions have been initiated. Today, all provincial and city LGUs have formulated marketing slogans and brand names while a community-based tourism master planning and capacitation program has been launched with assistance from the CIDA-PCLGSP. 7.2. Challenges and Obstacles Caraga has vast potentials for tourism. The growth and development of the sector, however, is constrained by the following: a. Underdeveloped Transport Infrastructures and Telecommunications Facilities Butuan City, Surigao City and the urban centers of major towns have more or less a well developed road infrastructure. The major road network in the coastal areas, however, are still underdeveloped with few lateral roads linking the western-eastern portions of the region. Commercial air passenger traffic is serviced by three secondary airports (Butuan City, Surigao City and Tandag). Most of the telecommunications facilities are concentrated in Butuan City and, to a lesser extent, in Surigao City. Regional networks are currently being put in place by the different telecommunications companies franchised for the purpose. A few urban centers (Mangagoy, Bislig and Tandag, Surigao del Sur) have communication facilities for international access. All municipalities, however, are linked through the PNP-based communications system. b. Lack of Quality Accommodation Facilities Only over 100 accommodation facilities exist for the region. Most of these are lodging or pension houses. There are 21 hotels, most of which are of standard class and are concentrated in Butuan City. There are 19 beach resorts, some with limited accommodation facilities; and 13 inns. These facilities have an estimated combined capacity of 1,787 rooms and 3,126 beds. In the short term, the capacity of these facilities appear sufficient to accommodate the expected visitor arrivals. There is the need, however, to improve the quality of these facilities to enhance their attractiveness. In the long term, there is the further need to expand existing capacity.

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c. Slowly Vanishing Traditional Culture Acculturation and technological improvements were the primary factors causing the threat on traditional cultures. The Indigenous Peoples have slowly assimilated into their traditional culture some of the lifestyles and practices of the lowland migrants. This is exacerbated by the growing lack of appreciation of traditional culture and local history and aggravated further by the greater emphasis put on science and technology in curricular offerings.2 The forested areas and hinterlands used to be the traditional domain of indigenous groups. The unmitigated natural resource exploitation held in these areas and which characterized Caragas past -- some illegal activities are claimed to be still ongoing - resulted in the disruption of indigenous lifestyles. Together with the sporadic clashes between the military and the insurgents, the tribal groups either moved higher into the mountains or were resettled on the more populated lowland areas. For the tourism industry, the loss of skills and oral tradition associated with traditional cultures would thus become a disincentive. d. Anxieties about Caragas Peace and Order Situation. As affect of the peace process, Caraga today is relatively peaceful. Yet, it still suffers from the negative impact of the sporadic clashes between the military and the insurgents in the recent past. Anxieties on the peace and order situation still prevail. Unless finally resolved, the unstable peace and order situation could militate against drives for faster tourism growth. e. A rather alarmingly fast rate of developing tourism assets and high level of interest to pursue tourism activities. The fast growth of Caragas tourism industry is indicative of the emerging attractiveness of the region as a destination. This could spur wanton development of tourism assets for short term commercial profits without due regard to their long term sustainability. The declaration as Protected Area of Caragas two important nature-based assets, the Siargao Island Protected Land and Seascape and the Agusan Marsh Wildlife Sanctuary are positive indications. The managements plans for these areas, however, still need to be finalized as basis for guiding sustainable development activities. Thus, plans to put up more tourist facilities in Siargao Island need to be considered very carefully. Figure 5.1 shows the location of the two protected areas. Also, by Year 2011, over 760,000 ha of TLA areas would have expired, rendering these as open access. These areas contain some of the tourism assets and are the habitat of some of Caragas exotic wildlife species. These are additional attractions for visitors. Unless protected, the tourism value of the these resources will diminish. Another area which is vulnerable to rapid tourism development is the role and welfare of womenand children. Women are positively and negatively affected by tourism: positively in the sense ofopening opportunities for women to participate in beneficial activities like livelihood, socialpromotion and education; negatively in the sense of being exposed to exploitation and abuse forreason of their sex. This problem

63

which is well documented in the Philippines and other countries shall be recognized in Caraga as well and shall warrant a cautious planning of GAD in the Caraga tourism areas. 7.3 The Tourism Development Imperatives Tourism is now recognized as an important sector of any countrys development, therefore, is an added spur to help achieve national development objectives. Such development helps attain higher added and, more importantly, provide employment and livelihood for the citizenry. economy. Its and regional gross valueopportunities

For Caraga, the role of the tourism sector needs to be enhanced. Its development, however, require various imperatives such as the careful balancing of the need to maximize the value-adding character of the regions natural resources upon which most, if not all, tourism activities are based and of the need to preserve their natural quality for long-term sustained yield. The following summarize the development imperatives for Caragas tourism: a. Development of the transport infrastructure Priority must be given to the following: Improvement of the coastal road access linking the growth and service centers and jump-off points for identified priority tourist destinations in Surigao del Norte and Surigao del Sur Improvement of lateral roads linking the eastern and western segments of the region Improvement of the Surigao Airport to accommodate higher capacity commercial flights and increasing the number of commercial air traffic in accordance with projected demands b. Expansion of accommodation and other support facilities and services In the short term, there is the need to improve the quality of the present accommodation facilities and to install additional telecommunications facilities. In the medium term, the expansion of accommodation capacities should be pursued. c. Sustainable development of tourism assets Development of site-specific tourist destinations should be pursued within the context of sustainable development. d. Investment incentives and promotions The public sector investment capability is limited. This imperative requires the promotion of public-private-community partnership or joint ventures for investments in tourism-related development activities.

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For tourism promotions and marketing, there is the imperative of pursuing the same within a unified or integrated framework in order to achieve greater efficacy. e. An integrated institutional mechanism for sustainable tourism development This imperative covers the following concerns: Strengthening of the various organizational hierarchies for a unified tourism development efforts at all level Clarifying the roles of the various local government units in tourism development Manpower development for the various needs of tourism-related activities Strengthening broad-based advocacy for sustainable tourism 8. Strategic Directions 8.1 Vision for Tourism Development: Regional Level The DOT Regional Office, Tourism Councils and local government units have formulated the regional-level vision as the framework for tourism development. This Vision Statement is as follows:

By the Year 2008, Caraga Will Be the Major Ecotourism Destination and Investment Haven, a Show Window of Culture and History in Mindanao, Where People Are Empowered and Socioeconomically Sound, and Where the Ecosystem Is Protected, Sustainable and Accessible.

8.2 The Shared Practical Vision for Tourism Development: Local Level Through the participatory nature of the master planning approach, local-level visions on tourism were generated by the various groups of stakeholders. These Vision Statements of various local government aggrupations are summarized below: Butuan City

Show Window of History, Culture and MICE Destination in Mindanao in the Context of Sustainable Development
The above is founded on the following specific vision pillars: Historic Butuan Cruising Historic Butuan City of Museum and Historical Sites

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Cosmopolitan City with World-Class Amenities Sustainable Tourism Development Convention or Conference Center Agusan del Norte

By 2008, Agusan del Norte Is: an Internationally Acclaimed Historical Cultural and Ecotourism Destination Where Adventure Never Ends.
The specific foundational pillars of the above vision are: Infrastructure Facilities and Utilities of International Standard in Place Identified Tourist Attractions Developed, Preserved and Enjoyed Fully-developed Ecozone in Support of Tourism Institutionalization of Tourism Administrative Support Internationally Acclaimed Provincial Identity Agusan del Sur

By Year 2008, Agusan del Sur Will Become a Major Tourist Destination with Unique Tourist Sceneries and Cultural Events Supported by Environment-Friendly Facilities and Amenities
The foundational vision pillar of Agusan del Surs Vision are: Accessible and Fully Equipped Facilities that Satisfactorily Cater to Tourists Needs Protected and Sustainable Environment Preservation of Culture and Upliftment of Socio-economic Activities A Well-known Tourist Destination Surigao del Norte

A World-Class Tourist Destination Where an Empowered Local Community Actively Participates in and Benefits from a Sustainable Industry That Promotes Socio-Cultural and Environmental Preservation.
The specific vision pillars: Empowered Community Actively Involved in Tourism Development Availability of Hi-Tech Telecommunications and Transportation Facilities World-Class Tourist Destination Availability of World-Class Amenities Socio-Economic Stability That Respects Environment and Cultural Heritage Sustainable Tourism Projects in Place

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Surigao del Sur

By the Year 2008, Surigao del Sur Is the Major Tourist Destination in Caraga, Provided with Infrastructure Facilities, Utilities and Amenities Where People Are Empowered and Communities Ecologically Sound in the Context of Sustainable Development.
The foundational pillars of the above Vision are: Improved Tourism Infrastructure Support Are in Place Improved Tourist Facilities and Support Utilities in Place Socio-Economically and Politically Stable Ecologically Sound Communities Sustainable Development Strong Political Will Attained Site of International National Sports Tourism Activities 8.3 Goals, Objectives and Purpose of the Master Plan The goals and purposes of the Tourism Background Paper are to: Provide a framework and direction for the government and the private sector in developing the tourism industry in the region, anchoring on the tourism attractions that will be developed, improved and promoted as a package of attractions along strategic locations; and Enhance the environmental, historical, and cultural assets of the region as tourism resources and promote their conservation and preservation. The Tourism Background Paper is a programmatic means to help attain national and regional development objectives, particularly along the following concerns: Regional balance; Conservation of natural resources, historical and cultural heritage; Local autonomy and community empowerment; and Socioeconomic stability. The Background Paper, development objectives: therefore, seeks to achieve the following

Provide benchmark data from which the industry can chart direction for growth Provide pool of ideas from which projects can emanate Generate appreciation for the dynamics of the industry Increase tourism revenues, thereby increasing the sectors contribution to the gross regional domestic product; Facilitate the development of infrastructure linkage support to tourism development; Define the spatial organization of tourism assets; and Provide the institutional mechanism for catalyzing sustainable tourism.

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ANNEXES Proposed Alternative Inter-Market Connectivity

ACTION AGENDA :

a. Target Market Segment Caraga Region has evolved into an alternative destination to foreign tourists specifically the Korean, Japanese and Chinese tourists. The region capitalizes on its unique natural attractions and rich cultural heritage which traces historical bonds among our Asian neighbors. This is one tourism advantage that captivates Asian visitors interests in going to Caraga. The Korean, Japanese and Chinese tourists are Caragas emerging markets. They usually come in groups on cruise thereby, dominating the regions top five foreign visitors in 2004 Tourist Arrival Data. The recorded volume is expected to increase given the growing trends of cruise tours. Caraga Region with its abundant bodies of water is likewise favorable to these types of transport modes. Similarly, the regions emerging Asian markets are the focused target markets considered by the Department of Tourism National Office. Specific programs and projects are tailored to support efforts in attracting these focused markets. b. Transport Nodes Given the projected market segment, various transport nodes were determined. The presence of major ports of entries or docking areas is a primary consideration in identifying these nodes. Projected influx of tourists is via cruise on tour thus, the following locations with ports and docking areas as major gateways were considered as follows: 1. 2. 3. 4. Nasipit Transport Node Camiguin-Tubay Transport Node Surigao City Transport Node Bislig City Transport Node

c. Types of Tours The unique tourist destinations, attractions and activities an area can offer are also requisites of a transport node. A more than the usual experience makes up an excellent tour package. Caraga Region known as the land of extremes and superlatives lacks nothing to offer for a more than the usual experience to visitors. The following types of tours are available in the 5 identified transport nodes: I. Nature Tour 1. 2. 3. 4. 5. II. Island Hopping Wild Life Observation Tour (Agusan Marsh Wildlife Sanctuary) Bird Watching River Cruise Lake Cruise

Cultural Heritage Tour

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Visit to: 1. Ancestral Houses 2. Old Churches 3. Museums 4. Historical Sites 5. Religious Sites III. Adventure Tour Visit to: 1. Surfing Sites 2. Dive Sites 3. Mining Tunnels

d. Cruise Tour Routes Tourism flow is traced through the identified tourism nodes. Upon entry to specific areas, various activities and destinations to visit can be lumped into specific Tour Packages. The following traces possible routes of our target market on cruise tour: 1. Nasipit Transport Node Heritage Tour &Nature Tour From Nasipit Port as point of entry, tourists can take a Heritage Tour. The first itinerary will be Historic Butuan, the regions regional center. The city is only a 20- minuteslamd trip drive from Nasipit. A City Tour which will highlight visits to the Regional Museum and Balanghai Shrine will interest historians on cruise. Shopping for souvenirs will be part of the tour package. Cabadbaran, Agusan del Norte is also an interesting area for a Heritage Tour. It showcases ancestral houses and old churches. One will only take a 30-minute land travel from Butuan City. Other destinations are historical sites, ancient relics and the miraculous church of Magallanes, Agusan del Norte. It is only 45 minutes away from Butuan City by land. Tubay is also an excellent area to visit for a sand and sea destination. Wildlife Observation Tour Nature lovers can opt for a Wildlife Observation Tour in Bunawan, Agusan del Norte. The jump-off point to Agusan Marsh Wildlife Sanctuary is approximately two hours away from Butuan City by land. The tour offers a river cruise and an observation tour of the wild flora and fauna of the Mysical Wetland of Agusan. The area is also host to Indigenous People, the Manobos, natives of Agusan who lives in the area in unusual stilt houses and floating cottages. 2. Camiguin-Tubay Transport Node Nature & Heritage Tours From Camiguin as point of entry, cruise passengers can take an alternative route for a Nature Cum Heritage Tour via Tubay, Agusan del Norte. The area boasts of long stretch of beaches and a mountain resort. Visits to heritage sites in Tubay and Cabadbaran will only take 20 minutes and 30 minutes land travel respectively. More

69

exciting, is the trip to Surigao City for an Island Hopping Adventure. From Tubay, Agusan del Norte, Surigao City is 1 hour drive by land. 3. Surigao City Transport Node Island Hopping Surigao City can also be a major point of entry. The City Island of Adventure offers splendid natural wonders. Hop from island to island and explore more as one visits Sagisi , Buenavsita and San Jose. From Surigao City, one can go further and visit Asias surfing Paradise, Siargao Island. The area is host to the famous annual International Surfing Cup Competition in General Luna. Enjoy the white sand beaches and dare the waves of Siargao. More adventure awaits divers as they explore more astounding dive sites in the area. There are more islands to see - Guyam, Daku and Naked Islands 4. Bislig City Transport Node Bird Watching Bird watchers can find their paradise in Bislig Citys Tinuy-an Falls. What is more captivating is the majestic, three-tired falls enclosed by heavily forested hills. Not only migratory birds can be found in its forests but other forms of wildlife thrives in the area. The city is also host to PICOP, a large forest concession, which is an attraction in itself. Bislig City can be an alternative itinerary for the Wild Life Observation Tour. From Bunawan, one can take a three-hour land trip drive worth for bird watcher enthusiasts.

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A T R T E T R M F OW L E NA IV OU IS L
11/2 HRS . (96 KMS .).
AG USAN D EL N O RTE

1HR 45 MINS . .

TBY UA
2 HRS .
20 MINS . (20 KMS .)
A G USA N D EL N O RTE

15 MINS . (30 KMS .)

A G USA N D EL N O RTE

S URIGAO CIT Y

SIARGAO

CA A B R N BD A A

M G LA E A AL N S

BISLIG CIT Y CAMIGUIN

45 MINS . 45 MINS . 30 MINS . (30 KMS .) AGUSAN DEL SUR 3 HRS . (105 KMS .)

BN WN UA A BUT UAN CIT Y NASIPIT

2 HRS . (101KMS .)

- DOCKING AR EA
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INDICATIVE COST OF PROPOSED PROJECTS Program / Project Location / Description Indicative Costs 20,210.4 3,574.1 2,170.0 Periods S I. Roads & Bridges 1.1 Surigao Davao Coastal Road (SDCR) 1.2 East- West laterals a. San Fransisco Barobaro Road b. Trento Bislig Road c. Prosperidad Azpitia- Lianga Road d. Bayugan-San Miguel-Tandag Road e. Butuan-Tandag Road 1.3 Tubaylake Mainit 1.4 PJFH-PASu Access Road 2. Airport Development 2.1 Surigao City Airport Expansion 2.2 Siargao Feeder Airport 2.3 Tandag Airport Improvement Project 2.4 Bislig Airport Rehabilitation project 2.5 Butuan Airport Improvement Project Improvement/rehabilitation & construction of bridges: From Bacuag, SDN to Lingig, SDS Completion of concreting Improvement/concreting Improvement Completion/improvement Concreting Construction/concreting Banawan, Concreting of access to jumpoff-point Surigao City, Upgrading of airport facilities & expansion of runway to accommodate large aircrafts Del Carmen, Siargao Island, Runway expansion and terminal building Awasian, Tandag, Runway extension, installation of lighting and water facilities Bislig, SDS. Rehabilitation Butuan City, Improvement and expansion of facilities M L Remarks

ODA: DPWH DPWH

8.0 80.0 80.0 645.8 10.0 400.0 0.3 8,225.3 200.0 19.9 193.8 100.0 7,711.6 301.0

DENR, PAMB members

DOTC DOTC DOTC DOTC Ongoing through the 3rd Airport Loan (ADB)

3. Seaport Development

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3.1 Siargao Port Development Project 3.2 Lipata Ferry Terminal 3.3 Tandag Port Development Project

Dapa, Siargao Island, Development of cargo handling and passenger terminal infrastructure and facilities Lipata, Surigao del Norte, Improvement and expansion of RORO Facilities Bongtud, SDS. Rehabilitation , dredging, extension of inward RC wharf, installation of power, water, & administration facilities. Nasipit, AND. Improvement & expansion of facilities Bilang-Bilang Bay, Surigao City, Improvement & expansion of facilities Improvement & expansion of existing port Development of required ort infrastructures and facilities including Roro ramp and passenger terminal facilities to accommodate inter-island ferry vessels Region-wide: Upgrading and expansion Region-wide: Expansion/extension of transmission Region-wide: Installation, improvement Region-wide: Installation of municipal waste mgt system

40.0 10.0

DOTC PPA PPA; included under a 25-year Development Plan PPA/NANIE; FS & MP was to have been prepared PPA bidding the project under BOT or JV PPA PPA

121.0

3.4 Nasipit Port Expansion Project 3.5 Surigao Port Expansion Project 3.6 Bislig Port Development Project 3.7 Aras-Arasan Port Development Project

50.0 80.0

4. Caraga Water Supply & Distribution 5. Power and Energy/Electrification

8,110.0

6. Telecommunications 7. Waste Disposal & Management ACCOMODATION DEVELOPMENT Short- Term

1,321.5

LUWA, Water Districts, LGUs NAPOCOR. Electric Cooperatives, LGUs DOTC, private telecom providers LGUs Private sector investment

All types, additional 635-room capacity, 70% occupancy

300.4

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 Medium Term Long Term CULTURAL PRESERVATION AND ENHANCEMENT Interpretive Centers School for Living Traditions Home hosting Documentation of Rituals, etc. Trading Outlets Capability Building Community Museum ENVIRONMENTAL MANAGEMENT Land Use / Management Zoning Enforcement of EIS Community Tourism Envl Quality Control/Management Environment Education/Sign ages

All types, additional 1,078 room-capacity, 70% occupancy All types, additional 1,078 room-capacity, 70% occupancy Establishment of two (2) Cultural Villages Two in the Agusan Marsh Area; one in the Butuan Zone Two: Agusan Marsh Sub-Zone and Butuan Zone Training Research and documentation Three: 2 in Agusan Marsh area; 1 in the Butuan Zone Training Improvement (Cabadbaran); establishment:

510.6 510.6 6.8 1.5 1.8 * 1.0 1.5 * 21.0 21.0

DOT as Lead Implementing Agency

DOTs regular function

DOTs regular function DOTs NM/GUs

Completion of LUPZ Plans / Ordinates Information. Training, Enforcement Training Capability building, enforcement IFC campaign, linkages with DECS/tour operators

5.0

* * * 5.0

TA for LUP; Regular function DENRs regular function; EIS preparation by proponents Regular function DENRs regular function DENR, DECS

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 Research on Biodiversity MARKETING AND INVESTMENTS PROMOTIONS Design/implementation of marketing strategy

Research in the protected areas

11.0 11.0

DENR

Design/implementation of a unified marketing strategy

5.0

Investments fora and symposium Tourism Market Information Infrastructure INSTITUTIONAL DEVELOPMENT AND POLICY SUPPORT Organization & Operationalization of an Integrated Coordinating Structure for Tourism Development Institutional/Manpower & Skills Development o Tour/Narrative Guide Training o Home hosting o Service Standards & Skills Institutionalization of TCs/Related Associations Tourism Monitoring, Evaluation & Re planning Total Indicative Costs

Conduct of fora/symposia on investments Establishment of TMII

1.0 5.0 38.8

Seed fund; succeeding requirements to be shared by participating agencies and LGUs Seed fund; others to be shared proportionately To be shared by the participating LGUs and DOT

Generating support/advocacy for institutionalization efforts; creation of the TDCAC Training

7.5 15.0

To be sourced from participating agencies Regular function

Strengthening of TCs; organizing tourism associations Continuous monitoring, evaluation and replanning

7.5 3.8 21,604.4

DOT, Tourism Council DOT/Tourism Councils, ONGAs, LGUs

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Directory of Tourism Stakeholders Agusan del Norte

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Garay Beach Resort I Tinago, Matabao, Buenavista, Agusan Norte 1980 Rosminda Climente Owner Resort Operator Single Proprietorship Cottages Garay Beach Resort 2 Tinago, Matabao, Buenavista, Agusan Norte 1993 Susan Raganobag Owner (085) 343-5097 / 09193078226 Resort Operator Single Proprietorship Cottages Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Rose Beach Resort Tinago,Buenavista, Agusan del Norte July 2004 Frician / Norie Garces Owner 09217853317 Resort Operator Single Proprietorship

Vinapor Blue Waters Vinapor, Carmen, Agusan del Norte 2003 Verginia C. Masongsong Manager (085) 343-3786 Resort & Restaurant Single Proprietorship Rooms, Restaurant, Cottages Kitana Beach Tagcatong, Carmen, Agusan del Norte Marites Y. Mercado 09208037866 Hotel / Resort Operator Single Proprietorship Rooms, Disco, Beach

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Carmen Veranda Beach Mantata, Tagcatong, Carmen, Agusan Norte Roger S. Ramirez Manager 09162914073 09196708664 09172546738 fax no (085) 342-7367 Resort & Restaurant Single Prop & Partnership Cottages, Function rooms, Halls Secuanda Resorts Devt. Corporation Brgy. Tolosa, Cabadbaran, Agusan del Norte 1988 Rodulfo B. Sevilla Chairman (085) 818-1341, 343-0926 Fax no. 818-0005 Hotel & Resort Operator Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org.

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org.

