Local Economic Development in the Philippines: Profiles of Local Projects by Canadian Urban Institute

Local Project Profiles

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I. Local Government Profile Northern Palawan Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

771,667 1,464,973 hectares 1 23 Puerto Princesa City 1st Busuanga, Coron, Culion, and Linapacan Agriculture, fisheries, mining, tourism, handicrafts

Palawan hailed as the Philippines’ ‘Last Ecological Frontier,’ is the largest province in the country with regards to total area of jurisdiction. It is located between the Western Philippine and Sulu Sea and has a total area of 1,464,973 hectares. The province is part of Region IV-B or the MIMAROPA Region along with Occidental Mindoro, Oriental Mindoro, Marinduque, and Romblon. The United Nations Educational Scientific and Cultural Organization (UNESCO) declared Palawan as a Biosphere Reserve and a Fish and Wildlife Sanctuary and Habitat of 232 endemic species for its highly diverse collection of fishes and other marine life. Composed of at least 1,700 islands, Palawan's capital is Puerto Princesa City and comprises of 23 municipalities and 367 barangays. With a total population of 771,667 (52% male, 48% female) in 2010, Palawan's population density is 53 persons per square kilometer, making it the province with the second least population density after Apayao. Based on the Official Poverty Statistics of the Philippines, the poverty incidence in Palawan on 2012 is estimated at 25.17%. The Human Development Index for 2009, which attempts to measure the complete concept of human development by tracking the progress of three selected aspects of human life, is recorded at 0.498. Based on GIS mapping and analysis by the Manila Observatory and DENR, Palawan is considered to have a very low combined risk to geophysical disasters, such as earthquakes (low) and earthquake-induced landslides (no risk), tsunamis (low), and volcanic eruptions (no risk). Similarly, the Manila Observatory’s analysis has determined that Palawan combined risk to climate-related disasters is “very low” in comparison to all other provinces. Climate-related disasters include El Niño (medium risk), projected temperature increase (very low), projected rainfall change (low), and typhoons (low). Palawan was, unfortunately, one of the provinces which were directly affected in November 2013 by Supertyphoon Yolanda, one of the strongest typhoons in recorded history. Northern Palawan, specifically, Coron was the typhoon’s last landfall before exiting out of the country. The supertyphoon affected 20,000 families and 80,000 individuals and displaced 5,000 people. According to the National Commission for Indigenous People (NCIP), 15,000 people from the Tagbanua population of Coron and other Calamian Islands were among those directly affected. Damage to property, lifeline and communication facilities, agriculture, aquaculture, livestock, fishing vessels, fruit trees, and tourist boats was estimated to be at least PHP 2 billion.

Local Economy Agriculture and fisheries are the major economic activities in Palawan. The three major crops grown are rice, corn and coconut. Other crops grown are mango and cashew. Cashew is one of the important crops locally processed into delicacies such as roasted, fried/salted, brittle, “bandi”, pulvoron, barqueron, cashew wine, cashew prunes and other delicacies with roasted whole nuts as the major product. Raw cashew nuts are also shipped out to India, Pampanga, Manila, and Antipolo cashew processors. Palawan also has existing plantations of rubber and palm oil trees. Palawan has 176 fishing grounds, which supply 65% of Metro Manila’s fish consumption. It is known for fresh and dried fish, lamayo, fish fillet, smoked fish, tuna cuts, spicy dilis, tuna sausage, tuna spring rolls, and delectable fish cuisine which are served in hotels/restaurants. Other marine products produced and exported are live grouper and seaweeds with an approximate production of 260,606 MT.

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Another major industry in Palawan is mining due to its large reserves of nickel. The province's natural gas and oil deposits are the largest in the country. Chromite, copper, silica, marble, quicksilver, manganese, cement, uranium, limestone, barite, feldspar, sand, gravel, pebbles, and guano are other mineral deposits in the province. Tourism has also been contributing more to the local economy given Palawan's rich natural resources such as the Underground River, Tabon Caves, and Tubbataha Reef. Among the popular tourist destinations are Puerto Princesa City, El Nido, Coron, Busuanga, and Port Barton. Lastly, ethnic handicrafts are being produced in Palawan and supplied to Manila-based exporters and as souvenir items for tourists in support to the tourism industry1.

LGUs Covered in the Project The municipalities of Busuanga, Coron, Culion and Linapacan compose the Calamianes, and the Project has partnered with Busuanga, Coron, and Culion. Busuanga occupies the western one-third of Busuanga Island, Calauit Island and other nearby islands. Coron, the neighboring municipality of Busuanga, occupies the eastern section of Busuanga Island, Coron Island and other nearby islets. Culion is composed of Culion Island and 41 minor islands surrounding it. Linapacan is composed of the islands of Linapacan and 6 other minor islands. The population of Calamianes in 2010 was 97,932. Of that total, 30% belong to three major Indigenous Cultural Communities, the Cuyunen, Tagbanwa, and Calamianen. Tourism is the main economic driver of the Calamianes, which in turn creates job opportunities in other sectors such as trade, fisheries, and agriculture. From 2008 to 2013, visitor arrivals in the Calamianes have constantly increased from 13,849 to 91,580, yielding an annual average growth rate of 45.91%. Due to the limited number of flights and boat trips as well as the high airfare costs to the area, the growth rate from 2012-2013 was only 8.16%. The tourism industry is responsible for the total tourism workforce of 1,619 (569 Female and 1050 Male). LGU Province Busuanga Coron Culion Linapacan

Income Class 1st 3rd 1st 3rd 5th

Population 771,667 21,358 42,941 19,543 14,180

Land Area (hectares) 1,464,973 39,290 68,910 49,959 19,544

No. of Barangays 433 14 23 14 10

All things considered, the direct impact of Typhoon Yolanda on the tourism sector was not as large as it was for other places where the storm had made landfall. Much of Coron Town was partially shielded from the full force of the typhoon by Coron Island. Thus, other than damage to windows and roofs, most tourism establishments escaped with relatively minimal damage. However, many small boat operators also lost their vessels to Yolanda. Although, the Typhoon caused damage to the Coron Airport terminal, commercial flights quickly resumed operations within a week. Nevertheless, visitor arrivals took a dip in the following months as tourists opted to forego travel to Coron and other Yolanda-affected sites both for practical (limited telecommunications and power supply) and emotional (e.g. inappropriate or insensitive, after a tragedy of that scale) reasons.

LED Enabling Environment As the Provincial Government of Palawan began to undertake its Local Project with LGSP-LED, there were existing policies and systems already in place to help the LGUs of Northern Palawan become more business-friendly and competitive towards recovery from Typhoon Haiyan, which hit the area in 2013. These included development plans and documents related to sustainable tourism and environmental management. All the municipalities in the Calamianes Groups of Islands also had designated Municipal Tourism Officers, with Coron and Busuanga both having Municipal Tourism Codes. However, only Coron had a Local Investments and Incentives Codes (LIIC) in place. Moreover, there remained a need to improve the capabilities of the Local Economic and Investment Promotion Officers (LEIPOs) in all the municipalities of the cluster. In addition, as tourist arrivals in the Calamianes have been increasing, the LGUs, including the Provincial Government of Palawan, recognize that growth in tourism also represents a threat to the areaâ&#x20AC;&#x2122;s highly sensitive and vulnerable natural 1

http://www.dti.gov.ph/rog/index.php/region01-regionalprofile-4

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environment. More and more establishments, such as hotels and restaurants are rapidly being built within Coron town. The absence of proper waste segregation and disposal, sewage treatment in the towns, and tourist regulatory policies are posing a huge threat to the region's natural resources, which are its main attractions.

II.

The Tourism Circuit

The Department of Tourism (DOT), in its 2011-2016 National Tourism Development Plan, set out a number of tourism development areas (TDAs) across the country. Northern Palawan, or the Calamianes Group of Islands, is one of 77 TDAs across the Philippines, where much of the DOT’s resources have been focused. Calamianes is among the top eco-tourism destinations of the country. It is a cluster of islands located at the northernmost tip of the province of Palawan known for its endemic wildlife, limestone forests, coral reefs, and shipwrecks.

Tourism Access and Infrastructure The Francisco Reyes airport located in Busuanga serves as the air gateway for tourists from Manila and Puerto Princesa to the attraction sites of Calamianes There are also boats from Manila that go to Puerto Princesa via Coron, a much cheaper alternative to air transport. For tourists coming from El Nido and Mindoro, large outrigger boats are an option. However, trips between El Nido and Coron are frequently cancelled during the rainy season. Electricity is available in Busuanga, Coron, and Culion although the supply is sometimes limited. In Culion and Linapacan, electricity runs for only 12 hours per day. A number of resorts are not connected to the main grids and need to run their own power generators. Water supply exists in all four municipalities; however, as with power supply, it is limited especially in Culion and Linapacan. Many resorts have to source their own water since they are not connected to the main water pipeline. Communication and Internet facilities are available in many areas within the Calamianes circuit, but the network connection is poor in most islands. Solid waste management is another problem among tourism establishments as there are no existing infrastructure for this purpose.

Tourism Service Center Coron serves as the main tourism service center for the tourism destination area. Most of the area’s accommodation establishments, tour operators, dive shops, and other facilities can be found in Coron. Out of the 93 accommodation establishments, 65 were situated in Coron. There were eighteen (18) souvenir shops exist in Calamianes, many of which were situated in Coron.

Major Attraction Sites Calamianes currently offers various tour products including island hopping tours, wreck diving tours, expedition trips, live aboard trips, and safari tours, among others. These can be clustered into three sub-circuits within the island group. The Coron-Busuanga Highway primarily covers land-based ecotourism and adventure tourism-based sites and activities on Busuanga Island, the biggest island in Calamianes. The most popular of these activities involve a visit to Calauit Island, which offers visitors a safari experience with herds of free-ranging zebras, giraffes, and other exotic animals. Originally imported to Calauit from the African continent by former President Ferdinand Marcos, these animals have since adapted to the Calamianes and have made Calauit Island one of the must-visit sites of the TDA. The Wrecks and Reefs Domain is the cluster most associated today with the Calamianes Islands. Coron Island is the main attraction, complemented by popular sites on it such as Kayangan Lake, Twin Lagoons, and Banol Beach, and a scattering of islands and lagoons ideal for snorkelling and diving. Coron is one of four areas identified by DOT as a prime diving destination for macro photography. The LGU-managed marine protected areas and the World War II shipwrecks are popular attractions for divers as well. The Seafarers' Route, which originates in Coron Town and extends to Culion, and Linapacan, is the newest and least developed of Calamianes tourism circuits. Culion is an emerging historic destination of the TDA, with new tour products being developed based on its history as a colony for people with Hansen’s disease (leprosy). Local stakeholders and historians are now developing special interest tours similar to the Father Damien tours in Hawaii, that celebrate the lives and struggles of Hansenites, their families, and the community (including the Jesuits, doctors, and social workers assigned to Culion) which grew around them. In addition, Linapacan is an emerging attraction for sailing and other nautical excursions.

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Market Trends and Opportunities From 2008 and 2014, visitor arrivals in the Calamianes have surged from 13,849 to 100,946 with a cumulative annual growth rate of 45.91%. There was a noticeable slowing of the growth rate of visitor arrivals to Palawan in 2013 when tourist arrivals increased by a relatively smaller percentage of 8.1%. This may be attributable to growth constraints arising from the areaâ&#x20AC;&#x2122;s limited airport infrastructure, as well as capacity limitations of the domestic air industry as a whole.

III.

Challenges to Local Economic Development

Super Typhoon Yolanda affected 80,000 individuals and displaced over 5,000 from their homes on November 2013. Damages to properties, lifeline and communication facilities, agriculture, fisheries, and transportation amounted to P2 billion. Calamianes was one of the areas hit by the disaster, which affected its tourism industry. Nonetheless, stakeholders in the Northern Palawan tourism sector emphasized that tourism recovery efforts in the Calamianes must continue to follow the principles of sustainable development and environmental sustainability. The immediate challenge for the tourism sector in Northern Palawan was to regain the tourism growth and investment momentum of Coron and Busuanga that were stunted by Yolanda through enabling policies and programs. At the same time, Calamianes tourism stakeholders realized the need to strengthen and diversify their current portfolio of tourism products in order to encourage tourists to extend their visits and increase their spending in the area. More options for land-based activities, particularly in and around the main island of Busuanga may also address the issue of seasonality given the low arrivals during rainy season.

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Need to Improve the Business Climate for Tourism Investments in the Destination Tourism is the main economic driver in Northern Palawan. It is critical for the LGUs in Calamianes not only to become more business-friendly and supportive of tourism, but also to be unified in their approach to sustainable development for the entire cluster. Coron and Busuanga have adopted their Comprehensive Land Use Plans last March 19, 2013 and February 12,2002,respectively. Busuanga, Coron, Culion, and Linapacan have different municipal tourism codes and only Coron has a local investment incentive code (LIIC). In all four LGUs, business processing and licensing systems have neither been computerized nor streamlined yet. With regards to disaster recovery from Yolanda, immediate deployment of resiliency efforts and programs from the government and several civil society organizations facilitated the swift transition of the region from recovery to rebuilding. While the rebuilding was swift, the efforts exerted by these organizations were done independently. Thus, there would be a need for a platform to integrate the efforts and maximize resources for better planning of strategies for sustainability.

Gaps in the Tourism Circuit and Limited Potential for Growth Concentration of hotel rooms in Coron Although the total capacity of accommodations in the Calamianes is over 3,600, 77% of the rooms are located in Coron. This disparity in the available accommodations among the municipalities illustrates why tourists are concentrated in Coron. Taking advantage of this are investors and local entrepreneurs who hastily build accommodations in Coron town, which turn out to be substandard.

Limited capacity of Coron Airport, unreliable power supply constrain potential for growth. The Francisco Reyes airport in Busuanga has two key impediments related to its growth capacity — (1) its short runway limits passenger services to propeller driven aircrafts (typically with a maximum load of 50 passengers); (2) the airport does not yet have navigational systems, that would allow night landings and take-offs (NLTO). The upgrade of the airport for NLTO capabilities is already in the pipeline, which will lead to an increase in the number of flights per week. However, the short runway length still poses a real obstacle to major growth in tourist arrivals. Reliable and affordable power is another critical infrastructure concern. This had already been a problem in Palawan, particularly in Northern Palawan, even before Yolanda. Power outage is still a common occurrence, especially during typhoon season and the summer, due to the high number of tourists in town. Moreover, electricity supply in Culion and especially Linapacan is still limited.

Need to diversify tourist products and sites for more inclusive and sustainable development Coron is strongly identified with snorkelling, scuba diving, and other marine-based activities. Its association with wreck diving is a unique selling point for Coron. However, the lack of land-based activities as well as the current concentration of tour products around Coron Island may limit the opportunities for broadening the area’s target markets. The lack of tourism product diversity may also discourage visitors from exploring and spreading the benefits of tourism to other parts of the island group. Moreover, if Coron and Busuanga continue to bring more visitors to the same attractions sites (e.g. Coron Island and Calauit Island) every year, that volume will quickly strain the carrying capacities of these environmentally-sensitive resources.

Limited capacity for tour handling and guiding The number of tour guides in Calamianes, 80 as of 2013, is not enough for the rising tourist arrivals in the area. Most of the tour guides have not had proper training in guiding techniques, nature interpretation, environmental sustainability, marine safety, and emergency response. There is also a growing need to train guides in emerging and specialized tours, such as birding, trekking, mangrove tours, and dugong watching.

No brand specifically for Northern Palawan Prior to the Project, there was no unifying brand and destination-marketing program for Northern Palawan that the private sector and the LGUs could rally around. Given the wealth of islands and sun-and-sea destinations in the Philippines and the rest of Southeast Asia, it is important for Northern Palawan to establish a brand that clearly defines what makes it different from the rest.

IV.

Description of the Local Project

Although Palawan is currently dubbed as the ‘Number 1 Island in the World,’ the slow increase in tourist arrivals in the Calamianes after Typhoon Haiyan has noticeably affected the local economy. The LGSP-LED Project has taken an approach LGSP-LED Northern Palawan Local Project Completion Report | 6

to developing the tourism competitiveness in its local projectsâ&#x20AC;&#x201C; tourism circuit development. The idea is to assist enterprises in the tourism value chain to add value to the tourism products and services being offered to the market by enhancing visitor experience through developing or collaborating for more varied activities, quality goods, additional excursions, and improved facilities to increase tourist stays and spending. At the same time, the Project also provides support to the LGUs in improving their business-friendliness and competitiveness to accelerate investments, initiate employment generation activities and formulate local business-enabling policies and development plans to spur local economies o attract investments. The diagram below illustrates how the project was designed to address this issue, through various LED activities in different key areas of tourism circuit development.

Summary of Project Target Results

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Project Management Project Implementation Team The Provincial Government of Palawan’s Local Project in Northern Palawan poses an interesting logistical challenge for all the partners. The DILG Regional Project Management Team, as with the CEA, holds office in Quezon City. The Provincial Government, as well as the DILG Provincial Office, is in the provincial capitol of Puerto Princesa City. As such, all members of the Project Implementation Team (PIT), with the exception of a representative from the Calamianes Association of Tourism Establishments (CATE), are all based in Puerto Princesa. However, this initial management was difficult for project implementation given that there are very limited, and expensive, options for direct air travel between Puerto Princesa and Coron. Similarly, sea travel between Puerto Princesa and Coron is time consuming and inefficient. In response, the DILG Regional Project Management Team and LGSP-LED supported the Palawan PIT in organizing a working group in the project site, particularly in Coron. In addition to the official CATE representative to the PIT, the local working group also includes additional identified champions from the private sector, as well as the tourism officers of Coron, Busuanga, and Culion. DILG also designated their cluster leader for Northern Palawan, currently the Municipal Local Government Operations Officer (MLGOO) for Busuanga, to be the LED Focal Person for the Calamianes who will work directly with the local working group. LGSP-LED also engaged a local project coordinator based in Coron to support the day-to-day technical needs of the project. Palawan’s LGSP-LED Project Manager continues to supervise the local work directly, and in partnership with the president of CATE. As a result of new management arrangements, the local working group and the Project Manager have been able to plan and implement activities more efficiently. These included the workshop to develop LGU Workforce Development Plans, as well as the most recent activity for a stakeholder-driven destination branding workshop for the Calamianes. Calamianes Working Group

Project Implementation Team (PIT) Ms. Maribel Buñi, PIT Manager –

Maribel Buñi

Ms. Buni is the Provincial Tourism Officer of Palawan. She is based in Puerto Princesa, but travels to Coron for the activities

Francisco Fernandez

Ms. Nimfa Rubio, OIC Provincial Planning and Development Office

Daniel Florida, MLGOO – Busuanga and DILG LED Focal Person for Northern Palawan cluster

Mr. Franquito Paduga, OIC Office of the Provincial Agriculturist

Hilbert Enriquez, Vice-President - CATE

Ms. Anna Lissa Barroma, OIC Provincial Economic Enterprise Development Office and designated Local Economic and Investment Promotion Officer (LEIPO)

Al Linsangan, Society for Sustainable Tourism and Development, Inc. (SSTDI)

Ms. Deborah W. Tan, President – Palawan Tourism Council

Kristine Mechelle Ablana, Tourism Officer - Coron

Mr. Francisco Fernandez, President – Calamianes Association of Tourism Establishments (CATE)

Ma. Czarwen Torio, Tourism Officer – Culion

Felixberto Ramos, Tourism Officer – Busuanga

Kristine Amar Torres, LGSP-LED Project Coordinator

DILG Project Management Team Regional PMT

Provincial PMT

Dir. James Fadrilan, OIC Regional Director

Dir. Mario Daquer, Provincial Director

Asst. Dir. Karl Rimando, OIC Asst. Regional Director

Roel Dagsa, Provincial LED Focal Person

Ivan Fadri, Regional LED Focal Person

Daniel Florida, MLGOO – Busuanga and Cluster leader for Northern Palawan

Ma. Teresita G. Iglesia, LPRAP Regional Focal Person

Key Partners Calamianes Association of Tourism Establishments (CATE). Programs and projects of CATE include the empowerment of tourism stakeholders and enterprises through human resource and development trainings. It also conducted training programs with the Department of Tourism, which were funded by the Government of Canada, with the Asian Development Bank (ADB) as administration agency. CATE was also a major proponent in the formulation of Coron’s Tourism Code. In addition, CATE is planning on carrying and promoting the Calamianes brand, which was developed during LGSP-LED’s workshop on destination branding.

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USAID Ecosystems Improved for Sustainable Fisheries (ECOFISH). ECOFISH is a five-year project, which focuses on “conserving biological diversity, enhancing ecosystem productivity, and restoring the profitability of fisheries” in eight marine key biodiversity areas (MKBAs). The Calamianes Group of Islands (CGI) is among these MKBAs. Among the projects of ECOFISH in the Calamianes are the integrated fisheries and management plan; preservation of Siete Pecados as a Marine Protected Area; and enterprise development, such as sea cucumber ranching, sea salting, and an ecotourism village in Banuang Daan on Coron Island. International Labor Organization (ILO). In response to the devastation of Typhoon Haiyan in the Calamianes, the ILO through the support of the Government of Norway and Japan has implemented several sustainable livelihood recovery projects in the CGI. The “Coron Sawali Livelihood Development Project” is a collaboration between ILO and the Partnership of Philippine Support Service Agencies Inc. (PHILSSA). This project resulted in the government registration of the Guadalupe Sawali Weavers association, which employs 82 workers (39 female and 43 male) and 46 sawali weavers (25 female and 20 male). ILO and PHILSSA’s, project site for the Guadalupe Sawali Weavers production center is one of the sites included in the tourism circuit. ILO provided their database of trainees/beneficiaries (including the skills sets they have acquired from training) to CATE for possible job matching. This has also been provided to the PESO Managers during their workforce development planning and for uploading to their respective skills registry systems. Partnership of Philippine Support Service Agencies Inc. (PHILSSA). “Angat, Calamianes!” is PHILSSAs project on “Integrated Community Rehabilitation, Preparedness and Resilience” for the CGI. In partnership with the Palawan Advocates for Good Governance and Empowerment (PAGE) and Coron Rural Waterworks and Sanitation Association (CRWSA), PHILSSA focuses on communities affected by Typhoon Haiyan as it exited the CGI to the West Philippine Sea. A total of 1,215 families were provided with Emergency Shelter Assistance, including those living in remote communities in the municipalities of Culion and Linapacan. PHILSSA and ILO are currently working with the Balik Calauit Movement (BCM) in developing an organic farm and a school of living tradition, both identified as potential sites that will strengthen and diversify the Northern Palawan tourism circuit.

V. Project Results and Assessment Improving the Enabling Environment for Business Recovery in Northern Palawan Within the short period of the LGSP-LED Local Project, the Northern Palawan LGUs as well as the Provincial Government of Palawan have made progress towards their goal of institutionalizing LGU policies on LED, especially those in line with DILG’s roadmap for business-friendly and competitive LGUs. From the the start of the Local Project in 2014, LGSP-LED trained a total of 53 (27M, 26F) LGU leaders and staff with LED functions — including 4 LEIPOs, 4 LCEs as well as their staff – to champion the adoption of business-friendly policies and programs in the Provincial Government as well as the Northern Palawan LGUs. Status of LGU Officials and Technical Staff Trained Male LCEs 3 LEIPO and Staff 3 Tourism Officers and Staff 2 PESO Managers and Staff 0 Other LGU Staff 19 TOTAL 27

Female 1 1 6 2 16 26

Total 4 4 8 2 35 53

Provincial Offices with LED mandates are now better prepared to support the LED initiatives of the Northern Palawan LGUs. As members of the Local Project Implementation Team, both the Provincial Tourism Officer and the Provincial LEIPO have gained valuable experience in both planning and implementing LED-enabling programs. •

The Provincial Tourism Officer, for example, is better equipped to oversee and support the sustainable development of the Northern Palawan tourism circuits through knowledge and tools gained from the LGSP-LED activities such as the tourism circuit planning approach to destination development, market-responsive, stakeholder driven processes for building destination brands, and enhanced tourism statistics and information systems for monitoring and analyzing the performance of the local tourism sector.

•

Similarly, the Provincial LEIPO has been provided with skills training and tools (e.g. LGU investment profiles and project briefs) for investment promotion. But more significantly, participation in various investment promotion events in Manila and LGSP-LED Northern Palawan Local Project Completion Report | 9

Davao have provided opportunities for the LEIPO to apply her new skills and gain real world experience in building and cultivating investor relations. At the destination level, the Northern Palawan LGUs have been working to install key enabling programs and policies, in line with DILG’s roadmap to business-friendliness and competitiveness for LGUs. Already, the municipality of Coron has officially adopted an automated business permits and licensing system (auto-BPLS), which was installed with technical assistance from e-Governance for Municipal Development (eGov4MD)t2. Although the Project also targeted Busuanga and Culion for BPLS automation, the independent assessment of eGov4MD indicated that they were not yet ready for full computerization. Coron first utilized their auto-BPLS system in January 2016 in time for the annual period for renewal of local business permits. According to the Business Permits and Licensing Office staff, the computerization enabled a quicker, more accurate, and effective tracking of businesses in the municipality. Ironically, even as the BPLO reports growing numbers of registrations from tourism-related establishments, the total number of business registrations from January to March 2016 dropped from roughly 2,000 in the previous year to about 1,650. Nevertheless, the BPLO has claimed that local revenue from the business permits actually increased. Both of these observations may be partly explained by higher business registration fees set by the municipality. With more businesses. As more local businesses report higher gross sales, the LGU is able to charge them with higher business permit fees (which, in turn, are computed more quickly and transparently by the automated system). However, the BPLO staff theorize that the stricter regime may have also led many micro- to small enterprises to opt against renewing their business permits.

Legislative-Executive teams from Coron, Busuanga, and Culion, drafted 3 new or updated LIICs for their respective LGUs with technical inputs from LGSP-LED and LGA. These LIICs incorporate sustainable development and disaster risk reduction considerations, in line with Palawan’s sustainable development agenda and the CCA-DRRM/environmental sustainability. The bills have already been filed with the respective local legislative councils. However, it appears very likely that these bills will not be approved before the May 2016 local elections. Should that come to pass, these draft LIIC are expected to be among the first bills to be re-submitted when the next set of local officials take office in July. Despite these positive developments, there were also some missed opportunities to further enhance the business enabling environment in Northern Palawan, within the span of the LGSP-LED engagement. One of these was the failure to operationalize a planned Calamianes Business Center as an office to support MSME growth and business recovery in the Calamianes, with Coron as the hub. The Center was seen as a potential mechanism for harmonizing the common LED, tourism and investment promotion interests of the four LGUs and their private sector partners into one destination-based program/office. At the same time, the Center could be a platform for the convergence of NGA, NGO, and donor programs and services in support of business recovery and expansion for businesses, community-based enterprises, and entrepreneurs in the four municipalities of Northern Palawan. The Local Project team had identified the current location of the Coron Tourism Office as the most viable location for such a Center. However, unresolved matters related to the ownership of the building as well as the land on which it stands, made that option unfeasible for the moment. However, the local private sector manifested strong interest in the project, as one local entrepreneur offered free office space at the Coron Galeri building to serve as a temporary “desk” for the CBC through which the LGSP-LED local project team facilitated convergence activities with other development partners. In this line, the Local Project explored opportunities for coordinating the tourism circuit development LED Initiative with the implementation of the Sustainable Fisheries Management Plan for Northern Palawan (developed by the 4 LGUs with assistance from USAID EcoFish) particularly where the SFMP addresses marine protected areas and Tagbanua communities linked to the tourism circuits. We have learned last February 2016 that there was also an apparently mutual interest from DTI to the extent that in July 2015, they donated computers, audio-visual equipment, and furniture to the Municipal Government of Coron for the establishment of a Negosyo Center to service the cluster. However, most of the equipment remain in storage as the LGU has not yet found a suitable location for the Negosyo Center. While the current location of the Calamianes Business Center is too small for a fullblown Negosyo Center, it could have been adequate for slightly scaled-down operations focusing on business name registration and basic business advisory services. Unfortunately, these two complementary initiatives were never linked and 2

The Local Project had also targeted Busuanga and Culion for automation of their respective BPLS. However, eGov4MD’s independent assessment of the 2 other municipalities indicated that Busuanga and Culion were not yet ready for full computerization at this time.)