Casa Alburo, Inc. L. Dagani cor. Mortola Sts., Cabadbaran, Agusan Norte 1999 Crispina A. Cosicol Operation Officer (085) 343-1148 / 818-0151 Hotel & Restaurant Corporation

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Available Facilities

Restaurant, Swimming Court

Hotel Rooms, Pools, Tennis

Available Facilities

Catering Services, Conference, Banquet facilities, Seminar Hall, Bar, Souvenir Shop, Rent a Car Yang Chay Uptoen Grill T. Curato Ave., Cabadbaran, Agusan Norte Roy Joseph Mahinay (085) 343-0645 Restaurant Single Proprietorship Food Services, Catering Services, Grill House Lechon Manok Peace & Joy Center 129 Cabiltes St., Cabadbaran, Agusan Norte 2004 Gemma P. Pagaran Coordinator (085) 343-0235 Function Hall Single Proprietorship Air Condition Function Hall

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Karls Kitchenette Burgos St., Buenavista, Agusan del Norte July 2002 Ferlinda V. Magsipoc Proprietor (085) 343-4862 Restaurant Single Proprietorship Catering Services

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Beads Caf & Restaurant Milan St., Cabadbaran, Agusan del Norte 2002 Paterno Hornido (085) 818-1138 Restaurant Single Proprietorship In-House Dining, Catering Services, Conference Room Calesa Pub & Restaurant Port Area, Talisay, Nasipit, Agusan del Norte 2004 Virgie I. Co 085 283-4258 Restaurant Single Proprietorship

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Butuan City Company Name Address Year Started Contact Person Position Contact Numbers Type of Business

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Almont Hotel Inland Resort J.C. Aquino Ave., Butuan City 1997 Adelfa N. Dace 341-2103 / 09194411461 Resort & Restaurant

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business

Butuan Royal Plaza Hotel Rhealizas Devt. Corp. 1993 Jasmin Evelyn O. Burgos Manager 085 341-5125 fax no. 342-5824 Hotel & Restaurant

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Form of Org. Available Facilities

Corporation Pool, Tennis Court, Billiard, Playground Balanghai Hotel & Convention Center Bacolod St., Doongan, Butuan City 1996 Anselma P. Labicane Officer-In-Charge 342-3064 Hotel & Restaurant Corporation Coffee Shop, Fax machine/internet, swimming pool, function rooms Embassy Hotel Montilla Blvd., Butuan City Marus B. Estacio Proprietor 085 342-5883 Hotel & Restaurant Single Proprietorship Rooms, restaurant Luciana Inn & Restaurant Montalban Bldg., San Jose St., Butuan City Araceli Galaura Manager 085 342-3293 to 96 Hotel & Restaurant Corporation Communication, vehicles, laundry Lucky Inn 472 R. Calo St., Butuan City Angeles Y. Barcelon Proprietor 085 342-7264 Lodging House Single Proprietorship Cable TV, Telephone set

Form of Org. Available Facilities

Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Butuan Luxury Hotel R. Calo Corner Villanueva Sts., Butuan City March 1992 Julius Jellico Yu Barroquillo Owner 085 342-5366 / 341-6384 / 2252357 fax 815-1387 Hotel Single Proprietorship

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Emerald Villa Hotel & Restaurant Villanueva St., Butuan City Marilou C. Gaspar Proprietor 085 342-5376 to 78 Hotel & Restaurant Corporation

Tams Fortune Inn 047 Ester Luna corner P. Burgos Sts., Butuan City 1988 Bonifacio B. Lim Manager 085 342-5438, 225-3418 Inn/Lodging Services Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Majestic Pension House 173 Pili Drive Ext., Butuan City 1999 Arsenio A. Empuerto Manager 085 342-0525 Pension House Single Proprietorship

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Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Julians Inn & Garage 219 Nangka Road, Butuan City 1999 Mario Yu Chu Jr. Owner 085 341-3075, 342-5682, 342-1601, 225-7075, 2257682, 225-7601 Hotel & Restaurant Single Proprietorship Room Rental, generator set

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Powerwide Real Estate, Inc. (Caraga Ultimate Apartelle) San Francisco St., Butuan City 2001 Henry Yee Owner 085 342-0200 Inn Corporation Parking space, kitchen

main

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Beverly Inn Montilla Blvd., Butuan City Marilou C. Gaspar Owner 085 342-8082 Inn Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Almont Hotel, Inc. Butuan City 1983 Warlon Ebrado Sr. Hotel Supervisor 085 342-5464, fax 341-5010 Hotel Corporation Room Rental, Restaurant, pasalubong counter Titas Caf 625 P. Burgos St., Butuan City Cristeta / Val T. Santos 085 342-3055, 342-6449 Restaurant Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Uncle Sams Burger J.C. Aquino Ave., Butuan City Samuel Allan M. Amante Proprietor 085 342-5350, 225-6527 Restaurant Single Proprietorship Aircon room, sound system The Tree Garden 07 P. Burgos St., Butuan City 1993 Delia D. Santos Assistant Manager 085 341-6395 Restaurant Single Proprietorship

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Roldans Eat All U Can & Seafoods Hauz 625 South Montilla Blvd., Butuan City 2004 Roldan P. Ajoc Manager / Owner 085 341-1988, 225-7083 Restaurant Single Proprietorship Sound system, air condition room, electric fans

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Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

La Cafiza J.C. Aquino Ave., Butuan City 2005 Joy Plaza or Leonides Thereze B. Plaza 085 225-7352 Restaurant Single Proprietorship

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Golden Roast Chicken, Inc. (Jonies) 441 Balbarino Subd., Butuan City Arlene N. Dorico Supervising Manager 085 342-5110, 09192195448, ar_ndorico@yahoo.com Restaurant Corporation

Jollibee Food Corporation J.C. Aquino cor. Montilla Blvd., Butuan City Dennis Culnimas Proprietor 085 342-372 jbo201@skyinet.net Restaurant Corporation

Greenwich Pizza Corporation A.D. Curato St., Butuan City Evelyn Salubre Store Manager 085 341-9536 Restaurant Corporation

Rio Grande Food Chain, Inc. (Dunkin Donuts) J.C. Aquino cor. R. Calo St., Butuan City 1999 Sharon May J. Rodriguez Asst. OIC 085 815-2222 Restaurant Corporation

Crossroads Caf & Restobar Gloria Bldg., Rosales St., Butuan City October 2004 Cristy A. Divinagracia Manager 085 342-9888 09176296933 Restaurant Single Proprietorship Dining / Drinking Area, Sound System Jets Inn & Jets Sinugba Restaurant 025 Villanueva St., Butuan City 1983 Hayden B. Luzon, Sr. Proprietor 085 341-5162 Restaurant & Inn Single Proprietorship Fully air-con room with Hot/Cold showers

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Big Joe Food & Entertainment Complex 174 J.C. Aquino Ave., Butuan City Melanie G. Manlunas President 085 225-7474 09209074597 Restaurant / Entertainment Corporation

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

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Company Name Address Year Started Contact Person Position Contact Numbers

Type of Business Form of Org. Available Facilities

Purple Horizons Tours & Travel A4/2F Dy Bldg., Del Pilar St., Butuan City 2003 Vivian D. Otaza Proprietor 085 342-4282 09209129221 purplehorizons986@yahoo .com Travel Agency Single Proprietorship Telephone, fax, computer with internet connection Almont Tours & Travel San Jose St., Butuan City 2000 Adelfa B. Pace General Manager 085 341-5010 09189202011 09194411461 Travel Agency Corporation

Company Name Address Year Started Contact Person Position Contact Numbers

Butuan Travel & Tours 54 San Francisco St., Butuan City 2003 Clemencia C. Del Rosario Proprietor 085 341-2422 viajes@balanghai.com Travel agency Single Proprietorship Computer, telephone, fax machine, radio

Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Surigao del Norte Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Mount Bagarabon Mabua, Surigao del Norte Bebot Arriba 09178510978 Hotel Single Proprietorship Suite & Double rooms

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Bislig City
Company Name Address Year Started Contact Person Casa De Babano Purok 4 Caramcam Dist., Mangagoy, Bislig City 2002 Aurora S. Babano, MD Company Name Address Year Started Contact Person Paper Country Inn Post 1, Tabon, Bislig City Dolores Marcogos

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Position Contact Numbers Type of Business Form of Org. Available Facilities

Owner 086 853-4305 Hotel Single Proprietorship Aircon rooms

Position Contact Numbers Type of Business Form of Org. Available Facilities

Manager 086 853-3079 Hotel Single Proprietorship Aircon rooms with cable tv Mangagoy John Bosco College Floating Resto John Bosco Distl, Mangagoy, Bislig City Margarito L. Lor 086 853-5235 / 853-3415 Single Proprietorship Single Proprietorship Paper Country Restaurant Post 1, Tabon, Bislig City, Surigao del Sur 1995 Dolores G. Marcojos Manager 086 853-3079 Restaurant Single Proprietorship Function Hall w/ 200 pax Lohpenchay Dimsum House Catering Services Espirito St., Mangagoy, Bislig City Freddie A. Yu Owner 086 853-2067 09182037180 Restaurant Single Proprietorship

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Salud Villa Resort Purok 3 Brgy. Kahayag, Bislig City 2002 Sally Ann Pabiona Manager 086 853-4449 09177032169 Hotel Single Proprietorship Pools, restaurant Sheilahs Restaurant Espirito St., Mangagoy, Bislig City 1989 Margarita Garay Owner 086 628-2196 / 628-2105 Restaurant Single Proprietorship telephone Sheilahs Travel & Tours Ground Flr. Espiritu St., Mangagoy, Bislig City 2004 Susan Jumagbas Secretary 086 853-2213 Travel Agency/ Tour Operator Single Proprietorship Fax machine, copier, computer, typewriter Bislig Highland Function Farm Cosico Hill, John Bosco District, Mangagoy, Bislig City, Surigao del Sur Paulino G. Bernales Proprietor / Manager 086 853-3355 09195354136 Restaurant Single Proprietorship Function all , Disco

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

Company Name Address Year Started Contact Person Position Contact Numbers Type of Business Form of Org. Available Facilities

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2.0. LAWS AND POLICIES THAT HAS IMPACT UPON TOURISM DEVELOPMENT 1.1. The 1987 Constitution The Constitution is the fundamental law of the land. As such, all laws, policies, issuances and judicial decisions must conform with it. For purposes of this study, it would therefore be necessary to elaborate the Constitutional framework for the management and development of natural resources, because the tourism development in the region will essentially be nature and natural resources based. Constitutional provisions from which the framework for natural resources management and development can be drawn are in the preamble and in Articles XII and XIV. These are the provisions that (1) enunciate the concept of ownership of resources, including the power to classify lands, and the power to alienate lands and other natural resource and (2) those which provide the manner of utilization, exploitation and development of natural resources, including provisions that mandate the state to protect the environment and guarantee the equitable and sustainable use of natural resources by the people. The Preamble of the 1987 Constitution declares the fundamental objective of establishing a government that shall conserve and develop the patrimony of the nation. Pursuant to this, the Constitution proceeds to define and elaborate the manner by which Government should pursue the objective of conserving and developing the countrys natural resources. 2.1.1. Ownership of Land and Natural Resources Constitutional provisions enunciating the concept of ownership of land and natural resources generally follow the Regalian Doctrine, a legal concept which provide that all lands of the public domains, waters, minerals, coal, petroleum and other mineral oils, all sources of potential energy, fisheries, forests, timber, wildlife, flora and fauna, and other natural resources are owned by the State, and therefore title to them can emanate only from the State. The 1987 Constitution also expressly recognizes the ownership by indigenous peoples of their ancestral domains, which may be comprised of lands, forests, rivers, and other natural resources, held and possessed by indigenous peoples in the concept of owners since time immemorial. The recently enacted Indigenous Peoples Rights Act of 1997 makes this Constitutional Provision operational by recognizing the bundle of rights of indigenous peoples over their ancestral lands and domains. 2.1.2. Utilization, Exploitation and Development of Natural Resources According to the Constitution, the exploration, development and utilization of natural resources shall be under the full control and supervision of the State. For purposes of administration and disposition of natural resources, the President of the Philippines is empowered to reserve alienable public lands for specific purpose or service and under the Public Land Act; to release those reserved; to exercise exclusive prerogative to classify and declassify public forest lands; to lease or grant to qualified persons under specific conditions permits for the use of forest lands or vacant public lands; to exercise control over the survey, classification, lease, sale, or any other form of public concession or disposition and management of lands of the public domains; and to enter into

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agreements with foreign owned corporations involving either technical or financial assistance for large scale exploration, development and utilization of minerals petroleum, and other mineral oils . . . , based on real contribution to the economic growth and general welfare of the country, provided that such agreements shall promote the development and use of local scientific technical resources and provided further that the President shall notify the Congress of every contract entered into in accordance with this provision within 30 days from its execution. These above executive powers are delegated by the President to the Department of Environment and Natural Resources by virtue of Executive Order No. 192. The exploitation, development and utilization of natural resources may be directly undertaken by the State, or it may enter into co-production, joint venture or production sharing agreements with Filipino citizens, corporations, or associations at least 60% of whose capital is owned by such citizens. Such agreements shall be for a period not exceeding 25 years, renewable for not more than 25 years. . . ( Art. II, Sec. 2). The State recognizes and promotes the rights of indigenous peoples (Art. II, Sec. 22). Likewise, the State shall apply the principles of agrarian reform or stewardship. . . in the disposition and utilization of other natural resources, including lands of the public domain under lease or suitable to agriculture, subject to prior rights, homestead rights of small settlers and rights of IPs to their ancestral lands/ domains. 2.1.3. Principles for the Development of Natural Resources The Constitutional principles for the development of Natural Resources include the principles of conservation, nationalism, social justice, sustainable development and protection of Indigenous Peoples Rights. Conservation The parameter for conservation can be surmised from three salient constitutional mandates. First, the declaration of National Parks as a separate category of public land (Art. XII, Sec. 3); Second, the mandate that the establishment and disestablishment of forestlands and national parks shall be solely by an act of Congress (Art. XII, Sec. 4); The evident purpose of such declaration is to prevent uncontrolled conversion of forest areas to other uses. Third, the mandate that explicitly enunciates, conservation, ecology, development and agrarian reform as the principal consideration in the alienation of public lands. (Art. XII, Sec. 3). Nationalism The Constitution distinctly and specifically espouses nationalism as one of the parameters of economic development programs. Accordingly, the Constitution mandates that all forms of disposition and utilization of natural resources should be reserved to Filipino entities, majority ownership of which belong to Filipinos. The intent that the patrimony of the nation be left for the benefit of its citizens is clearly discernible in Art. XII, Sections 2, 7, 10, 11, and 12 of the 1987 Constitution. Art. XIV, Section 16 of the Constitution likewise provides that all the countrys artistic and historic wealth constitutes the cultural treasure of the nation and shall be under the protection of the State, which may regulate its disposition.

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Social Justice and Democratization of Access to Resources The Constitution guarantees the right of direct users of natural resources, such as farmers, forest dwellers, indigenous peoples, gold panners and marginal fisherfolk to continue using the resource for their daily sustenance and survival in accordance with existing laws. (Art. XIII, Sec. 7, Art. II, Sec. 22; Art. XIII, Sec. 6; Art. XII, Sec. 3, par. 3). The Constitution introduces the concept of small-scale utilization of natural resources in order to guarantee that these direct users and marginalized sectors could gain access and participate in the utilization and management of resources. Reform in the use of resources is urged through the introduction of stewardship concepts, whereby people are granted rights to the use of land, though not necessarily the ownership or title. The establishment of cooperatives to build the necessary capital for engagement in natural resources development ( Art. XII, Sec. 2) is encouraged. Social Justice is a clear mandate in the Constitution. Among the most important provisions that limit the exercise of Government of its power of dominion over the resource base is the fundamental guarantee that no one shall be deprived of life, liberty or property without due process of law. The Constitution clearly provides that the use of property bears a social function (Art. XII, Sec. 6) and all economic agents shall contribute to the common good. Sustainable Development A development model that assures the posterity of the nation is mandated in the Constitutional provision, the State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature (Art. II, Sec. 15). To achieve this, the Constitution limits the modes by which utilization can be undertaken, the area that can be utilized, and the duration and terms of the grants. While the Constitution recognizes the need for foreign capital and technology to develop the countrys resources, and allows executive prerogative to enter into Financial and Technical Assistance Agreements (FTAAs), it enunciates safeguards that ensures that in addressing these needs, the Government will not sacrifice sovereignty and control over the resources. Thus, FTAAs may be entered into only in large-scale operations where Filipino capital is deemed insufficient and should not include in its scope lands of the public domains, timberlands, forests, marine resources, flora and fauna, wildlife and national parks. The foreign entities with whom the Government enters into agreement with, is merely a contractor and not beneficial owner of the resource base. Protection of Indigenous Peoples Rights The rights of indigenous peoples to their ancestral lands and domains, to cultural integrity and governance, human rights and social services are protected in the Constitutional contained in Art. XII, Sec. 5; Art. XII, Sec. 2; Art. II, Sec. 9; Art. XII, Sec. 6 and Art. XIII, Sec. 4. 2.2. National Development Plans, Policies And Strategies National development plans, policies and strategies determine the development paradigm of a country, direct the mobilization of human resources, guide the allocation of natural resources and influences investment priorities. National development plans and policies therefore form an important part of any policy framework. National Development Plans and Policies that may impact on Tourism Development include the

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Medium Term Philippine Development Plan, the Tourism Master Plan of the Philippines, Philippine Agenda 21 and the Social Reform Agenda. 2.2.1. Declaration of State Policy with Regard to Tourism The Administrative Code of 1987 declares that the State shall promote, encourage and develop tourism as a major national activity in which private sector investment, effort and initiative are fostered and supported and through which socio-economic development may be accelerated, foreign exchange earned, international visitors offered the opportunity to travel to the Philippines and appreciate its natural beauty, history and culture, and Filipinos themselves enabled to see more of their country and imbued with greater pride and commitment to the nation. The Code mandates the Department of Tourism to encourage, promote and develop tourism as a major socio-economic activity to generate foreign currency and employment and to spread the benefits of tourism to a wider segment of the population with support, assistance and cooperation of both the private and public sectors, and to assure the safe, convenient, enjoyable stay and travel of foreign and local tourists in the country. Accordingly, the Department of Tourism is vested with powers and functions, among others, to formulate policies, plans, programs and projects for the development of tourism industry, to advise the President on the promulgation of laws relative to policy, plans, programs and projects designed to promote and develop the tourism industry, provide the protection, maintenance and preservation of historical, cultural and natural assets which are tourist attractions with the appropriate government agencies or with the private sector or owners of said assets or attractions, arrange whenever deemed appropriate, for the reclamation of any land adjacent to or adjoining a tourist zone in coordination with appropriate government agencies. 2.2.2. Tourism Master Plan of the Philippines The Tourism Master Plan of the Philippines is the countrys strategic framework for tourism development. It encourages the expansion of existing resource base for tourism by allowing the development of tourism estates and specific investment areas. It underlines the crucial importance of proper utilization of nature-based tourism assets and resources and the proper promotion and rational development of tourism spots. It seeks to realize a tourism development plan where the needs of the people and environment are addressed together with economic growth, considering that while tourism projects bring economic benefits, they can also bring about adverse ecological and social consequences. Tourism development can likewise greatly influence the alteration of existing environment or resources relative thereto. 2.2.3. The Medium Term Philippine Development Plan The vision of development as contained in the Medium Term Philippine Development Plan (MTPDP) is for the Philippines to become a newly industrializing country by the turn of the century. The goal under the Plan is to attain an improved quality of life for all Filipinos through the twin objectives of world competitiveness and people empowerment. The Plan takes a holistic and integrated view of development. It recognizes that the different factors of development are interdependent; hence, the Plan is divided into five

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closely related clusters of development factors, instead of individual sectors. These are: agri-industrial development, development administration, human, Infrastructure development, and macro-economy. To ensure that particular solutions to particular problems or needs of people in different areas will be addressed, the Plan identifies specific geographic areas where major programs of government will be implemented. Consistent with the adoption of a location-specific and ecosystem-based approach to agri-industrial development, tourism is expected to play a greater role in spurring economic growth and regional development. New tourism destination clusters will be developed. Destination planning will be undertaken with a view to balancing the issues for a tourism industry that will be sustainable over the long term. 2.2.4. Philippine Strategy for Sustainable Development/ Agenda 21 On June 6, 1988, a formal resolution was passed urging the President of the Philippines to adopt and implement a Philippine Strategy for Sustainable Development (PSSD). The PSSD stressed that the only rational way of planning the countrys national progress was through sustainable development; meeting the needs of citizens today without limiting the option of future generations to fulfill their needs; development without destruction; achievement of material progress without compromising the life support functions of natural systems; pursuit of higher levels of quality of life while preserving or even enhancing environmental quality. To maintain economic growth without depleting the stock of natural resources and degrading environmental quality, the PSSD determined that goals pertaining to biodiversity should be set together with other essential and strategic objectives. These goals were to maintain the countrys species and genetic diversity and to ensure the integrity of essential ecological processes and the life-support systems. The PSSD established two important strategic interventions with regard to these goals, these are (1) conservation of biodiversity and rehabilitation of degraded ecosystems; and (2) property rights reform by assigning secure access rights perhaps even private ownership of resources to responsible individuals and communities. The importance of the preservation of wild species and genetic diversity to meet the food and medical requirements of the population was stressed. PSSD emphasized that biodiversity conservation increased the capacities of peoples to deal with questions of survival and development. The PSSD therefore proposed the establishment of protected areas for the conservation of wildlife and unique ecosystems with the end in view of conserving genetic resources for scientific, educational, cultural and historical values. It proposed the establishment of protected areas after a reassessment of the status of parks and equivalent reserves in order to form a basis for developing strategies to rehabilitate degraded parks and at the same time identify new areas where conservation of genetic resources and preservation of biodiversity can be pursued. The PSSD noted that the sheer number of rural people already in place right on or beside fragile ecosystems make them a formidable force either for environmental destruction or protection. It recommended therefore that attention be given to rural development, as it has already been established that poverty forces the poor to be destroyers rather than

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caring stewards of the very resources that can liberate them from poverty. The PSSD proposed a rural development strategy characterized by empowerment of the poor through greater participation in policy making processes and project implementation; accelerated land reform; equitable access to natural resources use and benefit; removal of policy and public investment biases against the rural sector; provision of infrastructure and support services and strengthening social services. The Philippine Agenda 21 (A National Agenda for Sustainable Development) formulated in fulfillment of the countrys commitments to the Earth Summit in Rio de Janeiro in 1992 was subsequently adopted and approved. It is anchored on a framework that places people and nature at the center of development initiatives hence its implementation is on an area- and ecosystem-based approach. The action agenda of PA21 elaborates a mix of strategies that integrate sustainable development parameters in the countrys overall development strategy. Concrete policy statements as well as appropriate implementation strategies on the critical issues that will affect sustainable development activities in the Philippines in the next 30 years, including financing and localization mechanisms, are outlined. The Travel and Tourism Industry has adopted its own Agenda 21. The guiding principles of this agenda is outlined in an Article entitled Striving for Sustainable Tourism by Emilio Antonio, Jr., as follows: Travel and Tourism should assist people in leading healthy and productive lives in harmony with nature. Travel and Tourism should be based upon sustainable patterns of production and consumption. Nations should cooperate to promote an open economic system, in which international trade in Travel and Tourism services can take place on a sustainable basis. Travel and Tourism, peace, development, and environmental protection are interdependent. Protectionism in trade in Travel and Tourism should be halted or reversed. Tourism development issues should be handled with the participation of concerned citizens, with planning decisions being adopted at local levels. Nations shall warn one another of natural disasters that could affect tourist areas. Tourism development should recognize and support the identity, culture and interests of the indigenous peoples. International laws protecting the environment should be respected by the Tourism and Travel Industry. The Agenda 21 declaration addresses two levels of development agents. First, those in the public sector (i.e., government departments, national tourism administration, and representative trade organizations) are encouraged to establish systems and procedures to incorporate sustainable development considerations at the core of the decision making process and to identify actions necessary to bring about sustainable tourism development. The priority areas include assessing the capacity of the existing regulatory, economic and voluntary framework to bring about sustainable tourism; training, education and public awareness, facilitating and exchanging information, skills and technology related to sustainable tourism between developed and developing countries, measuring progress in achieving sustainable development at local level, and designing new tourism products with sustainability at the core.