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coordinated with each other – an apparent demonstration of weak communication and convergence among agencies, as well as within the LGU. As LGSP-LED exits, DILG Province signified to lead in linking DTI with the Municipal Government of Coron to operationalize the center. The failure of the Northern Palawan LGUs to meet the deadline for workforce development plans to be proposed for funding under DILG’s Training for Better Access to Jobs (TRABAJO) program could also be considered as another significant missed opportunity. Admittedly, the very short period given to the LGUs to complete the requirements as well as the unfortunate timing of the call for proposals – at the end of December 2015, when many key leaders and signatories were already on holiday break – constrained their ability to comply with the TRABAJO requirements. The Provincial Government of Palawan as well as the Municipal Governments of Coron and Culion were eventually able to complete the LGU Business Plans for Workforce Development and other documentary requirements to the DILG Regional Office in February 2016, well past the December 30, 2015 deadline. As the TRABAJO funds are no longer available to them, the LGUs and their private sector partners will now have to fund these workforce development plans themselves or seek assistance from funding windows of other NGAs or development partners.

On May 25-26, representatives of the LGUs of Busuanga, Coron, Culion and Linapacan, along with members of the Calamianes Association of Tourism Establishments (CATE) took part in the "LGU Business Planning Workshop on Workforce Development," facilitated by our partners in the DILG.

Early planning and implementation of the workforce development and site development activities had been coordinated through series of meetings with key players of the Yolanda Recovery and Rehabilitation Livelihood cluster, particularly Catholic Organization for Relief and Development Aid (CORDAID), ILO, and PHILSSA, to facilitate the linkage of their beneficiaries to the mainstream tourism sector (starting with CATE members). A similar process might be adopted by the LGUs again. Finally, the Provincial and Municipal Tourism Offices have also been re-trained and equipped with new computers and software to enhance their abilities to collect and analyze tourism statistics and information. Despite these, the Coron Tourism Office, which has the most numbers of tourism establishments to monitor, is still challenged to collect tourism data from business owners who remain wary and distrustful of how the local and national government agencies will use their information. Both LGU Tourism Office and CATE agree on that last point.

Strengthening Northern Palawan for Tourism and Economic Growth Overall, Northern Palawan or Calamianes now appears to be a more competitive tourism destination and industry even compared to its pre-Yolanda position. Accessibility into the Calamianes through the Franciso B. Reyes airport and the Coron Town Pier has improved. In early 2015, Philippine Airlines and Cebu Pacific only had two flights per day. However, towards the end of the year, Cebu Pacific added one to two more flights per day, depending on the demand. SkyJet now flies daily to Coron as well. For sea travel, 2Go Travel now has two trips from Manila to Coron (continuing to Puerto Princesa) and back. Atienza Shipping Lines has maintained their two trips per week. In late March or early April 2016, the M/V Montenegro will begin operating daily fast-craft ferry services between Coron and El Nido, cutting travel time almost by half, from 7 to only 4 hours. Access to Busuanga from the airport, as well as from Coron town, is also much improved with new and improved road LGSP-LED Northern Palawan Local Project Completion Report | 11

connections which have encouraged, among others, independent travelers who ride motorcycles from Coron to stay an extra night or two in Busuanga. The Provincial Government of Palawan, in partnership with the LGUs in the Calamianes Islands, and the local tourism industry, represented by the Palawan Tourism Council and the Calamianes Association of Tourism Establishments (CATE) has developed one (1) Northern Palawan Tourism Circuit Development Plan integrating the three sub-circuits: • The Reefs and Wrecks sub-circuit: covering the sites and activities currently being promoted by the stakeholders, primarily involving the lakes and attractions on Coron Island as well as the lagoons, reefs, shipwrecks, and marine protected areas between Busuanga and Coron Islands. • The Busuanga Island sub-circuit for the land-based cultural and natural attractions/activities on Busuanga Island (Coron and Busuanga) as well as Calauit Island, and • The Culion-Linapacan nautical sub-circuit: the emerging sub-circuit that links the historic and natural attractions of Culion and Linapacan to the service center of Coron. With a tourism circuit plan in place and experience from LGSP-LED, the Provincial and Municipal LGUs, with the private sector (i.e. CATE and the Palawan Tourism Council) have a guide on the product development, destination marketing, workforce development, and investment priorities for the sustainable tourism development of Calamianes moving forward.

New Destination Brand for the Calamianes To unite the LGUs in the Northern Palawan tourism circuit, a stakeholder-driven destination brand and tagline was developed through technical assistance from LGSP-LED. The new destination brand for Calamianes, “Nature. Adventure. And all the Rest” can be a strong building block for the TDA’s continued growth and sustainable development. It unites the stakeholders from the four municipalities into one new point of reference for identifying it in the tourism market. Already, the LGUs of Coron, Busuanga, and Culion have passed resolutions to endorse and adopt the brand. More importantly, CATE and its member establishments are now beginning to use the brand alongside their individual marketing materials and collaterals. Some are already planning to develop tourist merchandise, e.g. mugs and t-shirts, using the new brand. In this regard, CATE and the new counterpart association of tourism establishments in Busuanga will not only be key partners of the LGUs, but also key champions of LED and sustainable tourism . As members of the local Project Implementation Team (PIT), CATE (as an institution, and through its individual members) has already been demonstrating their ability to plan and implement LED initiatives in line with the Tourism Circuit Plan for Calamianes.

The Calamianes logo showcases the attractions of the islands through symbols such as the dugong, a tropical bird, a shipwreck anchor, and a sea star surrounded by grains of sand — all contained in a red-orange sun, embraced by the letter C – with the names of the four Calamianes municipalities listed on a line below the sun. The visuals are rendered in a rough, primitive style (as if painted on a rough stone surface) to capture the primal beauty of nature, which is the essence of Calamianes The tagline accompanying the logo is, “Nature. Adventure. And all the REST,” where the word “rest” can be taken literally, as well as figuratively (e.g. other tourism themes such as indigenous culture, history, food, etc.)

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Taking off from the LGSP-LED Tourism Circuit Plan, CATE members have now started small initiatives to develop alternative or complementary activities and attraction sites to the standard island-and-lake-hopping itineraries currently offered in Coron. These include more land-based packages for birdwatching, farm tourism, river cruise, and inland ecotourism activities around Busuanga Island, as well as new island activities with stronger cultural and social themes such as community immersion or volunteer activities. CATE was also an active partner of the the Local Project in developing and finalizing the new Calamianes destination brand, as well as in formulating the local workforce development plans of the Northern Palawan LGUs. Equally important to their work in support of their members, CATE can play an impo rtant role in elevating critical concerns of the sector and the community as a whole to the attention of the LGU. These issues include problems with sewage and sanitation, tourist safety, proliferation of illegal drugs, etc., especially in the key sites and communities within the tourism circuits. With regard to workforce development, although the LGUs were unable to meet the DILG deadlines for funding various skills training activities through the TraBaJo program, the municipalities of Coron, Culion, and Linapacan still have LGU Workforce Development Plans as building blocks for ensuring that quality human resources for tourism are in place over the next few years. Equally important, the training priorities in these plans were identified by private sector partners who have demonstrated their own initiatives for workforce development even beyond LGSP-LED. CATE was able to secure two grants for series of trainings to enhance the skills of their members’ frontline supervisors and staff from the ADB/Canada-funded Competitiveness in Tourism (CIT) program of the DOT. The restaurant sub-group within CATE was also successful in securing a CIT grant to train chefs and other kitchen staff from 10 local dining establishments. Another CATE member, through the Society for Sustainable Tourism Development, Inc. (SSTDI) – with minimal technical advise and coordination support from LGSP-LED – partnered with the Bantay Turista program of the Provincial Government’s DRRM Office, to conduct tour guide and emergency response training for 30 Tagbanua boat operators and site guides (all participants, male) in Brgy. Lajala in March and May 2016. These will be followed by a similar series of guiding with emergency response trainings for community-based attraction sites in Busuanga to be scheduled sometime after June.

Progress Towards Economic Recovery and Tourism Growth Overall, the Provincial Government of Palawan, together with the LGUs of Calamianes and their private sector and other development partners, have generally accomplished their goal of strengthening Northern Palawan as a destination, with a clear, well-established tourism brand. The indicators suggest that local conditions in Northern Palawan, post-Yolanda are already more conducive to local economic development.

Visitor Arrivals It is unfortunate that the data on annual visitor arrivals to Calamianes for 2015 are not available. However, based on the data from the previous years, the Northern Palawan destinations appear to be meeting their target of an average annual growth rate of 10% in visitor arrivals per year, at minimum. Visitor arrivals to the area increased to 100,926 in 2014, or a 10.23% increase from the previous year. The 2014 figure also translates to an average annual growth rate for visitor arrivals to Northern Palawan of 14.47% since 2011. Visitor arrivals to the area may be expected to grow at an even faster rate with the expansion in capacity from the upgrade of the airport as well as the expected increase commercial hotel room supply in the coming years.

Tourism-Related Investments Generated Since the start of the project in 2014, the Provincial Government has facilitated the infusion of an estimated PHP 480 million for public investments in tourism infrastructure for Northern Palawan, primarily for construction or upgrade of tourism roads. These priority projects are in line with the infrastructure priorities identified in the Northern Palawan Tourism Circuit Plan, which, in turn, had validated the recommendations for the TDA in the National Tourism Development Plan. These projects are: • PhP 250 Million Coron-Busuanga road leading to Busuanga airport, Coron, and Calauit Island • PhP 150 Million Access road to the jump-off point to Calauit Wildlife Sanctuary • PhP 80 Million Road connecting Busuanga airport-Kiwit road leading to various beaches, island destinations and World War II ship wreck dive sites In addition, there have been noticeable investments in new accommodation facilities of varying types around Coron and Busuanga since 2014. The table below summarizes information shared with the Project by hotel development consultants familiar with the current competitive situation in the Coron hotel sector. Based on the consultant’s environmental scanning data, at least 269 new rooms have been added to the supply of accommodations in Coron from 2014 to 2016. Another 243

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new rooms are expected from 5 new hotel properties currently under construction in Coron. Including the ongoing projects, the total value of new hotel investments in Coron since 2014 is estimated to be worth at least PhP 568.5 Milion. New Investments in Accommodation Establishments, Coron (2014-2016) Establishment Classification

Corto del Mar (2014) The Funny Lion Inn (2015) One Averee Bay Hotel (2015) Bluewave Hotel (2015) Bancuang Mansion (2015) Coron Soleil Garden Resort* Coron Soleil Express Hotel* Two Seasons Coron Bayside Hotel* Le Soleil De Coron* Sunlight Hotel* Miscellaneous (2014-2016) TOTAL

No. of Rooms

Hotel Hotel Hotel Hotel Hotel Resort Hotel Hotel

32 32 28 14 12 27 29

Resort Hotel Various (tourist inn,pension house, lodge)

76 63 139 500

Estimate Value of investment (construction only) 32,000,000 32,000,000 14,000,000 14,000,000 12,000,000 43,500,000 40,500,000 96,000,000 152,000,000 63,000,000 69,500,000 568,500,000

Estimated Employment 32 32 28 14 12 20 20 60 95 63 66 442

under construction as of March 2016 a - Consultant estimates based on standard local construction cost per room, classification, hotel facilities, and room amenities b - Consultant estimates based on local average workers per room, classification, and hotel amenities

New jobs created The employment impact of the new investments can be estimated using standard ratios of worker per room. According to consultants familiar with current practices in the Coron hotel sector, smaller accommodation establishments such as pensions, lodges, and tourist inns employ an average of 1 worker for every 2 to 4 rooms for an employment per room ratio of 0.25 to 0.5. On the other hand, given their higher service standards, hotels and resorts in Coron typically employ 1 to 1.25 people per room. Based on these local industry standards, it is estimated that the new hotel investments from 2014 to the present would result in the creation of at least 442 new jobs for residents of Coron.

Crosscutting Themes Gender Equality LGSP-LED assisted LGU tourism offices in conducting a survey of Calamianes tourism establishments (accommodations, restaurants, souvenir shops, spas, dive shops, tour operators) to update the information in the Tourism Circuit Plan for Northern Palawan (also developed with LGSP-LED support, including that related to the current levels of employment for men and women in the Calamianes Islands. The most recent survey reveals that the total number of their female employees is 926, while male employees have a total of 998. Although there is only a small difference in total numbers, there are significant differences in the numbers by type of tourism establishment. More women are employed in restaurants, souvenir shops, and spas, while dive shops report significantly greater numbers of male employees.

Accommodations Restaurants Souvenir Shops Spas Dive Shops Tour Operators Total

Number of Female Employees 547 236 27 46 19 51 926

No. of Male Employees 631 197 11 3 112 44 998

Total 1178 433 36 49 131 96 1924

The Tourism Circuit Plan (TCP) identified a need to develop and diversify more land-based activities and sites in Busuanga Island. The current gender profile of workers in Northern Palawan suggests that these new types of tourist businesses and activities will likely have more jobs for women particularly in the front-line, customer service positions such as farm guides, spa attendants, food service, etc. In addition, increased visitor interest in more immersive and authentic cultural experiences (e.g. Tagbanua cultural community visits) may heighten the central roles of women in production of arts and craft, traditional LGSP-LED Northern Palawan Local Project Completion Report | 14

hospitality, and cultural interpretation. The Calamianes Expeditions’ new tour which includes Brgy. Lajala showcases the traditional Tagbanua lifestyle including activities traditionally performed by women (e.g. traditional coffee roasting, diving and harvesting of lato or sea grapes, meal preparation, etc.) These activities are not only demonstrated for visitors to learn from, they can be extended into micro- to small-enterprises whereby Tagbanua women are becoming suppliers of coffee and souvenirs, as well as caterers and providers of packed meals for their partner tour operators. Gender is a key element in the poverty reduction agenda for the Yolanda Rehabilitation and Recovery Program for Northern Palawan, with the provision of increased opportunities for employment and livelihood for women as focal concern of various programs of the development partners in the Northern Palawan Livelihood Cluster The tourism circuit plan identified community-based projects for inclusion in the land-based sub-circuit in Busuanga Island. The Guadalupe Sawali Weavers Association (GuSaWA), a people’s organization with mostly women members, was assisted by ILO in setting up a production and product display center. USAID EcoFish’s planned project to start a community-based tourism activity and project in the Tagbanua community in Banuang Daan on Coron Island will have to be done with very high sensitivity to the social norms of the community, including the roles of women in the family as well within their society. Similar issues are present – and are recognized – in other community-based projects such as those of PHILSSA with the Balik Calauit Movement in collaborating with these development projects. All of these projects and sites continue to be potential areas for convergence as the Provincial and Municipal LGUs seek to continue and expand the tourism circuit development activities initiated by the LGSP-LED Local Project. The Negosyo Center to be established by DTI in Coron and linked to the Calamianes Business Center can be the key platform or venue for this convergence.

Environmental Sustainability As visitors to Northern Palawan increase, the tourism sector is concerned about the relatively limited number of attraction sites that these tourists are being encouraged to visit. Higher volumes of visitors may strain the carrying capacities of popular sites, particularly those in the most common “Reefs-to-Wrecks” itineraries involving Coron Island. These include Kayangan Lake, Barracuda Lake, and the Siete Pecados marine sanctuary. Thus, the Northern Palawan Tourism Circuit Plan has prioritized the development of alternative, land-based tours as a strategy to distribute and disperse visitor volumes to other sites in the Calamianes – even as measures are undertaken to manage the tourism activities in the current tourism circuits.

Participants of the Bantay Turista Training on Emergency Response for Tourism Community Guides in Coron, Palawan on March 17-19, 2016, conducted by PDRRMO.

The activity for tour guides in the Calamianes included training in environmental sustainability, as well as marine safety and emergency response. Convergence partners for the activity were the Palawan’s Provincial Disaster Risk Reduction and Management Office (PDRRMO), through their “Bantay Turista” program, and the Society for Sustainable Tourism and LGSP-LED Northern Palawan Local Project Completion Report | 15

Development Inc. (SSTDI). The activity in Coron was the pilot run of the Province’s Bantay Turista program, which the PDRRMO intends to roll-out to all other destination clusters in Palawan following the May 2016 elections. The USAID EcoFish Project has completed the Sustainable Fisheries Plan for the Calamianes Islands. This includes marine protected areas and other sites that are part of the identified tourism circuits

Poverty Reduction LGSP-LED’s Project in Northern Palawan has business recovery and expansion, especially in light of the impacts from the 2013 Supertyphoon Yolanda, as a central theme. Thus, the Local Team has engaged with partners from other development agencies and NGOs in Northern Palawan to explore opportunities for harmonizing their respective programs with the needs and concerns of the Northern Palawan tourism circuit. Through bilateral discussions as well as through regular meetings of the Livelihood Cluster of the Yolanda Rehabilitation and Recovery Program for Northern Palawan, the local partners have been exchanging plans and ideas with the LGSP-LED team on common priorities and concerns related to livelihood and economic recovery through sustainable tourism. Livelihood cluster partners such as ILO, PHILSSA, USAID EcoFish, and DSWD Sustainable Livelihoods Program, participated in the workshop facilitated by DILG IV-B and LGSP-LED to formulate Workforce Development Plans for the Northern Palawan municipalities. Through this, the LGUs were able to incorporate the various post-disaster livelihood and enterprise development activities of these NGOs into their own workforce development plans. At the same time, NGOs and development partners were able to advise the LGUs on policy actions and programs to support the sustainability of the various LGU programs. Following the workshops, ILO provided the municipal PESO officers with data for their skills registry systems (SRS) on the residents who have completed ILO skills/livelihood training programs under its Yolanda recovery program for the area. Because tourism is the key economic sector of the Calamianes, several members of the Livelihood Cluster have identified it as a key element of their own post-Yolanda livelihood and enterprise development priorities. The Northern Palawan Tourism Circuit Plan has enabled the Project Team to map out specific sites where there are opportunities for converging with the partners’ ongoing or planned projects in line with the development of alternative tours and/or enhancement of priority attractions. Among the ongoing projects that can be harmonized with the Local Project’s work on alternative land-based tours and sustainability of the Reefs to Wrecks tours are: ! ! !

USAID EcoFish’s livelihood projects with Tagbanua communities in Coron Island attraction sites as well as with fishing villages in Coron Town on establishing additional marine protected areas near Siete Pecados ILO’s Sawali Livelihood Development project in Brgy. Guadalupe which will be included in the alternative land-based tours The PHILSSA project with the Balik Calauit Movement to develop dugong-watching and other alternative activities in and around Calauit Island will also be integrated into the alternative tours around Busuanga Island

The development and promotion of new tours (as well as new activities within the existing Reefs to Wrecks packages) are also intended to link these community-based enterprises to the mainstream tourism sector of Northern Palawan. By doing so, these local enterprises will gain more potential visitors or clients who can support their future growth and sustainability. With the growing interest in cultural encounters and more immersive experiences with local residents being reported by local operators, more opportunities have been identified for indigenous Tagbanua people to benefit from new tour packages and services being developed. In addition, once launched, the destination brand of the Calamianes will generate more interest in the region, leading to an increase in tourist arrivals and tours to all municipalities, and to these community-based enterprises in particular.

VI.

Lessons Learned

The experience of the LGSP-LED local project has been a learning experience for the Province of Palawan and the four municipalities of the Calamianes. Through the small victories as well as the missed opportunities from the past two years, the LGUs as well as DILG have gained insight on the key factors for LED success in Northern Palawan. The key lessons learned from the Calamianes Project experience are given below.

must be a multi-sectoral process involving LGUs, private sector, communities, and other stakeholder groups. For these various groups to work well together, they must have a common appreciation of the opportunities and challenges facing their local economy. The stakeholders must also agree on the possible strategies for achieving inclusive local economic growth, given these challenges and opportunities. Thus, the lesson is not just about understanding the local economy but more about LGU, private sector, and other stakeholder groups, understanding it – together. This would then be the first step in planning and implementing the LED Project as a partnership-based undertaking of the LGUs, the private sector, and other partners.

2. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the Calamianes as a whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single municipality. Thus, the TCP emphasized how interdependent the municipalities of Northern Palawan are with each other.– including Linapacan, which was not officially part of the LGSP-LED project. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

3. Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. This is also true for Mayors at the city and municipal level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. The LCEs of the municipalities covered by the Project must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

Strong Provincial LEIPO, Tourism, PESO, and Planning Offices are necessary to provide technical support and mentoring to their municipal counterparts, who may not have the same resources, experience, and institutional connections to NGAs and national or regional industry. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit. This was the case with the Provincial Tourism Officer in leading the municipal tourism officers of Northern Palawan on various functions ranging from destination branding to the collection and analysis of tourism statistics and information.

5. Engaging the private sector in planning and implementing the LED Program Building can lead to a more businessfriendly, entrepreneurial mindset within the LGUs LGUs need to understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. The LEIPOs must engage local proponents through the local business chamber in order to be ready with the investment information, identify the priority projects, and match them effectively with investors. PESO Managers cannot implement effective job-training and employment matching programs without partnering with the local employer sector to determine their anticipated workforce needs. An organized private sector plays a key LED role in driving product development, marketing, and investment in tourism (or any other priority economic sector) as well as in partnering with the LGUs on important programs for tourism statistics, LED information, and workforce planning and development. The initiative and innovation of various CATE members in developing new tourist activities and attraction sites – inspired by the tourism circuit plan prepared together with the LGUs – illustrate how government can already enable private sector action with tools as basic as clear, market-oriented plans with strong stakeholder buy-in. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis-à-vis the local industry’s efforts to become more competitive and inclusive.

6. Convergence between Provincial and National Government Agencies is necessary for effective delivery of LED support services and programs, especially for relatively distant sites. The Calamianes’ remote location and limited accessibility relative to the Provincial as well as Regional Centers limit the ability of Provincial as National Government Agencies to deliver LED support services in a timely manner to the LGUs. Thus, cooperation and mutual support among the LGUs of the cluster becomes even more necessary. In this regard, a strong cluster or team approach is critical to DILG’s ability to support the LGU LED programs in Northern Palawan (and similar destinations). Effective LED convergence among the many NGAs, NGOs, and donor programs already operating in (or being planned for) the area must be promoted through some established mechanism or arrangement in the cluster. Related to this, LGU LED staff as well as DILG MLGOOs must be oriented to continuously monitor and scan the plans and activities of these institutions for opportunities for partnerships and cooperation.

VII.

Conclusions and Recommendations

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Thus, the main LED priorities for the LGUs remain : 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more business-friendly environments for sustainable and inclusive economic development, and 2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry. In turn, DILGâ&#x20AC;&#x2122;s Regional and Provincial Offices must enable the LGUs to perform these enabling roles by: 1. Continuing to advocate, monitor, and provide incentives for LGUs to continue pursuing its roadmap for more business-friendly and competitive LGUs, while harmonizing the LED-related activities with relevant elements of the Departmentâ&#x20AC;&#x2122;s 3 other outcome areas (e.g. safety and social protection, transparency and accountability, disasterresilience), 2. Building the capacities for business-friendliness and competitiveness among LCEs and LGU staff through training programs and technical assistance, and 3. Facilitating convergence among Field Offices of other NGAs for better delivery to and access by LGUs of their own capacity development, technical assistance, and funding/resource support programs and services for LED.

These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature.

Include in the LGU budgets, sufficient funds and resources for the effective and harmonized operation frontline BFCL LGU offices such as BPLO (and Business-One-Stop-Shop), LEIPO, Tourism Office, PESO, Planning Office, etc. Funding for continuous technology improvement and staff development related to LED information systems (e.g. auto-BPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be included in these budgets, to the extent feasible.

Key areas for knowledge- and skill-building of LGU LED Officers include: "

data analysis and interpretation of LED data from BPLS, tourism statistics, local skills registry systems, landuse maps and data, as well as other information sets regularly collected by the LGUs. Capacity development can also be directed towards encouraging the regular sharing and joint analysis of these information by LEIPOs, Tourism Officers, Planning Officers, PESO managers, and other members of the LGU LED team.

Practical coaching and training on Investment promotion, investor handling, and relationship management for LEIPOs, with parallel orientation of LCEs if feasible.

Municipal tourism development planning for individual LGUs within the framework of the Northern Palawan tourism circuit. These sector specific plans should be well integrated into the CDPs and CLUPs of the 4 Calamianes municipalities.

2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated Local Investment Incentives Codes (LIIC) formulated through the assistance of DILG and LGSP-LED by the municipalities of Coron, Busuanga, and Culion. Other legislative priorities may include: !

Formulation and adoption of LIIC should also be advocated for Linapacan.

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! !

Establishment and funding of permanent municipal tourism as well as LED and Investment Promotion (LEDIP) offices. Updating of local tourism codes or business permitting regulations to encourage greater cooperation from tourism establishments in the collection of local tourism statistics

3. In addition the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and socially-protective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: !

! !

Integration of DRRM-CCA, including provisions related to LED and investment promotion, in subsequent updating of the Provincial Physical Framework Development Plan and the corresponding city/municipal CLUP and CDP. Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention. Building and infrastructure development should strictly conform to the existing Building Code, Environmental Policies and CCA-DRR plans. Zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks. Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant.

4. The Provincial Government should continue to work closely with the LGUs in the tourism circuit to update and continue implementation of the Tourism Circuit Development plan formulated through the assistance of LGSP-LED. !

In updating the plan, it is recommended that the LGUs should review and consider the adoption of site-specific recommendations from the USAID COMPETE Tourism Product Assessment of Coron and Busuanga, as well as the policy and site management recommendations related to Coron Island and marine protected areas (MPAs) from the USAID EcoFish Sustainable Agrifishery Plan for the Calamianes The Provincial Government and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 20162022. The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit.

The Governor should be the chair of the LED Team, providing overall policy direction, strategic advise and leadership to the team. The core LED Team should include the LEIPO, the Provincial Tourism Officer, the PESO Manager, the Planning Officer, and the PDRRMO (in charge of Bantay Turista) as well as the Provincial Tourism Council and the Palawan Chamber of Commerce and Industry to represent the private sector. As with the LED Project, one of these action officers may be designated as the LED Team Manager to oversee day-to-day LED concerns. The DILG Provincial Director and the LED Focal Person should also be invited to the LED Team, as well as other NGA Provincial Offices, such as DTI, DENR, DOLE, DSWD, etc. with programs critical to the LED Agenda of the Province, and the Calamianes tourism circuit. However, the NGAs should officially designate their permanent and alternate members to the LED Team, with preference for the focal persons/action officers with direct involvement in key LED-related programs such as DTI Negosyo Center, DOST SET-UP, DSWD Sustainable Livelihoods Program, etc. The Provincial LED Team together with the DILG Provincial Office should organize and provide technical assistance to a similarly-composed counterpart team from among the LED officers, NGA action officers, and private sector stakeholder (such as the Calamianes Association of Tourism Establishments) in Northern Palawan.

would be the most realistic location for such a Center. Considering the logistical requirements for such a center, the agencies may also consider various cost-sharing or co-management arrangements to ensure the regular presence of field officers (if full-time appointments are not feasible). !

Operationalizing the DTI Negosyo Center in Coron would create another platform for NGA convergence. MSMEsupport programs of other NGAs (e.g. DA, DOST, DOT) may be delivered or processed through the Negosyo Center if it is infeasible for these NGAs to maintain a permanent office in Coron.

The agencies can also aim to build on the convergence platforms created by the cluster organization framework of the Yolanda Rehabilitation and Recovery program. Thus, the NGA convergence for LED in Northern Palawan may grow out of the Livelihood Cluster, which brought various NGOs and international agencies such as Catholic Organization for Relief and Development Aid (CORDAID), ILO, PHILSSA, etc

DILG Regional and Provincial Offices can continue to lead the LGUs along the roadmap towards more business-friendly and competitive LGUs through the following: 1. Establish a “BFCL Team or Working Group” from among the Regional and Provincial technical staff to provide information, facilitate access to technical assistance and capacity development resources, and to monitor the streamlining of BFCL in LGU operations. 2. In coordination with LGA and the DILG Central Office, provide technical assistance and training for LGUs to fast-track the adoption and approval of key BFCL initiatives undertaken through the Local Project, specifically: ! Designation of LEIPOs and establishment of local economic development and investment promotions offices ! New or updated LIIC harmonized with new/updated LRC ! Institutionalization of LGU skills registry system ! Institutionalization of LGU tourism statistics and information systems 3. Combine advocacy with technical assistance and support – again, in coordination with LGA and DILG Central Office – for LGUs to harmonize their LED plans and programs with the updating/enhancement of their respective CDPs and CLUPs. In the process, DILG should emphasize the gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the 2 mother plans to ensure the mainstreaming of these themes in the LGUs LED plans and programs. 4. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: !

Facilitating activities for CATE, COMPETE, EcoFish, DOT and other agencies with related plans to properly orient the Northern Palawan LCEs and their executive-legislative teams on the key LED and tourism circuit development plans, which they can adopt and integrate into the development plans and agenda of the new local administrations taking office in July 2016. Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management. Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives in the Calamianes

5. Facilitating the local planning processes so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. LGSP-LED Northern Palawan Local Project Completion Report | 21

Encouraging the LCEs and other LGU leaders to build on existing programs of cooperation such as the Northern Palawan Inter-Municipal Health Zone, and the USAID EcoFish project on sustainable agrifishery for the Calamianes leading to a similar program for LED and tourism

DILG MLGOOs can be instrumental in supporting inter-LGU coordination and cooperation, given that they themselves have been organized into one cluster with a designated Cluster Head (currently the MLGOO of Busuanga). The Regional and Provincial Offices should consider support and capacity development strategies for strengthening the team such that the member MLGOOs are empowered to act collectively, as champions for inter-LGU cooperation and NGA convergence in Northern Palawan.

Recommendations for Sustaining the Tourism Circuit Development and Sector Competitiveness Program Through the Local Project, the Provincial Government and its partners in Northern Palawan have implemented some initial activities to develop the Calamianes into a more attractive investment destination with a more competitive tourism circuit and industry. While there have been clear gains achieved to date, there are still many important issues to address for this progress to be sustained. More importantly, much work remains to be done in order to ensure that the growth from LED and tourism will become truly inclusive and beneficial to more people. While the private sector should continue to drive the product development, business investment, and employment generation components of tourism circuit development, the Provincial and Municipal Governments must also continue to support and enable its private sector partners through: ! ! !

Direct public investments or facilitation of public-private partnerships (PPP) for LED-enabling infrastructure to improve accessibility (e.g. ports and roads) and cost of doing business (e.g. power, water, sewage, sanitation) Market-linkage programs and services to connect local communities, businesses, and products to market intermediaries, buyers, and investors through destination marketing and investment promotion activities and events. Provision of LGU programs and systems to raise the supply and quality of available human resources in the tourism sector through effective workforce development planning, training and education, and job-employer matching – in partnership with the local industry.

In this regard, the main recommendations for LGUs to enable a more competitive and sustainable tourism sector in the TDA are: 1. Establish a Public-Private Team within the LED Team to focus on ensuring the funding and implementation of priority LED-enabling infrastructure projects identified in the TCP, as well as on organizing investment promotion events and activities to seek investors for priority investments to address competitiveness gaps in the tourism circuit (e.g. hotels and resorts, tourist transport, tourism estates, etc.) ! The Provincial LEIPO, in partnership with the Local Chamber, may organize regular (quarterly or twice a year) meetings with the Northern Palawan LEIPOs and CATE from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities ! Investment promotion priorities, in line with the Northern Palawan TCP and the forthcoming update to the NTDP, will be for more dispersed, sustainable hotel development to other parts of Busuanga Island and transportation infrastructure, including inter-island service between Busuanga and the island-municipalities of Culion and Linapacan 2. Through the Provincial Tourism Office, and in partnership with CATE and other private sector institutions in Busuanga and Culion, design and implement a program for the full roll-out and market/industry launch of the “Calamianes. Nature, Adventure, and all the Rest” brand. This Calamianes branding campaign should be integrated with the Province of Palawan’s “Every Island an Adventure” campaign.. !

Absent a Northern Palawan Visitors Bureau, the Provincial Tourism Office of Palawan can take the lead in promoting the Calamianes through the national and international marketing channels. The PTO may seek the support of the Tourism Promotions Board (TPB) through the DOT Region 4-B Office. Within the community, CATE and its counterpart associations in Busuanga and Culion can support the PTO in educating and encouraging their members to use the brand and tagline, while also monitoring their adherence to the guidelines contained in the final brandbook. The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.) LGSP-LED Northern Palawan Local Project Completion Report | 22

The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media.

3. Seek funding for the implementation of the tourism workforce development plans prepared by the Northern Palawan LGUs. ! !

Coron and Culion have completed their respective workforce development plans. Assistance should be extended to Busuanga and Linapacan to finalize their respective drafts. Although these plans could no longer be funded through DILG’s TRABAJO program, the LGUs (in partnership with the local tourism industry associations) have several strategic options including the following: a) Adopt and fund the workforce development plans as LGU programs of the local tourism and PESO offices; b) Explore opportunities for funding from other NGAs such as DOLE and DSWD as well as donor agencies and agencies with compatible assistance programs.

4. Support for local tour operators and entrepreneurs to continue their product development efforts related to the development and marketing of alternative (especially land-based) tourist activities and attractions in Busuanga Island as well as Culion and Linapacan, to complement the existing island-hopping packages in Coron. The LGUs and CATE should advise local entrepreneurs and communities to ensure that the activities and packages will be consistent with the “Nature. Adventure. And all the Rest” tagline’s core messages and themes of ecotourism, sustainability, and responsible travel. !

! !

Among the activities and/or attraction sites where the local private sector has already started the groundwork for product development are: the Busuanga River Cruise; cultural encounters with Tagbanua cultural communities in Brgy. Lajala (and later, Banuang Daan in Coron Island); Calauit Island, and historical heritage tours in Culion. Seasonal offerings that package Coron and El Nido (or El Nido and Linapacan) as twin destinations may now also be feasible with the entry of fast craft services such as the M/V Montenegro Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and communitybased livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination. Operationalization of a DTI Negosyo Center for the Calamianes, based in Coron, would be an important step in this regard.

These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature.

Key areas for knowledge- and skill-building of LGU LED Officers include:

LGSP-LED Northern Palawan Local Project Completion Report | 23

Practical coaching and training on Investment promotion, investor handling, and relationship management for LEIPOs, with parallel orientation of LCEs if feasible.

Formulation and adoption of LIIC should also be advocated for Linapacan. Establishment and funding of permanent municipal tourism as well as LED and Investment Promotion (LEDIP) offices. Updating of local tourism codes or business permitting regulations to encourage greater cooperation from tourism establishments in the collection of local tourism statistics

! !

LGSP-LED Northern Palawan Local Project Completion Report | 24

! !

6. The Provincial Government, in coordination with the Provincial Field Offices of NGAs, should consider the establishment of a satellite Government Center in Northern Palawan. Coron, as the trading and transportation hub, would be the most realistic location for such a Center. Considering the logistical requirements for such a center, the agencies may also consider various cost-sharing or co-management arrangements to ensure the regular presence of field officers (if full-time appointments are not feasible). !

A Provincial Government-owned building in Coron (currently the site of the Coron Tourism Office) would be a conveniently-located venue for such a Center. However, the building still needs some repair and refurbishing from damage caused by Typhoon Yolanda. Operationalizing the DTI Negosyo Center in Coron would create another platform for NGA convergence. MSMEsupport programs of other NGAs (e.g. DA, DOST, DOT) may be delivered or processed through the Negosyo Center if it is infeasible for these NGAs to maintain a permanent office in Coron. The agencies can also aim to build on the convergence platforms created by the cluster organization framework of the Yolanda Rehabilitation and Recovery program. Thus, the NGA convergence for LED in Northern Palawan may grow out of the Livelihood Cluster, which brought various NGOs and international agencies such as Catholic Organization for Relief and Development Aid (CORDAID), ILO, PHILSSA, etc. together in one table.

DILG Regional and Provincial Offices can continue to lead the LGUs along the roadmap towards more business-friendly and competitive LGUs through the following: 1. Establish a “BFCL Team or Working Group” from among the Regional and Provincial technical staff to provide information, facilitate access to technical assistance and capacity development resources, and to monitor the streamlining of BFCL in LGU operations. 2. In coordination with LGA and the DILG Central Office, provide technical assistance and training for LGUs to fast-track the adoption and approval of key BFCL initiatives undertaken through the Local Project, specifically: • Designation of LEIPOs and establishment of local economic development and investment promotions offices • New or updated LIIC harmonized with new/updated LRC • Institutionalization of LGU skills registry system • Institutionalization of LGU tourism statistics and information systems 3. Combine advocacy with technical assistance and support – again, in coordination with LGA and DILG Central Office – for LGUs to harmonize their LED plans and programs with the updating/enhancement of their respective CDPs and CLUPs. In the process, DILG should emphasize the gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the 2 mother plans to ensure the mainstreaming of these themes in the LGUs LED plans and programs. 4. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: •

•

development plans, which they can adopt and integrate into the development plans and agenda of the new local administrations taking office in July 2016. Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management. Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives in the Calamianes

5. Facilitating the local planning processes so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. •

Market-linkage programs and services to connect local communities, businesses, and products to market intermediaries, buyers, and investors through destination marketing and investment promotion activities and events.

Provision of LGU programs and systems to raise the supply and quality of available human resources in the tourism sector through effective workforce development planning, training and education, and job-employer matching – in partnership with the local industry.

LGSP-LED Northern Palawan Local Project Completion Report | 26

The Provincial LEIPO, in partnership with the Local Chamber, may organize regular (quarterly or twice a year) meetings with the Northern Palawan LEIPOs and CATE from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities Investment promotion priorities, in line with the Northern Palawan TCP and the forthcoming update to the NTDP, will be for more dispersed, sustainable hotel development to other parts of Busuanga Island and transportation infrastructure, including inter-island service between Busuanga and the island-municipalities of Culion and Linapacan

2. Through the Provincial Tourism Office, and in partnership with CATE and other private sector institutions in Busuanga and Culion, design and implement a program for the full roll-out and market/industry launch of the “Calamianes. Nature, Adventure, and all the Rest” brand. This Calamianes branding campaign should be integrated with the Province of Palawan’s “Every Island an Adventure” campaign. !

Absent a Northern Palawan Visitors Bureau, the Provincial Tourism Office of Palawan can take the lead in promoting the Calamianes through the national and international marketing channels. The PTO may seek the support of the Tourism Promotions Board (TPB) through the DOT Region 4-B Office. Within the community, CATE and its counterpart associations in Busuanga and Culion can support the PTO in educating and encouraging their members to use the brand and tagline, while also monitoring their adherence to the guidelines contained in the final brandbook. The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.) The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media.

3. Seek funding for the implementation of the tourism workforce development plans prepared by the Northern Palawan LGUs. • Coron and Culion have completed their respective workforce development plans. Assistance should be extended to Busuanga and Linapacan to finalize their respective drafts. ! Although these plans could no longer be funded through DILG’s TRABAJO program, the LGUs (in partnership with the local tourism industry associations) have several strategic options including the following: a) Adopt and fund the workforce development plans as LGU programs of the local tourism and PESO offices; b) Explore opportunities for funding from other NGAs such as DOLE and DSWD as well as donor agencies and agencies with compatible assistance programs. 4. Support for local tour operators and entrepreneurs to continue their product development efforts related to the development and marketing of alternative (especially land-based) tourist activities and attractions in Busuanga Island as well as Culion and Linapacan, to complement the existing island-hopping packages in Coron. The LGUs and CATE should advise local entrepreneurs and communities to ensure that the activities and packages will be consistent with the “Nature. Adventure. And all the Rest” tagline’s core messages and themes of ecotourism, sustainability, and responsible travel.

LGSP-LED Northern Palawan Local Project Completion Report | 27

! !

Among the activities and/or attraction sites where the local private sector has already started the groundwork for product development are: the Busuanga River Cruise; cultural encounters with Tagbanua cultural communities in Brgy. Lajala (and later, Banuang Daan in Coron Island); Calauit Island, and historical heritage tours in Culion. Seasonal offerings that package Coron and El Nido (or El Nido and Linapacan) as twin destinations may now also be feasible with the entry of fast craft services such as the M/V Montenegro. Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and communitybased livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination. Operationalization of a DTI Negosyo Center for the Calamianes, based in Coron, would be an important step in this regard.

LGSP-LED Northern Palawan Local Project Completion Report | 28

Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

CUMULATIVE

INTERMEDIATE OUTCOMES New Investments

(MARCH 2016) 0

Private Tourism Investments

Public Investments

Description

Value (PHP)

150 additional rooms

167.7M

1.048B 568.5M New hotels, tourist inns and lodges 568.5M

Power supply for Coron/Busuanga

332.3M New hotels, tourist inns and lodges

Concrete access road to Maquinit Hot Springs; Concreting of Sto. NiÃ±o-Busuanga National Highway with rest stops

480M Coron Busuanga Road,Access Road to the jump off point to Calauit Wildlife Sanctuary road connecting Busuanga airport-Kiwit Road

Employment (New) Male

1050

150

Female

569

150

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

10.60%

10.23%

91,580

124,033

100,946

Enabling Policies Adopted

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted

2 2 0

2 3 1

4 0 0

BPLS Computerized

Tourism Statistics system implemented

LED Actors with Capacity to Plan/Implement

LED Initiatives Implemented

LGSP-LED Northern Palawan Local Project Completion Report | 29

OUTPUTS LEIPOs Trained

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened

Tourism Code formulated/updated

TOP COP Program/Plan developed

LED Initiatives Planned

LED Actors Trained

153

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

150

Industry Representatives

LGSP-LED Northern Palawan Local Project Completion Report | 30

I. Local Government Profile Albay Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

1,233,432 257,577 hectares 3 15 Legazpi City 1st Guinobatan, Camalig, Daraga, and Legazpi Guinobatan, Camalig, Daraga, and Legazpi

Sorsogon Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

740,743 211,901 hectares 1 14 Sorsogon City 2nd Donsol and Pilar Agriculture (coconut); Fisheries; Mining and Quarrying; Manufacturing

Bicol Region (Region VI) in the Philippines is internationally recognized as a tourism destination. The region is located at the southernmost part of Luzon bounded by the provinces of Quezon and Samar. It is composed of six provinces, namely: Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate, and Sorsogon. Two of these provinces, Albay and Sorsogon, are involved in the Legazpi-Donsol Tourism Circuit Development Project. Albay is bordered by the provinces of Camarines Sur to the north and Sorsogon to the south. The province, whose total land area is 257,577 hectares, is generally mountainous with scattered fertile plains and valleys. Aside from Mayon Volcano, it has two other major peaks: Mount Masaraga and Mount Malinao. The western coast of the province is mountainous but not as prominent as the eastern range with the highest elevation at around 490 meters (1,610 ft). Among these mountains are Mount Catburawan in Ligao and Mount Pantao in Oas & Libon. Sorsogon, with a total land area of 211,901 hectares, is located at the southernmost tip of Luzon Island, approximately 600 kilometers southeast of Metro Manila. It is bounded on the north by the province of Albay and the Albay Gulf; on the south by Samar and the San Bernardino Strait; on the east by the Pacific Ocean; and on the west by Burias Island and Ticao Pass. Except for its overland link with the province of Albay, it is surrounded by water. It is also the gateway of Luzon to the Visayas and Mindanao regions through its roll-on, roll-off ferry terminal facilities located in the towns of Matnog and Bulan. Albay is a province composed of 15 municipalities and 3 cities and the capital is Legazpi City, named after Miguel Lopez de Legazpi, the Spanish conquistador who came to the Philippines in 1565 and started the massive colonization. On the other hand, Sorsogon is composed of 1 component city, Sorsogon City (also the capital) and 14 municipalities.

LGSP-LED Albay-Sorsogon Local Project Completion Report | 2

Local Economy Agriculture is a major industry in both Albay and Sorsogon. Albay is a major producer of coconut, rice, sugar, and abaca. Meanwhile, owing to Sorsogon's rugged terrain, coconut trees dominate the provincial landscape in all municipalities. Coconut plantations have been so widespread that they even proliferate in areas beyond 30% slope and erstwhile production forests. In some cases, these are associated with other perennial trees such as coffee, citrus, pili, and abaca. Fishing is also a common economic activity in coastal towns located within the province. Small-scale enterprises such enterprises include handicrafts, cement production, papermaking, food processing, and abaca product manufacturing abound as sources of rural income. In some cases, especially in Albay, the production of hats, bags, mats, slippers, and other by products are the main sources of income in rural areas. Sorsogon's industry sector is also comprised of mining and quarrying, manufacturing and construction, electricity, gas, and water. Integrated steel industries are also present in the province. Tourist arrival growth rates in the area have increased from 20% to 60% in the last 5 years. This growth is attributed to the attraction sites including the cone-shaped Mayon Volcano and emerging tourist spots such as Lignon Hill, Embarcadero de Legazpi, Legazpi Boulevard and Cagsawa Nature Park. While tourism is a major focus in Albay, the sector in Sorsogon has not been fully tapped. Moreover, despite the inherent attractions of these provinces, its tourism industry is not competitive compared to other destinations. Local officials consider this a great challenge, especially now that Legazpi City is an emerging area for Meetings, Incentives, Conventions and Exhibitions (MICE). The poverty incidence in Albay is at 36.12% and in Sorsogon 32.12%, according to the Philippine Statistics Authority. 1 The Human Development Index for 2009, which attempts to measure the complete concept of human development by tracking the progress of three selected aspects of human life, is recorded at 0.498 in Albay and at 0.492 in Sorsogon.2

LGUs Covered in the Project The LGSP-LED project works in the provinces of Albay and Sorsogon, covering the city of Legazpi and municipalities of Guinobatan, Camalig, Daraga, (GuiCaDaLe) Donsol and Pilar (DonPi) with the inclusion of Monreal in Ticao Island in Masbate. Popularly knowns as GuiCaDaLe in Albay and DonPi in Sorsogon, the LGUs are adjacent to one another. The Legazpi-Donsol Corridor was conceptualized, harmonizing the beauty of the majestic Mayon with the gentle giant of the Sea. These LGUs are showcasing historical, cultural and natural resources. Aside from this, these LGUs also offer various culinary experiences for visitors. LGU Albay Guinobatan Camalig Daraga

Income Class 1st 1st 1st 1st

Population 1,233,432 75,967 63,585 115,804

Land Area (hectares) 257,577 24,443 13,090 11,864

No. of Barangays 720 50 54 44

LGU Sorsogon Donsol Pilar

Income Class 2nd 3rd 1st

Population 740,743 47,563 68,245

Land Area (hectares) 211,901 15,620 24,800

No. of Barangays 541 51 49

II.

The Tourism Circuit

Philippine Statistics Authority. (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority. Philippine Statistics Authority. (2016). Albay-Sorsogon Quickstat - February 2016. Quezon City. Retrieved from https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Albay-Sorsogon.xls LGSP-LED Albay-Sorsogon Local Project Completion Report | 3

1 2

Covering a land area of 1,051 sq. km, the Legazpi-Donsol Tourism Circuit, extending to the marine tourism sites of Ticao Island in the municipality of Monreal in Masbate province represents the core tourism cluster of ALMASOR. These are where the tourism icons of ALMASOR are found: Mayon Volcano in Legazpi, the whalesharks or butanding of Donsol, and the manta rays of Ticao Island. The Circuit spans across three municipalities (Guinobatan, Camalig and Daraga) and one city (Legazpi) in the Province of Albay, and two other municipalities (Donsol and Pilar) in the Province of Sorsogon. LGSP-LED has taken the tourism circuit development approach as a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, it assists the LGUs in working with enterprises by enhancing visitor experience by developing more competitive tourism activities, goods, excursions, and facilities to increase visitors' length of stay and expenditure.

Tourism Access and Infrastructure Legazpi City, serves as the air gateway and main tourism service center of ALMASOR through the Legazpi City airport, which allows for good transportation linkages to neighboring provinces and the rest of the country. Most travelers and visitors use Legazpi City as the starting point for their trips around ALMASOR. Several daily flights from Manila and Cebu, as well as bimonthly chartered flight from Xiamen, China operate to and from the said Airport. By land, the Maharlika Highway connects the Circuit to Metro Manila and the rest of Luzon. There are regular bus trips that depart from Manila every hour. Travelers from Visayas through Matnog Port in Sorsogon can easily reach Legazpi via a 2-3hour land trip by bus or public shuttle vans. The Circuit is also accessible by sea through two major ports, with the Pilar port LGSP-LED Albay-Sorsogon Local Project Completion Report | 4

as the primary access to and from Masbate and Western and Central Visayas, while the port in Matnog, Sorsogon links it to Eastern Visayas via Samar. The area gets reliable power service from the Tiwi and Bacon geothermal plants, National Grid Corporation, and local power companies, with intermittent blackouts during strong typhoons. All municipalities have their own water districts. Telephone and mobile services are available in most parts of the circuit.

Major Attraction Sites The TDA’s primary tourist service center is Legazpi City, the capital of Albay province and the regional center of Bicol. It is the hub of tourism activity with the highest concentration of accommodations, travel services, and other tourism-oriented enterprises. There are a variety of accommodation types from pension houses and motels, to resorts and hotels in the circuit. About 50% of these are concentrated in Legazpi City with the rest spread out among the other five municipalities. From Legazpi City, there are various transportation options such as air-conditioned buses, shuttle vans and traditional jeepneys, that link the different sites and attractions in the circuit. For shorter travel within a municipality, taxis and tricycles (motorcycles with attached side cars) are the common mode of transport. The Province of Albay has identified Legazpi City together with the neighboring municipalities of Guinobatan, Camalig, and Daraga (collectively, GuiCaDaLe) as one of its three priority tourism destination clusters. The cluster offers the best vantage points for viewing Mayon Volcano. In addition, Guinobatan is known for their annual patron saint celebration of Our Lady of Assumption, called ‘Arandurugan Festival,’ which is now celebrated as the Longganisa Festival. Camalig and Daraga are both associated with popular activities for experiencing Mayon Volcano from a distance, All-Terrain Vehicle (ATV) rides, and the historic viewpoint of Mayon’s perfect cone from the Cagsawa ruins. Just an hour, by land, south of GuiCaDaLe are the municipalities of Donsol and Pilar in the Province of Sorsogon. Sorsogon province considers these two municipalities as key elements of its own priority tourism corridor, which extends from Donsol and Pilar, through Castilla, to the capitol of Sorsogon City (DonPiCaSo). Donsol has gained worldwide renown for the whale sharks or butanding that frequent its municipal waters. Neighboring Pilar, on the other hand, is emerging as a tourist destination in its own right with attractions like Panumbagan sand bar as well as unique marine encounter activities such as gathering lato (sea grapes) and sea urchins. In addition, Donsol and Pilar serve as the jump-off points for increasingly-popular marine and island-hopping activities – particularly scuba diving for encounters with manta rays and hammerhead sharks – to nearby Ticao Island, in Masbate, the third province of ALMASOR. Across the TDA, there are twelve Department of Tourism (DOT)-accredited inbound travel agencies and tour operators that provide local employment. A handful of specialty shops geared towards the tourist market are spread across a few LGUs. Local souvenir products abound in the TDA, with a display center in Camalig run by the municipal government and retail shops on the site of the Cagsawa Ruins. Transport services dedicated to tourists are available through hotels and accommodation establishments, as well as public taxis, and DOT-accredited private vehicles.

Market Trends and Opportunities Visitor arrivals grew by 30.73% in Albay for the four-year period of 2010-2013; and 25.68% in Sorsogon (based on compounded annual growth rate figures). Arrivals in the TDA’s four Albay LGUs accounted for 70.41% of the province’s total arrivals, with majority of them being domestic tourists (six out of 10 arrivals based on 2013 records). The circuit attracts a wide range of visitors, predominantly from cultural and culinary, to adventure, aquatic, and eco-tourism market segments.

III.

Challenges to Local Economic Development

ALMASOR, as a distinct destination, is establishing its identity within the Philippine tourism industry. The local economies in the provinces of Albay and Sorsogon, particularly in Legazpi City, are growing. Locally sourced revenues through the growing number of commercial establishments and influx of tourists on these LGUs are consistently increasing. Tourist arrival growth rates have also been increasing in the last 5 years. The challenges that will be discussed in the next paragraphs were identified to be addressed by the Project.

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Challenges to Enabling Environment: Enabling Policies and Programs Seeing the value of tourism as a source of significant revenue, the provinces of Albay and Sorsogon have strengthened their tourism program by institutionalizing the tourism offices and providing manpower and funding support. The provinces of Albay and Sorsogon, city of Legazpi and municipality of Donsol have permanent positions for their tourism officers while the municipalities of Pilar, Daraga, Camalig and Guinobatan designated permanent position employees to act as tourism officers. In addition, seven (7) LGUs have designated their Local Economic and Investment Promotion Officers (LEIPOs). These LGUs are Guinobatan, Camalig, Daraga, Legazpi City, Province of Sorsogon, and Municipalities of Donsol and Pilar. Local Investments and Incentives Codes (LIIC) have been adopted in five (5) LGUs. Business Processing and Licensing Systems (BPLS) have been computerized in Guinobatan, Camalig, Daraga,Legazpi City, Donsol and Pilar, but Tourism Statistics and Information Systems (TSIS) have not been implemented yet in any of the LGUs in the circuit.

Challenges to Tourism Sector Competitiveness Accommodation Although the TDA offers a range of accommodation establishments, almost half of these hotels and pension houses are concentrated in Legazpi City, which limits tourist expenditure and tourism impact within this area. Additionally, there is a lack of upgraded skills and competencies within the hotel workforce in the TDA and, generally, a lack of skills enhancement and economic opportunities for women in rural areas.

Guinobatan Camalig Daraga Legazpi City Donsol Total

Rooms 35 60 347 1,600 259 2,335

Establishments 3 2 27 61 24 126

Employees 35 8 117 702 N/A 874

Access and Infrastructure One of the major constraints to tourism growth is the current location of Legazpi Airport, which is too close to Mayon Volcano and, therefore, is prone to cancellations due to weather conditions or volcanic activity. Thus, the transfer of the regional airport to the new Southern Luzon International Airport in Daraga is seen as the key to linking ALMASOR, and LegazpiDonsol-Ticao in particular, to international tourism markets. Although there are access roads, there are many sites (e.g. whale shark interaction) that would benefit from wider or completed access roads. Road and directional signs would also be helpful.

Attractions and Tourism Products Among the challenges identified in the Tourism Circuit Plan for Albay-Sorsogon is the absence of comprehensive and lean season tour packages, especially in other areas within the circuit such as Camalig and Guinobatan. The lack of year-round attractions and activities in the Legazpi-Donsol-Ticao corridor leads to distinct high and low seasons for international and domestic tourism, generally limited to the seasonal sighting of butanding (whale sharks). There is a lack of interesting commentaries, stories, and informational signs to educate tourists. Updating information about the sites is therefore needed, such as in the case of Camalig Church and Cagsawa ruins. Visitor information centers and galleries could be added in many attractions. In many of the sites, more activities could be added in order to increase variety and to differentiate them from other attractions and ultimately extend visitors' stay. Lastly, visitor rest areas and food and beverage establishments, two important factors for visitors, are sparse within the circuit. Developing these tourist sites are important to expand business opportunities that give livelihood and create new employment.

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Safety And Security There are many sites with poor safety and security measures such as a lack of lifeguards and an absence of necessary government regulations-compliant safety gear.

IV.

Description of the Local Project

To support LGSP-LED's ultimate goal of improved local economic development for Filipino men and women, the LegazpiDonsol Tourism Circuit Development Project sought to improve the local conditions for sustainable local economic development. By 2016, the Project sought to generate PHP 225.7 million worth of investments, to create 1,215 new jobs (for 608 males and 607 females), and to increase tourist arrivals annually by 10%. In order to achieve these outcomes, the Project focused its interventions on two major components, namely the Enabling Environment, by strengthening the ability of participating LGUs to advance sustainable LED and Sector Competitiveness, by strengthening the ability of LED actors to plan and implement sustainable LED initiatives in participating LGUs. In particular, the Project sought to have policies and programs adopted in the LGUs to advance business-friendliness and competitiveness in the Legazpi-Donsol tourism circuit and to develop LED actors to be able to implement joint and sustainable LED initiatives for the Circuit. Towards this end, activities and technical assistance have focused on strengthening the Enabling Environment for LED, which includes LED policies and reforms such as LIIC and BPLS, and implementing Key LED Activities to improve the tourism sector's competitiveness, which, in the case of Albay and Sorsogon, focuses on Tourism Circuit Development and Workforce Development. The diagram below summarizes how the outputs in different components lead to the desired immediate outcomes (enabling environment and sector competitiveness), which subsequently lead to the target intermediate outcomes on investments, jobs, and tourist arrivals in the Legazpi-Donsol tourism circuit.