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Second, for those directly involved in tourism, that is, Travel and Tourism companies, the priority areas for action are: waste minimization, reuse and recycling; energy efficiency, conservation, and management; management of fresh water resources; transport; landuse planning and management; and partnerships for sustainable development. 2.2.5. The Social Reform Agenda Under the Social Reform Agenda, adopted by the President of the Philippines in 1995, the Human Development goal of government is averred to be economic growth and social reform. Philippines 2000, a blueprint for National Economic Recovery seeks to balance global competitiveness and people empowerment through support for two sets of target groups: sectoral groups, including farmers, fisherfolk, indigenous peoples, urban poor and workers in the informal sector and other disadvantaged groups including women, differently abled persons, youth, students, the elderly, victims of disasters in 25 poorest provinces in the Philippines. The SRA adopts a three-point agenda including (1) access to quality basic services, (2) asset reform and sustainable development of productive resources and access to economic opportunities to widen the citizens share to resources both natural and manmade, from which they can earn a living or increase the fruits of their labor, address inequalities in ownership, distribution, management and control over resources, and (3) institution building and participation in governance towards self-governance. 2.3. Philippines Laws and Statutes 2.3.1. Laws on National Parks and Protected Areas One of the most important laws that will impact on tourism development in the CARAGA Region will be the National Integrated Protected Areas Act and relevant provision of the Forestry Code on National Parks and Protected Areas. This is because the tourism assets of the region is predominantly nature based and three of its most promising assets are covered by the NIPAS Act, these are Agusan Marsh, Siargao Island and Dinagat Island. Other tourism assets in the Region covered by the NIPAS Act are shown on Table 2. Table 2: Tourism Assets in the CARAGA Region Covered by the NIPAS Act Asset and Location Mangrove Wilderness Area -16 Islands and Islets in SDN, 4,194.60 ha. Mangrove Wilderness Labigan, Valencia, Mahaba Island, SDS878 Ha, Surigao WFR, Sison, Malinao, San Francisco, SDN- 987 ha. Proc. 635, 1990 Andanan River WFR, Sibagat, &Bayugan, ADS, 15,097 ha. Proc. 734, 1991 Mt. Magdiwata WFR, San Francisco, ADS, 1,658 ha., Proc. 282,1993. Adlay WFR, Carrascal, SDS, Proc. 291, 1993 comprised of 27 hectares Cabadbaran WFR,Cabadbaran,ADN, Proc. 834, 1991 16, 205 hectares NIPAS Category Wilderness Area, 1993\ Wilderness Area, 1993 Proclaimed Watershed Proclaimed Watershed Proclaimed Watershed Proclaimed Watershed Proclaimed Watershed

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Provident Tree Farm, Inc., Mini Zoo in Zillovia, Talacogon, ADS Hinuphupan Cave, Loreto, Surigao del Norte Suy-anogn Cave, Libjo, Surigao del Norte Big Lanao Cave, Basilica, SDN Lower Babag Buaya, Basilica, SDN Baluarte Cave, San Benito, SDN Inocensio Cave, San Benito, SDN Lahos A and B, Pilar, SDN Sayog Cave, Pilar, SDN Consuelo Cave, Gen. Luna, SDN Sohoton Gamay Cave, Socorro, SDN Guyangan Cave, Soccoro, SDN Parola Cave, Soccoro, SDN Look Cave, Soccoro, SDN Silop Cave 1 to 5, Silop, SDN Hubasan Cave, Placer, SDN Danao Cave, Taganaan, SDN Buhong-baho Cave, Tubod, SDN Sudlon Cave, Soccoro, SDN Bayagnan Cave, Alegria, SDN Kapanagdan Cave, Claver, SDN Kuyapnit Cave, Gicaquit, SDN Punta Diwata Cave, Vinapor, Carmen, A.D.N. Buenavista Cave, Hikdok Island, Surigao City Humilog Cave, Agusan del Norte Vinapor Cave, Agusan del Norte Mapawa Cave, Surigao City Agapito Cave 1 and 2, Taganaan, SDN National Integrated Protected Areas Act (RA 7586, 1992 June)

Zoological Garden Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave Cave

Republic Act No. 7586 of 1992, otherwise known as the National Integrated Protected Areas Systems Act (NIPAS Act) set the framework for the establishment and management of Protected Areas. The NIPAS Act mandates that the use and enjoyment of protected areas must be consistent with the principles of biological diversity and sustainable development. NIPAS Act declares that it is the policy of the State to secure for the Filipino people of present and future generations the perpetual existence of all native plants and animals through the establishment of a comprehensive system of integrated protected areas within the classification of national park, and to recognize that the effective administration of these areas is possible only through cooperation among the national government, local government units, concerned private organizations and peoples organizations. The NIPAS Act defines eight categories of protected areas, namely: Strict Nature Reserve- an area possessing some outstanding ecosystem feature and/or species of flora and fauna of national scientific importance maintained to protect nature and maintain processes in an undisturbed state in order to have ecologically representative examples of the natural environment available for scientific study, environmental

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monitoring, education and for the maintenance of genetic resources ina dynamic and evolutionary state. Natural Park is a relatively large area not materially altered by human activity whereextractive resource users are not allowed and maintained to protect outstanding natural and scenic areas of national or international significance for scientific, educational and recreational use. Natural Monument is a relatively small area focused on protection of small features to protect or preserve nationally significant natural features on account of their special interest or unique characteristics. Wildlife Sanctuary comprises an area, which assures the natural conditions necessary to protect nationally significant species, groups of species, biotic communities or physical features of the environment where these may require specific human manipulation for their perpetuation. Protected Landscapes and Seascapes are areas of national significance, which are characterized by the harmonious interaction of man and land while providing opportunities for public enjoyment through recreation and tourism within the normal lifestyle and economic activity of these areas. Resource Reserve is an extensive and relatively isolated and uninhabited area normally with difficult access designated as such to protect natural resources of the area for future use and prevent or contain development activities that could affect the resource pending the establishment of objectives which are based upon appropriate knowledge and planning. Natural Biotic Area are areas set aside to allow the way of life of societies living in harmony with the environment to adopt to modern technology at their pace. Other categories established by law, conventions or international agreements to which the Philippine Government is a signatory. Table 3: Protected Area Categorization Matrix DENR MC 93-25 showing allowable human activity per category Category Strict Nature Reserve Natural Feature Pristine natural environment of unusual species diversity Cultural Feature IPs Mgt. Objectives science and wilderness protection. Allowable Human Activity Limited scientific research, measurement, counts, observations, behavioral studies of primates, and migratory wildlife. Regulated recreation sight seeing, bird watching, trekking, limited scientific research activity, measurements, counts and observations.

Natural Park

An ecological community with minimum disturbance significantly illustrating the process of succession and restoration to natural conditions

IPs

Ecosystem conservation and recreation.

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following disruptive change. Natural Monuments Landmarks Unique geological feature of aesthetic or scientific values. Important wildlife species, unique, rare, threatened and endangered. IPs Conservation of specific natural features. Conservation of wildlife. Regulated recreation, e.g. controlled seasonal hunting and fishing. Scientific research, small scale manipulation experiments, habitat and population management, creation of artificial waterhole, and controlled recreation. Socio-economic activities, development of compatible sustainable practices, Controlled collection of deadwood, wildfruits, honey minor forest products, traditional hunting and fishing. Regulated recreation such as bird watching, trekking, sight seeing etc. Scientific research involving only measurements, counts and observations. Resource extraction in traditional manner Gathering food crops, medicines, dyes, fodder, hunting and fishing.

Wildlife Sanctuary

IPs

Protected Landscape Seascape

Multiple use character (harmonious interaction of man, land and sea)

IPs

Landscape or seascape conservation and recreation.

Resource Reserve

Extensive and relatively isolated uninhabited and inaccessible. Ancestral domains and cultural sites

IPs

Protection of natural resources for future use. Preservation of IPs Culture and Traditions.

Natural Biotic Area

IPs

The initial components of the NIPAS extends to all areas and islands in the Philippines, designated or set aside pursuant to a law, presidential decree, proclamation or executive order as a national park, game refuge, bird and wildlife sanctuary, wilderness area, strict nature reserve, watershed, mangrove reserve, fish sanctuary, natural and

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historical landmark, protected and managed landscape/seascape as well as identified virgin forests before June 1992 or before the effectivity of the NIPAS Act. Later components may be proposed by the Secretary of DENR and may be comprised of areas with outstanding physical features, anthropological significance and biodiveristy. Protected areas extend to their buffer zones or peripheral areas around the PA that is subject to special development control in order to avoid or minimize harm to the protected area. The NIPAS Act provides the general directions for the management of protected areas through a General Management Planing Strategy (GMPS), which incorporates the recognition of Indigenous Peoples Rights over their Ancestral Domains and the rights of tenured migrants and settlers. Section 13 of the Act specifically states Ancestral lands and customary rights and interest arising therein shall be accorded due recognition. DENR shall have no power to evicts indigenous communities from their present occupancy nor resettle them to another area without their consent. No rules and regulations whether adversely affecting said communities or not shall be passed except when subjected to notice and hearing to be participated by members of concerned indigenous communities. With regard to tenured migrants the law mandates that they shall be afforded tenurial rights to their present occupation. Tenured Migrants are those who have possessed areas within the protected area for at least five years before the passage of NIPAS Act in 1992 or five years before the proclamation of a protected area as such. The NIPAS act outlines the directions for Administration of the areas, creating a Protected Areas Management Board for each Protected Area and establishing a Protected Areas Fund to be used for the maintenance of the PA. Except as may be allowed by the nature of their categories and pursuant to rules and regulations governing the same, the following acts are prohibited within protected areas: Hunting, destroying, disturbing, or mere possession of any plants or animals or products derived there from without a permit from the Management Board. Dumping of any waste products detrimental to the protected area, or to the plants and animals or inhabitants therein; Use any motorized equipment without a permit from the Management Board. Mutilating, defacing or destroying objects of natural beauty, or objects of interest to the indigenous cultural communities or of scenic value; Damaging or leaving roads and trails in a damaged condition. Squatting, mineral locating, or otherwise occupying any land; Constructing or maintaining any kind of structure, fence or enclosures, conducting any business without a permit; Leaving in exposed or unsanitary conditions refuse or debris, or depositing in ground or in bodies of water, and; Altering, removing, destroying or defacing boundary marks or signs. Numerous issuances stipulate procedures for the preparation, approval and adoption of management plans for protected areas and for the conduct of activities in selected national parks. Memorandum Circular No. 93-4 stipulate the Guidelines for the Adoption of IPAS General Management Strategy, Memorandum Circular 93-3 specifies the general outline for the formulation of Specific Management Manual and Management Plan for

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Protected Areas, and DAO 94-34 sets the general outline for the formulation of initial Protected Area Plan. There are four areas of concern in the NIPAS that have a bearing on Tourism Development. These are the NIPAS Categories and Management Zones, the rights of indigenous peoples and tenured migrants within protected areas, the Protected Areas Management Board, Protected Areas Planning Strategies and Prohibited Acts under NIPAS. NIPAS Categories and Management Zones NIPAS categories and management zones are important considerations in tourism development planning because of the curtailment of human activity in some categories and zones. The Protected Area Categorization Matrix in Table 3, above specifies regulated recreation activities such as sight seeing, bird watching and trekking only in Natural Parks, Natural Monuments, Wildlife Sanctuary, Protected Landscapes and Seascapes. Occupancy, use and exploitation of resources, when allowed should be in conformity with an approved management plan. Forest reservations essentially of a natural wilderness character will be set aside exclusively to conserve the area or preserve the scenery, the national and historic objects, wild animals and plants therein. It is also important to tourism development planning to consider that NIPAS areas are covered by Protected Areas Management Plans and all activities that may be carried out within the PA should be specified in such plan. To ensure that no activities outside those specified in the management plan are carried out, Section 12 of the law provides that the proposals for activities outside the scope of the management plan for the protected areas shall be subject to environmental impact assessment as required by law before they are adopted, and the results thereof shall be taken into consideration in the actual decision making process. No actual implementation of such activities shall be allowed without the required Environmental Compliance Certificate (ECC) under the Philippine Environmental Impact Assessment System (EIA). In instances where such activities are allowed to be undertaken, the proponent shall plan and carry them out in such a manner as will minimize any adverse effect and take preventive and remedial action when appropriate. The proponent shall be liable for any damage due to lack of caution or indiscretion. Rights of Indigenous Peoples and Tenured Migrants Tourism development planning should likewise consider the importance placed by NIPAS upon the recognition of the rights of indigenous peoples to their ancestral domains. The manner by which the rights of indigenous peoples shall be recognized no longer remains with the DENR as provided by the NIPAS act but shall be in accordance with the provisions of the new Indigenous Peoples Rights Act of 1997, the provisions of which supercedes those provisions in the NIPAS which are contrary to the provisions of IPRA. The rights of tenured migrants or those settlers who have occupied and possessed portions of the protected area for at least five years before the designation of the area as such are also protected in that they shall be given the appropriate tenurial instrument over their current occupation.

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Any tourism plan should not only take into consideration the categories of protected areas and their management zones, but more importantly, that indigenous peoples and tenured migrants have vested rights over the areas they claim, occupy and/or possess. Planning and Management Strategies Tourism development planning should further consider that the NIPAS strictly mandates adherence to a set of Planning and Management Strategies to carry out the intent of the law. Section 9 of the act underscores the requirement for a General Management Planning Strategy (GMPS). It states, there shall be a general management planning strategy to serve as a guide in formulating individual plans for each protected area. The Management planning strategy shall at the minimum, promote the adoption and implementation of innovative management techniques including, if necessary, the concept of zoning, buffer zone management for multiple use and protection, habitat conservation and rehabilitation, diversity management, community organizing, socioeconomic and scientific researches, site specific policy development, pest management and fire control each component area of the System shall be planned and administered to further protect and enhance the permanent preservation of its natural conditions. A management manual shall be formulated and developed which must contain the following: an individual management plan prepared by three (3) experts, basic background information, field inventory of the resources within the area, an assessment of assets and limitations, regional interrelationships, particular objectives for managing the area, appropriate division of the area into management zones, a review of the boundaries of the area, and a design of the management programs. To provide flexibility in the management, each protected area and its attached buffer zones shall be divided into one or more categories listed below. Cultural Communities, tenured migrants, other existing protected area users and local governments shall take part in the decision making process in zone establishment and management planning. Management objectives and strategies shall be developed for each zone and specific approaches and technologies identified and implemented in accordance with the strategy to meet those objectives. The zoning of protected areas and their buffer zones and management prescription within those zones shall not restrict the rights of indigenous peoples to pursue traditional and sustainable means of livelihood within their ancestral domain unless they so concur. Protected Area Management Board It will be worthwhile for tourism development projects to take into consideration that the management and administration of protected areas is placed under a Protected Areas Management Board (PAMB). The PAMB shall be composed of the Regional Executive Director of DENR under whose jurisdiction the protected area is located or under whose jurisdiction a greater portion of the area is located, a representative from the municipal government/s involved, a representative from each barangay covering the protected area, one representative from each tribal community, if applicable, at least three representatives from non-government organizations/ local community organizations and if necessary, one from other departments or national government agencies involved in the protected area management. The PAMB shall decide allocations for budget, approval of proposals for funding, decide matters relating to planning, peripheral protection and general administration of the area in accordance with the GMPS.

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Table 4: Protected Area Management Zones Management Zone Strict Protection Zone Description of Zone and Activities Allowed Areas with high biodiversity value which shall be closed to all human activity except for scientific studies and/ or ceremonial or religious use by indigenous communities. Natural areas where habitat and its associated biodiversity shall be conserved but where, consistent with the management plan and with PAMB approval, (1) indigenous community members and/or tenured migrants and/or buffer zone residents may be allowed to collect and utilize natural resources using traditional sustainable methods that are not in conflict with bio-diversity conservation requirements, (2) research, including the reintroduction of indigenous species, may be undertaken, and (3) park visitors may be allowed limited use. Provided that no clearing, farming, settlement, commercial utilization or other activities detrimental to biodiversity conservation shall be undertaken. Areas of degraded habitat where the long-term goal will be to restore natural habitat with its associated biodiversity and to rezone the area to a more strict protection level. Initially, natural regeneration will be assisted through such human interventions as fire control, cogon suppression and planting of native species including indigenous pioneer tree species as well as climax species. Exotic species (not native to the site) shall not be used in the restoration process. Existing houses and agricultural developments may be allowed to remain initially but would be phased out eventually. Areas with significant habitat and species values where management practices are required periodically to maintain specific non-climax habitat types or conditions required by rare, threatened or endangered species. Examples would be forest openings for the tamaraw or brushy forest for the Philippine tarsier. Human habitation and sustainable use may be allowed if they play a habitat management role. Areas where settlement, traditional and/or sustainable land use,

Sustainable Use Zone

Restoration Zone

Habitat Management Zone

Multiple-Use

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Zones

Buffer zones

including agriculture, agroforestry, extraction activities and other income generating or livelihood activities, may be allowed to the extent prescribed in the management plan. Land tenure may be granted to tenured migrants and indigenous peoples. Areas outside the protected area but adjoining it that are established by law and under the control of the DENR through the Protected Area Management Board. These are effectively multiple use zones that are to be managed to provide a social fence to prevent encroachment into the protected area by outsiders. Land tenure may be granted to occupants who qualify. Bufferzones should be treated as an integral part of the protected area in management planning. Areas with significant cultural, religious, spiritual or anthropological values where traditional rights exist and ceremonies and/or other cultural practices take place. Areas of high recreational tourism, educational and environmental awareness values where sustainable eco-tourism, recreational, conservation education or public awareness activities may be allowed as prescribed in the management plan. Areas containing existing installations of national significance such as telecommunication facilities, irrigation canals or electric power lines. Such installations may be retained subject to mutual agreements among the concerned parties, provided such installations will not violate any of the prohibitions contained in Sec. 20 of the NIPAS Act. Areas that may be used in the Management plan subject to the approval of the Secretary of DENR.

Cultural Zones

Recreational Zones

Special Use Zone

Other Management Zone

DENR DAO 94-04 and Proposed Bills on Cave Management DENR DAO 94-04 dated 19 January 1994 establishes a Cave Management and Conservation program to operationalize the DENRs mandate to conserve, manage, develop and properly use the countrys environment and natural resources. This is undertaken also in pursuance of the States policy to ensure the sustainable, use, development, management, renewal and conservation of resources including the enhancement of the quality of the environment and equitable access of the different segments of the population to the development and use of the countrys natural resources not only for the present generation but for future generations as well.

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As its legal basis, the Program enumerates the Constitution, the Philippine Strategy for Sustainable Development, the actions and agreements reached by the Philippine Council for Sustainable Development, objectives of Agenda 21 of the UNCED and such other international protocols and treaties to which the Philippines has committed to abide. The Program seeks to ensure the sustainable use, management, protection, development and conservation as well as ensure the equitable access of the different segments of society to the benefits offered by caves and cave resources. It also seeks to promote the widest participation of the different sectors in society in planning, implementing, monitoring and evaluating the Cave Management and Conservation Program. Caves are defined in the Issuance as any naturally occurring void, cavity, recess or system of interconnected passages, which are found beneath the surface of the earth or within a cliff or ledge, which is large enough to permit an individual to enter, whether or not the entrance is naturally found or man-made. Such term shall include any natural pit, sinkhole, or other feature, which is an extension of the entrance. Cave resources include any material or substance occurring naturally in caves, such as animal life, plant life, paleontological deposits, sediments, mineral, speleogens and speleothems. Speleogens are relief features on the walls, ceilings, and floor or any cave or lava tube which are part of the surrounding bedrock, including but not limited to Anastomoses, Scallops, Meander Niches, Petromorphs and Rock Pendants in solution caves and similar features unique to volcanic caves, while Speleothem are natural mineral formation or deposit occurring in a cave or lava tube, including, but not limited to, stalactite, stalagmite, helicite, cave flower, flowstone, concretion, drapery, rimstone or formation of clay or mud. The Cave Management and Conservation Program shall include all present programs, projects and initiatives of DENR related and involving the cave ecosystem. It will also include all projects jointly undertaken by DENR with other government agencies, NGOs and International entities or instrumentalities. The objectives of the program are as follows: 1. Develop and implement a human resource development program for cave conservation and management. 2. Develop and implement a research and development program on the different components of the cave ecosystem. 3. Formulate and implement policies to support the management and conservation of caves and cave resources. 4. Formulate and implement plans and programs which will promote wise use of and equitable access to caves and cave resources. 5. Promote participation of the different sectors of society in the formulation and implementation of policies, plans and programs of the Cave Management and Conservation Program. 6. Develop and implement an information, education and communication campaign for cave conservation and management. 7. Use community organizing as a strategy to ensure peoples participation in planning and implementation of the CMCP.

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8. Facilitate the development and implementation of management plans for individual caves which are identified for proclamation as part of the national heritage on the basis of their cultural, scientific, aesthetic and archeological value. The Cave Management and Conservation Program has nine different components including: 1. Rapid Cave Resource Assessment 2. Biodiversity Assessment 3. Assessment of Geological, Paleotological and Speleological Resources 4. Cultural and Archeological Resources 5. Management of Resource Utilization 6. Visitor Management 7. Information, Education and Communications Campaign 8. Human Resource Development 9. Research Management of the Program shall be vested in a National Cave Management and Conservation Committee which shall be composed of representatives from the DENR Protected Areas and Wildlife Bureau, Mines and Geosciences Bureau, Ecosystems Research and Development Bureau, Office of the USEC for Environment and Research, USEC for Field Operations, USEC for Natural Resources, Foreign Assisted and Special Projects Office, Human Resource Development Service. Representatives from other government agencies will include those coming from the Department of Education, Culture and Sports, Department of Interior and Local Governments, Department of Tourism, Philippine Information Agency, Philippine Tourism Authority, Philippine National Museum, Presidential Management Staff, UP Institute of Geological Science, NGOs, POs and Academic Institutions. A Regional Cave Management and Conservation Committee shall be created in every Region to be composed of the RTD for Environment and Protected Areas, RTD for Mines and Geosciences, RTD for Research, Regional Public Affairs Office, Representative from the Regional Office of the Philippine Tourism Authority, Representative from the Regional Office of the Department of Tourism, Representative from the Local Government Unit concerned, Regional Philippine National Police Command and representatives from locally based NGO. The PAWB shall serve as the Secretariat for the National Cave Management and Conservation Committee, while the Protected Areas and Wildlife Division of DENR Regional Offices shall serve as the Secretariat for the Regional Cave Management and Conservation Committee. Bills are pending in the Senate (SB 97 introduced by Sen. Angara) and House of Representatives (introduced by Venice Borja-Agana and Socorro O. Acosta) that seek to provide safeguards against possible recreational abuse and commercial exploitation of caves and cultural resources found in them. Under these bills, the DENR Secretary is mandated to formulate rules and regulations for protection of caves and cave resources, and to identify within one year from the enactment of the law the criteria for identification of significant caves. Disclosure of information on significant caves shall be upon the discretion of the Secretary of DENR.

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The Secretary of DENR will likewise have the jurisdiction to issue permits for the collection and removal of cave resources and to revoke them at any time he determines that the permittee has failed to comply or violated the terms of the permit. Penalties are imposed upon any person who knowingly destroys, disturbs, defaces, mars, alters, removes or harms any significant cave or alters the free movement of any animal or plant life into or out of any significant cave, or any person who discloses without authority any information concerning significant caves. DENR DAO 90-15 On Mangroves and Wilderness Areas Mangroves are areas found along the seacoast and estuaries whether sparsely or thickly vegetated with true and/or associated mangrove species, or open swampy areas, including brackish fishponds, extending along stream where the water is brackish. Wilderness areas refer to Mangrove areas, which have been declared as such by the President of the Philippines under Presidential Proclamation for the preservation of flora and faunal species found therein to prevent their extinction and serve as a gene pool for the proliferation of said species. Mangroves have multi-uses, and to sustain its optimum productivity, the government through DENR and the Department of Agriculture are tasked to stop wanton exploitation of mangrove resources; and to enhance the replenishment of the denuded areas through natural or artificial means. Letter of Instruction No. 917, series of 1979 provides that all areas declared as wilderness or green belts shall be closed to any form of exploitation. Proclamation 2152, administered by the DENR declares all mangrove swamps as forest reserves. Other legislation under the DA makes its illegal to convert mangrove into fishponds. DENR Administrative Order No. 15, series of 1990 provides the rules governing the utilization, development and management of mangrove resources. Among its salient provisions, which should be taken into consideration in tourism development planning are the following: a. The conversion of thickly vegetated mangrove areas into fishponds shall no longer be allowed. All Mangrove swamps released to the Bureau of Fisheries and Aquatic Resources, which are not utilized, or which have been abandoned for five (5) years from date of such release shall revert to the category of forestland in accordance with existing laws and regulations. b. In accordance with national policy, fishponds will not be allowed within mangrove forest reserves and wilderness areas, and in cases where legally acquired productive fishponds are found within such areas, and the government opts to revert them to the category of forest lands and if the public interest so dictates, the operator would be justly compensated. c. 3. Fishpond development shall only be allowed in denuded areas, which have been zonified as suited for such activity. Estuarine mangroves, which are predominantly, if not totally vegetated with shrubs shall not be disposed for fishpond development as such areas still contribute to the productivity of the nearby marine ecosystem, hence should also be extensively rehabilitated.

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2.3.2. Laws on Forestry Resources Forestry Reform Code (PD 705) and Related Issuances The Forestry Reform Code is the primary legal instrument governing the utilization and development of the countrys land and natural resources. The manner of utilization and development of natural resources may be summarized in direct provisions of the law or in its various amendatory acts and their interpretations and construction. In 1966, the Supreme Court of the Philippines, in the case of Extensive Enterprise Corporation v. Sabro and Company Inc., summarized the fundamental policy of government with regard to the utilization of forest resources. It stated: The fundamental policy of government is that our natural resources should be opened to exploitation by as many qualified applicants as possible to disperse in the most equitable manner the rich bounties of our natural resources and thereby prevent the concentration of wealth in the hands of a few. In 1975, when the Forestry Reform Code came into force, it provided as basic policies the reorientation of action from mere utilization to protection, rehabilitation and development of forest lands to ensure the continuity of their productive conditions. It provided for the reassessment of the multiple uses of forest lands and resources before allowing any utilization thereof to optimize the benefits that can be derived from the proper classification, management and utilization of lands of the public domain to maximize their productivity to meet the demands of the countrys increasing population. Accordingly, specific provisions enunciated in the Code provide for multiple use and sustained yield concepts in forest management. It provides: 1. Beneficial uses of timber, land, soil, water, wildlife, grass, recreation or aesthetic value of forest lands and grazing lands shall be evaluated and weighted before allowing their utilization, exploitation, occupation and possession. 2. Only those uses, which will produce the optimum benefits to the development and progress of the country and public welfare, without impairment or with least injury to the resource will be allowed. 3. No land of the public domain 18% in slope or over shall be classified as alienable and disposable, or any forest land 50% in slope or over as grazing land. On the other hand, areas below 18% in slope may be declared as forestlands when needed. 4. Titled lands should be kept in vegetative condition sufficient to prevent erosion and adverse effects on the lowland and streams. 5. When public interest so requires, steps shall be taken to expropriate or cancel defective titles, reject public land applications or eject occupants. Amnesty is granted kaingineros who entered forestlands before 1975, provided they do not increase their clearings. 6. No person shall utilize, exploit, occupy, possess or conduct any activity within any forest and grazing lands, or establish, install, add, and operate any wood or forest products processing plant, unless he has been authorized to do so under a license agreement, lease, license or permits. In keeping with these mandates and faced by threats of an increasing pressure from lowland migration into the uplands, PD 1159, was enacted in 1978. This amendment to the Forestry Code emphasized the relocation of kaingineros and other forest occupants,

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whenever the best land use of the areas so demand, to the nearest and accessible government resettlement areas. The Code affirms the Presidential prerogative to proclaim portions of the public domains as forests. The President may establish within any land of the public domain, forest reserve and forest reservation for national park systems, for preservation as critical watershed, or for any other purpose and modify boundaries of existing ones. Pursuant to the mandates of the 1987 Constitution, the amendatory provisions to the Code provide for policies and strategies for natural resources management including the following: 1. 2. 3. 4. 5. Efficient and judicious use of natural resources. Ensure the productive capacities of natural resources. Expand and implement community based management of resources. Equitable sharing of benefits derived from the development of resources. Increase the sectors contribution to the national efforts directed towards poverty alleviation and enhance welfare of small farmers and landless workers. 6. Promote and maintain ecological balance. These strategies support a shift from a more regulatory framework for forest resource management to a more developmental one involving people and communities who have a stake in the condition and status of the resource base. In 1996, Executive Order no. 263 declared Community Based Forest Management Strategy as the national strategy for the development of forest resources. Accordingly, DENR has integrated all its Community-Based Forest Management Programs and People Oriented Forestry Programs. Under this concept only the following tenurial instruments shall be issued by DENR: Community Based Forest Management Agreement, a production sharing agreement in which the government shares in the benefits of development through increase natural resources protection and rehabilitation, forest charges, fees and /or taxes as determined and agreed upon by the participants. Certificates of Stewardship Contracts, issued to individuals and families actually occupying or tilling portions of forest lands pursuant to LOI 1260, subject to the allocation and endorsement of the Peoples Organization granted the management of the CBFM area. The CBFM shall be awarded in place of the CSC issued under the ISF Program, the Mangrove Stewardship Agreement, Community Forest Management Agreements, Forest Land Management Agreements. CBFMA may also be awarded to qualified POs in allowable zones of protected areas. Certificates of Ancestral Domain Claims (CADCs) and Certificates of Ancestral Land Claims (CALCs) will continue to be issued pursuant to DAO93-02. Socialized Industrial Forest Management Agreements (SIFMA) may also be awarded to natural or juridical persons for them to develop, utilize and manage a small tract of forest land called SIFP which is planted primarily to trees and other tree products to support the manufacturing and processing facilities and/ or to supply wood and energy requirements.

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The Coastal Environment Program (CEP) is also now integrated into the CBFM. The CEP is a program to implement projects on conservation and management of the coastal environment. The CEP encompasses all concerns over habitat and ecological support systems of communities and fisheries specifically pertaining to their productivity, biodiversity, integrity, sustainability and equitability of use and access. The adoption of the CBFM as the national strategy for forest management impacts upon tourism development, in that, any tourism development project that is introduced into forested areas must necessarily pursue a community based management approach. Another concern that must be considered by tourism development is the emphasis on local government participation in the empowerment of communities under the CBFM. Perhaps, it would not be amiss to herein suggest a review of devolved functions to local governments pertaining to tourism and the environment in order to reconcile objectives and focus on a common agenda. DAO 95-15, Revised Guidelines for the Sub-classification of Forest Lands DENR DAO 95-15 seeks to implement a system of land classification that will promote the optimum, equitable and just utilization of inalienable public lands. The DAO aims to determine the most suitable and rational use and proper allocation of lands with due consideration to bio-physical, economic, socio-cultural and ecological factors; provide a basic reference in planning development activities, provide a comprehensive data-base for land resource managers and users on the best use of forestlands and other public forest lands considering local, regional and national needs and priorities; provide basis for decisions about multiple or competing uses of forestlands, national parks and mineral lands and other public lands thereby minimizing, if not altogether solving land use conflicts, and specifically sub-classifying approximately 1.5 million hectares of forestlands and lands of the public domains. The sub-classification categories for forestlands include Agricultural, Industrial or Commercial, Residential, Ancestral Lands, Grazing Lands, Protection Forests, Production Forests, Agro-forestry areas, Fishfarms and Fishponds. Pending Bill on Total Commercial Logging Ban SB 2015 consolidates various recent bills on forestry and is entitled Total Commercial Logging Ban Act of 1998. The proposed legislation enunciates as basic policies the conservation and development of natural resources to prevent environmental degradation and disaster and sustain for the succeeding generations the natural wealth of the nation; maintenance, protection, conservation and development of sufficient forestlands, and the promotion to the highest degree possible the involvement of all sectors of society in forest conservation and protection; attainment of sound ecological balance and preservation of the countrys viable ecosystems through the adoption of a policy of self-reliance and self sustained management in the conservation, utilization and development of forests. The bill make it illegal and unlawful for any person to cut, fell or destroy any tree, or engage primarily in commercial logging operations in all types of forests. The ban will last for at least thirty years from the effectivity of the Act. The issuance of TLA shall be prohibited and all existing TLAs shall be deemed automatically terminated upon effectivity of the Act. Industrial Forest Plantation will be allowed provided they are within

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old growth and residual forests. Upon expiration of 30 years, commercial utilization of forestlands may be allowed through production sharing, joint venture or coproduction agreements with government. Areas/projects exempted from the ban are tree farms, nipa and bacauan plantations, communal forests, and other agro-forest farms planted to plantation species. Government projects and those of public utilities where tree cutting cannot be avoided, such as construction of road-right of way, the development of mineral reservations and energy sources shall be allowed only with an Environmental Clearance Certificate which shall be concurred by the Office of the President. DENR shall deputize law enforcement agencies and instrumentalities of government including the Philippine National Police (PNP), Armed Forces of the Philippines (AFP) and the National Bureau of Investigation (NBI) for the enforcement of the ban and for the conservation and protection of forests. The DENR may also request the assistance of NGOs, Cooperatives, Citizen Groups and Community Organizations in the enforcement of the ban. LGUs, NGOs, and DENR shall jointly engage in forest protection, rehabilitation, development and conservation activities. They shall be involved in planning, monitoring and implementation of all programs and projects within their locality in order to ensure the overall objective of maintaining the productivity of the countrys forestlands are effectively realized. LGUs shall establish mini-parks, nature parks and greenbelts, by lining roads and bodies of water with trees or other similar projects and the private sector will likewise encouraged to do the same. 2.3.3. Laws on Land Resources Land is normally defined as a physical entity in terms of its topography and spatial nature; a broader integrative view also includes natural resources: the soils, minerals, water and biota that the land comprises. These components are organized in ecosystems, which provide a variety of services essential to the maintenance of the integrity of life support systems and the productive capacity of the environment. Land resources are used in ways that take advantage of all these characteristics. Land is a finite resource, while the natural resources it supports can vary over time and according to management condition and uses. Expanding human requirements and economic activities are placing ever increasing pressures on land resources, creating competition and conflicts resulting in sub-optimal use of both land and land resources. Tourism development actions can greatly influence the alternation of existing environment, land uses and management of resources therein. As such, it is important for any tourism plan to consider the following laws related to the utilization of land resources. Public Land Act and Related Laws The Land to the Tiller or Land for the Landless policy is the underlying principle of public land laws. Other intents of public land laws are to promote the distribution of agricultural lands of the public domains to landless tenants and farm workers, to

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encourage migration to sparsely populated regions, promote the level of production, employment and living standards of the people. Public land laws are premised on the belief that security of tenure is a legal concession to agricultural grantees which they value as life itself and deprivation of their land holdings is tantamount to deprivation of their only means of livelihood (Bernardo v. CA, 14 SCRA 439). As such, restrictions and limitations are imposed upon the grantee, particularly on the alienation of the land received by public grant. Some of the these conditions include, the prohibition to sell the land without the approval of DENR, the right of the tiller to redeem land foreclosed within a period of five years from foreclosure. The Public Land Act or Commonwealth Act 141 is the law that applies to all lands of the public domains, except timber and mineral lands, which shall be governed by special laws. Likewise excluded from the application are friar lands and private lands which have been reserved to or become the property of the Republic of the Philippine, which lands shall be administered and disposed of in accordance with the other pertinent laws. Under the law, lands which have been officially delimited and classified as alienable and disposable may declared by the President of the Philippines as open to disposition or concession. However, alienable and disposable lands which have been reserved for public or quasi-public uses, lands appropriated by the government, private lands on which private rights authorized and recognized under valid laws and land that have been reserved or appropriated but have ceased to be so may not be declared as open to disposition or concession. The Public Land Act provides for five basic modes by which a grant of public land suitable for agriculture can be made. These are, (1) homestead settlement, (2) sale, (3) lease, (4) confirmation of imperfect or incomplete title either by judicial or administrative legalization, and (5) free title or free patent. Public lands acquired those any of the above modes are subject to the following conditions: 1. Land will not be granted when it will affect injuriously the use of adjoining land or of waters, rivers or roads. 2. Minerals are excluded from the grant. 3. Grants of land are subject to public servitude 4. Lands subject to right of way for certain purposes, not exceeding 20 meters width for public highways, railroads, irrigation, ditches, telephone and telegraph. 5. Reservation of the right to regulate the use of waters. 6. Reservation for power purposes of flow of water 7. Prohibitions against conveyance, alienation or encumbrance except to qualified persons. 8. Land must conform to legal subdivisions. If at any time after the approval of the application and before the issuance of a patent or of a final concession of the land, or during the life of the lease, or at any time when the applicant or grantee still has obligations pending with Government, it appears that the land applied for is necessary, in the public interest, for the protection of any source of water or for any work for the public benefit that the Government wishes to undertake, the Secretary of DENR may order the cancellation of the application or the non-issuance of the patent or concession or the exclusion from the land applied for of such portion as may be required, upon payment of the value of the improvements if any.

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As to the issuance of Free Patents, the Public Land Act provides that free patents covering not more than 12 hectares of public land may be awarded to any natural born citizen of the Philippines who is not an owner or more than 12 hectares of land, has continuously occupied and cultivated tract/tracts of agricultural public lands for 30 years prior to March 28, 1990, the date of effectivity of the amendatory act RA 6940, and who has paid real taxes thereon while the same has not been occupied by any person. Deadline for the application of free patents has been extended to December 31, 2000. The President may set a longer period of specifically designated provinces. BP 223, an act to hasten titling of residential lands of the public domains, grants any citizen of the Philippines who is not a registered owner of residential land in the same municipality and who since June 12, 1945, or prior thereto, either by himself or through his bona-fide predecessors in interest, has been residing on and continuously possessing and occupying, under a bona fide claim of acquisition of ownership, a parcel of residential land of the public domain which is alienable and disposable and has paid all the real estate taxes thereon shall upon application be provided a free patent subject to the following conditions: 1. That the land applied for is not needed for public service or use. 2. That the land is not within cities, capitals of provinces, first, second, third or fourth class municipalities, nor in townsite reservations 3. None of the provisions of the forestry code is violated by the issuance of such patent. Free Titles are issued under Commonwealth Act 691to any citizen of the Philippines who is more than 18 years of age and who does not own 24 hectares of land or has not availed of any free disposition of public lands. Grantee may be provided up to 24 ha. Of agricultural land or up to 1,600 sq. meters of residential land. DENR DAO-93-37 provides guidelines for the issuance of titles under the Handog Titulo Program. The guidelines provides process for the application and grant of free patents pursuant to the objective of the CARP to distribute 4.5 million hectares of alienable and disposable lands of the public domains suitable to agriculture. Comprehensive Agrarian Reform Law RA 6657 or the Comprehensive Agrarian Reform Law of 1988 has been amended by RA 7881 (1995) and RA 7950 (1995). The following is a summary of these amendatory laws to the CARL: 1. The principles of agrarian reform including those on subsistence fishermen are now embodied in the CARL. 2. The CARL now covers all public and private agricultural lands as provided inProclamation 131 and Executive Order 229 regardless of tenurial arrangements andcommodity produced inlcuding, all alienable and disposable public lands devoted to or suitable for agriculture, all lands of the public domains in excess of the limits to be determined by Congress, all lands owned by the Government devoted to or suitable for agriculture and all public lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon.

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3. Lands exempted from the coverage of CARP includes: lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves; private lands actually, directly and exclusively used for prawn farms and fishponds except those already distributed; lands actually, directly and exclusively used and found necessary for national defense, school sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmate, government and private research and quarantine centers and all lands with 18% in slope and over except those already developed; ancestral lands/ domains of indigenous peoples, defined as all lands in the actual, continuous and open possession and occupation of the community and its members. 4. Lands covered by CARP shall be distributed as much as possible to landless residents of the same barangay, or in the absence thereof, landless residents in the same municipality in the following order of priority: agricultural lessees and share tenants; regular farmworkers; seasonal farmworkers; other farmworkers, actual tillers or occupants of public lands, collectives or cooperatives of the above beneficiaries, other directly working on the land. 5. Commercial farms, which are private agricultural lands devoted to saltbeds, fruit farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber plantations shall be subject to immediate compulsory acquisition and distribution after ten years from the effectivity of the Act. 6. The rights of indigenous peoples to their ancestral lands shall be protected to ensure their economic, social and cultural well-being. In line with the principles of self determination and autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all these communities must be recognized and respected. State policies as enunciated in the CARL include the following: 1. Utmost consideration for the welfare of the landless farmers and farmworkers in the promotion of social justice and in programs and projects moving the nation towards sound rural development and industrialization. 2. Establishment of owner-cultivatorship of economic sized farms as the basis of Philippine agriculture. 3. More equitable distribution and ownership of land with due regard to the rights of landowners to just compensation and to the ecological needs of the nation; 4. Just distribution of all agricultural lands subject to the priorities and retention limits provided in the Act and considering ecological, developmental and equity considerations; 5. Recognition of the rights of farmers, farmworkers and independent farmers organizations to participate in the planning, organization and management of CARP, and to support agriculture through appropriate technology and research, adequate financial, production, marketing and other support services; 6. Application of the principles of agrarian reform or stewardship in the disposition and utilization of other natural resources including lands of the public domains under lease or concession, suitable to agriculture, subject to prior rights of homestead rights of small settlers and the rights to indigenous communities to their ancestral lands. 7. Resettlement of landless farmers in government owned agricultural estates;

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8. Protection of the rights of subsistence fishermen especially of local communities, to the preferential use of communal marine and fishing resources both inland and offshore; 9. Adherence to the principle that land has a social function and land ownership bears with it social responsibilities. One of the salient provisions of CARL which bear upon Tourism development planning is the provision that no reclassification of forest of mineral lands to agricultural lands shall be undertaken until Congress, taking into account ecological, developmental and equity considerations shall have determined by law the specific limits of the public domains. This provision have given rise to situations of de facto ownership by settlers in public domains, suitable for agriculture, who are still hoping to receive title to their occupation once the final forest line is settled. In fact other provisions of the CARL support the right of these settlers to claim land, among others: 1. The CARL provides that subsistence fishing-small fisherfolk, including seaweed farmers, shall be assured of greater access to the utilization of water resources. 2. Logging and mining concessions, subject to the requirement of a balanced ecology and conservation of water resources, suitable areas, as determined by DENR in logging, mining and pasture areas, must be opened up for agrarian settlements whose beneficiaries will be required to undertake reforestation and conservation production methods. Subject to existing laws, rules and regulations, settlers and Indigenous peoples must be allowed to enjoy and exploit the products of the forests other than timber within the logging concession. 3. Sparsely occupied agricultural lands of the public domains will be surveyed, proclaimed and developed as farm settlements for qualified landless people based on an organized program to ensure their orderly and early development. Uncultivated lands of the public domain shall be made available on lease basis to interested and qualified parties. Parties who will engage in development of capital intensive, traditional or pioneering crops will be given priority. The lease period, which shall not be more than 50 years, shall be proportionate to the amount of investment and production goals of the lessee. A system of evaluation and audit will be instituted. 4. Idle, abandoned, foreclosed and sequestered land shall be planned for distribution as home lots and family sized farmlots to actual occupants. 5. Rural women must be assured equal rights to ownership of land, equal shares of farms produce and representation in advisory or appropriate decision-making bodies. The CARL protects agricultural lands from being converted into fishponds and prawn farms. It provides that no conversion of public lands into fishponds and prawn farms shall be made except in situations where the provincial government with the concurrence of BFAR declares a coastal zone as suitable for fishpond development. In such case, the DENR shall allow the lease and development of such areas provided that the declaration shall not apply to environmentally critical projects and areas as enumerated in the Philippine Environmental Impact Assessment System, to ensure the protection of river systems, aquifers and mangrove vegetation from pollution and environmental degradation. The sustainable management and utilization of prawn farms and fishponds shall be in accordance with effluent standards, pollution charges and other pollution control measures such as, but not limited to, the quality of fertilizers, pesticides and other

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chemical used, that may be established by the Fertilizers and Pesticides Authority, Environment Management Bureau and other appropriate government regulatory bodies and existing regulations governing water utilization. Portions of fishponds fronting the sea, sufficient to protect the environment shall be established as a buffer zone and shall be planted to specified mangrove species to be determined in consultation with the Regional Office of DENR. Negating the gains of protecting forestal lands and other lands suitable for agriculture, is the provision in the CARL and in the Local Government Code allowing conversion of agricultural lands into non-agricultural uses. The Code provides, after the lapse of five years from its award, when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial and industrial purposes, the DAR upon application of the beneficiary or landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition, provide the beneficiary shall have fully paid his obligation. Land Conversion has become a crucial issue in the implementation of the Agrarian Reform Program. It has been noted that the tremendous increase in conversion of agricultural lands in the last five years has been due to the competing demands for the use of available lands. Because lands available for CARP are also the same lands that are open to conversion for industrial or urban usage, the existing policies on land conversion threatens food sufficiency and environmental quality, besides being in controversy with the intentions of land reform. Irrigation Act of 1997 Like the Comprehensive Agrarian Reform Law, the Irrigation Act of 1997, seeks to enable those who belong to the agriculture and fishery sectors to participate and share in the fruits of development and growth in a manner that utilizes the nations resources in the most efficient and sustainable way possible. The empowerment of the agriculture and fisheries sectors to develop and sustain themselves through focused and rational delivery of support services are based on the principles of: 1. Poverty Alleviation - create adequate opportunities for poorer sectors to have access to resources and gain better income opportunities especially in areas where productivity is low. 2. Food Sufficiency - assure the availability and affordability of food to all particularly the poor citizens of the country. Rational Use of Resources - adopts a rational approach in the allocation of public investments in agriculture and fisheries in order to assure efficiency and effectiveness in the use of scarce resources and thus obtain optimal returns on investments. Global Competitiveness - enhance the comparative advantage of agribusiness and fishery enterprises in both domestic and foreign markets. 3. Sustainable Development - promote development that is compatible with the preservation of the ecosystem in areas where agriculture and fishery activities are carried out; promote judicious use of the countrys natural resources in order to attain long-term sustainability. 4. People Empowerment - provide the citizens through their elected representatives the opportunity to participate in policy formulation and decision-making, by

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establishing appropriate consultation mechanisms and giving them access to information. One of the most salient provisions of the law that may have a bearing on tourism development is the establishment of Strategic Agriculture and Fishery Development Zones (SAFDZ). The law provides that the Department of Agriculture (DA), in consultation with the local government units and appropriate government agencies, NGOs and organized farmers and fisherfolk groups shall within six months from the approval of the law, identify Strategic Agricultural and Fishery Development Zones, which shall comprise the network of protected areas for agriculture and industrial development, to ensure that lands are efficiently and sustainably utilized for food production and rural industrialization. SAFDZs shall serve as centers where development in the agriculture and fishery sectors is catalyzed in an environmentally and socio-culturally sound manner. An integrated development plan including matters of production, investment, marketing, human resources and environment protection shall be prepared for each SAFDZ that will be identified. Agricultural areas within SAFDZs will be classified as highly restricted from conversion under the network of protected areas for agriculture and industrial development. It shall include, all irrigated lands where water is available to support rice and other crop production and all irrigated lands where water is not available for rice and other crop production but are within areas programmed for irrigation facility rehabilitation by DA and NIA; all irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land conversion, provided that the conversion of such lands shall be subject to the prior approval of the Secretary of the DA and the payment of conversion fees; all mangrove areas and the coastal public lands around inland waters and bays which have been identified as prime municipal and/or commercial fishing grounds by the DA. (This provision will have a major impact upon the Surigao Tourism Cluster, where pristine mangrove areas are found). Preparation of the Land Use and Zoning Ordinance shall be finalized within one year from the finalization of the SAFDZ in every city and municipality, all cities and municipalities shall have prepared their respective land use and zoning ordinance incorporating the SAFDZ where applicable. Thereafter, all land use plans and zoning ordinances shall be updated every three years or as often as may be deemed necessary and must be completed on the first year of the term of office of the mayor. If the cities/ municipalities fail to comply with the preparation of the zoning and land use plans, the DILG shall impose penalty as provided by the Local Government Code. Farm-landowners whose lands are located within these designated areas shall be given the option to enter into a management agreement with corporate entities with proven competence in farm operations management, high-end quality production and productivity through the use of up-to-date technology and collateral resources such as skilled manpower, adequate capital and credit and access to markets. Another salient provision of the law that may affect tourism development is the prohibition against the development of commercial, industrial, residential and golf course facilities in all watershed areas as identified by DENR.