Summary of Project Target Results

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Project Management The Albay-Sorsogon tourism circuit is composed of two provinces, each having its own Project Implementation Teams (PIT), who planned and coordinated with each other through their common activities spelled out in the implementation plans.. For Albay, the PIT chaired by Governor Jose Maria S. Salceda, was created by virtue of Executive Order No. 09-2014 dated July 16, 2014. The team had a Technical Working Group, headed by the provincial tourism and cultural affairs officer Dorothy F. Colle as the PIT manager. For Sorsogon, the PIT, chaired by Governor Raul R. Lee, is organized by virtue of Executive Order No. 007-2014 dated July 01, 2014. It had a Technical Working Group (TWG) headed by the provincial planning and development officer Dominador H. Jardin as the PIT manager and assisted by the tourism officer designate, Cristina J. Racelis as the PIT focal person. The six LGUs in the circuit were part of the PITs. These LGUs also organized Local Economic Development Implementation (LEDIP) teams in their respective LGUs. These were chaired by the Mayors and the tourism officers were the able representatives of the LCEs to the PITs. The various programs and activities of the two teams were supervised by a Project Management Team (PMT) chaired by DILG regional director Elouisa T. Pastor and facilitated by the regional LED focal person, May Isabel R. Rosal. At the regional level, DILG collaborated with other national government agencies, such as the DOT and Department of Trade and Industry (DTI), as well as with the private sector in the efficient implementation of the project. In the conduct of various capacity building interventions, the DILG provincial PMT facilitated convergence with national government agencies, academe, and private sector.

Key Partners The PITs and PMT had collaborated with national government agencies, academe and private sector. Through the efforts of DILG, government agencies such as DTI and DOLE, who had similar projects for the beneficiary LGUs, pooled together their human and financial resources and linked with LED project in order to achieve the desired objectives. The PMT worked out some complementation of resources among the partners. For instance, to provide livelihood for women of Sorsogon, the PIT and PMT tapped the resources of Sorsogon State College as trainer and venue of the activity, while DTI proposed for the food packaging of meat products and Department of Labor and Employment (DOLE) for the starter kits to start up a small business. The women of Sorsogon who were also participants to the food processing training was provided by the city government with a multi-purpose building as venue for their livelihood activities. They were further given equipment support and granted soft loans as starting capital. One concrete result of this activity was the immediate employment of Neriza Necer, one of the women participants trained on food processing, in a first class restaurant in Cavite. As to the participation of private sector, the PITs were able to forge the commitment and participation of the Philippine Chamber of Commerce and Industry (PCCI) Albay and Sorsogon chapters and the Legazpi City Tourism Stakeholders, Inc. on the crafting of the Local Investments and Incentives Code (LIIC) and Tourism Code. The Association of Accredited Travel Agencies and Tour Operators extended full support to the development of enhanced products on tourism as shown on the enhanced tour packages with uniform rates, to be adopted by all tour operators. The Federation of Women of Pilar and Kapisanan ng Liping Pilipina were instrumental in the furtherance of the livelihood program for womenâ&#x20AC;&#x2122;s groups, as initiated thru the LED project.

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On infrastructure, Pilar and Camalig received financial assistance of 2.5 million each thru the DOTâ&#x20AC;&#x2122;s Bottom-Up Budgeting (BUB) project for the construction of visitor information centers. While the center in Pilar was under construction, LGSP-LED project complemented this by capacitating the tourism staff and frontliners who would manage the center on enhanced customer care and emergency and quick response. The provincial governments of Albay and Sorsogon, through their PITs, were responsible in directing the wheels of development towards the attainment of local economic growth through tourism in their respective LGUs.

Project Result and Assessment

Building a More Business-Friendly Environment for LED The LGUs have been creating an enabling environment for business and investment in the Albay-Sorsogon circuit through the adoption of enabling ordinances, policies and programs in line with DILGâ&#x20AC;&#x2122;s Business-Friendly and Competitive LGUs (BFCL) program. From 2014 to 2016, a total of 208 (133M, 75F) LGU leaders and staff participated in LGSP-LED training and technical assistance activities to enhance their knowledge on LED and tourism, as well as specific enabling poliicies such as computerizing BPLS and updated local investment incentives and revenue codes. 1. All the participating LGUs in the Albay-Sorsogon tourism circuit now have automated Business Permit and Licensing Systems (Auto BPLS). Applying software and training provided by eGov4MD through the assistance of LGSP-LED, helped the local governments of Guinobatan, Camalig, and Daraga in Albay3 as well as Donsol and Pilar in Sorsogon to facilitate the speedy processing of business permit applications and renewals starting January 2016. There were 434 tourism-related businesses registered this 2016. 2. The 2 Provincial Governments and the 6 participating LGUs of the Circuit drafted eight new or updated Local Investment Incentives Codes (LIIC) with technical assistance and training from the Local Government Academy (LGA). The new ordinances in all the other LGUs have undergone public hearing, deliberation at the Sanggunian committee level, and are in the process of adoption.

Legazpi City already had a computerized system in place LGSP-LED Albay-Sorsogon Local Project Completion Report | 9

The Auto BPLS Software was utilized during the Business One Stop Shop (BOSS) at the Municipality of Camalig on January 2016. The municipalities of Guinobatan, Daraga, Donsol, and Pilar also installed the Auto BPLS Software and implemented the system to help improve business processing in their LGUs. In 2016, 434 tourism-related businesses have been registered in these municipalities.

3. The LGUs formulated and adopted LGU Business Plans for Workforce Development Plan which were submitted to DILG for funding through the Departmentâ&#x20AC;&#x2122;s Training for Better Access to Job (TRABAJO) Program. Through this program, the 2 Provincial Governments received funding assistance in the amount of PhP 5 million each to install provincial Skills Registry Systems (SRS) and assist local technical-vocational institutions in upgrading their training facilities. Legazpi City received PhP 10 million while the five other municipalities received PhP 3 million each to implement training programs in priority skills identified with the local private sector. The projects will also include assistance strengthen the capacities of their respective Public Employment and Service Offices for more effective engagement with their private sector partners in operationalizing their SRS, generation of labor-market information, and conduct of job-matching activities. Given the vulnerability of Albay to calamities brought about by typhoons and frequent eruptions of the Mayon Volcano, CCADRRM is an obvious point of emphasis for the Provincial Government. With training and assistance from the Provincial Government, 32 male and 15 female tourism officers, LPDOs and DRRMOs formulated Local Disaster and Climate Change for Tourism Adaptation Plans (LDCCTAP) for all 3 cities and 15 municipalities of the Province. These LDCCTAPs will now be integrated into the Provincial master plan for tourism. In line with this, the Provincial Government of Albay approved the provincial ordinance regulating and protects tourists and mountaineers on climbs to Mayon Volcano. The local chief executives (LCEs) who will remain in public service after May 2016 elections and the local government personnel holding permanent position as the tourism officers, LEIPOs and BPLOs shall be responsible in carrying on and sustaining the progress achieved by the LGUs in area of business friendliness and tourism competitiveness. For Albay and Sorsogon, the following champion LCEs seeking and expecting reelection are Mayor Noel Rosal of Legazpi City, Mayor Josephine Cruz of Donsol, Mayor Gerry Jaucian of Daraga and Mayor Ann Gemma Ongjoco of Guinobatan. Expectantly, Congressman Al Francis Bichara who is also a tourism development advocate is running unopposed for the governor seat in Albay. Apparently, Governor Jose Maria Sarte Salceda will still work with the three LGUs of the GuiCaDaLe circuit with his bid for representativeâ&#x20AC;&#x2122;s position in the second district of Albay. With this political trend, it is expected that local economic development in the Circuit shall continue its growth.

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Summary of LGU Officials and Technical Staff Trained Male LCEs 3 LEIPO and Staff 2 Tourism Officers and Staff 24 PESO Managers and Staff 2 Other LGU Staff 102 LCEs 3

Female 2 2 25 3 43 2

Total 5 4 49 5 145 5

Tourism Sector Competitiveness The Project aimed to implement the Legazpi-Donsol-Ticao (LEDOTI) circuit development program by developing new tour packages, enhancing skills of LED actors to provide more competitive services and products, and preparing investment tools to promote investment opportunities in the circuit. Albay-Sorsogon implemented two LED Initiatives for Tourism Circuit Development (involving product development and investment promotion) and Workforce Development to address gaps and immediate concerns identified in the Albay-Sorsogon Tourism Circuit Plan (TCP). This TCP integrated two priority tourism clusters of the respective Provinces: Guinobatan-Camalig-Daraga-Legazpi (GuiCaDaLe) in Albay and the municipalities of Donsol and Pilar which, along with Castilla and Sorsogon City, are part of Sorsogon Province’s DonPiCaSo Tourism Corridor With the Tourism Circuit Plan as the guide, the Albay-Sorsogon Local Project delivered three (3) base tour packages that the LED actors of the circuit offered to the industry and their clients. In keeping with the Project’s learning-by-doing approach to capacity development, 48 (25M, 23F) tour operators, guides, transport operators and other tourism industry players from Albay and Sorsogon gained insights and experience on tour packaging and marketing from the LGSP-LED consultant. With the collaboration of the LGUs and DOT they enhanced and organized the attractions and activities of the Circuit into three major tour packages showcasing the cultural, community based, eco-marine and culinary destinations. The base tours were designed as 4 day/3 night or 3 day/2 night packages which can also be segmented for half-day or whole day excursions as well as overnight packages for visitors with limited available time. Base Tours: Explore ALMASOR package (The Heart of Unlimited Fun!) – This is an all-year round product meant to appeal across market segments. With Legazpi as the hub, the package allows full day exploration of Donsol-Pilar in Sorsogon, Ticao Island in Masbate, and Guinobatan, Camalig, and Daraga in Albay. Thus, it is intended to be ALMASOR’s signature package, and fill the gap from the whale shark (butanding) lean season. (4D/3N) Dream Adventures package – This packages the destination’s strengths in adventure-based products (e.g. swim with butanding, highlands trek, ATV ride, wall climbing, etc.) to the more active travel segments and those looking for not-so-usual venues for fun (3D/2N) Kulinarya Albay – This is designed as a one-day tour package built around the culinary heritage of Guinobatan, Camalig, and Legazpi. Tourists get to taste signature dishes and sweets like the laing, longganisa de Guinobatan, sili ice cream, halo-halo and pili nuts

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The new tour packages, with matching promotional video showcasing tourist destinations in ALMASOR, were launched by the Provincial Tourism Offices and the local tour operators promoted at the Philippine Travel Mart (PTM) and Bicol Travel and Food Expo (BTFE) in September 2015. These were also promoted in various activities such as the PATA convention and Winter Escapade.

One immediate outcome of the Local Project’s convergence approach to the implementation of the Albay-Sorsogon Tourism Circuit Plan was the incorporation of Ticao Island in Monreal, Masbate, as a priority attraction site of the tourism circuit. This had supported the AlbayMasbate-Sorsogon (ALMASOR) tourism convergence of the 3 provinces and the DOT, as well as the findings and recommendations of the Albay-Sorsogon Tourism Circuit Plan (TCP). As a result, the beach, diving (especially for encounters with manta rays), and community-based activities in Ticao Island/Monreal were included in the tour packages developed by the participating LED actors in the Local Project. In this regard, the Local Project closely coordinated with the DOT Regional Office to further facilitate the integration of the Monreal/Ticao Island tourism sector and actors with Donsol and Pilar. In the photo, Dorothy Colle, Provincial Tourism Officer and LGSP-LED PIT Manager for Albay, greets Engr. Ben Espiloy, Municipal Mayor of Monreal during the technical visits conducted during the design phase of the tour packages. With Ms. Colle is Phillip Bartilet of the DOT Regional Office.

The series of capacity building activities provided to workforce of the Circuit improved tourism governance and the quality of tourism frontliners. Hotel and resorts front desk were now better equipped with the right knowledge and proper attitude in handling tourists and guests. More so, the marine tour guides also learned the proper way of handling on and off shore emergency cases. The involvement of the private sector, national government agencies and foreign funded institutions further added to producing better human resources and workforce. •

In preparation for the area’s hosting of international events such as the APEC Ministerial Conference and the Pacific Asia Travel Association (PATA) events, the Project trained 37 frontliners (11M, 26F) on customer service and tour LGSP-LED Albay-Sorsogon Local Project Completion Report | 12

•

handling. Related to this, the Project provided training for 34 (all male) marine eco-guides also called Butanding Interaction Officers (BIOs), from Donsol, to enhance their tour handling and nature interpretation skills. This included a reinforcement of protocols and guidelines on tourist behavior during the interaction with the whalesharks (butanding) for the safety of both tourists and whalesharks. In Sorsogon, 39 beneficiaries (all but one were women) of DSWD’s Pantawid Pamilyang Pilipino Program (4P’s), or the conditional cash transfer program, were trained on processing and packaging breakfast meats (e.g. tocino, ham, etc.) for sale to local tourism establishments as well as the resident market. Following the training activity, the Provincial Government of Sorsogon and the Department of Trade and Industry (DTI) Provincial Office provided the women’s groups with livelihood equipment to be able to apply their learning to actual enterprise activity. The Municipal Government of Pilar also provided office and training space as well as additional training for fish and root crops processing for the trainees from the town. The LGUs and DTI continue to assist the groups in the marketing of these products. The LGUs of Donsol and Pilar organized tourist emergency response teams and trained 8 male and 2 female resort owners and on emergency and quick response procedures for the safety and security of tourists during calamities and disasters. These front liners were taught skills in handling and providing first aid during accidents, assuring the safety of tourists during calamities, and emergency response while interacting with the whale sharks.

Individual LGUs have also applied their learnings from LGSP-LED activities to upgrade or enhance their own tourism sites and products within the larger Tourism Circuit. One concrete example was the municipality of Camalig, Albay which intensified its tourism programs and promotional activities after the participation of its Mayor and Tourism Officert in a Local Project learning exchange to Vigan (Ilocos Sur) and Laoag (Ilocos Norte). The local leadership reports that the trip inspired the development of Camalig’s Sumlang Lake and Quitinday Hills as emerging tourist destinations. More potential tourist activities and amenities are now being planned for the municipality’s Quitinday Cave and Falls, which can be compared to the Underground River in Palawan.

Food Processing Training for the Women's Groups of Donsol and Pilar and the KALIPI Women's Group of Sorsogon City (April 15-17, 2015 at Sorsogon State College)

Emerging Results New Investments Generated Albay-Sorsogon circuit targeted an amount of PhP 225.7 million for public and private investments on tourism related facilities and infrastructure for 2016. As of March 2016, local and national government investments in tourism-enabling projects for Albay totaled an estimated PhP 5.7 billion for construction (ongoing) of priority transportation infrastructure, such as the new Bicol International Airport in Daraga (expected to be operational in 2018), tourism roads under the DOT-Department of Public Works and Highways (DPWH) Convergence for land connections among the Airport, the GuiCaDaLe cluster, and Donsol-Pilar; and construction of LGSP-LED Albay-Sorsogon Local Project Completion Report | 13

the Roll-On, Roll-Off (RORO) wharf and Baywalk in the Municipality of Pilar and the visitor information centers in Pilar and Camalig. On the other hand, total tourism-related private investments in the circuit from 2014 to 2016 have been estimated at PhP 65 million for the Legazpi City and the 5 other municipalities. The largest of these investments are retail developments in the main tourism service center of Legazpi City. 1. Ayala Malls is a 4 storey- shopping mall with 200 stores located within a 1.4 hectare in the heart of business district area of Legazpi City. It opened on December 16, 2015. 2. Yashano Mall is a 3-storey shopping mall located in Bitano, Legazpi City. It opened on November 27, 2015. 3. Gregorian Mall is a 3-storey mall within a 2,855 square meter lot located in Albay District, Legazpi City where construction is on-going and to open this October 2016. Within the mall premises is the Legazpi City Museum. In addition, there have also been some new investments in small commercial accommodations such as: 1. Riserr Residences in Washington Drive, Legazpi City has with 13 rooms which opened on August 2015. 2. La Granja in Alternate Road, Legazpi City has 9 rooms and 4 private KTV rooms which opened on September 21, 2015. 3. Sunway Inn in Bogtong, Legazpi City has 22 rooms which opened on November 6, 2015. 4. Legazpi Garden Hotel in Bitano, Legazpi City has 28 rooms and opened on March 22, 2016. 5. FJ Manila Hotel in Daraga has 19 rooms which opened on September 2015.

New Employment Generated The Ayala and Yashano Malls are reported to have a combined employment of 1,250 people comprising the officers and staff of the malls as well as staff, workers, food servers and crew of the store concessionaires. The owner of the Gregorian Mall estimates that 500 new jobs will be created when it starts operations in October 2016. Including the new jobs anticipated from the Gregorian Mall, it is estimated that about 2,000 new tourism-related jobs will have been created in the Circuit by the end of 2016. These would include: • • • •

50 workers categorized as porters, eatery helpers and port aides of the newly-established RoRo port in Pilar, Sorsogon 100 newly trained local tour guides in Camalig, Legazpi City, Pilar and Donsol 50 food servers and attendants of the 10 new restaurants and food centers 50 regular staff, cooks and hotel attendants of 5 new accommodation facilities

The LGU PESO managers project that at least 500 more new jobs shall be generated from 2016 to 2018 with the implementation of the Training for Better Access and Job Opportunities (TraBAJO) program in the 6 LGUs. Based on the workforce development plans of the LGUs, these new jobs would be for cooks, bartenders, food servers, masseurs/masseuse, hotel workers, tour guides and many others.

Increased Visitor Arrivals Annual visitor arrivals to the Albay-Sorsogon Tourism Circuit rose from 636,158 in 2013 to 1.128 million in 2015. This represents a remarkable 33% average annual growth rate over the period. Annual Visitor Arrivals GuiCaDaLe Donsol-Pilar Total for Circuit

2013 615,770 20,388 636,158

2014 747,544 14,538 762,082

2015 1,110,982 17,579 1,128,561

%Share (2015) 98.4% 1.6% 100%

As shown in the table above, Albay’s GuiCaDaLe cluster continues to account for almost all of the visitor arrivals to the Corridor – a little over 98.4% of the total. More specifically, Legazpi City has the lion’s share of arrivals, as may be expected from the administrative center of the Region as well as main service center of ALMASOR. In 2015, Legazpi accounted for more than 87% of all arrivals to GuiCaDaLe; a little over 85% of total arrivals to the entire Circuit.

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It is interesting to note that Legazpi’s share of arrivals, though still very large, has actually been decreasing. In 2013, Legazpi accounted for 94% of arrivals to GuiCaDaLe. This dropped to an 89% share in 2014, then another 5 percentage points in 2015. This is due to the increasing number of overnight visitor arrivals recorded in both Guinobatan and Daraga. On the other hand, Camalig has not yet shown a similar surge in overnight visitor arrivals. Nevertheless, the LGU is reporting increasing numbers of day-visitors to its main attractions of Sumlang Lake and Quitinday Hills in Camalig. From only 12 thousand visitors in 2014, the sites recorded a combined total of 94,010 day-visits in 2015, after the LGU intensified its product development and promotion activities for the sites. The tourism numbers for Donsol and Pilar have been fluctuating from 2013 to 2015. This may be attributed to a combination of factors including inefficient data collection on the part of the LGU tourism offices, limited cooperation of tourism establishments in the reporting of arrivals, as well as natural factors such as seasonal weather conditions and unpredictable behavior of butanding. Regardless of the actual reasons, it cannot be disputed that Donsol and Pilar’s share of overnight visitor arrivals remains relatively small.

Crosscutting Themes Gender Equality Gender and development concerns were integrated to the Albay-Sorsogon local project. The local project was initiated through a value-chain based tourism circuit planning where gender and development issues and concerns were considered. Among the concerns highlighted include: lack of equal opportunities for men and women to economic development as well as the need to integrate gender concerns in the policies, plans and programs of the members LGUs. To jumpstart the implementation of the Albay-Sorsogon local project on tourism product development, the Albay team composed of the mayors and tourism officers of the member LGUs of the tourism circuit and the private sector partners benchmarked in Ilocos Sur and Norte, being a heritage tourism destination. One of the learnings of the municipal mayor of Camalig Mr. Carlos Irwin Baldo was the institutionalization of the tourism code to regulate the tourism industry which promotes gender equality feature in Camalig: The Tourism and Cultural Heritage Code of Camalig, Section 2, letter d. and Article X states that: The Municipality shall further administer the heritage resources in a spirit of stewardship for the inspiration and benefit of the present and future generations promoting gender-responsive governance through promotion of equal representation of women in decision-making bodies; creation, strengthening and activation of local machineries on women; the promotion of the proper utilization of the GAD Budget in relation to cultural heritage and tourism. Integrating Gender and Development with Tourism. Women’s Employment and Participation in Tourism aims at bringing gender aspects of tourism to the attention of policy makers, especially the issues of women’s employment in the tourism industry and women’s local participation in tourism planning and management. It presents information about the situation of women as members of the workforce in tourism industry locally through flagging up good practice of women’s participation at the local level. On the other hand, the tourism code of the Province of Albay also known as Ordinance No. 2003-009 enacting the Tourism, Culture and Arts Code of the province of Albay, Section 3.2.f points that: “Achieve a balance in sustainable tourism development between urban and rural areas in order to spread the benefits of tourism and contribute to poverty alleviation, gender and development, disaster risk reduction, and climate change adaptation.” The Local Project has conducted activities to create livelihood opportunities for women in communities in the Tourism Circuit. In Sorsogon, 43 members (1M, 42F) of the Kapisanan ng Liping Pilipina (KALIPI) of Sorsogon City and the Federation of Women of Pilar (FWP) were trained to process meat into marketable ready-to-cook products like tocino, ham, tapa, longganisa, etc. This activity was intended for the participants, almost all of whom were homemakers, to gain alternative opportunities for generating income for their families. At least five women from Pilar4 have reported that they are now earning extra income from the sale of their processed meat products through their food carts and from orders from neighboring households within the community.

Rachelle Hernandez, Imelda Dalumpines, Jean Poseran, Hazel Atun and Jocelyn Llona LGSP-LED Albay-Sorsogon Local Project Completion Report | 15

Environmental Sustainability Given the vulnerability of Albay to calamities brought about by typhoons and frequent eruptions of the Mayon Volcano, the province provided training to 31 male and 12 female tourism officers, LPDOs and DRRMOs of the 3 cities and 15 municipalities, to better prepare the province in responding to such disasters. Guided by the identified hazards on tourism sites, the activity resulted to the formulation of draft Local Disaster and Climate Change for Tourism Adaptation Plan (LDCCTAP). In line with this was the passage and approval of the provincial ordinance on the Mayon Climb, which regulates and protects tourists and mountaineers. The LDCCTAP, which is now undergoing incorporation in the master tourism plan of the province, shall guide the local governments in promoting tourism and mitigating disasters. This was another undertaking of the province to strengthen its program of ensuring zero casualties every occurrence of calamities. The training on Emergency and Quick Response and Training on DRR developed the skills of the 25(22M,3F) BIOs, tour guides and accommodation facilities’ staff in providing the immediate and necessary response to the tourists and guests in times of emergency and disaster. The program further oriented them on safety procedures, environmental protection and conservation. As an offshoot of this program, the LGUs of Donsol and Pilar organized the tourism frontliners into an emergency and quick response team and further provided additional training by the respective LDRRMOs. Program on Local Disaster and Climate Change for Tourism Plan (LDRCCTP). This program is an offshoot of the Training on Disaster Risk Reduction Management and Climate Change Adaptation conducted by the Canadian consultants in Cebu City. With the vulnerability of the communities of Albay to imminent danger posed by Mayon volcano and the frequent visits of typhoons, the provincial government headed by the Albay Public Safety and Emergency Management Office (APSEMO) along with its 3 cities and 15 municipalities formulated their LDRCCTPs. As a follow through, these individual plans are now on process of consolidation into a Provincial Tourism Master Plan.

Poverty Reduction The Local Project’s contribution to poverty reduction was determined in part by the stakeholders’ ability to link communitybased enterprises to the mainstream tourist activities between Legazpi City and Donsol. The development of tour packages for Albay-Sorsogon and Masbate was an opportunity that integrated the MSMEs into the tourism circuit. The communitybased tourist activities such as the gathering of lato (sea grapes) and sea urchins, which were part of the tour packages developed for Donsol-Pilar, were not just entry mechanisms for poor residents or communities into the local tourism sector. More importantly, these community-based activities per se added value and uniqueness to the overall visitor experience – thus contributing to the overall competitiveness of the tourist circuit and packages as a whole. Also included as activity in the tour package in Sorsogon was interaction with butanding. Under LGSP-LED, unemployed men were trained to become Butanding Interaction Officers. This gave them seasonal employment through guiding tourists as they interact with butanding. In addition to this, 42 women who were mostly housewives were trained on meat processing and to date, five of them market their products to the local communities and food carts. On top these efforts, the Province Governments of Albay and Sorsogon and the member LGUs of the tourism circuit were supported by LGSP-LED in terms preparing the Workforce Development Plans. These plans mapped out opportunities on tourism and BPO in Legazpi City in partnership with the tourism enterprises. Based on the skills requirements of the private sector, the member cities and municipalities through the PESO proposed skills trainings. Target participants for the skills training were unemployed residents of the target and should be indigenous people, Pantawid Pamilya Pilipino Program (4Ps) beneficiaries, out-of-school youth or persons with disabilities (PWDs). All Workforce Development Plans were approved by DILG under its Training to Better Access Job Opportunities (TRABAJO) Program and implementation will immediately start this year following the issuance of operational guideline from DILG Central office and will be implemented until next year.

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The 3- Day Training on Marine Eco-Guiding and Enhanced Training for BIOs in Donsol and Pilar was conducted Dancalan, Donsol, Sorsogon from November 26 to 28, 2014. The training was attended by forty two (42) participants, mostly men, from Donsol and Pilar; each representing a different sector of service providers such as Butanding Interaction Officers (BIOs), tour guides, firefly guides, dive shop owners/staff, MDRRMO staff and tourism staff; with Manuel Romeo Jayco from Sorsogon Provincial Disaster Risk Reduction Management Office, together with his team, as the resource person.

VI.

Lessons Learned

There were several lessons learned from the implementation of the LED project in Albay-Sorsogon. The most important ones are mentioned below.

1. LED starts with a common understanding of the local economic conditions, opportunities, and challenges. A seemingly self-evident lesson learned from the Local Project is that a good understanding of the current conditions and future prospects of the local economy is the essential first step in undertaking a LED Program or Project. However, LED must be a multi-sectoral process involving LGUs, private sector, communities, and other stakeholder groups. For these various groups to work well together, they must have a common appreciation of the opportunities and challenges facing their local economy. The stakeholders must also agree on the possible strategies for achieving inclusive local economic growth, given these challenges and opportunities. Thus, the lesson is not just about understanding the local economy but more about LGU, private sector, and other stakeholder groups, understanding it â&#x20AC;&#x201C; together. This would then be the first step in planning and implementing the LED Project as a partnership-based undertaking of the LGUs, the private sector, and other partners.

2. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single city or municipality. Thus, the TCP emphasized how interdependent the member cities and municipalities are with each other. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around LGSP-LED Albay-Sorsogon Local Project Completion Report | 17

them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

3. Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. This is also true for Mayors at the city and municipal level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. The LCEs must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

4. LGU LED Team members must be trained and qualified to become advocates for business-friendliness and inclusive LED within the LGUs. Well-qualified, trained, and motivated LEIPOs, LGU tourism officers, and PESO managers were key factors in driving their respective LGUs to complete the formulation or planning of business-friendly LGU policies and programs. The adoption and implementation of these policies, plans, and programs will also be dependent on these officers, as well as other LGU staff with LED-related mandates. The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGU’s program for business-friendliness and LED competitiveness. Yet, key LGU offices with LED-related mandates such as LEIPO, Tourism Office, and PESO are still interim appointments with temporary offices and working budgets. These LED officers are more effective, and work better with each other, when they are confident in their mandates, their capabilities, and the support that they receive from their respective LGUs. Thus, agents for economic and tourism development within the LGUs such as LEIPOs, Tourism Officers, and PESO managers must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. They must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. Strong Provincial LEIPO, Tourism, PESO, and Planning Offices are necessary to provide technical support and mentoring to their municipal counterparts, who may not have the same resources, experience, and institutional connections to NGAs and national or regional industry. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit.