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National Land Use Bill The proposed National Land Use Act of the Philippines declares it a policy of the state to provide for a rational allocation, utilization, management and development of the countrys land resources including air and water resources to ensure their optimum use consistent with the principles of sustainable development. Accordingly, the State shall adopt a land use and allocation pattern that ensures food sufficiency and food security through efficient and sustainable use of land resources consistent with the principles of sound agricultural development, natural resources development and agrarian reform; rational population distribution and settlements development, equitable and sustainable economic growth and balanced and dispersed industrial and tourism development; sustainable management of natural resources; maintenance and preservation of environmental integrity and stability; harmony between the rights of the varied interests of every Filipino, within the framework of people empowerment, decentralization, social justice and equity; protection of the rights of indigenous peoples to their ancestral lands and recognition of the applicability of customary laws and traditions governing property rights and resource use in ancestral domains, and protection of the rights of vulnerable groups to ensure equitable access to the countrys land and natural resources. The proposed law also enunciates as state policy that of institutionalizing land use and physical planning as a mechanism for identifying, determining and evaluating alternative land use patterns, which shall be supported by a land use allocation system and a land resource information and management system. The law specifically provides that one of its objectives is to rationalize the allocation of land for tourism development purposes with emphasis on the protection, preservation and enhancement of natural and cultural character of the country and the promotion of local community development. Other objectives, which may impact upon tourism development includes the following: 1. Rationalize the allocation of land for priority infrastructure projects considering factors as its economic feasibility, reduction of the vulnerability of land itself and its occupants to natural and man made disasters; 2. Adopt multiple uses of natural resources through the identification and evaluation of the primary and alternative uses of specified land resource prior to any decision for the assignment of its use as multiple use zones wherein settlements, tourism, agriculture, agroforestry and extraction activities and other income generating or livelihood activities may be allowed. 3. Undertake an integrated approach to the utilization, allocation, development and management of water as limited resource. 4. Protect foreshores, shorelines and river banks and establish a mechanism to revert to the public domain private properties falling under such land categories. 5. Require buffer zones or areas in every land use planning activity to protect the land from activities that will directly or indirectly harm it or cause harm to others. 6. Protect and rehabilitate mangrove areas, marshlands and rainforests whose utilization and conversion into other land uses shall be prohibited and which should be reverted to their original condition in every case where their conversion has been illegal. 7. Identify and preserve areas and structures, which form part of our national and local cultural heritage.

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8. Allocate and develop lands for urban forest and green space for community health, scenic amenities and aesthetic purposes. 9. Respect the norms and practices and socio-economic activities of the Indigenous Peoples. The proposed National Land Use Act shall apply to all lands, including the water and air therein, whether public, private or government owned, and/or in the possession of individuals, communities or groups of people to guide and/or govern the use, allocation and management of lands and other resources including such activities, which bear impact on said resources. The proposed law enumerates four categories of land uses including forest, agriculture, built-up areas consisting of residential, commercial, industrial, parks and open spaces, and unique land uses. Under these major categories, functional uses shall be classified as protection, production, settlements development and infrastructure development. The bill calls for the formulation of a National Physical Framework Plan, which shall define the objectives, policies and strategies on the indicative uses of land and other physical resources of the country to guide and support the implementation of the National Development Plan, and shall guide the planning process at all levels of the country. There shall be a hierarchy of plans from national to regional, provincial, city and municipal levels. The bill further provides that within one year from the effectivity of the Act, all cities and municipalities shall allocate funds for the preparation of their respective land use and zoning plans. Land Resource Information and Management System will be established and will integrate the information units of concerned national agencies, standardize information inputs/outputs including scales and symbols in case of territorial and sectoral maps. A National Mapping Program will also be implemented. All LGUs will be assisted in preparing their respective territorial maps. To oversee the implementation of the policies, principles, priorities and guidelines enunciated in the law, a Land Use Policy Administration (LUPA) shall be created. It shall be the highest policy making body on land use and shall perform the task of integration of efforts, monitoring of development relating to land use, evolution of policies, regulations and directions. LUPA shall replace the HLURB, which will be abolished. To assist LUPA, various government agencies are required to provide reports periodically to the authority. From the Department of Tourism is expected the formulation of a National Plan, and Regional Tourism Plans and their periodic review and updating. DOT is likewise mandated to continue to accredit tourism facilities as well as review, update and prescribe national guidelines and standards for tourism development, which shall be the basis for accreditation of tourism facilities. Under the law, Local Government Units shall have the responsibility for the preparation of a master plan for water, sanitation and sewerage development, integrated management of coastal and marine resources which will take into consideration concerns fisheries, industries, tourism, shipping, oil exploration and other economic activities dependent on marine resources; protection and rehabilitation of mangrove areas; establish a management and development system to ensure the sustainability of

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the quality and quantity of ground and surface waters and rehabilitate and protect areas near freshwater bodies, identify and delineate watershed areas that need to be reforested and/or withdrawn from other uses; designate and delineate settlement area for the fishing community provided that such area is not detrimental to coastal and adjacent ecosystems; regularly monitor the implementation of plans. The proposed law provides for the designation of Tourism Development Areas, the identification, selection and development of which areas shall be done in consultation and coordination with concerned LGU, national government agencies, the private sector and affected communities. These areas shall include those covered by legislation and executive issuance, which designate specific sites as tourist spots and tourist zones as well as those identified in the national and regional tourism master plans. Designated areas for tourism development shall form part of the land use plan and zoning ordinance of the city or municipality where it is located. Other Agricultural Policies Certain agricultural policies impact upon tourism development particularly on the establishment of botanical and zoological gardens. One such policy is that concerning Agro-biodiversity, which regulates the introduction of certain species of animals such as horses, porcine, cattle, gamefowls and others. Another law is Presidential Decree 1433, which regulates the introduction of plant species. Export of indigenous crops and animal species is likewise regulated. The Seed Industry Development Act of 1992 is another law that should be considered. This law seeks to promote and accelerate the development of the seed industry and mandates the conservation, preservation and development of plant genetic resources of the country. 2.3.4. Laws on Mineral Resources Mining Act of 1997 and Its Implementing Rules The Mining Act of 1997 governs the exploration, development, utilization and processing of all mineral resources. In its Declaration of State Policies, the Mining Code enunciates that all mineral resources in public and private lands within the territory and exclusive economic zone of the Philippines are owned by the State. It shall be the responsibility of the State to promote its rational exploitation, development and utilization and conservation through combined efforts of government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protects the rights of affected communities. The Mining Act of 1997 recognizes the rights of indigenous cultural communities to their ancestral lands as provided in the Constitution and provides that no ancestral lands shall be opened for mining operation without the prior consent of the ICC/IP concerned. In the event of an agreement, royalty payment upon the utilization of mineral shall be entered into and the royalty shall form part of a trust fund for the socio economic well being of the ICC/IP Community. Subject to existing rights or reservations and prior agreements of all parties, all mineral resources in public or private lands, including timber and forestlands are defined in

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existing laws, shall be open to mineral agreements or Financial or Technical Assistance Agreements (FTAAs). However, these shall not be allowed in the following areas: 1. Military and other government reservations, except upon prior written clearance by the government agency concerned. 2. Areas near or under public or private buildings, cemeteries, archaeological and historic sites, bridges, highways, waterways, railroads, reservoirs, dams and other infrastructure projects, public or private works including plantations or valuable crops, except upon written consent of the government agency or private entity concerned. 3. Areas covered by valid and existing mining claims. 4. Areas expressly prohibited by law. 5. Areas covered by small scale miners as defined by law unless with prior consent, in which case royalty payment upon the utilization of minerals shall be agreed upon by the parties. 6. Old growth forests, proclaimed watershed reserves, wilderness areas, mangrove forests, mossy forests, national parks, provincial/ municipal forests, parks, greenbelts, game refuge and bird sanctuaries as defined by law and areas expressly prohibited under the NIPAS and other laws. 7. Other areas, which the DENR Secretary may exclude based on proper assessment of their environmental impacts and implications on sustainable land use. Every contractor is required under the Act to undertake an environmental protection and enhancement program covering the period of the mineral agreement or permit. Except during the exploration period of the mineral agreement, an ECC shall be required based on EIA and procedures under the Philippine EIA System. A complete ecological profile of the proposed mining area shall be required. NGOS shall be encouraged to monitor compliance of the contractor. Contractors and permitees shall technically and biologically rehabilitate the excavated mined out, tailing covered and disturbed areas to the condition of environmental safety. A mine rehabilitation fund shall be created based on the contractors approved work plan and shall be deposited in a trust fund to be used for physical and social rehabilitation of the areas and communities affected by the mining activities and for research on social, technical and preventive aspects of rehabilitation. Failure to comply with this obligation shall mean immediate closure of the mining activities of the contractor or permittee. Provisions of the mining act relative to auxiliary rights of permitees and contractors, such the right to cut trees or timber within his mining areas as may be necessary for his mining operations and the right in accordance with existing water laws to water rights for mining operations and the right to enter private property upon negotiations with owners have an important bearing upon tourism development planning, or any type of development planning altogether, because they should be seriously considered in deciding options against various other competing uses of land /natural resource use. 2.3.5. Laws on Water Resources, Wetland Ecosystems, Coastal and Marine Resources Water Code

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PD 1067 is the law governing the ownership, appropriation, utilization, exploitation, development conservation and protection of water resources. It is premised on the Constitutional provision that all waters of the Philippines belong to the State. This being the case, the law seeks to establish the basic principles and framework relating to the appropriation, control and conservation of water resources to achieve the optimum development and rational utilization of these resources. The law likewise subjects the utilization, exploitation, development, conservation and protection of water resources to the control and regulation of the government through the National Water Resources Board (NWRB). The law allows the State to allow the use and development of waters by administrative concession. The preference in use and development of waters shall consider current usages and shall be responsive to changing needs of the country. When priority in time of appropriation from a certain source of supply cannot be determined, the order of preference in the use of waters shall be: 1. Domestic and municipal use 2. Irrigation 3. Power Generation 4. Fisheries 5. Livestock raising 6. Industrial Use 7. Other Uses Among the salient provisions of the Water Code, which must be considered in tourism evelopment are the following: 1. Peference in the development of water resources shall consider security of the State, ltiple use, beneficial effects, adverse effects and costs of development. 2. Works for the storage, diversion, distribution and utilization of water resources shall ontain adequate provision for the prevention and control of diseases that may be induced or spread by such works. 3. When the reuse of waste water is feasible, it shall be limited as much as possible to such uses other than direct human consumption. No person or agency shall distribute such water for public consumption until it is demonstrated that such consumption will not adversely affect the health and safety of the public. 4. Authority to construct dams, bridges and other structures, which may interfere with the flow of navigable or floatable waterways shall first be secured from the Department of Public Works and Highways and Department of Transportation and Communication. 5. No excavation for the purpose of emission of a hotspring or for the enlargement of an existing opening thereof shall be made without prior permit. Any person who intents to develop a hot spring for human consumption must first obtain a permit from the Department of Health. 6. No person shall develop a stream, lake or spring for recreation purposes without first securing a permit from the NWRB. 7. No person shall raise or lower the water level of a river, stream, lake, lagoon, or marsh or drain the same without a permit. 8. Any watershed or any area of land adjacent to any surface water or overlying any ground water may be declared by DENR as a protected area. Rules and Regulations may be promulgated by DENR to prohibit or control such activities by owners or occupants thereof within the protected area, which may damage or

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9. 10. 11.

12. 13.

14.

cause the deterioration of the surface or ground water or interfere with the investigation, use, control, protection, management or administration of such waters. Drainage systems shall be so constructed that their outlets are rivers, lakes, the sea, natural bodies of water, or such other water course as may be approved by proper government authority. In consideration of a proposed water resource project, due regard shall be given to ecological changes resulting from the construction of the project in order to balance the needs for development and protection of the environment. The conservation of fish and wildlife shall receive proper consideration and shall be coordinated with other features of water resource development programs to ensure that fish and wildlife values receive equal attention with other project purposes. Swamps and marshes which are owned by the State and which have a primary value for waterfowl propagation or other wildlife purposes may be reserved and protected from drainage operation and development. No person shall, without prior permission from the Environment Management Bureau (EMB) of the DENR, build any works that may produce dangerous or noxious substances of perform any such act, which may result in the introduction of sewage, industrial waste, or any pollutant into any source of water supply. Except when the appropriation is for family domestic purpose or when the quantity of water appropriated for agricultural use is not more than 5 liters per second, all appropriators shall pay to the NWRB an annual water charge for the use of water when diverted/extracted from the natural source; and the use of water at its natural location for fish culture. The NWRB may revise the charges or impose special water rates from time to time, based on intended use of water, quality/ rate of water withdrawal vis-a-vis other users taking into account the water bearing potential of the source, environmental effects, extent to which water withdrawal will affect the source, and development cost of bringing water from the source.

RA 8041- National Water Crisis Act of 1995 and EO 374 Creating the Presidential Task Force on Water Resources Development and Management RA 8041, enacted in 1995, provides for the adoption of urgent and effective measures to address issues relevant to the water crisis, including supply, distribution, finance, privatization of state-run water facilities, protection and conservation of watersheds, and the waste and pilferage of water, including graft and corruption in all water agencies. The law likewise creates a Joint Executive-Legislative Water Crisis Commission. In 1996, a Presidential Task Force on Water Resources Development and Management was created by virtue of EO 374. The Task Force is to serve as an oversight body for ensuring the efficient souring and use of water resources, in particular the provision of policy and program recommendations on the following: Water supply planning and coordination, including efficient allocation of water resources to its different users. Prioritization of programs and projects. Coordination and monitoring of water policies and programs, and Pricing of water resources.

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Laws Covering Wetland Ecosystems Laws and policies covering wetland ecosystems pertain to lakes, rivers and internal freshwater resources therein. Administrative Orders, some dating back to 1935 call for the conservation and protection of fishery resources in major freshwater lakes through the establishment of sanctuaries within lake areas. These issuances likewise regulate the catching of certain species of fish such as dalag, kanduli and banak. The Fisheries Code of 1997 establishes certain fish refuges and sanctuaries. The sanctuaries would include all streams, ponds, and waters within game refuge, bird sanctuaries, national parks, botanical gardens, communal forests and communal pastures. It also regulates the manner and place where fisheries activities are to be conducted. Laws affecting Coastal and Marine Ecosystems The tropical waters of the Philippines as a whole, and the CARAGA Region in particular are among the most ecologically diverse marine ecosystems in the world. Consequently, laws protecting these ecosystems have been promulgated for the sustainable use and protection of marine organisms and habitats. Among the more important laws protecting marine ecosystems, which have a bearing on tourism development include those that address the management of coral reefs, marine pollution, national parks and wildlife, and water quality management. Beaches Beaches are the focal point of coastal tourism since many tourist activities depend on clean beaches. Beaches are dynamic, unstable systems, which are constantly subject to forces of erosion, the removal of sand; and accretion, the disposition of sand. Many beaches are part of eroding systems, causing economic loses to property owners and the tourism sector. Beach loss from human activities, sometimes tourist related, is generally caused by sand and coral mining in coastal areas, building structures which inhibit long shore sediment transport and construction of groins and seawalls which adversely affect adjacent coastal areas. ii The laws protecting beaches from such destructive activities are PD 265, known as the Act Prohibiting the Extraction of Gravel and Sand Along Beaches and Providing Penalties Therefor, Executive Order No. 192 and DENR DAO 92-28 which provide the guidelines for the issuance of special permits for pebble picking along beaches. Under DAO 92-28, pebble picking which is defined as hand sorting or manual gathering of pebbles from the permitted area along the beaches/ shorelines without the aid of any mechanized equipment, may be permitted except in areas which are declared for conservation and protection purposes by the Environment Protected Areas Sector (EMPAS), or those which are declared tourist zones as certified by the Department of Tourism. Provisions of the administrative order that are most significant to tourism development include the following: 1. No removal or gathering of pebbles shall be allowed within a distance of one (1) kilometer from the boundaries of reservoirs established for public water supply and any public or private work structures, unless prior clearance from DENR is obtained.

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2. The permit shall be valid for a period of one year or until such time, as the total volume specified therein have been extracted, whichever comes first. The permit may be renewed for similar period or until such time, which may be determined by the DENR Regional Director, based from field evaluation/ assessment on the availability of pebble deposits along beaches/ shorelines and on the feasibility of allowing the continuity of pebble picking operations in the area. 3. The permitee shall assume full responsibility and shall be liable to damages or to rights or properties, which may be occasioned by its pebble picking activities under the permits. Coral Reefs Tourism activities such as snorkeling and scuba diving have coral reefs as one of their attractions. Healthy coral reefs are important not only ecologically but also economically. Potential damaging tourism-related activities of coastal development on coral reefs include, increase in siltation and sedimentation from dredging, filing, or coastal construction, pollutants and excess nutrients from waste disposal and sewage disposal; discharge of large volumes of fresh water from storm water outfalls, increase surface runoff from surface paving or vegetation removal, and coral breakage from guests exploring the reed, anchor damage or collection of organisms for sale or souvenirs or for recreation such as by spear fishing. Realizing the importance of coral resources known to exist beneath territorial waters of the Philippines, PD 1219 dated 14 October 1977 as amended by PD 1698 dated 22 May 1990 were promulgated to govern the exploration, exploitation, utilization and conservation of coastal resources. The laws are premised on the assumptions that the conservation of coral resources will ensure the preservation of the countrys marine environment, that is necessary for the preservation of the natural breeding ground, habitat or abode of fish and other marine organism and that they are important as natural protection of the shore and adjacent infrastructures against the destructive effects of wave erosion. It is thus the avowed policy of the State to promote and regulate the exploration, exploitation, utilization and conservation of coral resources, whether existing beneath territorial waters or in the marine economic zone of the Philippines to ensure protection of these resources. Of importance to tourism development planning are the following provisions of PD 1219: 1. The Bureau of Fisheries and Aquatic Resources shall implement the law. 2. Utilization is though a permit system which include a gratuitous permit for educational and research institutions to gather in limited quantities any coral for scientific or educational purposes only, or a special permit to only one person/corporation for a limited issue to conduct experimental collection of precious and semi-precious corals. 3. The applicant must be a Filipino citizen or corporation, 70% of whose capital stock is owned by Filipinos. 4. The exploration of precious and semi-precious coral gathered is prohibited unless such corals are first processed and manufactured as finished products in the Philippines. 5. Fines and penalties for persons gathering precious and semi-precious corals without any permit, shall upon conviction be punished with imprisonment of not less than 60 days or more than six years or a fine of not less than P6,000.00 or both

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at the discretion of the court. This is without prejudice to confiscation by the government of the corals gathered including the vessel, gear and paraphernalia used therein. Pollution The marine environment and the living organisms, which it supports are of vital importance to humanity and all people have an interest in assuring that it is managed and protected and its quality not impaired. It is therefore the policy of the State to prevent and control pollution of seas by dumping of wastes and other matter which create hazards to human health, harm living resources and marine life, damage amenities, or interfere with the legitimate uses of the sea within the territorial jurisdiction of the Philippines. To safeguard the seas from marine pollution, Presidential Decree 979 was enacted on 18 August 1976. Salient provisions of the law relevant to tourism development include the following: 1. The Philippine Coast Guard shall have the primary responsibility of enforcing the laws, rules and regulations governing marine pollution. However, it shall be the joint responsibility of the Philippine Coast Guard and the EMB to coordinate and cooperate with each other in the enforcement of the provisions of the law and may call upon any other government office to extend assistance in this respect. 2. Except in cases of emergency imperiling life or property, it shall be unlawful for any person to: a. discharge, dump, or suffer, permit the discharge of oil, noxious gaseous and liquid substances and other harmful substances from or out of any ship, vessel, barge, or any other floating craft, or other man-man structures at sea, by any method, means or manner, into or upon the territorial and inland navigable waters of the Philippines. b. throw, discharge or deposit, dump, or cause, suffer or procure to be thrown, discharged, or deposited either from or out of any ship, barge, or other floating establishment, or mill of any kind, any refuse matter of any kind or description whatever other than the flowing from streets and sewers and passing there from in a liquid state into tributary or any navigable water form which the same shall float or be washed into such navigable water, and c. deposit or cause, suffer or procure to be deposited materials of any kind in any place on the bank of any navigable waters, or on the bank of any tributary of any navigable water, where the same shall be liable to be washed into such navigable water, either by ordinary or high tides, or by storms or floods, or otherwise, whereby navigation shall or may be impeded or obstructed or increase the level of pollution of such waters. 2.3.6. Environmental Laws and Policies Environmental laws and policies that may affect tourism development include PD 1152 or the Philippine Environmental Code, PD 1151 or the Philippine Environmental Policy, PD 1586 or the Philippine Environmental Impact Statement System, Proclamation 2146, DENR DAO 96-37 and DAO 97-13.

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The Philippine Environmental Policy or PD 1151, aims to encourage the widest exploitation of the environment without degrading it, or endangering human life, health and safety or creating conditions adverse to agriculture, commerce and industry; preserve important historic and cultural aspects of the Philippine heritage; attain a rational and orderly balance between population and resource use and improve the utilization of renewable and non-renewable resources. The law mandates that all agencies of government, including government owned and controlled corporations, as well a private corporations and firms shall prepare, file and include in every action, project or undertaking which significantly affects the quality of the environment, a detailed statement on the environmental impact of the proposed action, any adverse effect that cannot be avoided, alternatives if any, short term uses of resources is consistent with the enhancement of its long term productivity and finally that the use of the depletable resources are warranted. This Environmental Impact Statement shall be submitted to appropriate government agency that shall make its comments within 30 days from receipt of the same. The Philippine Environmental Impact Statement System (PD 1586) enunciates as its basic policy the attainment and maintenance of a rational and orderly balance between socioeconomic growth and environmental protection. The law calls for the establishment of an Environmental Impact Statement System (EIS) in all agencies and instrumentalities of the national government, including government owned or controlled corporations as well as private corporations, firms and entities for every proposed project or undertaking which significantly affects the quality of the environment. The law gives the President of the Philippine to declare certain projects, undertakings or areas in the country as environmentally critical where no entity shall undertake or operate any project without first securing an Environmental Compliance Certificate (ECC) issued by the President or his authorized representative. At present the DENR through its Environmental Management Bureau (EMB) is mandated to prepare the proper land or water use pattern for such critical area, establish ambient environment quality standards, develop a program of environmental enhancement or protective measures against calamitous factors such as earthquakes, floods, water erosion and others. Proclamation 2146 proclaims certain areas and types of projects as environmentally critical areas within the scope of the EIS. Included among environmentally critical areas are: 1. All areas declared by law as national parks, watershed reserves, wildlife preserves and sanctuaries. 2. Areas set aside as aesthetic potential tourist spots. 3. Areas, which constitute the habitat of any endangered species of indigenous Philippine wildlife. 4. Areas of unique, historic, archeological, or scientific interest. 5. Areas, which are traditionally occupied by cultural communities or tribes. 6. Areas frequently visited and/or hard hit by natural calamities (geologic hazards, flood, typhoons, volcanic activity etc.) 7. Areas with critical slope 8. Areas classified as prime agricultural lands 9. Recharge areas of aquifers

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10. Water bodies characterized by one or any combination of the following conditions, tapped for domestic purposes, within the controlled and/or protected area, supports wildlife and fishery activities. 11. Mangrove areas characterized by one or any combination of the following: with primary pristine and dense young growth; adjoining mouth of major river system; near or adjacent to traditional productive fry or fishing ground; acts as natural buffers against shore erosion, strong winds and storm floods, on which people depend for a livelihood. 12. Coral reefs characterized by one or a combination of the following conditions; within 50% and above live coastline cover; spawning and nursery grounds for fish, acts as natural breakwater of coastlines. DENR DAO 96-37 provides the guidelines for the implementation of the EIS system. The guidelines identify the coverage and scope of the system. In addition to projects enumerated under Proclamation 2146, projects involving golf courses are now included in the coverage of the system. The guidelines underscore the importance of public participation and social acceptability is one of the important considerations of any environmental project. Factors to evaluate in determining social acceptability are the ecological soundness of the project, implementation of an effective public participation process, resolution of conflicts, promotion of social and intergenerational equity and poverty alleviation, effective environmental monitoring and evaluation and proposed mitigation and enhancement measures. The Guidelines provide that public hearings on a project or activity shall be constituted where the magnitude of the project is such that a great number of people are affected, there is mounting public opposition against the proposed project, or there is a written request for the conduct of such public hearing from the stakeholders. DAO 97-13 of the DENR prescribes new EIS guidelines on Forestry Projects. It provides that all forestry projects shall undergo EIA. A Handbook on Environmental Assessment of Forestry Projects accompanies the guidelines. The Philippine Environmental Code or PD 1152 PD 1152 or the Philippine Environmental Code is comprised of four main parts: Air Quality Management, Water Quality Management, Land Use Management and Natural Resources Management. Natural Resources Management is further subdivided into Fisheries and Aquatic Resources, Wildlife, Forestry and Soil Conservation, Flood Control and Natural Calamities, Energy Development, Conservation and utilization of surface and ground water and mineral resources. Among its salient provisions that may affect tourism developments are: 1. In order to achieve a rational and orderly balance between man and his environment, the effect of the project upon the population should be one of the major criteria in assessing development projects. 2. It shall be the responsibility of local governments as well as private individuals to actively participate in the environmental management and protection programs of the government.

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3. It shall be the duty of every person to help preserve historic and cultural resources of the country such as sites, structures, artifacts, documents, objects, memorials and priceless trees. 4. Measures for national exploitation of fisheries and other aquatic resources shall include undertaking manpower and expertise development, acquiring the necessary facilities and equipment, regulating the marketing of threatened species of fish or other aquatic resources, reviewing all existing rules and regulations on the exploitation of fisheries and aquatic resources and conserving the vanishing species of fish and aquatic resources such as turtles, sea snakes, crocodiles, corals, as well as maintenance of mangrove areas, marshes and inland waters, coral reef-areas and islands serving as sanctuaries for fish and other aquatic life forms. 5. In addition to pertinent provisions of existing laws, the following shall be included in a soil erosion, sediment and flood control program: control of erosion on the banks of rivers, the shores of lakes and the seashores; control of flow and flooding in and from rivers and lakes, conservation of water which for purposes of this law shall mean forms of water, but shall not include captive water, the needs of fisheries and wildlife and all other recreational uses of natural water, measures to control damming, diversion, taking, and use of natural water, so far as any such act may affect the quality and availability of natural water for other purposes and measures to stimulate research in matters relating to water and soil conservation and the application of knowledge thereby acquired. 6. Measures for rational exploitation of forestry resources shall include regulating the marketing of threatened forest resources, reviewing all existing rules and regulations on the exploitation of forest resources with a view of formulating guidelines for the systematic and efficient enforcement thereof, conserving threatened species of flora as well as increasing their rate of propagation; the banning of destructive modes of exploitation, shifting cultivation, indiscriminate harvesting of minor forest products and the recycling methods of water materials, continuing rehabilitation and reforestation. 7. The formulation of a land use scheme including a science-based and technology oriented land inventory and classification system, determination of the present land uses, the extent to which they are utilized, under utilized, rendered idle or abandoned; comprehensive and accurate determination of the adaptability of the land for community development, agriculture, industry, commerce and other fields of endeavor; identification of areas where uncontrolled development could result to irreparable damage to important historic, cultural or aesthetic values, or natural systems or processes of national significance; a method for exercising control over the use of land in areas of critical environmental concern and areas impacted by public facilities including but not limited to airports, highways, bridges, ports and wharves, buildings and other infrastructure projects. 2.3.7. Indigenous Peoples Rights Act of 1997 RA 8371 or IPRA, the Indigenous Peoples Rights of Act of 1997 was signed into law on 29 October 1997 and took effect on 22 November 1997. The law has been acclaimed as a landmark legislation, which recognizes, protects and promotes the rights of indigenous peoples to their ancestral lands and domains, cultural integrity, self governance and empowerment, and to human rights and basic social services. The law creates a Commission on Indigenous Peoples to oversee the proper implementation of the law.

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Ancestral lands are defined in the law as lands occupied, possessed and utilized by individuals, families and clans who are members of the ICC/ IPs since time immemorial, by themselves or through their predecessors in interest, under claims of individual or traditional group ownership, continuously to the present except when interrupted by war, force majeure or displacement by force, deceit, stealth or as a consequence of government projects and other voluntary dealings entered into by government and private individuals/corporations, including but not limited to residential lots, rice terraces or paddies, private forests, swidden farms and tree lots. Ancestral lands are differentiated from ancestral domains in terms of ownership. While ancestral domains belong collectively to the concerned indigenous peoples, ancestral lands are owned individually. Likewise, ancestral domains are larger in areas and comprises ancestral lands, forests, pasture, residential, agricultural, and other lands individually owned whether alienable and disposable or otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and other resources, and land which may no longer be exclusively occupied by ICCs/Ips but from which they traditionally had access to for their subsistence and traditional activities, particularly the home ranges of ICCs/IPs who are still nomadic and/or are shifting cultivators. The rights of indigenous peoples to their ancestral lands and domains by virtue of Native Title shall be recognized and respected. Formal recognition when solicited shall be embodied in a Certificate of Ancestral Domain Title (CADT)/ Certificate of Ancestral Land Title (CADT), as the case may be, which shall recognize the title of the concerned IPs over the territories identified therein. The concept of Native Title holds that when as far back as testimony or memory goes, the land has been held by IPs under claims of private ownership, it will be presumed to have been held that way since before the Spanish conquest and never to have been public lands. The rights of Indigenous Peoples are provided in the IPRA upholds the Constitutional Mandates on Indigenous Peoples. These rights include: Rights to Ancestral Lands and Domains 1. Right to claim ownership over land, bodies of water traditionally and actually occupied, sacred places, traditional hunting and fishing grounds and all improvements made by them at any time within the domains. 2. Right to develop land and natural resources, control and use land and territories, manage and conserve natural resources within the territories, benefit and share the profits from allocation and utilization of natural resources, negotiate the terms and conditions for their exploitation, right to informed and intelligent participation in the formulation of any project, government or private, that will affect or impact upon the ancestral domains and to receive just and fair compensation for any damages which they may sustain as a result of the project and the right to effective measures by government to prevent any interference with, alientation and encroachment upon these rights. 3. Right to stay in the territories and not be removed therefrom. Where relocation is considered necessary as an exceptional measure, relocation shall take place only with the free and prior informed consent of the IPs and whenever possible they shall be guaranteed the right to return to their ancestral domains as soon as the grounds for relocation cease to exist.

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4. In case of displacement as a result of natural catastrophes the right to return to the lands when normalcy and safety can be assured or when no longer possible to enjoy security of tenure over lands to which they have been resettled. 5. Right to regulate entry of migrant settlers and organizations into the domains. Unauthorized and unlawful intrusion shall be dealt with by the law. 6. Right to have access to integrated system for the management of inland waters and airspace. 7. Right to claim parts of the ancestral domain, which have been reserved for various purposes, except those intended for common and public welfare and service. 8. Right to resolve conflict in accordance with customary laws of the area where the land is located. 9. In case of ancestral lands, the right to transfer rights subject to customary laws, right to redeem, within fifteen years from transfer, land and property rights transferred to non-IPs in cases where vitiated consent of the IP is established. 10. In case of ancestral lands, right to apply for title under Commonwealth Act No. 141. For this purpose, individually owned ancestral lands which are agricultural in character and are actually used for agriculture, residential, pasture and tree farming purposes, including those with a slope of 18% or more are classified as alienable and disposable public lands. Rights to Self Governance and Social Justice, Human Rights and Cultural Integrity 1. Right to participate fully, if they so chose, at all levels of decision making in matters which may affect their rights, lives and destinies, through procedures determined by them, to maintain and develop their own indigenous political structures and to be given mandatory representation in policy making bodies and other local legislative councils. 2. Recognition of full ownership and control and protection of their cultural and intellectual rights; right to special measures to control, develop and protect their sciences, technologies and cultural manifestations, including human and other genetic resources and their derivatives, consequently, access to indigenous knowledge related to conservation, utilization and enhancement of these resources shall be allowed only with the free and prior informed consent of such communities, obtained in accordance with customary law of the concerned community. Environmental considerations in the management of ancestral domains worthwhile to consider in tourism development planning, include the following: 1. Ancestral domains or portions thereof which are found to be necessary for critical watersheds, mangroves, wildlife sanctuaries, wilderness, protected areas, forest cover, or reforestation, as determined by appropriate agencies with the full participation of the IPs concerned shall be maintained, managed and developed for that purpose by the IP concerned with the full and effective assistance of the government agencies concerned.

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2. IPs may transfer responsibilities over the areas only with the free and prior informed and written consent of the IPs concerned, provided, the transfer shall only be temporary, no displacement of IPs shall occur and program of technology transfer shall be undertaken. 3. All government agencies are enjoined from issuing, renewing or granting any concession, license or lease or entering into any production sharing agreement, without prior certification from the NCIP that the area affected does not overlap with any ancestral domain, or while there is a pending application for CADT. Such certification shall be issued only after a field based investigation and only with the free, prior and informed consent of the IPs concerned. Any project that has not satisfied the consultation process may be stopped or suspended. 2.3.8. The Local Government Code The Local Government Code of 1991 declares it a policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. Towards this end, the State shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby Local Government Units (LGUs) shall be given more powers, authorities, responsibilities, and resources. The process of decentralization shall proceed from the national Government to the local government units. The LGC provides that every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as ell as powers, necessary, appropriate or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. LGUs shall endeavor to be self-reliant and shall continue exercising the powers and discharging the functions and duties currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them. In relation to tourism development, LGUs shall endeavor to provide the following basic services and facilities: For a barangay; infrastructure facilities such as multi-purpose hall, multipurpose pavement, plaza, sports center, and other similar facilities, Information or reading center and satellite or market place. For a Municipality, among others, Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and sports facilities and equipment, and other similar facilities; and tourism facilities and other tourist attractions including the acquisition of equipment, regulation and supervision of business concessions, and security services for such facilities.

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For a Province; tourism development and promotion programs. In August 1993, the Department of Interior and Local Government (DILG) formulated a Community Tourism Program (CTP) to operationalize and institutionalize effective implementation of devolved tourism functions to Local Government Units (LGUs). Any community tourism project or endeavor is one that is undertaken by the LGU or group of LGUs through appropriate measures to consolidate or pool their efforts, services, and resources to develop and establish tourism projects in conformity with the LGC. The CTP has identified the following areas as having potential for the program: historical sites and shrines; ecotourism; spring and waterfalls development; livelihood projects, especially locallyproduced products complementing other tourism projects; local cultural festivals; fiestas and other ethnic practices. Other powers, rights and functions of LGUs related to tourism development under the Local Government Code are the following: 1. To reclassify agricultural lands and provide for the manner of their utilization and development. 2. To be consulted in the planning and implementation of all projects likely to cause pollution, climatic change, depletion of non-renewable resources, loss of cropland, rangeland or forest cover and the extraction of animal and plant species. 3. Implement community based forestry projects and enforce fishery laws. 4. Reject or approve the implementation of projects. 5. Consider the upliftment of their communities economic status and at the same time the conservation of resources under their jurisdiction in balancing community interests. 6. Provide preferential treatment and protection to the marginalized sectors such as fisherfolk communities, community based forestry communities and settlements and agricultural workers and farmers. 7. Enforce forestry laws, community based forestry projects, pollution control law, small scale mining and other laws on the protection of the environment and minihydroelectric projects for local purposes. 3.0. LEGAL AND POLICY ISSUES AND CONCERNS SPECIFIC TO PARTICULAR TOURISM CLUSTERS IN THE CARAGA REGION 3.1. South CARAGA Cluster The South CARAGA Tourism Cluster is an inter-provincial cluster that spans the provinces of Agusan del Sur and Surigao del Sur. It comprises two sub-clusters called the Agusan Marsh Sub-zone encompassing 14 municipalities in Agusan del Sur and the Southeastern Sub-zone encompassing 8 municipalities in Surigao del Sur. Tourism Assets in this cluster include the following: 1. Agusan Marsh Wildlife Sanctuary

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2. Waterfalls and Rivers including Managong Falls, Tugonan Falls, Pangyan Falls, Dumanon Falls, Motong Falls, Minting Kalong Falls, Bolong-bolongan Falls, Popag Falls, Tinuy-an Borboanan Falls and Nyholm Falls and the Hinatuan Enchanted River. 3. Caves including Tumuahon Cave and underground river, and Pamutuanan Cave. 4. Montane/ Forests Areas including Mt. Diwata, PICOP Plantation Forests, Bay View Hills, and Los Arcos Forest Park. 5. Islands and Beaches including Hagonoy Island, and Turtle Island, Barcelona Beach and Baucawe Beach. 6. Cultural Festivals including Annual Naliyagan (12-17 June), Santikan (12-15 June), Kaamula Tribal Rituals (23 September) and Kilimunan Sinulog during the first week of January.

Among the tourism assets in the cluster, the Agusan Marsh Wildlife Sanctuary will be described more accurately and the legal issues and concerns related to the protected area discussed. Agusan Marsh-Description of Existing Conditionsiv The Agusan March Wildlife Sanctuary is one of the ten priority sites under the on-going Conservation of Priority Protected Areas Project funded by the Global Environment Facility of the World Bank. Agusan Marsh is the catch basin of the Agusan-Davao plain in eastern Mindanao. It plays a vital role in the socio-economic development of the Provinces of Agusan del Norte and Agusan del Sur as it is the holding pond for floodwaters that regularly inundate the Agusan Valley during the northeast monsoon and regulates the flow of flood waters to its only outlet the Agusan River. Agusan Marsh is a very important fresh water resource. According to a water resources survey conducted in 1992, the area stores more than 15% of fresh water resources in the country today. Agusan Marsh is considered as one of the ecologically significant wetland ecosystems in the Philippines. The area harbors unique and pristine habitats like the Sago and Peat swamp forests. It provides habitat to the rare and endangered soft-shelled fresh water turtle, fresh water crocodile, oriental Darter, Purple Heron and other species. It serves as the wintering ground of birds migrating from Japan, China, Russia and other Westerns Countries during the Winter Season. Agusan Marsh Wildlife Sanctuary is located in the middle of the Agusan River Basin. It falls within the political jurisdiction of nineteen barangays in six municipalities of the Province of Agusan del Sur, namely, Viruela, Loreto, Bunawan, La Paz, Rosario and San Francisco. Only three of the 19 barangays are completely within the Marsh. There are only two main entry points to the marsh. These are Bunawan and Talacogon. Bunawan is located on the southeastern side of the marsh and can be reached by bus either from Davao or Butuan City in three hours. From Bunawan, one embarks by

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motorized boat through the Simulao-Agusan-Umayam Rivers route to reach the interior of Lake Dinagat of Brgy. Poblacion of Loreto. Travel time takes 3 to 4 hours. The interior town of La Paz, located on the western portion of the marsh, can be reached from Talacogon either by motorized boat in 3 to 4 hours via Agusan River or by land travel through a 1 to 11/2 hour motorcycle ride during the dry season. Talacogon is accessible through a concrete road running West from the Butuan-Davao Highway. Agusan Marsh covers an area of 19,196.569 hectares. Swamp forest, the major habitat type, covers 9,313.558 ha. or 49% of the area. The remaining portion consists of lothic and riverine ecosystems. The Marsh falls within the low risk area in terms of typhoon frequency. An average of one typhoon per year hits the area mainly between the months of October and April. During this time, the area experiences heavy rainfal (200-700 mm) that causes floodings within the marsh area. Water level reaches to 4 meters above the minimum water level during the period. Agusan Marsh has a generally flat terrain with a slope gradient within 0-3% range. It consists of extensive floodplains heavily dissected by numerous rivers and streams. Areas of higher elevations are confined within the fringes and raised river banks formed by the deposition of silt during flooding. Lakes, swamps, and swamp and peat forests form part of the major features of the area. Land use and livelihood sources in the marsh can be described as follows: Agriculture- mainly confined to the levees (elevated portions ranging from 100 to 200 meters away from the riverbanks. Fishing Agusan Marsh is a major source of feshwater fish in the province, and fishing is the main livelihood in the area. Navigation the Agusan, Simulao, Gibong and Umayam Rivers are the main arteries of transportation throughout the area. The Agusan River is also used for transporting logs to Butuan City from the different log ponds of timber licensees in Agusan Del Sur. Gathering of Minor Forest Products particularly of Bamboo and leaves of sago palm for construction purposes. Hunting/ Trapping Trapping of crocodiles is an important activity with most the catch sold to commercial farms. Other animal pouching activities include wetland birds and birds of prey, which are either sold or consumed for food.

Agusan Marsh has a sparse population as frequent flooding deters permanent settlement of people in the area. The 19 barangays have a total population of only 31, 289 consisting of about 5,394 households. Only 350 households can be found in the interior barangays of Nueva Era, Sabang Adgaoan and Katipunan. Houses are mounted on large logs and djuring the dry season are found either docked on riverbanks or found floating in the river. The marsh is considered home to indigenous peoples called Manobos they reside permanently in the marsh and claim many areas in the marsh as part of their Ancestral Domains. There are other people who live in the Marsh only during the dry period and

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others who come inside daily for livelihood purposes but do not reside within the marsh area. Issues and Concerns related to Tourism Development There are at least four salient issues and concerns that should be taken into consideration in the development of Agusan Marsh as a tourist destination. These are: Ecological Maintaining the integrity of the ecological processes in the sensitive environments within the marsh would be a salient issue that should be taken into consideration in the development of Agusan Marsh as a tourist attraction. One of the important issues to be settled relate to population. Currently, the influx of migrants coming from Davao, Zamboanga and the nearby places had already exacerbated human occupancy problems that hamper the governments conservation and protection of the area. This being the case, it would be very important for a sustainable tourism development plan to determine as accurately as possible the increase in population and the various pressures it will have on the resource. A Carrying Capacity Assessment may be the basis for the projection. Another factor to consider is livelihood. The type of livelihood activities that will be introduced as a result of tourist influx will have to be studied carefully. Currently, the marsh is vulnerable to illegal extraction and trade of species found within it, particularly since the termination of several logging licenses operating in areas adjacent to the marsh have cause massive unemployment. The type of livelihood activities that will be introduced as a result of the tourist influx must also be such that it will encourage the enhancement not the depletion of resources in the marsh. The last salient factor to consider is the management zones as proposed in the Plan. The management plan identifies the following zone: Sustainable Use Zone Areas located in the inner portions of the march where IPs shall continue top collect and utilize natural resources in a traditional manner. However, clearings, farming, settlement and commercial utilization detrimental to the environment will not be allowed. Areas located along the river banks where settlement is present. These areas a least susceptible to prolong floodings. Traditional and/or sustainable uses including agriculture, agroforestry and extraction activities will be allowed in the zone. 6,975 ha

Multiple Use Zone

2,054 ha

Habitat Management Zone Strict Protected Zones Areas that are ecologically sensitive and

3,824 ha. 1,934 ha.

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least disturbed areas and areas identified as breeding places of rare and endangered wildlife. Human activities will be strictly prohibited in these areas except for scientific research and/or ceremonial or religious rites of IPs. Cultural Zone Comprises the two ancestral domain claims within the marsh. 48.22 ha.