5. Engaging the private sector in planning and implementing the LED Program Building can lead to a more businessfriendly, entrepreneurial mindset within the LGUs LGUs need to understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. The LEIPOs must engage local proponents through the local business chamber in order to be ready with the investment information, identify the priority projects, and match them effectively with investors. PESO Managers cannot implement effective job-training and employment matching programs without partnering with the local employer sector to determine their anticipated workforce needs. LGUs must partner with the academe, private sector and resource institutions to tap their expertise in order achieve holistic development in all areas of local governance. This was observed during the preparation of the enhanced new tour packages and workforce development plans. This served as a feedback mechanism to the local leaders on the furtherance of the program. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis a vis the local industry’s efforts to become more competitive and inclusive. The automation of Business Permits and Licensing System and the approval of the Local Investment and Incentive Code (LIIC) will define the mutual relationship between the local government and the business LGSP-LED Albay-Sorsogon Local Project Completion Report | 18

sector. Five LGUs already implemented the auto BPLS on January 2016 and facilitated the immediate process of adoption of the LIIC of the eight LGUs. As of now, most of the LIICs are on second reading in the respective Sanggunian.

6. Convergence among Provincial and National Government Agencies is necessary for effective delivery of LED support services and programs. LGUs, by themselves, will have a difficult time achieving full local economic development. The support and resources of national government agencies such as DOT, DPWH, DOTC, DILG, etc. are necessary for LGUs to achieve their higher target outcomes. With the convergence of result- and service-oriented NGAs, the eight LGUs of the Circuit got the maximum benefit from the LGPS-LED project. Convergence also helped to avoid duplication of programs by NGAs and LGUs. The accelerated growth of the city of Legazpi and the municipality of Donsol in tourism was attributable to the partnership forged with international funding agencies like the WWF, private sector like the ACTA and LCCI and local resource institutions like Bicol University.

VII.

Conclusion and Recommendations

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2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC formulated through the assistance of DILG and LGSP-LED. 3. In addition, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of ED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: ! !

4. The case of Albay provides a model for local governments in the pursuit of effective DRRM-CCA to address the threats brought about by hazards and long-term effects of climate change. Considering that the other local governments in the ALMASOR are not yet on the level of Albay in terms of DRRM-CCA systems, there is a need for the alliance to seriously pursue the replication of the Albay experience in order to elevate their status. In line with this, the Albay provincial government should assist the provinces of Sorsogon and Masbate to upgrade the DRRM-CCA capacities of both technical personnel and elected officials through peer-to-peer learning activities aimed at improving institutional development. !

The current concern in Donsol over the decreased sightings of butandings for the last 5 years is a classic example of how sustainability of economic activities anchored on nature-based tourist attractions can easily be affected by changing environmental conditions. This should be addressed through a science-based approach that makes use of scientific studies to determine the factors that affect the health of the environment. Considering the apparent lack of adequate information on the butanding in Donsol, it is recommended that assistance will be sought for the conduct of studies to determine factors such as disturbance, feeding patterns and prey distribution and abundance. This will be aimed at acquiring sufficient information that will guide decision-making towards sustainability. Donsol River is the most extensive in Donsol municipality with head headwaters as far as Jovellar in Albay. Similarly, Putiao River originates from tributaries coming from Albay and outflows to Panlatuan Bay and Ticao Pass. Since watersheds do not respect political boundaries, it is recommended that effective management by local governments should be undertaken to avoid adverse environmental concerns that could affect the ecosystems downstream and eventually affect the tourism attractions such as the butanding and fireflies. To effectively address concerns arising from flooding, erosion and sedimentation, it is necessary that inter-LGU cooperation will be in place for comanagement of the watersheds. This would involve harmonization of land use plans so that land use conflicts will be avoided between adjoining municipalities or cities and instead ensure complementary land uses for sound watershed management. At the provincial level, this can be further addressed by ensuring harmony among the provincial physical framework plans of provinces with adjoining boundaries.

5. The Provincial Government should continue to work closely with the LGUs in the tourism circuit to update and continue implementation of the Tourism Circuit Development plan formulated through the assistance of LGSP-LED. !

In updating the plan, it is recommended that the LGUs should expand the scope of the TCP updating activity to include Ticao Island and other identified tourism sites in Albay-Sorsogon as extensions of the existing tourism circuit (e.g. Castilla and Sorsogon City linked to Donsol-Pilar) and/or new, complementary sub-circuits (e.g. Mayon Skyline and CRABS in Albay) within ALMASOR. The Provincial Governments and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 2016-2022. The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the sites of the Tourism Circuit in Sorsogon and Masbate, similar to the activity already done by Albay in the preparation of LGU DRR Action Plans for tourism. The LGUs in the Circuit, through the Sanggunian or the Office of Community Affairs, should enjoin participatory governance. They should advocate with the civil society organizations working in the priority sites to help them in the planning and sustainable development of these sites. These sites should be equipped with fun filled activities, excellent tour guides and world-class community based products and services in order for the circuit to compete and be at par with major tourist destinations in the country

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6. The Provincial Governments should form a Local Economic Development (LED) Team to oversee the planning and implementation of LED Initiatives in the Province and the Tourism Circuit in particular. The LED Teams can be organized in a similar fashion to the project implementation and management arrangements for the LGSP-LED Project. ! !

The Governors should provide overall policy direction, strategic advise and leadership to the team. The core LED Teams should include members from the Provincial Governmentâ&#x20AC;&#x2122;s economic officers (the LEIPO, the Provincial Tourism Officer, the PESO Manager, and the Planning Officer) and the partner institutions from the private sector. At the same time, continue and strengthen the coordinated planning and project implementation between Albay and Sorsogon PIT on the core tourism circuit and including the Province of Masbate on plans and activities for Monrealâ&#x20AC;&#x2122;s (Ticao Island) inclusion in the core tourism circuit.

7. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: !

Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives. Facilitating the local planning processes, and mobilize City/Municipal LGOO cluster in the circuit, so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. In relation to this, DILG should mobilize Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management.

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3. Through the Provincial Tourism Offices, and in partnership with the private sector associations, should jointly design and implement destination marketing activities for the tourism circuit. ! These activities should continue to be undertaken under the umbrella of the regional ALMASOR marketing program of DOT and the 3 member-provinces. ! Joint marketing activities, led by the Provincial Tourism Offices of Albay and Sorsogon, and including the LGU of Monreal, Masbate should be organized to specifically promote the products and packages of the GuiCaDaLe to Donsol-Pilar-Ticao corridor within the overall regional arrangement ! The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.) ! The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media. 4. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. !

This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. The LGUs in collaboration with DOT and other institutions should provide training to new workforce and upgrade the skills and competencies of the existing ones. This can be done through the periodic conduct of the following training: " Hospitality management in hotels, resorts and homestays to include frontline service and housekeeping " Enhanced customer care for tourism front liners to include the tour guides, travel agency owners and staff and transport owners and drivers " Basic tour guiding and specialized guiding

5. Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. ! !

Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and communitybased livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination.

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Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

INTERMEDIATE OUTCOMES

CUMULATIVE (MARCH 2016)

New Investments

Description

Private Tourism Investments

Investments in Albay (58M) plus 300 additional rooms Donsol-Pilar New Daraga International Airport; Improvements to Pilar Port

Value (PHP) 225.7M

5.765B 65.0M

1,215

50 new additional hotel rooms 5.7B New Bicol International Airport in Daraga, Tourism Roads,RORO Wharf and Roll on, Roll Off (RORO) wharf and baywalk in the Municipality of Pilar and visitor centers in Pilar and Camalig 1500

Male

608

750

Female

607

750

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

10%

33.19%

636,158

869,231

1,128,561

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted

7 0 5

1 0 8

1 8 0

BPLS Computerized

Tourism Statistics system implemented

LGU Tourism Development plan adopted TOPCOP Program/Plan implemented

Others (ordinances regulating tourism activities in Donsol,Sorsogon and Mt Mayon in Albay) Business Registrations

Public Investments

Employment (New)

874

Enabling Policies Adopted

502

303

434

LED Actors with Capacity to Plan/Implement

LED Initiatives Implemented

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OUTPUTS LEIPOs Trained

LCEs

208

LEIPO and Staff

0 0

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LED Information Portal Established

145

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened Tourism Code formulated/updated

LED Initiatives Planned

LED Actors Trained

199

142

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

190

125

Other non-LGU

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cal Government Profile LGSP-LED Northern Iloilo Local Project Completion Report | 1

Northern Iloilo Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

1.8 million 466,341 hectares 1 42 Iloilo City 1st Banate, Barotac Viejo, Ajuy, Concepcion, Carles and Estancia Agriculture, forestry, fishery, manufacturing, construction, trade, and tourism

Also known as the Heart of the Philippines, the Province of Iloilo is located at the southern and northeastern portion of Panay Island. It is bounded by the Province of Capiz and Jintotolo Channel in the North; Panay Gulf and Iloilo Strait in the South; the Visayan Sea and Guimaras Strait in the East and the Province of Antique in the West. It is also known for the abundance of fresh seafood, as the waters of Northern Iloilo are part of the rich and abundant Visayan Sea. The capital city of the province of Iloilo is the City of Iloilo, which is also one of the major urban centers in the Philippines. With a total land area of 466,341 hectares, Iloilo is composed of one city, 42 municipalities, and 1,721 barangays. The Province has a total population of 1,805,576 with a slightly greater number of males (50.8%) than females (49.2%). The poverty incidence in Iloilo was estimated at 21.9% in 2012, which is lower than the country's poverty incidence of 27.9%. Employment across the Province was estimated at 95.6%, 2.5 percentage points higher than the national average. Iloilo Province is considered by the Manila Observatory and DENR to have a relatively low combined risk to geophysical disasters, such as earthquakes (low), earthquake-induced landslides (medium), tsunamis (medium), and volcanic eruptions (no risk). Similarly, the Observatory considers the Province’s combined risk to climate-related disasters as relatively low in comparison to all other provinces. Climate-related disasters include El Niño (medium risk), projected temperature increase (medium), projected rainfall change (low), and typhoons (low). Despite this, Iloilo Province experienced one of the strongest typhoons in recorded history in November 2013, when Supertyphoon Yolanda (international name, Haiyan) devastated Northern Iloilo, including six municipalities. Damage to property (including livelihood, accommodation establishments and tourist destinations) amounted to an estimated PHP10.3B and affected 430,739 people for 91,926 families or 97.20% of the area’s population. The Government of Canada was the first foreign government to launch relief operations for Northern Iloilo following typhoon Yolanda. Humanitarian missions from national government agencies, non-government agencies, international organizations as well as aid and civic society organizations soon followed.

Local Economy The major industries in the Province of Iloilo are agriculture, forestry, fishery, manufacturing, construction, trade, and tourism. Agricultural commodities include rice, corn, legumes, sugar, fruits, and molasses, while aquatic products include fish and shrimps. In terms of manufacturing, food processing, metal craft, and hollow blocks are its leading products. Iloilo serves as the gateway to the Western Visayas. It is a stopover for tourists heading to the beaches of Boracay and Palawan and the nearby provinces of Guimaras, Antique, Capiz, and Aklan. While Iloilo is fast growing, it has kept its old charm and unspoiled environment. Today, Iloilo is a popular convention and meeting destination, with its many first class accommodations and airport of International standards. Tourists will find sprawling malls scattered across Iloilo City wherein they can replenish supplies as well as their energies for the hectic sand-and-water environment that are soon to follow.

LGUs Covered by the Project The Project involved six (6) contiguous municipalities in Northern Iloilo—Banate, Barotac Viejo, Ajuy, Concepcion, Carles and Estancia—. These municipalities were the LGUs in Iloilo Province hit worst by Super typhoon Yolanda in 2013 and were in urgent need of rehabilitation and recovery efforts.

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LGU Ajuy Banate Barotac Viejo Concepcion

Income Class 2nd 4th 3rd 3rd

Population 47,248 29,543 41,470 39,617

Land Area (hectares) 17,557 10,289 18,578 8,612

No. of Barangays 34 18 26 25

Despite the damage to property and livelihood, business owners are rebuilding economic activities in the communities. Fishing is the primary and traditional source of livelihood in Northern Iloilo. However, the private sector sees the potential of tourism given the area’s natural attractions of beaches, caves, islands, and mangrove forests that draw tourists to Northern Iloilo.

II. The Tourism Circuit In its 2011-2016 Philippines National Tourism Development Plan, the Department of Tourism (DOT) defined the priority tourism development areas (TDAs) that have potential for tourism development in the country. The TDAs are where much of the DOT’s programs and resources were concentrated. The Northern Iloilo Tourism Development Area, comprising the municipalities of Banate, Barotac Viejo, Ajuy, Concepcion, Estancia and Carles is one of the 77 TDAs across the country. Most of these municipalities have been affected by Typhoon Yolanda (international name: Haiyan). Considered the resort destination of Iloilo, Northern Iloilo is known for its panoramic views, islands, mountains, seascapes and beautiful, white sand and pristine beaches. It also has rich marine life and includes marine protected areas and marine sanctuaries.

Access to Northern Iloilo Northern Iloilo can be reached through air, land, and sea. It has two (2) air gateways: Roxas City Airport from Roxas City, Capiz, is an hour’s drive away and the Iloilo International Airport in Cabatuan, Iloilo is a three-hour drive to Northern Iloilo. Four (4) commercial seaports are located in Iloilo City, Estancia, Carles and Ajuy. Romblon and Masbate have access to Estancia and Carles ports, while passengers from Negros Occidental can travel to Northern Iloilo through Iloilo Port and Bay-ang Port in Ajuy. Wide road networks also make Northern Iloilo accessible to land travel.

Tourism Service Center LGSP-LED Northern Iloilo Local Project Completion Report | 3

Next to Iloilo City, Estancia serves as the main tourism service center in the area. The port of Estancia posted 912 ship calls in 2012. It hosts six (6) of the 13 banks, including several money transfer services outlets (e.g. Palawan, M. Lhuillier, Cebuana, Western Union, etc.) in the TDA, and is the base of the biggest higher education institution in the area, the Northern Iloilo Polytechnic State College (NIPSC). NIPSC has its main campus in Estancia and satellite campuses in Concepcion, Carles, Ajuy, Barotac Viejo and Lemery.

Major Attraction Sites The Northern Iloilo Tourism Circuit is famous for its white sand beaches, caves and islands, mangrove forests, and a wide diversity of flora and fauna. Among the major tourism sites are: 1. Gigantes Group of Islands in Carles, a chain of about 10 islands where endemic species of karst frogs and lizards, an 1898 lighthouse, and historical artifacts are found. The Islas de Gigantes or Islands of the Giants belong to the municipality of Carles. The islands are a 90-minute boat ride from Carles Bancal Port. Gigante Norte and Gigante Sur are the two main islands. Accommodation establishments are located in Gigante Norte. On the same island is a century-old Spanish lighthouse and caves. Gigante Sur and the surrounding islands offer adventure and recreational activities such as island hopping, cliff diving, swimming, snorkeling, diving, and spelunking (caving). Another equally popular island in Carles is Sicogon. The island used to be a popular destination among the rich and famous way before the boom of Boracay. The Ayala Group (a large Filipino developer), together with the Sicogon Development Corporation, has plans to redevelop the island to a similar scale as Boracay. Aside from increasing arrivals, this could offer opportunities for communities in Northern Iloilo to provide service workers, value-added fishery and agriculture products, construction services and crafts. In addition to Islas de Gigantes, Carles has beach resorts sprawled along Pilar Bay on the mainland. 2. Islands of Concepcion, a documented habitat of the dugong (sea cow), which is classified by IUCN as vulnerable to extinction. Forty-two kilometers south of Carles are the sixteen (16) islands in Concepcion offering natural island sceneries as that of Carles. Activities such as island hopping, swimming, mountain trekking, snorkeling and diving can also be experienced in these islands. 3. Ajuy's historical heritage as manifested by the: muscovado smokestacks, ruins of a Spanish lighthouse and post American modern house with artifacts. Other attractions in the circuit include the Indigenous People (Aeta Community) of Barotac Viejo and the heritage house and century old sugar mill in Ajuy. Tourists in Ajuy and Barotac Viejo can also experience organic farming and other agri-tourism activities. On the southern most part of the circuit can be found the attractions of Banate, including the Roman Catholic Church (built in 1870), Ecology Park and Hibotkan Rock Sanctuary, Ecology Park and Hibotkan Rock Sanctuary.

Market Trends and Opportunities Northern Iloilo is an emerging tourist destination of the Province. In 2012 to 2013, visitor arrivals in Northern Iloilo increased by 94.2% (almost double) from 25,164 to 48,873. Based on a 2010 survey of visitors, most visitors to Northern Iloilo are domestic tourists â&#x20AC;&#x201C; more than half (55%) are locals from other Iloilo towns, with another 29% composed of Filipinos from other provinces. The majority of visitors were male (55%) with most visitors between the ages of 25 and 44 years old.

III. Challenges to Local Economic Development As an emerging tourism destination, Northern Iloilo has only begun to gain popularity as a choice tourism destination in Western Visayas. Although tourist arrivals have been increasing, there are still challenges that must be addressed to improve the enabling environment for tourism development. Through the Tourism Circuit Plan, the following challenges in the tourism circuit were identified.

Need to Improve the Business Climate for Investments in the Destination The business climate for investments promotions in Northern Iloilo is weak because there is no designated person in the LGUs for investment promotion. To address this, the Province of Iloilo complied with the formulation of the Provincial LIIC in 2011, as mandated by the Joint Memorandum Circular issued by the DILG. The 2011 LIIC included the creation of the Investment Promotions Board and the Investment Promotions Unit. While the Investments Promotion Board was institutionalized, the Investment Promotions Unit (later renamed Local Economic Development and Investment Promotions Center) took four years to be created. LGSP-LED Northern Iloilo Local Project Completion Report | 4

In the member municipalities, LED-enabling mechanisms are absent. These member LGUs have outdated LIICs and no person with designation or permanent position taking care of investment promotions. Moreover, Revenue Codes are present but outdated and processes in business permits and licensing systems were streamlined but not automated. The private sector engagements with the LGUs are weak, if not absent translating to weaker support of the LGUs for MSMEs in the locality.

Gaps in the Tourism Circuit and Local Industry Limited the Potential for Growth At the start of the implementation of the Project, the Tourism Circuit Plan for Northern Iloilo was drafted. The said plan identified several challenges of the tourism circuit to make it a more competitive tourist destination.

Access and Infrastructure Access and infrastructure in the tourism circuit are poor and missing. Infrastructure facilities such as a passenger seaport, restrooms/rest stops, tourism information centers, power, telecommunication lines, and fresh water supply need to be improved and constructed in the mainland and in most of the islands. These infrastructure facilities are seen to be critical in the development of the tourism circuit. Because the tourism circuit is an emerging destination, the transportation rates are not standardized, which is important particularly when traveling to the islands. The scarcity of passenger boats and regular trips going to the islands led boat owners and operators to charge passengers exorbitantly when they want to rent. Some of these passenger boats are originally fishing boats converted to passenger boats, which do not meet MARINA and Coast Guard standards.

Limited Supply, Low Standards of Accommodation Facilities and Services There are a limited number of accommodation establishments and facilities with no hotels in Northern Iloilo. These existing facilities have low standards and none are accredited by the Department of Tourism (DOT). Because they are not DOTaccredited, the quality of services in the area is poor and has a lot of room for improvement to be more competitive. In addition, there are inadequate communication facilities (like signals for cellular phones and Wi-Fi connections), the low pressure of water in accommodation establishments, and the roomsâ&#x20AC;&#x2122; lack of insulation from outside noise, among others.

Underdeveloped Tourist Attraction Sites and Products Because Northern Iloilo is an emerging destination, tourist attraction sites and products are underdeveloped. The tour packages available needed enhancement, as there are other destinations that are tourist-ready but are not included in the package. Also, the tourism circuit has very limited souvenir items that are readily sold to tourists. Those available tourism products sold have poor or no proper packaging and are sometimes very big for tourists to bring back home. In 2013, Typhoon Yolanda destroyed tourism facilities in Barotac Viejo that showcased nito handicrafts made by the women of indigenous people (IP). In the island barangays, there is an abundance of shells as well as nito, which can be used as souvenirs given the proper product development support. Other inactive womenâ&#x20AC;&#x2122;s groups doing handicrafts are located in Concepcion and Ajuy are waiting to be tapped and trained for product development using base materials that are locally available and abundant. Moreover, there is a need to strengthen links from supply to market demands through convergence efforts of key stakeholders.

Weak Tourism Workforce Development The tourism circuitâ&#x20AC;&#x2122;s workforce is weak and underdeveloped despite the presence of various campuses of the Northern Iloilo Polytechnic State College (NIPSC) in most northern Iloilo towns producing graduates of tourism-related courses. Despite significant number of graduates that can fill in the workforce needed in the tourism industry in the circuit, there is no conscious effort from the academe and/or the LGUs to link/match graduates with the needs of the local tourism sector in the area, particularly true for the food, accommodation, and tour guiding services. Existing workforce in the area is of poor quality. Hence, knowledge, attitudes, practices, and skills of existing and new entrants in the tourism industry need to be improved to enhance tourist experience in the circuit.

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No Destination Marketing Strategy for Northern Iloilo The Province has developed the brand “It’s Got To Be Iloilo” and has positioned Northern Iloilo as the “Resort Destination”. However, there are weak programs and projects to support Northern Iloilo as the Resort Destination because there is no clear plan and strategy for destination marketing. Without this, there is danger of overselling and exploiting the destination.

Safety and Security Concerns following Recovery from Yolanda Geographical location of the Northern Iloilo circuit face the open sea, and because the circuit has islands, safety and security are main issues especially after Typhoon Yolanda. Looking into the existing plans of the partner LGUs, it was found that there are currently no plans to address the rising level of seawater and certain natural attraction sites are at risk of landslides. Member municipalities of Northern Iloilo have no DRRM plans but have schools serving as evacuation centers in times of calamity. The schools located in the island barangays are insufficient. Moreover, no importance was given on the installing of trained emergency responders and lifeguards, especially in island barangays, to assist police and firemen in times of emergencies and calamities.

II. The Tourism Circuit Following the effects of Super Typhoon Yolanda, the Provincial Government has had to incorporate economic recovery and rebuilding plans into the strategy to position Northern Iloilo as “Iloilo’s Resort Destination.” A particular focus of the rebuilding strategy is to support affected MSMEs with business recovery through opportunities in the re-emerging ecotourism and resort-based tourism activities in the area. Northern Iloilo thus seeks to rebuild economic opportunities through convergence with key partner agencies to achieve an annual increase of 50% in tourist arrivals and would have generated PHP 20 million in tourism related investments in infrastructure, tourism facilities and power generation and created 425 in employment opportunities for men and women in 2016. To enhance the ability of Provincial and municipal governments to assist the business recovery of MSMEs, especially those affected by Yolanda, this component include capacity development activities for LGU leaders and staff to develop enabling policies and programs, such as local investment incentives codes and automated business permits and licensing systems. One core activity was to establish a Business Recovery Center, which could support tourism development and business recovery through a convergence of Provincial and National Government Agency programs and services. To strengthen Northern Iloilo as a tourist destination with enhanced tourism products, services and promotional strategies. LED actors from the LGUs and the private sector planned and implemented two LED Initiatives and connecting the business recovery plans and proposals of affected MSMEs to potential funding/support agencies and training local tourism enterprise workers on the priority skills needed by tourism establishments in the area. The figure on the next page summarizes the activities and target results of the Local Project

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Summary of Target Results

Project Management Project Implementation Team The planning and implementation of the LGSP-LED Local Project activities in Northern Iloilo were supervised by a multistakeholder Project Implementation Team (PIT) with members (2M, 5F) from the local governments and the private sector. The Provincial LEIPO was the overall PIT Manager. Other members of the team included the Provincial Tourism Officer, the LED Coordinator for Northern Iloilo, members of the Northern Iloilo Visitors Bureau (owner of a Heritage House and a manager of an accommodation establishment), DILG and the DTI. The Provincial Administrator and the Provincial Planning and Development Coordinator served as Chair and Co-chair for the Project respectively. LGSP-LED Northern Iloilo Local Project Completion Report | 7

The Project Implementation Team ensured (1) activities in the approved work plan were implemented efficiently and effectively; (2) coordination and mobilization of the local partners and stakeholders; (3) preparation of activity designs, terms of reference and other technical requirements to implement the approved activities in line with the LGSP-LED guidelines; and, (4) submission of technical and financial reports as required.

Key Partners The PIT saw convergence with other National Government Agencies, Civic Society Organizations, Private Sector Groups and other Overseas Development Associations as a vehicle to work together in the conduct of common activities to produce desired results and provide a better enabling environment for Northern Iloilo. Among the main partners are the following: 1. The Department of the Interior and Local Government provided technical assistance and tools to enable LGUs to become more business friendly, and support especially in the coordination and mobilization of LGU stakeholders. 2. The Department of Tourism provided technical assistance and/or resource persons especially on Tourism Circuit Development. Support was also being given in the form of training kits and materials. 3. The Department of Trade and Industry provided technical assistance especially in the operationalization of the Negosyo Center. They also provided office equipment and financial counterpart in the conduct of trainings where Northern Iloilo MSMEs are target participants. Series of trainings on enterprise development and capacity building of the LEDIP staff has been provided to enhance their capacity in attracting investments to the Province. 4. The Department of Science and Technology assisted MSMEs of the province on packaging and labeling, 19 of them were beneficiaries from Northern Iloilo. Initial packaging and labeling materials were turned over to each MSME under the program. They were also given technical advisory services on food handling and safety. 5. The Department of Social Welfare and Development through its Sustainable Livelihood Program in Carles, provided equipment and technical assistance to womenâ&#x20AC;&#x2122;s association - the Shellcraft Association for Livelihood Opportunity of Pantawid (SCALOP) on souvenir making. 6. The Philippine Life Saving (PLS) provided technical assistance on Basic Life Support and CMAS training to dive guides for the enhancement of the tourism circuit and Emergency Response to tourism frontliners. 7. The Northern Iloilo Visitors Bureau is a relatively new destination marketing organization being assisted by the Iloilo Provincial Government. It is composed of representatives of various tourism sub sectors: accommodation, food, transport and tourism service providers (e.g. guides, massage therapists). 8. The Foundation for Philippine Environment and the UPV Foundation were partners in facilitating the convergence efforts for the sustainable development of the Gigantes Group of Islands. FPE has identified Gigantes among its new sites for biodiversity conservation taking into consideration sustainable resource use. UPVF is doing Haiyan rehabilitation and recovery work in Gigantes focused on disaster risk reduction and sustainable livelihood. UPV has also strengthened the Island Sustainable Development Alliance (ISDA) for Gigantes Islands, a collaboration of the 4 barangays of Gigantes whose organization was initiated by the Province.

V. Project Results and Assessment With the challenges highlighted in the tourism circuit plan for Northern Iloilo to rebuild local economic opportunities for sustainable tourism, the following have been undertaken:

Improved Enabling Environment for Investment and Business Recovery One of the most significant outcomes that resulted from the activities of the Project was the establishment of the Local Economic Development and Investment Promotions (LEDIP) Center that would cater to the growing needs of investors in the Province of Iloilo. The LEDIP was formerly known as the Iloilo Provincial Investments Promotion Unit (IPIPU), which was created as part of the Province's Local Investments and Incentives Code of 2011. The establishment of the LEDIP also institutionalized the Local Economic and Investment Promotions Office (LEIPO) position in the Province. Among the functions of the LEDIP are to advocate for programs and policies that enhance Iloilo's investment climate and to provide information on investment opportunities and business procedures within the Province. As such, the Province has uploaded its economic profile into the LED Information Portal. LGSP-LED Northern Iloilo Local Project Completion Report | 8

In the course of the institutionalization of the LEDIP Unit, the Province has also encouraged LGUs in Northern Iloilo to designate their LEIPOs. Within the tourism circuit, there were 6 (3M/3F) LEIPOs designated at the municipal level and 1 (0M/1F) Provincial LEIPO institutionalized with an office and budget. Aside from the LEIPOs in the Tourism Circuit, the Province has given capacity building trainings and mentored 29 (22M/7F) LEIPOs that are outside the circuit. These LEIPOs have also gained skills and knowledge through technical assistance and coaching provided to enhance their respective LGU’s competitiveness as well as improve the holistic image of the Province. To further attract investments in the local areas through enabling policies, the Project assisted the LGUs through a series of writeshops on the formulation and enhancement of their investments, revenue, and tourism codes. As a result, the Provincial Government, along with the municipalities of Banate, Concepcion, Carles, and Estancia, also adopted their Local Investment and Incentives Codes (LIIC). Local Revenue Codes (LRC) have also been adopted for all LGUs in the circuit. Tourism Codes were also formulated for all LGUs in the circuit.