Tourism activities (bird watching, spear fishing, trekking etc.) infrastructure (view decks) services (motorized boats) must be compatible with those allowed in the various zones. Tourism Planning should therefore be coordinated with the Management Board of the Park and with the Indigenous Communities who claim parts of the marsh. Cultural Respect for the rights of indigenous peoples not only to their ancestral domains and economic activities but also their culture, traditions and customs is a vital principle in the development of a tourism plan for the area. The Constitution and the IPRA explicitly provides that any government project that will be introduced in an area owned by Indigenous Peoples as ancestral domains are to have the free, prior and informed consent of the communities involved. The approval will have to be a concensus among those affected. The process of consultation must use not only the language of the IPs concerned likewise the decision-making processes of the affected tribe. It is of note that according to the IPRA, the indigenous peoples have the right to stop or suspend any project that does not conform with the requirement that the free, prior and informed consent of the IPs must be taken. Legal It is important to create rules and regulations or even enact ordinances or policy issuances that will promote an ecologically sound and sustainable nature-based tourism in the area and will help in abating illegal extraction of natural resources therein. These rules and regulations must have strict enforcement mechanisms. Agencies tasked with the implementation and enforcement of the law must be adequately provided with financial and technical requirement to enable them to effectively carry out the protection of the marsh. Institutional Several institutional issues will have to be addressed. This will include Capability building for Protected Area Management among the Local Government Units, PAMB Members, Indigenous Peoples, NGOs and the other concerned agencies. Another institutional issue would be the reconciliation of the various plan including the PA Plan, the Ancestral Domain Management Plan and the tourism plan. Another issue would be networking and coordination among all agencies and entities that will be involved in promoting and maintaining the marsh as a tourist destination and lastly, the issue of jurisdiction over the

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development of the site as a tourist destination, which if the Local Government Code is followed rests upon the concerned LGUs. Proposed Action relative to Tourism Development The Agusan Marsh Wildlife Sanctuary Management Plan aims to conserve and protect the biological diversity in Agusan Marsh and support the sustainable development of the provinces of Agusan del Norte and Agusan del Sur. Among the many objectives enumerated in the Plan, one is the promotion of the ecotourism potentials of the marsh. The unique sceneries of the marsh (peat soil, swamp forest, abundance of birds, floating houses, lakes etc.) offer limitless opportunities for nature based tourism. Among the tourism activities planned for the marsh are bird watching, marsh trekking, lake hopping, tour to Lanipao, Narra, Lumbia and Mambog stands, tour to indigenous peoples floating houses, research and studies or educational tours. Other plans and activities for the promotion of Agusan Marsh as a tourism destination are the construction of view decks and watch towers in Mambayugon and Casawangan Lakes and Talacogon; Floating restaurants in Lake Dinagat, Broad walks from Maharlika to Casawangan Lake, Interpretative Display Centers at the IPAS Building, in Sito Cabut, Ticgon Lake and Dinagat Lake, Hanging Bridge along river banks of Lake Dinagat, Construction of boat dock stations, putting up of camping grounds and historical replica in Gibong, Bunawan. The marsh will be promoted as a tourism destination in collaboration with the Tourism Authority, Provincial Information Office, Department of Education, Culture and Sports and other NGOs and conservation groups. The Department of Tourism will be consulted regarding the development of the Agusan Marsh as a tourist destination. Further policy and legal action for the conservation and development of Agusan Marsh may include: 1. Immediate and urgent delineation of Ancestral Domains and Recognition of the Rights of Indigenous Peoples to their Domains as provided in the IPRA and other laws and issuances. 2. Strict protection of core areas of undisturbed swamp forest and herbaceous swamp. 3. Introduction of sustainable resource management projects for local communities around the periphery to take the pressure off the marsh. 4. Rules and Regulations or Ordinances that protect the marsh and creation of enforcement machineries. 3.2. Surigao Island Zone The Surigao Island Cluster is composed of two sub-clusters called the Siargao Island Sub Zone and the Dinagat Island Sub zone. The Siargao Island Sub-zone is comprised of 9 municipalities in Surigao del Norte, while the Dinagat Sub-zone consisting of 7 municipalities in Surigao del Norte.

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Tourism Assets in the cluster include Siargao Island in General Luna, the next surfing paradise of the Asia Pacific Region, Bucas Grande Island where the famous Sohoton Cave is located. Inside the cave is a secluded, amazing lagoon with countless islets, Santa Monica Waterfall, Del Carmens Swamp, Sagisi Island, Lake Bababu, Aling Cayao Iland, and Mini Dam Park in San Jose, Dinagat. Siargao Island Protected Landscape and Seascape Existing Conditionsv The Siargao Island Protected Landscape and Seascape includes three major types of ecoystems: (1) terrestrial, (2) wetland, an extensive expanse of mangroves totalling 8,692 hectares and (3) marine, all exhibiting extensive biological diversity. It is an island endowed with white sand beaches, hidden lagoons, caves, deep water teeming with marine life and islets with karst formations. Its mangroves, seagrass and mudflats are habitats and feeding ground of migratory waders, water birds and mangrove associated organisms. The coral reef, which is still intact, serves as spawning ground of diverse reef associated fishes. Salt water crocodile, sea turtle and dugong (sea cow) can be found in the waters of Siargao. The island is known to be the habitat of endangered wildlife species like the Philippine crocodile, tarsier, Philippine cockatoo, marine turtle, Dugong and other endemic species of flora, birds and mammals. It is one of the only two remaining sites in the Philippines where the ironwood Mancono (Xanthosthemu verdogonianus) still abounds. The island has been categorized as a Protected Landscape and Seascape, meaning an area of national significance characterized by harmonious interaction of man and land while providing opportunities for public enjoyment through recreation and tourism within the normal lifestyle and economic activity of these areas. The island is geographically and politically under the jurisdiction of the province of Surigao del Norte in the northeastern portion of Mindanao. It is bounded on the north by the Dinagat Island, on the south by the mainland part of Surigao del Norte, on the east by the Hinatuan Passage and on the west by Surigao Strait and the province of Southern Leyte. The island is accessible through Surigao City from Manila, Cebu or other points of Visayas and Mindanao. The city can be reached by regular commercial flights from Manila and Cebu. Boat rides from Cebu to Surigao Cioty take about 6-9 hours and about 3 hours from Southern Leyte during good weather. The various municipalities of the island can be reached by taking either commercial or cargo inter-island vessels. Sea voyage normally take three hours and travellers can dock at three possible major commercial trade centers of the island namely, Dapa, Del Carmen and Santa Monica. Access to Siargao and Bucas Grande Islands is difficult during rainy season because of the treacherous waves along Surigao Strait. The Protected Area of Siargao consists of approximately 157,378 hectares including 67,000 ha. of terrestrial areas and 89,652 ha. of marine areas. The land area includes Siargao and Bucas Grande Islands, a total of nine municipalities comprised of 131 barangays. The coastal areas especially on the western and southern side of Siargao Island are broad expanses of mangrove swamps. Cutting through the mangrove forest is a maze of tidal rivers and channels leading to inner lagoons and bays. The northwestern section of the island are fringed by broad reef flats. While the eastern side, being exposed to sever

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oceanographic conditions is dominated by sandy shorelines and some rocky headlands. Narrow and sparing strands of fringing reef also lace the eastern shore. Another factor that considerably affect the eastern coastline features is the proximity of Siargao to the Philippine Deep. Because of these tectonic features, the eastern Philippines had a very narrow shelf zone. The most striking physiographic feature of Siargao is the limestone areas particularly in Kanbangyo and Poneas Island. The presence of lagoons amid the hills and beaches make them rather unique. Siargao Island is endowed with many potential tourist attractions. Among these are the white sand beaches and long stretches of surfing waves at General Luna and Pansuquian, Hanoyoy, Daku and Guyam Islands. There is the Puyangui White Beach, the enchanting Suhoton cove with its hidden blue lagoons and soothing waters of Magkahuyog Falls at Socorro, the magnificent Magpopongko Rock Formation in Pilar; the Poneas Island with its hilltop lakes; Pook Amoya white beaches at Burgos and the Taktak Falls at Sta. Monica. Of these tourist spots, those in General Luna are well developed and are frequented by foreign tourists. Issues and Concerns Related to Tourism Development Siargao Island provides resources to a large local community. Its population comprises 19.3%of the entire province of Surigao del Norte. Population is counted at 83,113 comprised of 14,849 households. It is not surprising therefore that local consumption and utilization of mangrove, marine and forest resources as a source of livelihood and subsistence pose a threat to the ecological balance and sustainability of the island. Ecological threats is likewise posed by illegal cutting that reduces forest cover and in the process damages critical watersheds, illegal fishing methods including dynamite fishing that destroy marine sanctuaries, unregulated mangrove cutting that reduces the nursery and feeding ground of fish, slash and burn farming that causes erosion and siltation damaging coastal resources and illegal occupation or encroachment by local residents of the uplands. Frequent occurrence of typhoons, high cost of farm inputs, inaccessibility of credit institutions and stringent loan conditions and scarce transportation facilities hinder the growth of industry in the island and further drives the population to depend upon extraction of natural resources as main economic activity. Tourism Development Planning should consider three important factors that may contribute to further degradation as a result of tourism activities. 1. Population pressure- Almost the entire population of the island depend upon the natural resources found therein. The large population of nine municipalities largely dependent on the resource already puts a strain on governments conservation efforts. The extent of the Increase in population must be warranted by a careful carrying capacity assessment. 2. Livelihood and Resource Utilization Fishing, harvesting of forest products for fuelwood and lumber are the main livelihood activities in Siargao Island. The continuous harvesting of limited resources without replenishment coupled with illegal gathering, timber poaching and unregulated cutting of mangrove forests as well as illegal fishing activities such as abalone shell collection, liba-liba (putting weights on fishing nets) and dynamite

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fishing create environmental damage that threaten the sustainability of the resources. Care should be taken that livelihood activities (sale of turtle meat) introduced as a result of tourism would not encourage further depletion of the resource. 3. Policy and Law Enforcement Laxity in the implementation of laws is manifest in the unbated illegal natural resource exploitation in the island. Conflicting development priorities among government agencies and instrumentalities can be deduced from competing natural resources utilization rights such as mining (iron and cobalt), forestry (limestone forests), agriculture (pineapple plantation) and tourism (venue for international competitions in surfing). A coherent development framework, compatible with the goals of people development and natural resources conservation should be developed and conflicting natural resource uses reconciled. It will be worthwhile for the tourism plan to likewise investigate the legal feasibility of community managed tourism estates. 4. Institutional considering that the whole island is a protected area. LGU and PAMB institutional relationships must be clarified. Noteworthy is the fact that the PAMB alone comprises about 117 members. Interrelationships among the various municipalities should likewise be studied specially since only a few municipalities are well endowed with natural resources (Soccoro and General Luna) while the rest depend almost completely for natural resources supply from these areas. 5. Management Zoning Any land use planning should take into consideration the management zoning agreed upon by the stakeholders as defined in the Initial Protected Areas Plan. This plan indicates six categories of management zones including Habitat Management Zone, Multiple Use Zone, Sustainable Use Zone, Recreational Zone, Restoration Zone and Buffer Zone. The Plan proposes the following zoning. The zoning proposal should be the guide to resolution of conflicting resource uses. Management Zone Habitat Management Zone Recreational Zone Sustainable Use Zone Multiple Use Zone Restoration Zone Marine 6,203 49,727 17,443 14,779 1,500 Terrestrial 6,443 2,016 6,535 51,172 1,560 Total 12,646 51,743 23,978 65,951 3,060

Proposed Action on Siargao Island Relative to Tourism Development The Initial Protected Areas Plan for Siargao Island Protected Landscape and Seascape identifies an eco-tourism program to take advantage of Siargao Islands many natural scenic values. The eco-tourism program will be undertaken with the Department of Tourism and will aim to protect the unique characteristics of the Islands three ecosystems, the species of special interest, value and rarity, geographical features of aesthetic and scientific value and site of special interest for research. Tourism sites will be identified and tourism facilities and infrastructure constructed. The following are some recommendations on legal and policy measures that may be taken to address the tourism development concerns of Siargao Island. 1. The Initial Protected Areas Plan proposes as one of its major site management activities, the conduct of a resource inventory and assessment. A complete ecological profiling of the island is necessary for preparing an ecologically sound tourism development plan.

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For purposes of tourism, the study should also include a carrying capacity assessment for tourism. 2. The Initial Protected Areas Plan proposes a Resource Protection Program where the community is actively involved. A law enforcement program will be designed in partnership with communities, NGOs, Pos and other government agencies. Local volunteers will be deputized as park wardens and will undergo special training for this job.

3. For promoting wise use of resources and avoiding its continued degradation, the Initial Protected Areas Plan for the Island proposes the enactment of ordinances that would penalize the following acts: Marine and Wetland Resources a. Catching small fry or ngisi-ngisi or agak b. Catching and transporting lobsters five grams and below c. Fishing through muro-ami method, trawling, or purse seine, explosives, cyanide and other poisonous substances or through any unlawful means such as electricity or compressors. d. Sale of turtle meat. e. Commercial fishing using fishing vessels over 3 gross tons in areas/ zones not specifically designated by any orders. f. Catching and collecting fish for sport and recreation purposes using guns, harpoons, spears, arrows and SCUBA. g. Collecting and gathering corals, shells and other mollusks for commercial purposes. h. Catching or killing marine turtles and gathering their eggs and other protected wildlife species including whales, crocodiles, game birds and other endangered wild plants and animals unless otherwise granted a specific permit. i. Hunting, killing, wounding, possessing, transporting and/or disposing of Dugong or Sea Cow, dead or alive, its meat or any of its by-products. Forestry and Protected Areas a. Burning of vegetation (cogon and brushlands) within the buffer zone. b. Cutting down trees without prior permit from DENR c. Construction of structures not in accordance with management plans d. Tampering with markers, interpretive and regulatory signs, mooring buoys, scientific equipment and established park facilities. Pollution and Waste Management a. Indiscriminately disposing refuse such as trash, plastic, gasoline derivatives and untreated wastes and any other forms of pollutants into any body of water. 4. In resolving competing land uses and resource utilization rights, there should an integrated land use plan. Zoning plans should be enacted so that mangrove areas are delineated as protected areas and allowed to recover from overexploitation. For existing unresolved resource use rights such as mining reservation, action may be taken to petition the Secretary of DENR to reassess the value of the mining

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reservation and its impact upon the whole ecological life support systems. If warranted a modification of the boundaries of the reservation may be proposed by petition from the community, LGU, NGOs and PO affected or concerned about the issue. 5. In resolving institutional issues, the PAMB structural organization should be reviewed. Because of the large number of PAMB members, it is worthwhile to consider the creation of a PAMB Executive Committee. Roles and functions of the various actors and stakeholders such as the Local Government Units, Communities, NGOs and PAMBs should be agreed upon. While the NIPAS law clearly indicates who the PAMB members should be, there is no limitation in the law that will prevent the PAMB to create rules for its effective operation. 3.3. Surigao del Norte Zone The Surigao del Norte Zone is comprised of two Sub-Zones, the Lake Mainit Sub zone composed of 2 Municipalities in the province of Agusan del Norte and 4 in Surigao del Norte; the North Mainland Subzone composed of 9 municipalities in the province of Surigao del Norte. Aside from the Lake Mainit Watershed and Aquaculture, tourism assets in the zone include: 1. Beaches such as Looc and Mabua Pebble Beach Resorts, Basul and Pagkawasan White Beach, Tanquility Bay, Cagbantoy, Lingongganan, Banbanon, Jubgan, Alegria, Tubay Mountain, La Fraternidad, Binuwangan Beach. 2. Caves such as the Mapawa Cave, Kagalimpay and Payale Caves, Tinago, Buhong Baho, Tabunan, Tagpantay Caves. 3. Waterfalls such as the Buyho and Sukailang, Little Baguio, Jubgan, Biyabid, Budlingin, Taginis, Magdagooc, Mayugda, Tagbabaying, Bugsukan falls. 4. Lakes (Mahucdan), Islets (Puyo), Spring (Songkoy) and Mountane areas,Mt. Maniayaw, Mt. Minaosog 5. Historical and Cultural Sites p Panhutongan and Amusngon Archeological Sites, Colurum Shirne. Issues and Concerns Pertaining to Tourism Development The Surigao-Lake Mainit Cluster is fast emerging as a major tourism destination in the CARAGA Region not only because of Surigao City which is currently popularized as an international surfing site, and currently serves as the service center for Siargao and the other islands, but also because of its varied and exotic nature based assets. Nature based assets being its foremost attraction is the greatest challenge facing the local communities in the zone is how to prepare to take the greatest advantage of becoming an international tourism destination while avoiding the potential risks on its environment. This challenge is specially made more serious by the fact that there is a general perception about the low priority being placed by the government (both local and

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national) on tourism in the area, the lack of political will and coordination to pursue tourism development project. One other area of concern again will be to resolve apparent conflicting land and resources uses. It has been reported for example, that Lake Mainit is being earmarked a source of water that will be channeled to Jabonga. If the proposed project continues, it will be important to determine the extent that this tapping will impact upon the resource.

Proposed Action Relative to Tourism Development It is worthwhile to consider the creation of an inter-agency, comprehensive and integrated development plan for the zone. The plan should be taken not only in the context of the CARAGA Region but of the whole nation. The plan should present a coherent and integrative use of land and natural resources. The ecological and economic feasibility of channel the waters of Lake Mainit should be firmly established. Activities such as Environmental Impact Assessments, Economic Feasibility Studies and Securing Social Acceptability should be done on an interagency and transparent process. The financial and technical requirements to efficiently undertake these activities should be provided. Considering the El Nino crisis, care should be taken that in studying the feasibility of the plan, various laws, such as the Water Code and the Water Crisis Act should be enforced. 3.4. Butuan Zone The Butuan Zone is comprised of Butuan City and nine other muncipalities in the province of Agusan del Norte including Buenavista, Cabadbaran, Carmen, Las Nieves, Magallanes, Nasipit, RT Romuladez, Santiago and Tubay. Tourism assets in the cluster include historical and archeological sites including the Butuan Regional Museum, Balangay Shrine Museum, Historic Magallanes Marker, Municipal Museum and Montane landscapes such as Mt. Hilong Hilong Range and Mt. Mayapay. Issues and Concerns Pertaining to Tourism Development Among some of the important issues and concerns pertaining to tourism development which were articulate in the consultations held among various affected stakeholders in the city are: the need for investment incentives for tourism related activities, building of stronger NGO-GO support for tourism development, improved networking among agencies involved, need to intensify domestic tourism promotion. Proposed Action Relative to Tourism Development Institutional Issues take a major importance in the development of tourism in the city. Except for the need for ordinances on tax and investment incentives articulated by hotel and resort operators, many is the issues relate to inter-agency collaboration and cooperation. To develop a strong network of collaborating NGOs and Government Agencies, a venue

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should be created where these various stakeholders can meet, discuss and agree on common action. In many other places, the local government has taken the initiative to create these inter-agency inter governmental councils and planning bodies. It will not be amiss to try this strategy. 3.5. Northeastern Zone The North-eastern Zone consists of 11 municipalities in the Province of Surigao del Sur. Tourism assets in the cluster include exotic white sand beaches, waterfalls, caves, hot and cold spring an iron mountain, islands and lakes. Some of the more popular tourism assets are the Blue Lagoon, Cagwait White Beach, Busay Waterfall, Turtle Island, Linugaw Island, Lake Bababu, Britania Island and Burboanan Falls. Issues and Concern Pertaining to Tourism Development The lack of political will to protect the environment and too much bureaucracy was perceived by consulted stakeholders to be one of the major blocks for ecologically sustainable and economically gainful tourism development in the region. One other concern raised was the weak support given to the promotion and protection of indigenous culture. Proposed Action Relative to Tourism Development The promotion of indigenous culture is a very sensitive concern, particularly because of the heighten awareness about indigenous rights as a result of the passage of the IPRA and the popularization of International Covenants on Indigenous Peoples. Cultural Integrity is an important principle enshrined in the Constitution and the IPRA. The policies enshrined reflect the approach of respect for cultures, way of life, traditions and customary laws of indigenous peoples. The principles/policies reflect the direction in international law of granting indigenous peoples the right to self-determination as opposed to the zoo concept where the idea is to expect indigenous peoples to stay in reservations, frozen in time and confined to a particular lifestyle, the way of life they once had. The policies call for respect for the right indigenous peoples to develop and change like all other peoples if they wish to. It underscores the important principle that they should have the right to choose. It maintains that indigenous peoples, in most cases will have to adopt to changing national situation, to changing economy and to a changing environment however, they should have the right to determine the pace of these changes and of their own development in so far as possible. The IPRA expressly provides that the State shall take action towards the promotion, protection and recognition of the culture, traditions and institutions of the indigenous peoples. Among the outstanding measures that the state vows to undertake towards the recognition of cultural diversity are the incorporation of various indigenous cultures, customs and traditions and histories into the educational system, public information and cultural education exchange; enjoining the media in promoting cultural integrity and diversity; and participation of indigenous leaders in schools, communities and international cooperative activities like festivals, conferences, seminars and workshops. IPRA recognizes the right of IPs to manifest, practice, develop and pass on their spiritual and religious traditions, customs and ceremonies. The State shall ensure that indigenous sacred objects and places like burial sites are protected and preserved. It makes it

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unlawful to explore, excavate, or dig archeological sites on indigenous lands for the purpose of obtaining material and cultural values without the free, prior and informed consent of the affected community/ies. It makes is unlawful and makes it punishable for any one to deface, remove or destroy artifacts which are of great importance to the preservation of cultural heritage. The indigenous peoples have the right to draw from government funds to be used for the management and preservation of the archeological and historical sites and artifacts in their ancestral domains. IPRA recognizes the community intellectual rights of indigenous peoples. It acknowledges the right of indigenous peoples to the full ownership and control of their cultural manifestations and intellectual properties. The IP rights over their sciences, technologies, and cultural manifestations including human and other genetic resources, seeds and their derivatives, traditional medicine, health practices, vital medicinal plants, animals and minerals, indigenous knowledge systems and practices, knowledge of the properties of flora and fauna, oral traditions, literature, designs and visual and performing arts. The IPRA expressly provides that the indigenous peoples free and prior informed consent shall be taken before any of these cultural manifestations may be shared to others. 4.0. RECOMMENDATIONS TO ENHANCE THE LEGAL AND POLICY FRAMEWORK FOR TOURISM DEVELOPMENT IN THE CARAGA REGION A review of the issues and concerns of all the tourism clusters discussed above, point out to four major areas for policy interventions in order to strengthen tourism development in the Region. These area policy interventions with regards to the protection and conservation of the environment, legal and policy interventions related to tenurial and resource use rights, institutional and administrative interventions to clarify institutional roles, accountability, jurisdiction and management strategies, and fiscal, physical and financial policies to encourage investments in tourism. 4.1. Policy Interventions on Environmental Protection and Conservation 4.1.1. Wetlands The CARAGA Region holds a diverse array of wetlands. These highly productive natural ecosystems include coastal mangrove forests, coral reefs, freshwater marshes and volcanic lakes among others. Wetlands are important for biodiversity conservation and are significant sources of natural products for rural populations providing the basis for livelihood of a consideration number of people in the Region. Wetlands provide considerable ecological benefits by absorbing floodwaters, providing clean water year round, absorbing pollution and protecting property from erosion by sea or rivers. The National Wetland Action Plan, states that the concept of tourism and recreation (other than coral reef tourism and bird watching) as uses of wetlands is not well understood in the Philippines. There is a general impression, among government staff and the public in general that wetlands are not suitable for recreation and tourism. Similarly there is a tendency to see recreation and tourism activities, which are not compatible with other uses of wetland areas. This is inhibiting the realization of the social and economic benefits, which can be derived from wetland recreation and tourism.

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Despite the potential for tourism to contribute to the conservation of wetlands, there are very real risks that tourism including ecotourism, will have deleterious impacts on wetlands. The following guidelines to minimize adverse impacts legally binding permits or licenses should form the basis for tourism operations in wetlands. 1. Tourism in wetlands should provide significant benefits to local residents, tourism operators should have the commitment to train and employ local resident and to purchase supplies locally whenever possible. 2. Tourism operators and responsible agencies should design, plan and consult with local and indigenous communities to minimize negative impacts of the tourism policies on the environment and indigenous people. There should be no reduction of the area of important habitat in the locality and no diminution of the rights of local people to use the area designed for tourism activities. 3. Tourism operators and responsible agencies should contribute to the sustainable management of wetland resources. There should be no collection of plants and animals in tourist spots. 4. Tourism operators and responsible agencies should incorporate environmental education for tourists and residents. They should conduct seminars on the appreciation and importance of a healthy environment, and the promotion of environment friendly activities. 5. Concessions for certain tourism service in wetland areas inside or outside protected areas system should be required to use the revenues generated to maintain the integrity of wetlands. Guidelines and criteria for awarding concessions should be formulated. 6. Responsible Government Agencies should ensure that environmental and social costs of tourism (including increased water demand, pollution, displacement of local wetland uses, etc.) are fully considered in environmental impact assessments and designs of development plans. Measures to mitigate these environmental costs of tourism should be incorporated into permits, licenses and environmental clearance for tourism operations. 4.1.2. Mangroves The most significant benefits provided by mangroves are nutrient export to adjacent areas; breeding and nursery area for wide range of fish, mollusk, crustacean, many of which are of economic importance; coastal protection (prevention of erosion); and source of food, fuel, building materials, and other commodities for local communities. Regrettably, mangrove areas in the Philippines have been reduced to about two thirds. It has been estimated that less than 5% of the remaining mangrove area is old-growth forest, which means that the major part of the remaining mangrove area is almost certainly not yielding the full range of benefits that would be available to mature forests. Mangrove areas have been destroyed or degraded by a variety of impacts, the most significant of which has been conversion of brackish water fishponds. Other factors have been: wood chipping, charcoal and firewood production; extraction of building and construction materials; pollution from mining and industry; and changed hydrology due

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to earthworks behind mangroves. Over exploitation by local communities continue to play a significant role in the destruction of mangrove areas. Management of Mangrove areas in general and for tourism purposes in particular should consider the following actions: 1. Review all laws, rules and regulations on mangrove areas including those converted to other uses or abandoned in order to solve the issues with respect to administrative jurisdiction caused by overlaps and conflicts, prohibit any action that destroy mangrove areas, and ban all cutting of mangroves except when required in the implementation of a management plan prepared by the community in accordance with appropriate guidelines. 2. Bureau of Fisheries and Aquatic Resources should conduct an inventory of fishpond holdings and review their legitimacy and compliance with fishery laws. Appropriate action should be taken based on the inventory. 3. Develop a national policy on the utilization of brackish water ponds, especially in establishing a ratio of domestically consumed protein crop to export crop based on biological, socio-economic and ecological criteria. 4. Implement a policy on reverting alienable and disposable lands, which are released to the BFAR but have not been developed within the 5 year period. 4.1.3. Caves Among Natures many treasures and attractions, very few possess the combined allure of majesty, beauty, serenity and mystery as caves do. Each of the Philippines 2000 known caves holds a promise of thrill and excitement for exploration and discovery, spectacular views of wonders patiently wrought through the centuries, or silent inspiring chronicles of man and natures beautiful story of interdependence. Caves are part of our natural heritage. They possess outstanding historical, educational, cultural, scientific and aesthetic values. They are part of our ecosystem and habitat of unique and diverse flora and fauna. Caves and their resources when properly conserved and sustainably managed can aid in the social, cultural and economic upliftment of our country and can provide livelihood opportunities to the Filipino people. However, caves and cave resources are non-renewable wealth. As part of the countrys heritage they demand of the present generation the proper management, protection and conservation that would ensure their pristine existence as a legacy to the children of the future. Vi This studyvii recommends the following guidelines for the management of caves for tourism purposes: The Cave Management Plan should include the following: 1. A cave Map. In case of emergencies the map will be very useful. A cave map will determine the routing of tour groups. The trail options will be indicated on the map and copies to its distributed to tour leaders and tour participants. 2. A map of the surface topography. This map will indicate the road and areas where

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motor vehicles would park, walking trails and other features that would be tied up with the cave map. The surface maps will likewise indicate areas in the surface, which are off limits to visitors and tour participants. 3. A study of cave life. The impact of the succession of tour groups on the life in the cave must be established. Under a permit system the number of permits to be issued for a particular cave at any one time (season) must be set. 4. Fragile and Sensitive Features. Features of the cave that are fragile and sensitive to tour groups must be identified and marked in the cave map. Dangerous areas must be marked clearly to avoid accidents and to facilitate rescue operations if needed. 5. Permit to visit the cave. Permission to use private or public lands and caves is a must. The authority charged with the management of the cave must know how many people are transported to the cave in any given time. When considering the use of the cave for tours, the owner and a speleologist should be certain the surface krast and the cave environment would not be adversely affected. When a cave is determined to be suitable as a show cave, cave owners or managers, visitors and tour groups should be required to secure or have the following: 1. Accident Insurance. The cave owner must have liability insurance. So too the tour company. Coverage by the owners insurance and the tour companys must be very specific. 2. Pre-exploration briefing. A pre-exploration briefing about the fragile nature of the cave environment must be provided to all visitors. Details are provided to help the visitors understand their responsibilities underground. 3. Proper equipment. Each of the visitors must be provided proper equipment and should be shown how the various equipments are used. 4. Monitoring System. The Owner or Manager of the cave should have appropriate monitoring systems to determine the effect of the cave visits. 5. Carrying Capacity. Cave owners and managers must determine the amount of traffic and acceptable thresholds of the cave. 4.1.4. Land Resources Land is a finite resource and decisions on the proper land use assume strategic importance in development planning. Some general principles to consider in allocating land for tourism purposes are the following: 1. Compatibility with Development Plans. A primary consideration of the rational relationship and compatibility of the planned tourism development use to the national, regional development plans land and resource use policy should be made. The project should be compatible with surrounding land uses, zoning and land use pattern. If any change in land use pattern will come about as a result of the project, the probable social, environmental and economic effect of the change in land use should be determined, the benefit on regional economy and the extent that the project will

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induce development in adjacent areas should also be considered. 2. Social Acceptability. The social impacts of the tourism project should be closely studied. Crucial important should be laid on avoiding impacts related to dislocation of peoples and villages. No less than the Constitution of the Philippines and enabling legislations such as the NIPAS, Local Government Code and IPRA call for the effective, prior and informed consent of the people before the introduction of any project that will affect them. Issues related to demographic impact, community identity, socio-cultural values, and health should be addressed. 3. Archeological and Historical Preservation. Historical and archeological sites should be preserved for posterity. When historical, religious, geological or acheological sites constitute part of the tourism assets, the technical and financial requirements to keep the places properly managed should be addressed a foremost concern. 4. Ecological Considerations. Ecological considerations including the natural and physical attributes of the tourism asset should be evaluated. This normally should include the suitability of the site for development of building, sewers and underground utility trenches, impact on topography; impact on hydrology and water quality; impact on climate, meteorology, and air quality; impact on noise quality; impact on energy utility services, including energy conservation, sanitary sewers, solid waste, water supply, impact on vegetation, fauna and habitat, and impact upon the unique features of the area. 4.1.5. Forests Eco-tourism involves traveling to relatively undisturbed natural areas with the specific objective of studying, admiring and enjoying the scenery and its wild plants and animals, as well as any existing cultural manifestations. Eco-tourism aims to promote economic development, environmental education and justify the protection of natural sites. However, with the influx of tourists and stimulated economic activity, the industry could contribute to environmental degradation such as pollution and soil erosion. In ill managed sites, the disturbance of the ecology is inevitable. Developing eco-tourism in forest areas therefore should consider the following policy recommendations: 1. Plant introduction and domestication should be controlled. Plant domestication is the process of harvesting wild plants, propagating them in plots and selecting favored species. Not only will widespread plant domestication practice open wide range of unutilized and underutilized forest species to economic exploitation. It may likewise threaten bio-diversity conservation by negating goals of forest conservation once the clamour for valued forest species mounts. Plant introduction should likewise be regulated. It has been the experience in recent years that exotic species monoculture has been plagued with pests and diseases. Exotic ornamental plants largely orchids, have been introduced and continues to be introduced. One ill effect of the extensive introduction of exotic species would be genetic dillution of native and endemic orchid species as well as the introduction of pathogens that could cause large scale epidemics. 2. Protection of wildlife and prevention of habitat degradation should be promoted. Hunting wildlife should be strictly limited. Forest patrols should be engaged to guard

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that these activities are perpetuated within forest areas. 3. Forest guides should be provided to all visitors. Tourist outposts should be constructed in certain areas and should be equipped with effective fire fighting equipment, as forest fires may be started from campfires and carelessness of visitors. Protected Landscapes and Seascapes

Coastal tourism accounts for a significant portion of tourism in the CARAGA Region. Sandy beaches, warm tropical waters, coral reefs, lush vegetation and interesting coastal fishing culture are some of the primary natural and physical attractions in the region. It is thus vital to have regulations on resources for coastal environment protection in order to maximize the economic gains on tourism. The following policy recommendations should be considered. 1. More complete, understandable scientific and technical information about the seas value and its vulnerability should be publicly and widely disseminated and explained. 2. Care should be taken that human cultures adopt to live sustainably in coastal ecosystems is replaced by consumer-oriented world culture. 3. Limit access to reefs and fishery resources. Many reefs have come devoid of many of the economically important species due to overfishing and the use of destructive fishing methods such as explosives, poisons and muro-ami fishing. There should be an intensive public information or awareness of the damage done by these methods of fishing. Also the adverse impact on the reefs caused by siltation brought about by unsuitable agricultural practices, mine tailings and logging in water catchments which are discharged unto rivers should be made known and understandable to the public. 4. Increase protection to the Dugong, Sea Turtles and other marine species. Protect the sea grass beds found on shallow sediments, submerged reef flats and on the platforms of fringing reefs. Aside from providing nursery areas, shelter and feeding sites of a large number of invertebrates and fishes, many of which are of economic significance, sea grass beds are important feeding areas for endangered vertebrates such as dugong and marine turtles. Sea grasses have additional importance because a significant portion of the nutrient produced by sea grass beds can be transferred to adjacent ecosystems such as coral reefs. 5. Enhance institutional capacities of Government, Non-Government Organizations, Peoples Organizations and Communities for coastal area management. 6. Institute and Financially support coast guards. 4.2. Policies on Institutional Roles and Responsibilities Law enforcement, institutional coordination among government agencies, effective public participation, training and development of human resources, financial and fiscal allocation, regional and integrated planning are among the salient areas where policy intervention might help protect the environment and maximize gains from tourism development.

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Law Enforcement One of the major factors contributing to the destruction of our ecology is the low level of law enforcement. These may be traced to factors such as shortage of manpower and low levels of logistical support, the reluctance to implement and enforce law may also be a result of lack of protection and support of higher authorities on the law enforcers and/or the payment and receipt of bribes. Arrests may sometime be made, but the litigious, lengthy and expensive court process discourages the filing of appropriate complaints. Unrealistically low penalties and fines likewise prove as non-deterrents to the destruction of resources. In some provinces, the creation of citizens brigades as law enforces have proven some success. Citizens groups such as bantay-gubat, or bantay-dagat have proven to be effective deterrents to continued degradation of the resource. However, these citizens groups must be backed with the appropriate court and justice systems that will bring an expeditious and just prosecution of offenders. Institutional Coordination and Networking Several government agencies have responsibilities over common areas and natural resources. Overlap of responsibilities as well as conflicting management objectives result to confusion in the allocation and use of resources and results ultimately to faster and more serious degradation of the resource. The creation of multi-sectoral, inter-government agency and all stakeholders councils are increasingly becoming the solution to the problem of conflicting decisions on natural resource utilization. Integrated land use planning has likewise lessen the ill effects of the confusion in some provinces that have ventured into this strategy. Human Resource Development It has been increasingly realized that the lack of information, knowledge and training and the adequacy of human resources both in numbers and skill contribute much to the mismanagement of our resources. Institutional mechanisms for human resource development must be given priority in the programs of government agencies. Citizens or public awareness and training through participatory undertakings must also compliment the efforts because government will never be able to hire the number of personnel needed to undertake all its functions. Aware and pro-active, organized communities and citizenry are important in the protection, development and conservation of our natural resources and the sustainable development of the country. Fiscal and Financial Stability Put your money where your mouth or heart is is a common jargon. Laudable and noble goals may be set, but without the appropriate financial and fiscal resources to enable the activities to be undertaken, they will remain in the realm of dreams. Government budgets and appropriations should be biased for activities and projects that support their development goals and objectives.

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4.3. Policies on Ownership, Tenure and Utilization Rights Resolution of conflicting natural resources uses right would depend heavily on the speed and manner by which the ownership and tenure is recognized and vested. This is particularly true to the settlement of the claims of indigenous peoples to their ancestral domains and to respecting the rights of settlers to the lands of the public domain, which they have acquired by prescription. Secure tenure rights coupled with the right to manage these areas are management prescriptions for rationalization of the use of natural resources, which have been oft repeated. The passage of the IPRA, the institution of Community Based Forestry as the national strategy for forest development, Handog Titutlo Program and the Comprehensive Agrarian Reform may contribute a lot to the resolution of the long standing and sometime bloody land and natural resource use conflicts. Land use planning should be able to determine this actual and legal land status. A process of consultation among stakeholders would reduce the resistance against imposed zoning or zoning regulations. 4.4. Policies on Revenue and Investments In the paper Striving for Sustainable Development, the author cites the Villamoura Declaration signed in Portugal in January 1997. It says, the Villamoura declaration upholds (1) the role of tourism investment promotion and consumer spending as an effective way of generating jobs at various levels; (2) the ability of travel and tourism to provide opportunities to the youth, women, and part-time workers and to generate employment in high unemployment areas in provincial city centers and rural communities; (3) the creation of jobs in small and medium sized enterprises and in export-related trade and (4) the need for an effective effort to liberalize trade, particularly in aviation and telecommunications and thus, provide open competition with sustainable development and infrastructure goals. The declaration urges policy makers to integrate travel and tourism in strategies to combat unemployment, reduce rigid practices in labor markets thus encouraging grater staff mobility, productivity and innovation in a progressive employment environment, with emphasis on a flexible market economy, invest in training and education to improve skills and service quality and encourage partnerships between the public and private sectors. These goals were set in the tourism master plan, drafted a decade ago. Policy measures to enable achievement of these objectives must be assessed and if need be enhanced and strengthened. 8.4 Specific Government Policies/Programs Relevant to the Industry Laws and policies have direct or indirect impact upon the state and condition of natural resources as they often determine not only the nature and extent of natural resources utilization but also the directions of development as a whole. On the other hand, laws and policies should respond and should ideally be premised upon a sound assessment of peoples needs and the resources ability to continually support development in accordance with a chosen development paradigm. The determination of the legal and policy framework for Tourism Development in the CARAGA Region should thus necessarily include an overview of what natural and other resources are available in the Region for utilization and development for tourism purposes, a review of the laws,

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issuances and policies that guide the use and development of these resources, and an assessment of how these laws and policies either fulfill or hinder development objectives. This study will therefore (a) present a short overview of the tourism assets or resources and Regional Development Plans of the CARAGA Region, (b) discuss the salient features of various laws and policies that impact upon the tourism assets and other resources in the region and (c) pinpoint some issues and areas of concerns that generally apply to the whole region or to particular Tourism Clusters ( Butuan Zone, Surigao del Norte Zone, Surigao Island Zone, South Caraga Zone, North Eastern Zone) that should be taken into consideration towards either the formulation of new laws and policies that will guide tourism development in the Region or the strengthening and further development the existing laws and policies for tourism development. 1.0. OVERVIEW OF TOURISM ASSETS AND DEVELOPMENT PLANS IN THE CARAGA REGION 1.1. Tourism Assets and Resources The Preliminary Report on the Regional Tourism Master Plan for the CARAGA Region state that Caragas tourism assets are its own bountiful natural endowments, rich cultural heritage and warm and hospitable people. An inventory of the regions tourism assets showed a total of 301 sites and events, about 230 of which are nature based assets. The other assets are grouped either as Archeological or Historical Resources, Events and Festivals and Indigenous Peoples Arts and Culture. Table 1: Number and Classification of Tourism Assets in the CARAGA Region Province/ City Agusan del Norte 35 sites Agusan del Sur-79 sites Butuan City -26 sites/ events Surigao City-28 sites/ events Surigao del Norte-61 sites Surigao del Sur-45 sites 1.1.1. Nature Based Tourism Assets Nature Based 30 76 10 24 51 39 Archeological 3 0 7 1 5 0 Cultural 2 3 9 3 5 6

Nature based tourism assets and resources in the CARAGA Region include beautiful beaches, islands and islets, most of which, particularly those of Siargao and Dinagat, are rimmed with white sand beaches of world-class quality. There are Montane landscapes, especially the Mt. Diwata Range and Central Mindanao Cordillera that are still generally covered by the most extensive forest vegetation in the country. Within these landscapes are found complex of caves, waterfalls, lakes and lagoons. The extensive basin bounded by two mountain ranges is found the countrys richest wetland ecosystem, the Agusan Marsh. Nature based tourism assets in the Region, which are emerging to be of international and scientific interests include the Siargao and Dinagat Islands and the Agusan Marsh.

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Siargao Island contains the most extensive mangrove forest remaining in Mindanao and perhaps in the Philippines, which provide support to a very large human population. Its mangroves are seriously threatened by over-cutting, and other resource exploitation activities that work against its conservation. The Island has been proclaimed among the priority sites of the Integrated Protected Areas System (IPAS) and a zoning plan for the mangrove areas will be implemented under phase II of IPAS. Environmental issues and concerns and other matters that will impact on the development of tourism assets in the province will be discussed in a later part of this report. Agusan Marsh contains the largest and least disturbed freshwater wetland in the Philippines. The only areas in the Philippines where swamp forest and peat swamp are found. It holds the largest remaining population of Crododylus porosus and C. mindorensis in the country. It performs essential flood control and sediment retention functions. The marsh is not critical at present due to the low population density within the marsh, but clearance of swamp forest has been reported around its periphery. It is likewise included as one of the priority sites of IPAS. Management of the area is envisioned to commence under Phase II of IPAS. Dinagat Island has a high degree of biological endemicity. Of the 23 mammalian species endemic in CARAGA, three are endemic in Dinagat these are the Dinagat gymnure or Wood shrew, Dinagat hairy tailed rat and Dinagat hairy tailed Cloud rat. 1.1.2. Archeological and Historical Resources, Events and Festivals

Archeological and Historical Resources, Events and Festivals are a set of other tourism assets in the CARAGA Region. There are at least three museums that hold important historic and archeological resources. The Butuan boats or balangays excavated from what is now known as the Balangay Shrine museum pre-date even the famous Viking Boats in Norway and are considered as the earliest known large-ocean going vessel in the entire Asian region. The first wooden plank-built boat that was systematically excavated had a Radio carbon-14 (C-14) dating of 320 AD. 1.1.3. Indigenous Peoples Arts and Culture

The ethnolinguistic diversity of the CARAGA Region correspondingly offer a wide spectrum of indigenous arts and crafts, especially those from the Indigenous Peoples (IPs) called Manobos, Higaonons, Ata, Mananwa, Banwaon, Tigwahanon, Mandaya, Talaandig and Bukidnons. These include art forms such as poetry, music, dances and such as beadworks, musical instruments, basketry, mats, woven cloths and embroidered garments. 1.2. Development Prospects A shared practical vision on tourism for the CARAGA Region states By the year 2008, CARAGA will be the major eco-tourism destination and investment haven, a show window of culture and history in Mindanao, where people are empowered and socioeconomically sound; and where the ecosystem is protected, sustainable and accessible.

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The potentials for the Region to realize this vision is both promising and challenging. The Preliminary Report on the Tourism Master Plan for the CARAGA Region states that like the other resource-rich regions in Mindanao the CARAGA Region will be--and will always be-- a resource base area for launching development activities, both agro-based and agri-based... Tourism industry--especially components relating to historical/cultural, ecological and sports/adventure type tourism--will be a sunrise economic sector in the Region. Investing in CARAGAs environment would mean facing the challenges of implementing a development strategy that would be ecologically sound, equitable and sustainable. It means meeting the needs for developing a rational development framework, integrating environmental concerns in development efforts, pursuing local autonomy and clarifying roles, responsibilities and accountabilities and developing local capability to manage forest resources and protected areas. 1.2. Tourism Clusters The Regional Tourism Master Plan classifies CARAGAs Tourism assets into five interprovincial clusters, including: Butuan Zone comprised of the municipalities of Buenavista, Cabadbaran, Carmen, Las Nieves, Magallanes, Nasipit, R.T. Romualdez, Santiago, Tubay, Province of Agusan del Norte and Butuan City. Surigao Del Norte Zone which is subdivided into two sub-clusters: Lake Mainit sub zone, consisting of the municipalities of Jabonga and Kitcharao, Agusan del Norte and Alegria, Mainit, Malimono and Tubod in the Province of Surigao del Norte. North Mainland Sub-zone, consisting of the municipalities of Bacuag, Claver, Gugaguit, Placer, San Francisco, Sison, Surigao City and Tagana-an, all in the Provicne of Surigao del Norte. Surigao Island Zone which is likewise subdivided into two sub-clusters including: Siargao Island Sub-zone, consisting of the municipalities of Burgos, Dapa, Del Carmen, General Luna, Pilar, San Benito, San Isidro, Socorro and Sta. Monica, all in the Province of Surigao del Norte. Dinagat Island Sub-zone including the municipalities Basilisa,Cagdianao, Dinagat, Libjo, Loreto, San Jose and Tubajon, Hikap Island and Nonoc Island in the Province of Surigao del Norte. South Caraga Zone which is subdivided into two sub-zones including: Agusan Marsh Sub-zone comprised of the municipalities of Bayugan, Bunawan, Esperanza, La Paz, Loreto, Prosperidad, Rosario, San Francisco, San Luis, Sibagat, Sta. Josefa, Talacogon, Trento and Veruela in the Province of Agusan del Sur. Southeastern Sub-zone including Barobo, Bislig, Hinatuan, Lianga, Lingig, of

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Marihatag, San Agustin and Tagbina in the Province of Surigao del Sur. North Eastern Zone comprised of the municipalities of Bayabas, Cagwait, Cantilan, Carmen, Carrascal, Cortes, Lanuza, Madrid, San Miguel, Tago and Tandag in the Province of Surigao del Sur. Each particular cluster or sub-cluster may have unique legal and policy issues that need to be separately discussed. Thus, after the presentation of legal and policy issues applicable to the whole region, this study, will also present some unique legal concerns and problems pertaining to each of the tourism clusters identified in the Master plan. 9 References

- Local advocates claim that the First Mass in the Philippines was in Masawa. The search for evidence 1 and advocacy for such claim continue to persist. - 2cf: Participatory Planning Workshop on the Regional Tourism Master Plan i UNCED, Agnda 21, Chapter 10, Integrated Approach to Planning and Management of Land Resources. ii White, Alan; Environmental Guidelines for Coastal Tourism Development in Tropical Asia iii White, Alan, ibid. iv Initial Protected Area Plan, Agusan Marsh Wildlife Sanctuary, DENR Environment Management and Protected Area Sector, Region XIII, CARAGA v Initial Protected Area Plan, Siargao Island Protected Landscape and Seascape, DENRPAWB vi Cave Management Brochure, DENR-PAWB, 1997 vii CARAGA Tourism Master Plan Consultants Notes, December 199

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