To hasten economic recovery in Northern Iloilo after Typhoon Yolanda, the Iloilo Provincial Government, through the LEDIP Unit and together with DTI and DILG, established the Negosyo Center – a ‘one-stop-shop’ Center providing quality assistance to potential investors and local entrepreneurs and delivering LED support programs and services, especially those within the tourism circuit. The Negosyo Center has a mobile Negosyo Center that was able to assist 24 (7M/17F) MSME owners and staff within the Northern Iloilo LGUs through technical assistance in Packaging Assistance for Microentrepreneurs, Business Management and Basic Entrepreneurship. In preparation for the developments in the tourism circuit such as that of Sicogon Island by the Ayala Group and construction of the power plants in Concepcion, to name a few, Business Plans for Workforce Development were formulated and adopted in all LGUs. The Business Plans shall be used as a guide to equip Northern Iloilo’s workforce with the necessary skills to develop its circuit and make tourist experience meaningful by providing equal opportunities for men and women. From the start to the end of the Project, 60 new tourism-related businesses (i.e. restaurants, eateries, resorts, commercial buildings) were registered within the Northern Iloilo tourism circuit (see table below for more details). To further enhance the capacity of the LGUs in becoming business-friendly, a coaching and workshop on the computerization of business processing and licensing processes was conducted in September 2015. Business-friendliness was improved through the LGSP-LED Northern Iloilo Local Project Completion Report | 9

computerization and installation of Auto-BPLS Software in Ajuy, Concpecion, and Estancia that would reduce business processing and licensing processing times. New Business Registrations Ajuy Banate Barotac Viejo Carles Concepcion Estancia

2013 13 10 14 9 12 17

2014 0 0 0 0 6 20

2015 1 5 1 5 1 3

2016 0 0 0 5 8 3

To strengthen local tourism statistics and information systems in Northern Iloilo, tourism officers from the Province of Iloilo and Carles were trained on collection, processing and dissemination of tourism statistics information. As a result of the training, a Tourism Statistics Information Action Plan was drafted for validation, adoption, implementation and dissemination. Status of Key BFCL Programs and Policies in the BTS Circuit Enabling Policies Adopted Total LGU Covered LGU Business Plan for Workforce 7 All LGUs Development LEIPO Designated 7 All LGUs LEDIP Establishment 1 Province of Iloilo LIIC Adopted 5 Province of Iloilo, Banate, Concepcion, Carles, and Estancia Business Recovery Center Implemented 1 Province of Iloilo BPLS Computerized 3 Ajuy, Concepcion, and Estancia LRC Adopted 2 Carles and Estancia Since the beginning of the Project, a total of 292 LGU staff members were provided with technical assistance in the formulation and design of policies and programs (e.g. Formulation of the Local Revenue Code and Tourism Code) to help their LGUs become more business-friendly and competitive. Most of these personnel participated in one or more of the trainings and technical assistance provided by the Project. The table below provides a breakdown of these participants Status of Key BFCL Programs and Policies in the BTS Circuit LCEs 15 LEIPO and Staff 25 Tourism Officers and Staff 6 PESO Managers and Staff 1 Other LGU Staff 92 TOTAL 139 LCEs 15 LEIPO and Staff 25

5 11 11 1 125 153 5 11

20 36 17 2 217 292 20 36

To sustain the initiatives that have been implemented, the Project has empowered LED Champions that are expected to stay on and continue the progress achieved in the area of business friendliness and improved competitiveness. They have received technical assistance and capacity building which strengthened their mindset on Entrepreneurial Leadership. The LCEs expected to stay and continue the progress after 2016 are the Province's Governor and the Mayors of Concepcion and Carles. The Project has a strong and empowered PIT with the Provincial Administrator and the Provincial Planning and Development Coordinator alongside the Provincial LEIPO and her staff ensuring sustainability of the LED initiatives after the end of the Project. The PIT has also established strong linkages with the NGAs and the Private Sector.

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Enhanced Tourism Competitiveness

Sustainable tourism development is seen as one of the fastest ways in Northern Iloilo to help men and women gain skills and have equal employment opportunities as well as MSMEs to rebuild fast after Super Typhoon Yolanda. The Tourism Circuit Plan was developed to target specific interventions in Northern Iloilo for Tourism Circuit Development and Workforce Development. The Plan sought to develop the tourism circuit with the participation of stakeholders, to enhance existing and developed new products/services and activities as stated in the tour packages, identify priority areas for investments, and to establish policies and programs for sustainable tourism development. As recommended by the Tourism Circuit Plan, ten (10) tour packages within the circuit were developed/enhanced with the assistance of private sector partners especially the Association of Iloilo DOT Accredited Travel and Tour Operators (AIDATTO), which also marketed the tour products at the 26th Philippine Travel Mart using 30,000 printed collateral materials. The said activity received about 250 inquiries with 30% (68) requests for full board package quotations, 20 individual and group bookings with 10 bookings confirmed for trips scheduled anytime October 2015 to June 2016. Aside from the said tour packages developed, 24 tourism-related products and services within the circuit were also enhanced through the Negosyo Center and in partnership with the DSWD-Sustainable Livelihoods Program. In particular, since tourism stakeholders identified the lack of souvenir items as a problem in the circuit, marginalized groups were trained on the production and packaging of souvenir and food items. Based on the assessments in the Tourism Circuit Plan, investments on tourism-related infrastructure were needed to support tourism circuit development. Thus, with assistance from LGSP-LED, the LEDIP and the LEIPOs from the Northern Iloilo LGUs produced and, during the Governance Fair on September 2015, pitched the following investment briefs anchored on the Plan. 1. Establishment of cruising restaurants for Banate, Carles and Concepcion; 2. Establishment of restaurants with Pasalubong Center showcasing local food and delicacies; 3. Establishment of Solar Farms in the Northern Islands of Carles and Concepcion; 4. Establishment of Tourist Inns; and 5. Establishment of Dive Shops. To ensure that the human resources in the tourism circuit meet the demands of the tourism industry, the local LED project aimed to support training and development activities through a LED Initiative for Workforce Development. Tourism front-liners, workers, and enterprise owners received various skills training on customer service, product development, tour guiding, and others. To strengthen sustainable tourism development in Northern Iloilo, a total of 435 (190M/245F) tourism frontliners have been trained on tour package development, customer service and personality development, dive and snorkel tour guiding, and emergency response, among others. These tourism frontliners consisted of transport groups’ representatives, workers from accommodation establishments, and tour guides, among others. The table below provides a breakdown of actual training beneficiaries. LED Actors Trained MSMEs and Workers Industry Representatives Total

Male 186 4 190

Female 232 13 245

Total 416 17 435

While there are still a lot to be achieved in terms of tourism support infrastructure, facilities and amenities, the quality of human resources/workforce (i.e. accommodation establishment workers, site guides, dive guides, motorcycle drivers, and lifeguards) has generally improved, especially in major destinations such as Gigantes Islands. The LED champions/institutions from the private sector and the communities have also been empowered and capacitated to continue as partners of the LGUs in advocating and working for more competitive tourism industry. To name a few, these champions are: • Ms. Ma. Lea Victoria Lara, Iloilo Business Club • Dr. Mae T. Panes and the Association of Iloilo Accredited Travel and Tour Operators (AIDATTO) • Ms. Dulce Blas and the Northern Iloilo Visitors Bureau (NIVB) LGSP-LED Northern Iloilo Local Project Completion Report | 11

• • •

Convergence Support Group for Gigantes Islands UP Visayas Foundation, Inc. Philippine Life Saving

Progress Towards Tourism Growth and Economic Recovery Tourism is a major economic driver in the Province of Iloilo to help generate investments and create more jobs in Northern Iloilo after it has been badly hit by Typhoon Yolanda. The Project aimed to rebuild economic opportunities in Northern Iloilo by generating P20M investments in infrastructures, tourism facilities and power generation that creates 425 local employment opportunities. By 2016, tourist arrivals will increase by 50%.

Tourism Investments Generated Since the beginning of LGSP-LED, private and public investments on tourism-related infrastructure and facilities have totalled to PHP 130.1 M. These include expansion of existing facilities, and construction of public roads connecting the tourism circuit and those leading to sites and destinations, public market rehabilitation, tourist lounges, wharfs and passenger terminals.

Jobs Created Direct employment resulting from tourism related investments in Northern Iloilo for 2013 is estimated at 167. New employment from new business registrations in the tourism circuit from 2014 to 2016 increased to 512 (302M/210F).

Visitor Arrivals Typhoon Yolanda put Carles and Northern Iloilo on the map because of humanitarian aid coming from all corners of the globe. Volunteers and aid workers that came pouring in Northern Iloilo cannot help but enjoy the destinations and share pictures on social media while doing their relief and rehabilitation operations, which may have contributed to the 48,873 tourist arrivals in 2013. Tourist arrivals continued to increase in 2014 with 60,528 tourists in Northern Iloilo. The trend continues in 2015, where more tourists became aware of the scenic destinations and activities that Northern Iloilo has to offer through social media, word of mouth and some repeat customers and resulted to 82,505 overnight visitors. As such, visitor arrivals grew by 30 percent.

Crosscutting Themes Gender Equality The tourism circuit plan highlighted gender issues including lack of income generating opportunities for unemployed women especially in Carles and Estancia, need assistance for women’s cooperative and groups as well as ensure women’s participation in skills enhancement programs. With the leadership of the PIT Manager/ Provincial LEIPO, who also happened to be the Provincial GAD Focal Person, gender considerations were mainstreamed in the implementation of local project activities. Through the Negosyo Center, conscious efforts were exerted in prioritizing women associations as beneficiaries. For instance, a women’s organization, called the Shell Craft Association for Livelihood Opportunity of Pantawid (SCALOP) in Carles was assisted to avail assistance from DSWD-SLP. In addition to this, various women organizations from Concepcion were able to access funds from the DTI-Yaman Pinoy program. The project provided equal opportunities for both women and men to have access to resources for workforce development. In selecting participants to training activities, it is specified that 50% should come from both sexes as a general rule. A session on Gender and Development (GAD) was also integrated in the module for the Training on Site Guiding. In addition to this, seven workforce development plans prepared by the member LGUs of Northern Iloilo tourism circuit were approved by DILG under the Training to Better Access Job Opportunities (TRABAJO). The plan highlighted skills training for unemployed men and women so they can be employed.

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Environmental Sustainability The Circuitâ&#x20AC;&#x2122;s main attractions are the islands and other natural resources. This calls for strong implementation of policies and programs to ensure safety of tourists without environmental degradation, given the devastation brought by Super Typhoon Yolanda. Trainings for Site Guides and Dive Guides in Northern Iloilo incorporated topics on environmental sustainability. Emergency Responders and Beach Lifeguards were recently put in place because tourist safety is the utmost priority of the Province. Similarly, the investment briefs prepared for the promotion and business matching activities of the LEIPOs were anchored in the Investment Priority Areas for Environment friendly structures of the Provincial LIIC. The LGU of Carles works in collaboration with local partners in Gigantes Islands who are implementing disaster resiliency and environmental sustainability projects through the Convergence Strategy for the Sustainable Development of Gigantes Islands which provides advisory, technical, and financial support to the Integrated Sustainable Development Alliance (ISDA) for Gigantes - an inter-LGU cooperation of four (4) barangays of Gigantes Islands whose creation was spearheaded by the Iloilo Provincial Government. The Province of Iloilo and the Northern Iloilo Alliance for Coastal Development (NIACDEV) partnered with the SURGE (Scaling Up Resilience in Governance) Project implemented by the Consortium of Oxfam GB, Plan International, Christian Aid, Handicap International and European Commission through the UPV Foundation, Inc. and Iloilo CODE of NGOs. The LGUs and community partners through Peer to Peer Learning sessions were exposed to and appreciated the ecosystem and community based and inclusive lens in DRR-CCA programming. They were also provided technical resources/materials through the DRR Hub in implementing the DRR-CCA good practices on e.g. disaster resilient livelihoods/enterprises.

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Similarly, the investment briefs prepared for the promotion and business matching activities of the LEIPOs were anchored in the Investment Priority Areas for Environment friendly structures of the Provincial LIIC. The LGU of Carles works in collaboration with local partners in Gigantes Islands who are implementing disaster resiliency and environmental sustainability projects through the Convergence Strategy for the Sustainable Development of Gigantes Islands which provides advisory, technical, and financial support to the Integrated Sustainable Development Alliance (ISDA) for Gigantes - an inter-LGU cooperation of four (4) barangays of Gigantes Islands whose creation was spearheaded by the Iloilo Provincial Government. The Province of Iloilo and the Northern Iloilo Alliance for Coastal Development (NIACDEV) partnered with the SURGE (Scaling Up Resilience in Governance) Project implemented by the Consortium of Oxfam GB, Plan International, Christian Aid, Handicap International and European Commission through the UPV Foundation, Inc. and Iloilo CODE of NGOs. The LGUs and community partners through Peer to Peer Learning sessions were exposed to and appreciated the ecosystem and community based and inclusive lens in DRR-CCA programming. They were also provided technical resources/materials through the DRR Hub in implementing the DRR-CCA good practices on e.g. disaster resilient livelihoods/enterprises.

Poverty Reduction In 2012, the annual per capita poverty threshold of the whole Province is PHP 20,144.00. While the Province is a first-class Province, Ajuy, Carles and Estancia are 2nd class municipalities, Barotac Viejo and Concepcion are 3rd class municipalities, and Banate, 4th class. There were limited employment and business opportunities in the Circuit because of the devastation caused by Super Typhoon Yolanda. The establishment of the Business Recovery Center/Negosyo Center provided business advisory services to the MSMEs to rebuild their businesses. Capacity development trainings on enhancement of tourism products and improvement of packaging were windows of opportunities for MSMEs to have better access to market to increase their income. A total of 19 MSMEs from Northern Iloilo were given opportunities by DOST and LGSP-LED through the Negosyo Center to improve their product packaging and labels. At the same time, the Negosyo Center linked these MSMEs to potential markets to display and sell their products. With the improved packaging of their products, sales have also improved giving them opportunities to improve and reduce poverty in their respective areas.

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Moreover, skills training provided in partnership with the DTI and DSWD has given access to communities to improve their products, add value to their raw materials and sell them along and in the destinations of the tourism circuit. The workforce development plans approved for funding by DILG TraBAJO Program were dedicated for skills training and matching for employment of local communities from the marginalized sector including Pantawid Pamilyang Pilipino Program beneficiaries, Indigenous People, out of school youth and person with disabilities.

Fifteen Pantawid Pamilyang Pilipino Program women beneficiaries trained by DSWD and LGSP-LED on shellcraft design. These products are being sold to tourists in Gigantes Island in Carles.

VI. Lessons Learned 1. LED starts with a common understanding of the local economic conditions, opportunities, and challenges. A seemingly self-evident lesson learned from the Local Project is that a good understanding of the current conditions and future prospects of the local economy is the essential first step in undertaking a LED Program or Project. However, LED must be a multi-sectoral process involving LGUs, private sector, communities, and other stakeholder groups. For these various groups to work well together, they must have a common appreciation of the opportunities and challenges facing their local economy. The stakeholders must also agree on the possible strategies for achieving inclusive local economic growth, given these challenges and opportunities. Thus, the lesson is not just about understanding the local economy but more about LGU, private sector, and other stakeholder groups, understanding it â&#x20AC;&#x201C; together. This would then be the first step in planning and implementing the LED Project as a partnership-based undertaking of the LGUs, the private sector, and other partners.

2. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single city or municipality. Thus, the TCP emphasized how interdependent the member cities and municipalities are with each other. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

change among LCEs and officers is a priority. These leaders should be oriented and coached on the importance of LED to become entrepreneurial leaders so that they are able to ensure policies and programs are into the sustainability of the LGUs. The LCEs must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCEâ&#x20AC;&#x2122;s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

4. LGU LED Team members must be trained and qualified to become promoters of business-friendliness and inclusive LED. Well-qualified, trained, and motivated LEIPOs, LGU tourism officers, and PESO managers were key factors in driving their respective LGUs to complete the formulation or planning of business-friendly LGU policies and programs. The adoption and implementation of these policies, plans, and programs will also be dependent on these officers, as well as other LGU staff with LED-related mandates. They must have an appreciation and understanding of their roles as LEIPOS, Tourism Officers, Planners, etc. that new investments and businesses will bring about new jobs and propel economic development in the area. The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGUâ&#x20AC;&#x2122;s program for business-friendliness and LED competitiveness. Yet, key LGU offices with LED-related mandates such as LEIPO, Tourism Office, and PESO are still interim appointments with temporary offices and working budgets. These LED officers are more effective, and work better with each other, when they are confident in their mandates, their capabilities, and the support that they receive from their respective LGUs. Thus, agents for economic and tourism development within the LGUs such as LEIPOs, Tourism Officers, and PESO managers must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. They must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. There should be an appreciation and understanding of their roles as LEIPOS, Tourism Officers, Planners, etc. that new investments and businesses will bring about new jobs and propel economic development in the area. Strong Provincial LEIPO, Tourism, PESO, and Planning Offices working as team is necessary to provide continuing technical support to their municipal counterparts. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit.

5. Engaging the private sector in planning and implementing the LED Program can lead to a more business-friendly, entrepreneurial mindset within the LGUs LGUs need to understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. The LEIPOs must engage local proponents through the local business chamber in order to be ready with the investment information, identify the priority projects, and match them effectively with investors. PESO Managers cannot implement effective job-training and employment matching programs without partnering with the local employer sector to determine their anticipated workforce needs. Engaging the private sector in LED program is not only a key factor for successful implementation of LED activities but also strengthen the LED Team.

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6. Convergence promotes coordination especially of part of a bigger undertaking even if resources (of each agency) are limited. Through convergence, efforts have been minimized and results maximized. The Provincial Government’s leadership, combined with a clear plan of action that leads to well-defined goals, can facilitate effective convergence among the various NGAs in the field. The work plan of Iloilo’s LEDIP Office provided NGAs like DTI, DSWD, DOST, etc. with a focal point towards which they could direct the resources of various programs (e.g. Negosyo Center, Shared Service Facilities, Sustainable Livelihood Program, etc.) to support the Province’s post-Yolanda, business recovery activities in Northern Iloilo.

VII. Conclusions and Recommendations The Province of Iloilo may already be considered a relatively business friendly LGU being adjudged one of the Finalists of the 2015 Most Business Friendly and Competitive LGU Award (PCCI), Province Level 1 Category. Also, it is ranked 22 Most Competitive Province (NCC). The institutionalization of the LEDIP and the Negosyo Center with complementary staff and budget has contributed much of the successes of the project implementation as well. Despite this, it still needs to find ways to integrate resiliency and stronger inclusiveness in its LED sustainability programs because the foundation for LED has been strongly laid down in the two-year project. The Northern Iloilo Tourism Circuit is very new but it is quickly catching up with increasing tourist arrivals. Relative to this, the LGUs should encourage the business sector to secure accreditation of tourism related enterprises with concerned agencies such as DOT, MARINA, LTO, etc. to boost the image of the circuit and enhance security and safety of visitors. The key lesson learned from the Local Project is that the main role and responsibility of local government in advancing LED is to enable sustainable and inclusive local economic development to grow. It does this primarily by providing a local policy and public service environment that facilitates the efficient, effective, and ultimately profitable operations of local enterprises. Another role for local governments is to support the growth and integrated development of its tourism MSMEs as one competitive value chain operating across the circuit. In this role, the LGU continues to play an enabling position in functions such as business investment, product development, and workforce development where the private sector and other nongovernment players are more capable. However, the LGU can take a stronger leadership role in functions such as destination marketing and public infrastructure investments where the local private sector does not have the resources and/or interest in taking the lead. Thus, the main LED priorities for the LGUs remain : 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more businessfriendly environments for sustainable and inclusive economic development, and LGSP-LED Northern Iloilo Local Project Completion Report | 17

2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry.

Recommendations for Sustaining the LED-Enabling Environment in the LGU On the aspect of continuing the drive for improved business-friendliness and competitiveness of the LGUs, the general direction should be: 1) to strengthen and ensure the permanence, i.e. regular operations, of the key structures for LED promotion in the LGUs such as LEIPO and Tourism Office, and 2) to institutionalize the key LGU policies and programs for business-friendliness and support to competitive sectors. Thus the main recommendations for continued and improved business-friendliness of the LGUs are : 1. Ensure that the Provincial and City/Municipal Governments have LEIPO, Tourism, and other LED-related Offices with full-time personnel and adequate resources. While all LGUs have designated LEIPOs and Tourism Officers, it is important that they be provided with budget, office, and personnel to effectively perform their investment promotion, business retentions, and MSME facilitation work. • These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature. • Include in the LGU budgets, sufficient funds and resources for the effective and harmonized operation frontline BFCL LGU offices such as BPLO (and Business-One-Stop-Shop), LEIPO, Tourism Office, PESO, Planning Office, etc. Funding for continuous technology improvement and staff development related to LED information systems (e.g. auto-BPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be included in these budgets, to the extent feasible. • The recently concluded Train the Trainer Session with the LEDIP personnel has equipped them with Business Management skills; however, more skills on marketing strategies, among others need to be done including the drafting of the LGU Business Planning for Investment Promotion. The enhancement of their skills would need more participation in business matching sessions and investment missions. • To ensure LGUs to become business friendly and competitive, they should not just have their BPLS streamlined, but also automated and ultimately linked to the National Business Registry System. • Quality data is always a challenge hence, it is recommended that capacity development be given to key LGU staff and personnel to ensure that data gathered can be useful in analysis. These economic data and other related data including statistics should be accurate and made readily available for businesses and investors. With the correct information, policies and plans should be updated, such as the CLUPs, CDPs, among others because they are the baseline for the LIICs, Revenue Codes, Tourism Codes and other relevant policies that shape the future of the LGUs. 2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC, Tourism Codes, and other LED-related local bills formulated through the assistance of DILG and LGSP-LED. 3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and sociallyprotective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: • Integration of DRRM-CCA, including provisions related to LED and investment promotion, in subsequent updating of the Provincial Physical Framework Development Plan and the corresponding city/municipal CLUP and CDP. • Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention. • Building and infrastructure development should strictly conform to the existing Building Code, Environmental Policies and CCA-DRR plans. The city’s zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks. • Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant. 4. The Provincial Government should continue to work closely with the NGAs, LGUs and private sector in the tourism circuit implementation of the Tourism Circuit Development plan formulated through the assistance of LGSP-LED.

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• •

•

In updating the plan, it is recommended that the Province should consider extending the scope of the TCP towards Capiz and engage Roxas City and/or Province in updating its plans and programs for the TDA. The Provincial Government and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 2016-2022. The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit identified through the Province’s post-Yolanda planning activities and in its PPFDP. These are areas with low elevation and are vulnerable to flooding as a result of high rainfall during tropical cyclones. Coastal areas along the Tourism Circuit are also susceptible to sea level rise associated with climate change. The absence of mangrove forest further increase theIr vulnerability. Improvement of accessibility will need to ensure that major roads leading to the tourism sites will not be impeded in the event of major tropical storms as these serve as lifelines to facilitate evacuation, rescue and delivery of relief assistance, and that these roads have well lighted posts. Alternate routes need to be identified and roads comprising the routes should be upgraded to ensure all weather conditions. Strict implementation of zoning ordinances to prevent settlements in hazard zones and in environmentally constrained areas Ensure that adequate forest cover is maintained in slopes above 18 percent and environmental laws are implemented to prevent degradation of areas with steep slopes.

In this regard, the main recommendations for LGUs to enable a more competitive and sustainable tourism sector in the TDA are: 1. Establish a Public-Private Team within the LED Team to focus on ensuring the funding and implementation of priority LED-enabling infrastructure projects identified in the TCP, as well as on organizing investment promotion events and activities to seek investors for priority investments to address competitiveness gaps in the tourism circuit (e.g. hotels and resorts, tourist transport, tourism estates, etc.) • The Provincial LEIPO, in partnership with the Local Chamber, may organize regular (quarterly or twice a year) meetings with the counterpart LEIPOs and chambers from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities • The Tourism Circuit Plan has enlisted recommendations for the Tourism Circuit and that the LGUs should come up with their LGU Business Plan for Investment Promotion to concretize what investments are needed in the tourism sites and destinations as well as for product development and innovation.

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2. Through the Provincial Tourism Office, and in partnership with the private sector, should design and implement a destination marketing program for Northern Iloilo that balances a push for increased arrivals with a sustainable pace of growth in consideration of the carrying capacity of its attraction sites. • This marketing program should also consider cooperative marketing and promotion activities with the Tourism Offices of Roxas City and the Province of Capiz. • The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.) • The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media. 3. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. • This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. • The Project has capacitated people in the community to strengthen the workforce of the tourism circuit. However, given the delimitations of the Project, these LGUs formulated respective LGU Business Plans for Workforce Development. It is encouraged that LGUs leverage the TraBAJO funds in negotiating with tourism sector players for better work placement of competent/skilled workforce from disadvantaged sectors (poor, women, PWD, etc.). • The DSWD proposal submitted by the community in Gigantes for training for compressor divers for scallop gathering should be pushed because this training is seen to decrease death incidents and paralysis of the divers. • Another DSWD proposal for bottled sardines for Nasidman, Ajuy should also need follow-up because LGSP-LED already conducted a TNA as basis of the proposal submitted by the recipients to the DSWD. Despite the submission of the said proposal, it was not included in the 2015 approved projects for funding. 4. Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. • Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. • Through the Iloilo Negosyo Center as a convergence platform, seek assistance from DTI, development partners and NGOs for technical assistance to MSMEs and community-based livelihood groups in Northern Iloilo to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination. • LGUs should encourage the business sector to secure accreditation of tourism related enterprises with concerned agencies such as DOT, MARINA, LTO, etc. to boost the image of the circuit and enhance security and safety of visitors

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Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

INTERMEDIATE OUTCOMES New Investments

CUMULATIVE (MARCH 2016)

Description

Value (PHP)

Private Tourism Investments

Enhancement of resorts on Concepcion and Carles island groups; Power supply for island resorts

10,000,000

85,750,000

Public Investments

Enhancement and upgrade of passenger and fish ports (including RORO) in Concepcion, Estancia, and Carles

10,000,000

44,350,000

Employment (New)

425

512

Male

213

302

Female

212

210

Tourist Arrivals (Growth Rate per year to 2016)

50%

29.93%

167

425

512

Enabling Policies Adopted

LGU Business Plan (Workforce)

0 0

7 0

7 1

LIIC Adopted

Business recovery center implemented

BPLS Computerized

LRC Adopted

LED Information Portal Established

Tourism Statistics system implemented

Others(Local Climate Change Plan adopted)

Business Registration

LED Actors with Capacity to Plan/Implement

Employment (New)

167

130,100,000

IMMEDIATE OUTCOMES

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment

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OUTPUTS LEIPOs Trained

292

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

217

LGU Business Plans & Policies Formulated

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion)

LIIC Formulated/Updated

Business recovery center planned

LGU BFCL Action Plan Formulated

BPLS Computerized

LRC Formulated

LED Information Portal Established

Tourism Code formulated/updated

LED Initiatives Planned

LED Actors Trained

162

435

PIT Members Trained (non-LGU)

LGU Tourism Statistics Action Plan Formulated Tourism Statistics system installed/strengthened

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LGSP-LED Northern Panay Local Project Completion Report | 1

I. Local Government Profile Aklan Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

535,725 182,140 hectares 17 Kalibo 2nd Kalibo, Tangalan, Ibajay, Nabas, Malay, and Buruanga Agriculture, fishery, tourism 535,725

Antique Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

546,031 272,920 hectares 18 San Jose de Buenavista 2nd Libertad, Pandan, Sebaste, Culasi and Tibiao Agriculture, manufacturing, forestry 546,031

Panay Island is a heart-shaped island that is located in the Western Visayas region and consists of the provinces of Aklan, Antique, Capiz, and Iloilo. It is located northwest of Negros, separated by the Guimaras Strait and the island province of Guimaras, and southeast of Mindoro Island. To the north of Panay Island are the islands of Romblon and the Sibuyan Sea; while the Sulu Sea and Panay Gulf are on its southwest. Two of the provinces within the island, Aklan and Antique, form the area wherein the Sustainable Tourism Development for Northern Panay Project operates. The area itself features scenic coastlines, mountain peaks, waterfalls, cold springs, and coral reefs. At the coastline’s peak, approximately one kilometer north from the tip of Panay is Boracay Island, the Philippines’ most popular beach destination. Aklan and Antique share rugged mountain ridges that run along the back of Panay Islands. Aklan, whose capital is Kalibo, has a total land area of 182,140 hectares. The province is known for its high geographic diversity, which includes white beaches, mountainous landscapes, and mangroves. Aklan is a mountainous province with over one-third of its land area sloping at 30 percent on the average. It is still one of the few provinces in the country to maintain a total of some 709 hectares of virgin forest. Mountain ranges traverse the island: one; the northern “knot” of Duyang and Tagacan; and the other, the Albinian mountain ranges in the west. Mount Madja-as, at 2,117 meters, is the second highest peak on Panay and is shared by Aklan and Antique. It is composed of 17 municipalities and 327 barangays and has a population of 535,725 (51% male, 49% female). The famous Boracay Island is part of the municipality of Malay, which is under Aklan. The poverty incidence in Aklan is at 21.02%1 and the employment rate in 2014 is 89.7, which is lower than the national average of 93.2%. The other province comprising the tourism development area, Antique, has a total land area of 272,920 hectares. With a total population of 546,031 (51% male, 49% female), the province consists of 18 municipalities and 590 barangays, with San Jose de Buenavista as the capital. It has a rugged and varied terrain. While there are stretches of white sand beaches, there are also areas that are ideal for hiking and trekking, such as the dormant volcano Mount Madia-as shared with Aklan. Antique's poverty incidence is at 32.08%1 and its employment rate in 2012 is 94.5%, higher than the national rate of 93.0% for the same year.

Local Economy The main economic industries in the province of Aklan are agriculture, fisheries, and tourism (especially due to Boracay. The province posts potentials in the production of high valued and fibre crops. The massive and sustained education and research in agriculture production, the implementation of national program in agriculture, well-established marketing

Philippine Statistics Authority. (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority.

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strategies, as well as the support of the agribusiness industry and other private and non-government sectors, result to better production and higher income of the farmers. Palay is the number one grown crop in the province. The total area planted with rice is 42,218 hectares effective area, or 0.39 percent of the total agricultural area of the province. Coconut also occupies a huge area planted among major permanent agriculture crops. The total area planted with coconut is 32,276 hectares. Aside from palay and coconut, other major crops that contributed to uplift the economy of Aklan are being developed. These are high valued crops with export potential, such as banana (Lakatan), mango, rambutan, and lanzones; and fiber crops. Fishponds and offshore fishing also provides huge employment for Aklanons. Aquaculture constitutes a significant component in the province’s fishery industry. The province has a total fishpond area of 7,807.14 hectares. Aklan is also sufficient in meat and other livestock and poultry products. One can find a dream possession in the province – the Piña cloth, considered as the “Queen of the Philippine Fabrics,” and other fineries made from it. The Piña cloth is considered a prime produce of Kalibo, weaved from its unique crude wooden or bamboo handloom that changed little from eight centuries ago. Aside from Piña, Abaca abounds in Aklan. Innovations were made out of this fabric to suit’ the demanding supply of the fashion market. Dyed abaca cloths are made into place mats, bags, wall decors, fans, etc. Piña and Abaca are two major products for export. Moreover, Lezo, one of the 17 municipalities of Aklan, is known for its red clay, which the natives use to make pots, vases and various novelty items. The people of Lezo have a means of livelihood because of the abundant supply of red clay provided by nature. Other livelihood products and produce include Loom, Copra, Raffia Cloth, Prawns, Crabs, Bangus, Processed Food Products, Furniture, Metal Craft, Bamboo Craft, Bricks, Weaved Hats and Mats, Gifts and Housewares. Aklan is the center of tourism in Western Visayas, where Boracay Island is located. The island is one of the best beaches in the world that was able to attract more than 1.3 million tourists in 2013 and more than 1.4 million tourists in 2014. It generated an estimated 25 billion tourism receipts for 2013 and 26 billion for 2014. There was an increase of tourist arrival of about 9.51% for 2013 and about 8.11% for 2014. There are other tourism potentials in the Province which include the AtiAtihan Santo Niño Festival and Bakhawan Eco-Tourism Park of Kalibo, dive sites and beaches of Buruanga, cold springs and caves “Katunggan of Nabas” in Nabas, beach resorts of Tangalan and Sampaguita resort in New Washington. Agriculture is also one of the major economic drivers in the province of Antique, particularly the production of palay with 4,438,025 cavans from 58,847 hectares. This has an average yield of 3.02 metric tons per hectare, followed by copra, which registers a total production of 15,712 mt. Other crops are bananas, corn, legumes such as moonbeams, peanuts and other beans, muscovado sugar, root crops such as camote, cassava, ube, and others; vegetables such as leafy, fruit and root, banana and mango produce. The capital town of San Jose de Buenavista is now the center of business hub mushroom as well. All of these products are also shipped out of the province. Today, Antique also has various establishments from manufacturing such as native gifts, toys, housewares, making hollow blocks, wood furniture, steel or wood, packed foods, metal craft, thresher, soap and sidecar. There are now a total of 117 service establishments and 294 trade establishments. Forest products are also helpful in the economic growth of the province such as bamboo, rattan, buri, bariw, nito, log, charcoal, abaca, herbal vines and plants, wild flowers and others which are used as raw materials in construction industry, furniture and handicraft. Aklan and Antique were some of the areas greatly affected by super typhoon Yolanda in November 2013. Since most of the interventions were already focused on rehabilitation of infrastructure, recovering micro, small and medium enterprises (MSMEs) as well as strengthening the tourism industry has been identified as one of the major interventions specifically needed from LGSP-LED with regard to economic recovery in the area.

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LGUs Covered in the Project The Project works with six (6) of Aklan's 17 municipalities and five (5) of Antique's 18 municipalities. In Aklan, these are Kalibo, Tangalan, Ibajay, Nabas, Malay and Buruanga; in Antique, these are Libertad, Pandan, Sebaste, Culasi and Tibiao. LGU Aklan Kalibo Tangalan Ibajay Nabas Malay Buruanga

Income Class 2nd 1st 5th 3rd 4th 1st 5th

Population 535,725 74,619 20,277 45,279 31,052 45,811 16,962

Land Area (hectares) 182,142 5,075 7,459 15,890 9,682 6,601 8,850

No. of Barangays 327 16 15 35 20 17 15

LGU Antique Libertad Pandan Sebaste Culasi Tibiao

Income Class 2nd 5th 4th 4th 3rd 4th

Population 546,031 15,669 32,494 17,270 39,086 24,513

Land Area (hectares) 272,920 9,700 11,398 11,164 22,856 17,742

No. of Barangays 590 19 34 10 44 21

LED Enabling Environment The province of Aklan has consciously developed and implemented programs to strengthen and improve its tourism infrastructures. It is the first province in the country to pass a provincial tourism code. Its Investment Code and its Environment Code were passed within the same year. There are permanently appointed, or at least designated, LGU Tourism Officers in Kalibo, Ibajay, Buruanga, and Malay in Aklan, as well as in Libertad, Pandan, Sebaste, Culasi, and Tibiao in Antique. However, while there is a permanent Provincial Tourism Office for Aklan, the counterpart unit in Antique is not as established. Most of the members LGUs of Aklan manifested efforts to promote business friendliness. Except for Tangalan, all memberLGU have institutionalized Local Economic Development Officer. Kalibo and Malay have formulated their Local Investments and Incentives Code, Kalibo, Tangalan Ibajay and Malay have computerized their Business Permit and Licensing System.

II.

The Tourism Circuit

In its 2011-2016 Philippines National Tourism Development Plan, the Department of Tourism (DOT) set out a number of tourism development areas (TDAs) across the country. The idea is that these are the priority tourism areas that have development potential and where much of the DOT’s resources will be focused. The provinces of Aklan and Antique form the Northern Panay TDA, which is located in the Western Visayas region. LGSP-LED has taken the tourism circuit development approach as a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, it assists the LGUs in working with enterprises by enhancing visitor experience by developing more competitive tourism activities, goods, excursions, and facilities to increase visitors' length of stay and expenditure. The TDA is made up LGUs from the provinces of Aklan and Antique. Six (6) of Aklan’s 17 municipalities--Kalibo, Tangalan, Ibajay, Nabas, Malay and Buruanga—are part of the circuit. On the other hand, five (5) municipalities in the northern part of Antique Province namely, Libertad, Pandan, Sebaste, Culasi and Tibiao, form the western corridor of the TDA.

Tourism Access and Infrastructure Northern Panay has two main air gateways, both located in Aklan. Kalibo Airport is an international facility, which now has regular and chartered connections to foreign destinations including Hong Kong, Seoul, Busan, Kuala Lumpur, Shanghai, Guangzhou, Singapore, Beijing and Taipei, in addition to the major domestic hubs of Manila, Cebu, and Clark. The Godofredo P. Ramos Caticlan Airport in Malay is more conveniently located in relation to Boracay Island. However, the existing runway can only accommodate smaller turbo-prop flights. Thus, there is an ongoing public-private partnership (PPP) investment to extend and expand Caticlan airport’s capacity. LGSP-LED Northern Panay Local Project Completion Report | 4

Another means to access the TDA is through sea travel. Travel time from Manila to Aklan is 14 to 18 hours by sea. Northern Panay can also be accessed through the Roll-On-Roll-Off (RORO) Strong Republic Nautical Highway, which connects Luzon, Visayas and Mindanao traversing the municipality of Kalibo going to Capiz and continuing on to Iloilo. Currently, there are seven ports in Aklan. Two of which are the Cagban and Caticlan, which connect Aklan Mainland and Boracay.

Tourism Service Center There are a total of 597 accommodation establishments with Aklan having 94% of the total share and Antique having the remaining 6%. Malay’s share is 51% of the total accommodation establishments. Accommodation establishments vary from 5-star hotels in Boracay to homestays in Antique. Boracay Island/Malay has a reasonable number of hotels catering to different economic and market segments. While there are DOT-accredited hotels that are of top quality, many remain unaccredited. Boracay, as well as Kalibo, lack convention facilities/centers that could host major sports events or business conferences.

Major Attraction Sites The Kalibo-to-Buruanga corridor in Aklan includes the municipalities of Kalibo, Tangalan, Ibajay, Nabas, Malay, and Buruanga. Boracay Island is the major tourism attraction site not only of the TDA but also of Western Visayas as a whole. It has a long stretch of white sand beaches, well-developed activities, and large supply of tourism facilities and services, which have made it one of the top resort destinations in the country’s international tourism portfolio. Kalibo’s Ati-Atihan Festival is one of the largest and most recognized festivals in the entire country. While there are many other potential attraction sites in the TDA, most would still be considered as in the early development phases of their tourism industry development compared to Boracay. In the Aklan side of the corridor, the sites in the municipalities of Kalibo and Tangalan feature natural and cultural attraction from local crafts, religious traditions, to its iconic festivals. Nabas and Ibajay have a mix of natural attractions from nature and two (2) local festivals honoring the Sto. Nino and nature’s bounty. The attractions are within a 15-minute ride from the airport, with the furthest being 45 minutes away. In Antique, Libertad, Pandan, and Sebaste offer eco-adventure activities such as caving/spelunking in Libertad’s Maanghit Cave, river rafting and swimming in Pandan’s Bugang River and Malumpati Cold Springs, as well as a visit to the St. Blaise Church in Sebaste, a popular religious pilgrimage site. Mararison Island in Culasi is a typical hospitable Filipino fishing village, best for day trips, beach picnics, and swimming activities. With the Tibiao Eco-adventure Park, zip line, kawa bath, Bugtong Falls, and white river rafting, Tibiao offers a lot of nature, eco-adventure, and health and wellness activities.

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Market Trends and Opportunities Boracay remains the dominant destination, not just in Northern Panay, but also in Western Visayas, accounting for more than 90% of all arrivals to Aklan. East Asia – South Korea, China, Hong Kong, and Japan – remains the biggest source region for international arrivals to Boracay. Other foreigners and domestic visitors account for roughly 65% of all arrivals in Western Visayas. Visitor arrivals to Antique pale in comparison to Boracay, with a total of 65,105 visitor arrivals for the entire province in 2013. Of these, 84% visited tourism sites that are part of the Northern Panay tourism circuit.

III.

Challenges to Local Economic Development

Following the devastation of Typhoon Yolanda, there was a need to rehabilitate the MSMEs and strengthen the tourism industry, while taking advantage of the livelihood and tourism promotion opportunities from strong drivers of domestic and international visitors into Boracay. These required creating opportunities for expanding the benefits of tourism growth in Boracay to other communities in northern Antique and Aklan. The Project thus combined efforts in the provinces of Antique and Aklan to link community-based tourism activities and products in Northern Panay to the existing industry and market opportunities in the resort-island of Boracay. The Local Project’s Tourism Circuit Plan, which served as a framework for a more localized analysis of the LED-enabling and tourism competitiveness in the area, identified the following challenges and constraints that may hinder Northern Panay’s Sustainable Tourism Development:

Need to Improve the Business Climate for Tourism Investments In Antique, there was a need to improve the business climate for tourism investments in the destinations, particularly those offices and departments in the Provincial Government that should support local economic development. It was found that the Provincial Tourism Office and the position of Provincial Tourism Officer were not institutionalized. This position and office are very critical in the development of sustainable tourism in the Province and in the circuit. LGSP-LED Northern Panay Local Project Completion Report | 6

Moreover, both Provinces needed to designate a Local Economic and Investment Promotion Officer (LEIPO) to strengthen LED in the Provinces of Aklan and Antique. The Local Investment and Incentives Codes (LIIC) needed updating to support a conducive business climate for tourism investment. BPLS needed to be streamlined and automated as well as the installation of TSIS with sex disaggregation data on arrivals and employment.

Gaps in the Tourism Circuit Areas for improvement in air and road infrastructure Access is very important to reach any tourist destination. The Kalibo airport already catered to international flights. However, increasing tourist arrivals led to more international and domestic flights to Kalibo thus the need to improve and expand the Kalibo Airport. In terms of land access, the main inter-municipal road system that connects the municipalities of Northern Aklan and Antique were good and well maintained, but access and last-mile roads from the national highway to alternative attraction sites in Northern Panay had to be improved as they were substandard and offered limited options.

Need to increase the supply of accommodations There is a need to increase the number of accommodation establishments despite the demand for accommodations were highly seasonal (visitors come only during the week long Ati-atihan festival). This is because Kalibo is becoming not only the main gateway and service center to Boracay Island, but also a major business center. Pandan, the main service center on the Antique side, has good resort type hotels, but the number of available rooms was still limited for the increasing visitors from Boracay Island or nearby municipalities.

Improvements needed for better quality visitor facilities and more variety in tourist experiences An assessment of priority attraction sites in Northern Antique and Aklan indicated a need to diversify tourist activities beyond Boracay to encourage more overnight trips to the other Northern Panay communities. Diversifying tourism activities and tour packages will offer an opportunity to integrate the MSMEs affected by Typhoon Yolanda in 2013 into the tourism value chain. Moreover, the tourism circuit needs better tour guides, narratives, and road and destination signages. The priority sites identified in the Tourism Circuit Plan is due for upgrading both the quality and supply of tourism workforce that could provide equal opportunities for men and women. Likewise, visitor facilities needed provisions for visitor safety and security such as first aid or emergency centers, trained life guards, safety gear, as well as disaster risk reduction and management training for tourism staff.

Weak marketing strategies of the TDA There were limited efforts exerted to market other destinations of the TDA outside of Malay and Kalibo, particularly the Antique corridor. In addition, Antique’s tourism industry has “very weak linkages to tour operators and travel agencies,” according to a 2012 International Labor Organization value chain analysis of the province's tourism sector. The report further states that, “Antique needs to develop a distinctive market position and brand (Where the mountain meets the sea) that can compete with many other destinations. There must be consistency among the various offerings and it should be this positioning statement that should guide this consistency.”

Other Concerns The increasing cases of human trafficking and sexual exploitation in Boracay also needed to addressed by providing more gender-responsive tourist assistance, facilities, and services in the priority sites of Northern Panay, especially outside Boracay.

IV.

Description of the Local Project

The Sustainable Tourism Development for Northern Panay Project aimed to assist Northern Panay recover from the impacts of Typhoon Yolanda by strengthening tourism and rehabilitating MSMEs. The strategy required expanding the market opportunities of Boracay to the rest of Northern Panay and integrating the MSMEs to the tourism circuit by enhancing quality of tourism products and services in the circuit. In light of this, the Project sought to improve the local conditions for sustainable local economic development. By 2016, the Project targeted to generate PHP 2 billion worth of investments, to create 890 new jobs (for 445 males and 445 females), and to increase tourist arrivals annually by 10%.

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In order to achieve these outcomes, the Project focused its interventions on two major components, namely, the Enabling Environment - by supporting member LGUs in improving their business-friendliness and competitiveness through businessenabling policies and development plans to spur local economic development; and Sector Competitiveness - by strengthening the ability of LED actors to plan and implement sustainable LED initiatives in participating LGUs. In particular, the Project sought to have policies and programs adopted in the LGUs to advance business-friendliness and competitiveness in the Northern Panay tourism circuit and to develop LED actors to be able to implement joint and sustainable LED initiatives for the Circuit. Towards this end, activities and assistance have focused on strengthening the Enabling Environment for LED, which includes LED policies and reforms such as LIIC and BPLS, and implementing Key LED Activities to improve the tourism sector's competitiveness, which, in the case of Northern Panay, focuses on Tourism Circuit Development, Investment Promotion, and Workforce Development. The diagram on the next page illustrates how the project was designed to address this issue, through various LED activities in different key areas of tourism circuit development.

Summary of Project Target Results

Project Management Project Implementation Team There were two (2) Project Implementation Teams (PITs) managing the activities in the two provinces making up the Northern Panay Circuit. These teams were responsible for the day-to-day management and implementation of the local project in close coordination with the respective DILG Provincial LED Focal Persons. LGSP-LED Northern Panay Local Project Completion Report | 8

Aklan Project Manager LGU Representatives

Private Sector Representatives

Engr. Roger M. Esto Provincial Planning and Development Coordinator Hon. Florencio Miraflores Governor Marsh B. Bernabe Designated Provincial LEIPO Roselle Q. Ruiz Provincial Tourism Officer

Dr. Roberto L. Saladar Campus Director Aklan State University – Ibajay Jose Mari Q. Aldecoa President, PCCI-Aklan

Antique Flord Nicson Calawag Hon. Exequiel Javier Governor Stella Jardeleza Provincial Tourism Officer Aileen Maguad PEEDO/Designated LEIPO Municipal Tourism Officers of Libertad, Pandan, Sebaste, Culasi, and Tibiao Mary Jean Bautista Christina Belleza-Wladkowski Herna N. Eco

V. Project Results and Assessment Improved Enabling Environment for Business and Investment in Northern Panay The Northern Panay Local Project sought to strengthen the capabilities of the municipalities in Northern Aklan and Antique to install LED-enabling policies, regulatory reforms, and programs that encouraged increase in investments and business registrations, particularly in the tourism service centers and attractions in mainland Panay Island. Upon engagement of the Northern Panay LGUs with LGSP-LED, the Province of Aklan, the municipalities of Kalibo, Nabas, Ibajay and Buruanga, and all member LGUs of Northern Antique have designated their LEIPOs. In addition, LGSP-LED has sought to build up the capacities of key Provincial offices with LED-related mandates to support and provide technical assistance to their municipal counterparts. One immediate outcome of such training had been the strengthening of the LED and investment promotions offices of Aklan and Antique, giving emphasis on the roles of the Provincial LEIPOs in championing and supporting the investment promotion and business-friendliness activities of their municipal counterparts. After participating in LGSP-LED training activities and investment fairs, they are now able to plan and implement investment promotion activities on their own initiative. •

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In Antique, the designated Provincial LEIPO (concurrently the Provincial Economic Development Officer) was able to organize a training workshop for all municipal LEIPOs in the Province, with the assistance of the DILG Provincial Office, to identify their priority investment projects. In addition, the municipal LEIPOs prepared initial profiles to provide basic information for investors about their respective LGUs. Aklan has been investing in the strengthening of its Provincial Investment Promotions Office through the recruitment and designation of additional staff as well as the eventual expansion and integration of the Office with a Provincial Trade and Product Exhibit facility. In 2015, Aklan, through the Provincial Governor’s and LEIPO office, organized the Aklan Investment Forum in Kalibo to promote and seek investors for its priority projects.

To further improve the investment climate in Aklan and Antique, 2 Mayors (2M), 2 SB Members (2M), and 17 (5M, 12F) LGU treasurers, budget officers, and other staff with LED-related functions were capacitated to draft or update their Local Investments and Incentives Codes (LIIC). As a result, LIICs were formulated and updated in Buruanga, Malay, Kalibo, Libertad, Pandan, and Sebaste. Moreover, the Municipalities of Sebaste and Kalibo have adopted their LIICs, to date. The Province of Antique, Buruanga, Culasi, Malay, Nabas, Tangalan, Kalibo, and Pandan have also been able to establish their LED information portals, which is another tool to boost investment promotion.

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The LGUs of Northern Panay, with the assistance and support of DILG and LGSP-LED, have also been working to improve the business climate across the tourism circuit. At the destination level, three participating municipalities (Libertad, Sebaste, Tibiao) in Antique have taken concrete steps towards more business-friendly local environments through the adoption of automated business permit and licensing systems (Auto-BPLS) using the software and technology from the e-Governance for Municipal Development (eGov4MD). With the improvements on the business-friendliness and competitiveness of the participating LGUs, there were about 721 new business registrations in the tourism sector recorded for Malay and Kalibo (Aklan). As a result of the technical assistance provided by LGSP-LED, Aklan’s Provincial PESO Manager now has a better appreciation of workforce development planning and implementation, as well as her Office’s role in facilitating and supporting the employment and workforce development efforts of the municipal PESO Managers throughout the Province. Most recently, she led the Municipal PESO Managers of Northern Aklan in preparing, harmonizing, and packaging their LGU workforce development plans for funding through DILG’s TRABAJO program. A significant outcome was the adoption and approval of the workforce development plans under the Training to Better Access Job Opportunities (TRABAJO) Program of the DILG. These plans respond to the market needs primary of the tourism industry in Northern Panay. As may be expected, Aklan’s Provincial Tourism Office is a permanent unit, with an appointed Provincial Tourism Officer who is experienced in partnering with the private sector as well as NGAs such as DOT and DTI in supporting local tourism development initiatives. It takes the lead in tourism planning as well as in the consolidation of tourism statistics and information across the Province. However, the situation with the counterpart office in the Provincial Government of Antique is not as stable. Antique’s Provincial Tourism Officer does not have a permanent appointment. The uncertainty and instability of the situation with the Governor’s Office during the period of the Local Project further limited the Provincial Tourism Office’s effectivity in supporting the municipalities’ tourism initiatives. The following table shows the current status of the Provincial and Municipal LGUs of Northern Panay with regard to the LEDsupport structures and introducing investment-enabling policies that are among the main indicators of DILG’s businessfriendly and competitive LGUs (BFCL) program. Status of Key BFCL Programs and Policies in Northern Panay Enabling Policies Adopted LGU Business Plan for Workforce Development LEIPO Designated LIIC Adopted BPLS Computerized LED Information Portal Established

Total 13 6 2 3 8

LGU Covered All LGUs Province of Aklan, Malay, Kalibo, Nabas, Buruanga, Ibajay Kalibo and Sebaste Libertad, Sebaste, Tibiao Province of Antique, Buruanga, Culasi, Malay, Nabas, Tangalan, Kalibo, Pandan

In addition: • Both Provinces have updated Provincial Physical Development Framework Plans, while 4 out of 6 participating municipalities from Aklan (all except Nabas and Ibajay) have updated Comprehensive Land Use Plans (CLUP). In Antique, Pandan has already updated its CLUP while the remaining 4 municipalities were in the process of updating their CLUP as of March 2016. • 3 out of 6 municipalities in Northern Aklan have also updated their Comprehensive Development Plans (CDP). None of the 5 municipalities from Northern Antique have recently updated their CDPs. • Aklan and the 6 participating municipalities have CCA-DRRM action plans in place • The Provincial Government of Aklan, and the municipalities of Malay and Ibajay (in Aklan) as well as Culasi (in Antique) received DILG's Seal of Good Local Governance (SGLG) in 2015. • The Philippine Chamber of Commerce and Industry (PCCI) and the National Competitiveness Council (NCC), respectively, also recognized the Municipality of Kalibo as among the most business-friendly as well as most competitive first class municipalities in the country for 2015.

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Since the start of the project, LGSP-LED has trained a total of 187 (78M, 109F) LGU leaders and staff with LED functions to advance business-friendly policies and programs in the Northern Panay LGUs. Overall, 7 LEIPOs and 3 local chief executives (LCEs) from participating LGUs have been trained and coached on various LED-enabling areas. The breakdown of training beneficiaries from the LGUs is as follows: Status of LGU Officials and Technical Staff Trained Male LCEs 3 LEIPO and Staff 5 Tourism Officers and Staff 19 PESO Managers and Staff 5 Other LGU Staff 46 TOTAL 78

Female 0 2 26 13 68 109

Total 3 7 45 18 114 187

Broader Tourism Opportunities in the Northern Panay Tourism Circuit The Tourism Circuit Plan (TCP) for Northern Panay was formulated and provides the Provinces with an action plan for improving the competitiveness of the destinations tourism product, in line with the strategic directions of the National Tourism Development Plan (NTDP). The TCP serves as a tool of the participating LGUs to implement their local economic development projects beyond LGSP-LED. Along with the NTDP that DOT is currently updating for the next 6 years (20162022), the LGUs can use the TCP as basis for product development, investment promotion, destination marketing, and workforce development priorities for growing the initial LED initiatives in Northern Panay. Anchoring on the recommendations from the TCP, six (6) ready-to-sell tour packages for itineraries in the 2 sub-circuits of Northern Aklan and Northern Antique were developed. These tour packages are concentrated on the sites on the mainland, away from Boracay, with the goal of encouraging the dispersion of tourists and therefore expand the economic benefits of tourism from the said tourism service center. The new tour packages are targeted at more mainstream tourists in order to raise the market profile of Northern Panay, particularly the sub-circuit formed by Nabas, Malay, and Buruanga on the Aklan side, and Libertad, Pandan, and Sebaste on the Antique side. The stakeholders identified three initial target segments within the mainstream visitor market: ! The Boracay ‘In-House’ Holiday Market: foreign and domestic visitors already in or planning to holiday on the island for whom the Northern Panay excursion packages (half- or whole-day) would be offered as add-ons or alternatives to Boracay’s current island-based activities (e.g. island-hopping, banana boat rides, etc.) ! The Panay Regional Markets: residents, families, and corporate groups from the provinces of Panay Island (including Aklan and Antique) looking for excursions, day tours, or short (1-2 nights) holidays within the region ! Filipino Frequent Holiday Tourist Markets: Domestic travel groups from the mega metro communities who have developed a travel habit and frequently plan international and domestic holidays for themselves and their families.

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Packaging tourism sites in both Aklan and Antique into common tour packages or itineraries is an important step in the development of Northern Panay as a distinct tourist destination. The packages provide concrete venues for cooperation among public and, especially, private stakeholders to focus on the circuit as a whole, and not just their individual LGUs. Nevertheless, there are still some big steps that Aklan and Antique need to take so that Northern Panay, as a tourism destination, moves a little bit farther beyond the shadow of Boracay. Among the priorities are: ! !

Positioning and leveraging Caticlan not only as a gateway to Boracay, but also as the gateway FROM Boracay to the Northern Panay circuit and beyond. Strengthening inter-LGU cooperation on product development, packaging and marketing, especially among Malay, Nabas, Buruanga in Aklan and Libertad, Pandan, Sebaste in Antique

One of the sites that have been integrated into the tour packages is the Motag Living Museum, which exposes tourists to the different elements of Malaynon culture. (Photo from Motag Living Museum website)

Consider joint marketing efforts and activities by the two Provinces to highlight the attraction sites of Northern Panay, starting with the cluster of LGUs formed by Nabas, Malay, Buruanga, Libertad, Pandan, and Sebaste. These can be planned and organized together with the private sector, including Boracay Foundation, Southwest Travel Agency, and other key players.

The other key activity that the Project was not able to fully implement was on the plan to establish Negosyo Centers, in partnership with DTI, as platforms for promoting business recovery in the tourism circuit. There were accomplishments related to the organization of product enhancement and entrepreneurial skills training activities by DTI for MSMEs involved in crafts and souvenir production, particularly from communities in the Aklan side of the circuit. In addition, DTI now has a Negosyo Center for Aklan running within its Provincial Office in Kalibo. Summary of Private Sector Representatives, MSMEs, and Workers Trained Male MSMEs and Workers 18 Industry Representatives 4 Total 22

Female 42 5 47

Total 60 9 69

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Emerging Results from the Northern Panay Tourism Circuit The Project aimed to generate PHP 2B investments in tourism facilities and other infrastructure, create 890 (445M, 445F) local jobs in Northern Panay, and increase annual tourist arrivals by 10%. The following paragraphs provide a discussion of each of these outcomes. The Northern Panay Tourism Circuit was able to surpass the Local Project's target intermediate outcomes except for its target tourist arrivals - drawing investments worth at least PHP 4.7 billion pesos (more than twice the PHP 2-billion target); generating 4,568 new jobs (500% more than the target); and attracting 1,770,677 visitors (7% short of the target). It must be noted, however, that the growth of Northern Panay has remained largely dependent on Boracay's role as the dominant driver of tourist arrivals and investments. Overall, the circuit of tourism sites on the Northern Panay mainland may still be considered as part of an emerging destination area. Much of the potential for inclusive growth represented by these sites have yet to be fully achieved. However, significant investments in LED- and tourism-enabling infrastructure (e.g. rehabilitation of airports and sea ports, wind energy facility in Nabas, expanded water supply for Northern Aklan, and construction of tourism roads) from public, private, and PPP-based sources have started to come in. These developments provide reasons to be optimistic about the prospects for tourism growth in mainland Northern Panay over the next 3 years. Public investments for tourism in Aklan are estimated at PHP 719.7 million, primarily for ongoing construction to expand and upgrade Kalibo International Airport as well the Caticlan and Cagban jetty ports that connect mainland Aklan and Boracay Island. This also includes PHP65 million from the DPWH-DOT road opening from Nabas to Malay, road rehabilitation and seawalls in Malay. PHP 9.7 million from the Provincial Government to renovate the Aklan Tourism Training Center. Private investments for tourism in Aklan are estimated at PHP 4.7 billion, primarily for a 36-megawatt wind energy facility in Nabas and hotels established in Kalibo. Around PhP 4.0 billion worth of investments were also generated from the new hotels established in Boracay. These new investments resulted to an estimated 4,568 new employment for Malay. This suggests that Boracay Island continues to be the major generator of tourism employment in the TDA. The competitiveness of the Northern Panay tourism circuit continues to be anchored on Boracay Island, as it has been for more than two decades now. The challenge for the Local Project was to expand the growth beyond Boracay and include more beneficiaries from communities by making the destinations in mainland Northern Panay. Overall indicators suggest that Northern Panay is progressing in this direction. Visitor arrivals have increased by 5.94% per year, although the municipality of Malay (where Boracay is located) continues to account for the bulk of visitor arrivals during the year. Nevertheless, public investments in access infrastructure such as the upgrading of the Kalibo International Airport as well as access roads funded by the DOT-DPWH Tourism Roads Infrastructure Program (TRIP) from Kalibo and Caticlan to the key attraction sites are encouraging more tourist activity beyond Boracay Island, and along the Northern Panay circuit.

Crosscutting Themes Gender Equality Gender equality was mainstreamed in the Northern Panay local project. The Northern Panay tourism circuit plan served as guide for the implementation of the local project as it provided site-specific recommendations to improve the tourism products, infrastructures, destination brand, and quality of human resources including mainstreaming gender and development.

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Engr. Roger Esto, the Aklan PIT Manager, is both the Provincial Planning Officer and GAD Focal Person for the Provincial Government. As such, he is the prime mover for mainstreaming gender issues and concerns into the local project activities.

Malay Municipal Federation of SKA,Inc, composed of unemployed men and women of the 17 Barangays in Malay, were trained by LGSPLED and DTI in improving packaging and process in preparing their tourism products. These products including soaps, shampoo,candles and bags were sold to hotels and resorts in Boracay and Kalibo, Aklan. The photo shows the President selling the improved products in their showroom.

The Philippine Commission for Women (PCW) has recently certified Aklan as a Gender and Development (GAD) Local Learning Hub for championing male involvement in addressing violence against women (VAW) and providing services to women and children. Among the innovations made of the Province for gender and development were the establishment of violence against women center and engagement of public and private sector to end violence of men and women. Among the recommendations under the TCP was to ensure equal opportunities for men and women workers, small entrepreneurs, especially women in the food sector and souvenir crafts. The local project responded by conducting activities that prioritized women beneficiaries, particularly the customer service training for the 37 (12M, 25F) Tourism Frontliners of Northern Aklan tourism establishments and the coaching of women-led tourism MSMEs (breakfast meat processing and packaged small soap and shampoo for hotels in Kalibo and Malay, Aklan as well souvenir items such as bags, hats, etc.). On top of this, 13 approved workforce development plans of Northern Panay LGUs the DILG Training to Better Access Job Opportunities (TRABAJO) Program which also sought to train unemployed men and women starting this year following the issuance of an operational guideline. Target participants for the skills trainings were members of Indigenous People (IPs), Outof-School Youth(OSY),Person with Disability(PWD) and Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries. Skills trainings were based on the human resources requirements primarily of Boracay in the next 5 years. The project also provided equal opportunities to trainings LEIPOs and LGU staff. Seventy-eight (78) Male and 187 Female participated in trainings for tourism product development, workforce development, destination marketing and investment promotion related activities.

Environmental Sustainability The enhancement of the Tourism Circuit Plan was undertaken by mainstreaming DRR and Environmental Sustainability considerations, which resulted to a more responsive plan for improving resilience since these considerations were highlighted LGSP-LED Northern Panay Local Project Completion Report | 14

in each sub-cluster of the circuit. These also included considerations in reducing risks and ensuring that infrastructure support are adequate and disaster-resilient. As a result of the improved Tourism Circuit Plan, environmental sustainability considerations were included in promoting investments by instilling measures to ensure that the carrying capacities of ecosystems were taken into account in tourism development. In addition, the Local Investments and Incentives Codes of Northern Panay LGUs feature investments in green tourism facilities namely renewable energy, sewerage facility, and sustainable water supply, among others.

Poverty Reduction To reduce poverty in the Northern Panay tourism circuit, the value chain-based Tourism Circuit Plan offered opportunities for poor communities to be linked to the circuit through coaching on product packaging, process improvement, and market expansion strategies for MSMEs. In partnership with the Department of Trade and Industry, selected MSMEs along the tourism circuit were coached on product packaging, process improvement and market expansion strategies of breakfast meat products, breads and pastries, soap, shampoo, candles as well as souvenir products. Most of these products were marketed in Boracay hotels and resorts as well as in Kalibo. Aside from training and coaching of MSMEs, the Workforce Development Plans of the LGUs approved by DILG under the TRABAJO Program target unemployed Indigenous Peoples, Person with Disabilities, Out-of-School Youth and 4Ps beneficiaries as participants of skills training. The identified skills trainings, which were mostly non-traditional were based on the human resource requirements primarily of Boracay in the next five years.

A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single city or municipality. Thus, the TCP emphasized how interdependent the member cities and municipalities are with each other. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. This is also true for Mayors at the city and municipal level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. In Aklan, Governor Miraflores has strongly supported the Provincial Local Economic Development team in moving the Provinceâ&#x20AC;&#x2122;s LED agenda. The Provincial Government has an ideal mix of dynamic and innovative members, including the LEIPO, Tourism Officer, and PESO Manager, who effectively work together to implement the activities and engage other LGSP-LED Northern Panay Local Project Completion Report | 15

stakeholders. The Provincial Planning and Development Coordinator, as manager of the Project Implementation Team, did not only provide strategic guidance to the team, but also gave it a direct communication link to the Governor. The dedication of the LEIPO to attend to the day-to-day concerns of the local project has also been a particularly significant factor in the achievement of results. Conversely, the uncertainty surrounding the Governor’s Office, was the most significant constraint on the effectiveness of Antique’s Provincial LED Team. At various times during the Local Project, the professional LED staff (e.g. Provincial Planning Officer, Provincial Tourism Officer, Provincial LEIPO, and PESO officer) literally could not make decisions related to the Project or respond to invitations to participate in LGSP-LED activities because they were uncertain about securing official approval for their proposed activities. Another consequence of Antique’s leadership crisis was that the manager of the Project Implementation Team of the Local Project changed multiple times, from proposal to implementation and closing. This led, in turn, to less effective coordination among the various Provincial Government units as well as with the counterpart actors in the LIPASECU-TI cluster. The LCEs must also be oriented on the specific activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing. More than the financial incentives for the Seal of Good Local Governance provided by the DILG and for business friendliness by PCCI and NCC, the recognition of passing the seal and being business-friendly was the stronger motivation of LGUs. Those who have received these awards have already highlighted this recognition in promoting their LGU to prospective investors. 4.

LGU LED Team members must be trained and qualified to become advocates for business-friendliness and inclusive LED within the LGUs. Well-qualified, trained, and motivated LEIPOs, LGU tourism officers, and PESO managers were key factors in driving their respective LGUs to complete the formulation or planning of business-friendly LGU policies and programs. The adoption and implementation of these policies, plans, and programs will also be dependent on these officers, as well as other LGU staff with LED-related mandates. The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGU’s program for business-friendliness and LED competitiveness. Recognizing the need for new investment attraction, the Provinces of Aklan and Antique spearheaded the development of an action plans on business friendliness. These action plan were translated into (1) establishment of LED information system for planning and decision making of on what programs and policies to develop and (2) formulation and adoption of important LED enabling policies and programs including: Local Investments and Incentives Code (LIIC), Business Permit and Licensing System (BPLS) and Workforce Development Plans. Yet, key LGU offices with LED-related mandates such as LEIPO, Tourism Office, and PESO are still interim appointments with temporary offices and working budgets. These LED officers are more effective, and work better with each other, when they are confident in their mandates, their capabilities, and the support that they receive from their respective LGUs. Thus, agents for economic and tourism development within the LGUs such as LEIPOs, Tourism Officers, and PESO managers must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. They must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. Strong Provincial LEIPO, Tourism, PESO, and Planning Offices are necessary to provide technical support and mentoring to their municipal counterparts, who may not have the same resources, experience, and institutional connections to NGAs and national or regional industry. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit. LGSP-LED Northern Panay Local Project Completion Report | 16

DILG’s can effectively enable LGUs to become more business-friendly. The DILG Provincial Offices, particularly the respective LED Focal Persons, were critical in monitoring and ensuring that their client-LGUs be able to develop and ultimately adopt the business-friendly policies, plans and programs needed in their respective localities. Through the DILG Regional Office, and with the technical assistance from the Local Government Academy, DILG Central Office, and LGSP-LED, they took the lead in ensuring that their respective LGUs were awared, focused, and on track with the Department’s Business-Friendly and Competitive LGUs road map. DILG also played a key role in facilitating convergence on workforce development for LGUs. The workforce development plans developed for LGUs served as good starting point for the convergence of technical expertise and resources of DOLE, TESDA and DOT.

6. Engaging the private sector in planning and implementing the LED Program Building can lead to a more businessfriendly, entrepreneurial mindset within the LGUs LGUs should understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. The LEIPOs must engage local proponents through the local business chamber in order to be ready with the investment information, identify the priority projects, and match them effectively with investors. And, PESO Managers cannot implement effective job-training and employment matching programs without partnering with the local employer sector to determine their anticipated workforce needs. The involvement of the Boracay Tripartite Council in the workforce development planning became more productive as they advised what would be the workforce demand particularly of Boracay in the next 5 years. This also fostered early buy-in commitment from the private sector to employ a certain percentage of the unemployed residents that would be trained. On the other hand, the Partnership with Southwest Travel Agency was seen as a good opportunity to promote the tour packages developed. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis a vis the local industry’s efforts to become more competitive and inclusive. 7.

Coordinating the development of tourism circuits across multiple LGUs is challenging. In hindsight, the Program’s strategic decision to work with two relatively autonomous sub-Project implementation teams from Aklan and Antique then seek to integrate the two workplans into one common agenda does not appear to have been the best option. The Project thus had relatively limited success with regard to operationalizing the Northern Panay TDA as each Province tended to have their own priorities. Aklan’s interest extended to Kalibo and the neighboring municipalities east of Boracay. Similarly, Antique’s priorities flowed westward to Tibiao and down to the San Jose. Thus, their attention may have been drawn, unconsciously, away from the intersection of interests from Nabas-Malay-Buruanga to Libertad-Pandan-Sebaste. Integrating the two Province’s LED interests around a workplan focused on this cluster of tourism sites might have been a more effective destination-focused approach to implementation. This might have focused their immediate attention and effort joint product development, and destination marketing as common, rather than separate, concerns. In turn, this would probably have led to earlier progress on tour packaging and other outputs that might, more quickly, catalyze stakeholder (e.g. private sector, NGAs, etc.) awareness and engagement around the Northern Panay destination area. On a related matter, the convergence of NGA support for development of the Northern Panay tourism circuit may also have been influenced by the circuit’s location. With the Tourism Circuit Plan as a start-off point, the team in Aklan was able to partner with DOT, DTI, DOLE and TESDA in the implementation of activities that would lead to the tourism industry's improved competitiveness. Much of the credit for accessing these convergence activities should be given to the Provincial LEIPO, Tourism Officer, and PESO Manager. However, it may also be said that the convenient location of the NGA field offices in relation to both the provincial offices as well as the project site was an advantage. This partly explains why more training beneficiaries of DTI training, for example, were from LGUs closer to Kalibo. In contrast, the NGA’s provincial offices in Antique are relatively distant from the project cluster. This might partly explain the less effective engagement of NGA field offices in the Northern Antique project activities. LGSP-LED Northern Panay Local Project Completion Report | 17

VII.

Conclusions and Recommendations

In summary, the Provinces of Aklan and Antique, as well as the participating LGUs, have taken significant steps in becoming more business-friendly. The Seal of Good Local Governance for the Province of Aklan, Municipalities of Malay and Ibajay and the rewards on business friendliness and competitiveness for Kalibo indicate their advancement. Upon engagement of the Northern Panay LGUs with LGSP-LED, the Province of Aklan, the municipalities of Kalibo, Nabas, Ibajay and Buruanga, and all member LGUs of Northern Antique have designated their LEIPOs. In addition, LED and investment promotions offices of Aklan and Antique have been strengthened, especially with regard to the roles of the Provincial LEIPOs in championing and supporting the investment promotion and business-friendliness activities of their municipal counterparts. After participating in LGSP-LED training activities and investment fairs, they are now able to plan and implement investment promotion activities on their own initiative. At the destination level, Libertad, Sebaste, and Tibiao in Antique have taken concrete steps towards more business-friendly local environments through the adoption of automated business permit and licensing systems (e-BPLS). Another result was the adoption and approval of the workforce development plans under the TRABAJO Program of the DILG. However, the work is far from complete. Tourism development is still highly concentrated on Boracay Island and the Northern Panay tourism circuit has not yet been fully operationalized. Thus, there are many remaining opportunities not just to sustain but also to extend the gains of the Local Project beyond LGSP-LED, for the benefit of more communities in Aklan and Antique. The key lesson learned from the Local Project is that the main role and responsibility of local government in advancing LED is to enable sustainable and inclusive local economic development to grow. It does this primarily by providing a local policy and public service environment that facilitates the efficient, effective, and ultimately profitable operations of local enterprises. Another role for local governments is to support the growth and integrated development of its tourism enterprises (micro to large) as one competitive value chain operating across the circuit. In this role, the LGU continues to play an enabling position in functions such as business investment, product development, and workforce development where the private sector and other non-government players are more capable. However, the LGU can take a stronger leadership role in functions such as destination marketing and public infrastructure investments where the local private sector does not have the resources and/or interest in taking the lead. Thus, the main LED priorities for the LGUs remain: 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more business-friendly environments for sustainable and inclusive economic development, and 2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry.

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These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature.

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3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and sociallyprotective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be the following: •

•

Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention.

•

The GAD Focal Person of Antique should convene the GAD Focal Persons of the member LGUs of Northern Antique and conduct a series of trainings on GAD and related laws including planning and mainstreaming of gender. In this way, the GAD Focal Persons can also train the employees of the tourism establishments on GAD awareness and education. The Provincial Government of Aklan, which has been certified as a GAD Local Learning Hub by PCW, could support this initiative by hosting learning visits and peer interactions with their counterparts from Antique.

•

Building and infrastructure development should strictly conform to the existing Building Code, Environmental Policies and CCA-DRR plans. The city’s zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks.

•

Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant.

•

LGUs and LED actors should also be more equipped with skills and tools in disaster risk reduction management.

Priority should be given to product development and investment promotion action plans for the NabasMalay-Buruanga to Libertad-Pandan-Sebaste cluster or sub-circuit. Thus, the implementation strategy to be proposed to the LGUs, private sector, and partner NGAs would radiate outward from Boracay and the subcircuit to the outer tourism sites of the TDA.

•

The Provincial Governments and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 2016-2022.

•

Include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit identified in the PPFDP. In particular, environmental protection standards and risk reduction and mitigation measures should be strictly integrated into proposed developments for sites on Boracay Island and the Northwest Panay Peninsula where LGUs and LED actors should also be more equipped with skills and tools in disaster risk reduction management.

•

Given the strategic importance of Boracay and Caticlan to Northern Panay as a whole, it may be advisable that the Provincial Government of Aklan be the lead institution in the undertaking. While the Provincial Government of Antique, and especially the LIPASECU municipalities, should be partners in this undertaking, the larger tourism roles and responsibilities – in the short- to medium-term – are likely to belong to Aklan.

•

The Governor should be the chair of the LED Team, providing overall policy direction, strategic advise and leadership to the team.

•

The core LED Team should include members from the Provincial Government’s economic officers (the LEIPO, the Provincial Tourism Officer, the PESO Manager, and the Planning Officer) and the partner institutions from the private sector.

•

The DILG Provincial Director and the LED Focal Person should also be invited to the LED Team, as well as other NGA Provincial Offices, such as DTI, DOLE, DSWD, DENR, etc. with programs critical to the LED Agenda of the Province, and the tourism circuit. However, the NGAs should officially designate their permanent and alternate members to the LED Team, with preference for the focal persons/action officers with direct involvement in key LED-related programs such as DTI Negosyo Center, DOST SET-UP, DSWD Sustainable Livelihoods Program, etc.

•

The Provincial LED Team together with the DILG Provincial Office should organize and provide technical assistance to a similarly composed counterpart team from among the LED officers, NGA action officers, and private sector stakeholders of the cities/municipalities in the tourism circuit.

To leverage the continued market growth of Boracay towards more inclusive development in the TDA, Aklan and Antique should build on the incremental steps taken in developing the Northern Panay tourism circuit. In this regard, the main recommendations for LGUs to enable a more competitive and sustainable tourism sector in Northern Panay are: 1. Establish a Public-Private Team within the LED Team to focus on ensuring the funding and implementation of priority LED-enabling infrastructure projects identified in the TCP, as well as on organizing investment promotion events and activities to seek investors for priority investments to address competitiveness gaps in the tourism circuit (e.g. hotels and resorts, tourist transport, tourism estates, etc.) ! The Provincial LEIPOs, in partnership with their Local Chambers, may organize regular (quarterly or twice a year) meetings with the counterpart LEIPOs and chambers from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities ! Investment promotion priorities should include more efforts to encourage sustainable hotel development to mainland Northern Panay, particularly the Malay-Nabas-Buruanga to Libertad-Pandan-Sebaste cluster at its tip. Another priority should be to encourage/support investments in better quality, lower-carbon solutions to tourist transport around Northern Panay, extending from Kalibo to Northern Antique. LGSP-LED Northern Panay Local Project Completion Report | 20

! While the major infrastructure requirements of the tourism circuit have been put in place, the LGUs should also be able to develop proposals or investment briefs for the local infrastructure requirements of the priority attraction sites. Environmental protection standards and risk reduction and mitigation measures should be strictly integrated into proposed developments for sites on Boracay Island and the Northwest Panay Peninsula. 2. Through the Provincial Tourism Office, and in partnership with the private sector, they should design and implement a destination marketing and promotions program for the Province and the tourism circuit in particular. !

An immediate activity should be the development and implementation of a cooperative marketing and visitor information service program between Aklan and Antique Provincial Tourism Offices via Caticlan Airport and Jetty Port. This could involve: "

Addition of Antique Visitor Information Desk in the Caticlan Jetty Port and/or Airport terminals to provide brochures, flyers, as well as guest assistance services for visitors and guests of Northern Panay sites. Alternatively, Antique may consider some form of outsourcing partnership with Aklan for the Aklan Tourism Office to also carry the Antique tourism sites and products, in exchange for some counterpart contribution.

Inclusion of Northern Antique photos in a rotating gallery inside the Caticlan passenger terminals, of travel pictures or posters about tourist attractions and activities in Northern Panay.

Conduct of joint sales missions or trade exhibitions (e.g. Philippine Travel Mart) where partner tour operators and sellers will be carrying Northern Panay tour packages, as well as tourism products from specific sites within Northern Panay. Similarly, Aklan and Antique may jointly organize familiarization trips for tour operators and travel media to sample the new tour packages and itineraries for the TDA

Publicity and public relations campaign to educate travel media and travel trade partners to use “Northern Panay” more frequently, when referring to visitor activities beyond Boracay.

3. Through the Provincial Public Employment Service Office (PESO) and working within the LED Team, should implement the LGU Tourism Workforce Development Plan for the Tourism Circuit through DILG’s TRABAJO program and coordinate with funding windows from other agencies such as DSWD, DOLE, etc. This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGUemployer association programs to match qualified trainees with employment opportunities in local tourism establishments.

•

Skills training on disaster response and business recovery can be provided for LGU personnel, tourism enterprise owners, and tourism front-liners.

The PESOs and DILG should closely monitor the implementation of the workforce development plans and ensure that the poorest of the poor will be trained and matched for employment. At the same time, GAD Focal Persons of both provinces should also ensure that there would be equal opportunities for both men and women as they implement their workforce development plans.

Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. !

Full launch and operationalization of the new Northern Panay tour packages developed with technical assistance from LGSP-LED. The LGUs can strongly consider entering into agreements – similar to sales agency arrangements – with Southwest Travel Agency and similarly capable travel trade partners. Southwest Travel, which has an office in Kalibo, is the biggest tour handler in the region and the only operator with its own fleet of tourist coaches and vans. This, together with their network of national and international trade connections, makes them an ideal partner in encouraging more visits to Northern Antique, reliable, land-based tourist transport LGSP-LED Northern Panay Local Project Completion Report | 21

has been especially problematic. Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. Seek support from for the establishment of a Negosyo Center, in Malay, Aklan, which can be the base for delivering MSME support and business advisory services to small entrepreneurs in Northern Panay, especially in the cluster of communities immediately across from Boracay. " "

In addition, development partners and NGOs may be tapped for technical assistance to MSMEs and community-based livelihood groups to design and produce high quality souvenirs and tourist merchandise. The LGUs should also continue working closely with DTI and DOT to provide assistance to MSMEs, especially those in poor communities, so that their enterprises can be integrated into the larger tourism value chain

LGSP-LED Northern Panay Local Project Completion Report | 22

Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

CUMULATIVE

INTERMEDIATE OUTCOMES

(MARCH 2016)

New Investments

Description

Value (PHP)

4.73B

Private Tourism Investments

Hotel and recreation activities at Pook Tourism Center (Kalibo, Aklan) Cold storage facility (Malay, Aklan)

7.5M

Public Investments

New hotels in Kalibo, Aklan

4B 332.3M Wind Farm in Nabas,Aklan

0 Employment (New)

265

Access roads to attraction sites; Upgrade Kalibo-Pandan roads 890

4568

Male

445

n/a

Female

445

n/a

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

10%

5.94%

1,577,689

1,901,544

1,770,677

Enabling Policies Adopted

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated LIIC Adopted Business recovery center implemented

12 3 0

1 7 2

6 2 0

BPLS Computerized

LED Information Portal Established

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened Tourism Code formulated/updated

LGU Tourism Statistics Action Plan Formulated

LGSP-LED Northern Panay Local Project Completion Report | 23

OUTPUTS LED Initiatives Planned

LED Actors Trained

295

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

290

Industry Representatives

LGSP-LED Northern Panay Local Project Completion Report | 24

LGSP-LED Cebu Local Project Completion Report | 1

I. Local Government Profile Northern Cebu Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

2,619,362 534,200 hectares 9 44 Cebu City 1st Bogo City, Bantayan, Daanbantayan, Madridejos, Medellin, San Remigio, and Santa Fe Manufacturing; Information Technology and Business Processing Outsourcing; Tourism

Cebu is an elongated island province, stretching some 250 kilometers from North to South, and 45 kilometers across at its widest point. Located in Central Visayas, Cebu is the economic center for Region VII and the entire Visayas. It is composed of 3 highly urbanized cities, 6 component cities, and 44 municipalities with 8 congressional districts. There are 167 neighboring smaller islands, which include Mactan, Camotes, Bantayan, Olango, Malapascua, Sumilon, and Pescador. Narrow coastlines and limestone plateaus characterize the province. There are also coastal plains with predominant rolling hills and rugged mountain ranges traversing the northern and southern lengths of the island. While there are steep mountains that extend more than 1,000 meters above sea level, the island lacks substantial forest cover. The northern tip has considerable tracts of land i.e., Bogo, San Remigio, Medellin, and Daanbantayan. Cebu is the seat of Catholicism in the Philippines and, thus, majority of the population are Roman Catholics while nearly every other religion is freely practiced. Spanish-era churches are spread out over the entire province. Cebu is rich with cultural festivities and traditions. Among the popular ones are the: Sinulog Festival, Silo Festival of Alcoy, Mantawi of Mandaue City, Kadaugan sa Mactan, Palawod Festival of Bantayan, Haladaya Festival of Daanbantayan. The sheltered deep-water harbor has made Cebu the base for most of the country's domestic and international shipping and the gateway to the central and southern Philippines. The modern Mactan international airport is a major international gateway with direct flights to many countries. Cebu's modern communications links utilize satellites, cellular telephone networks, and routine land based telephone services. High quality broadband links and IDD services are available and compatible with systems worldwide. In 2012, the poverty incidence in Cebu is at 22.45%, according to the Philippine Statistics Authority, which is lower than the national average of 27.9%.1 The Human Development Index for 2009, which attempts to measure the complete concept of human development by tracking the progress of three selected aspects of human life, is recorded at 0.582, lower than the national HDI of 0.633.2 When Super Typhoon Yolanda hit 16 municipalities of Cebu Province on November 2013, the Provincial Government crafted a Framework on Rehabilitation, Recovery and Development Plan with the objective of having safe, adaptive and resilient communities towards sustainable development.

Local Economy Cebu is the center of economic activities in the Visayas and is one of the fastest growing economies in the Philippines. It is also the second largest central urban economic center in the country and the base to over 80% of inter-island shipping capacity in the Philippines. The principal elements of Cebu's growth are manufacturing, information technology (IT and Business Processing Outsourcing), and tourism. It has been successful in producing goods for both domestic and export markets such as watches, semiconductors, cameras, electrical equipment, furniture, and home decors. Other key industries are construction, real estate and property development, wholesale and retail trade, education services, transport, and logistics. Philippine Statistics Authority. (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority. Philippine Statistics Authority. (2016). Cebu Quickstat - February 2016. Quezon City. Retrieved from https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Cebu_29.xls LGSP-LED Cebu Local Project Completion Report | 2

1 2

Global advisory firm, Tholons, ranked Cebu as 8th among the top 100 outsourcing destinations in the world. This has been their ranking for three straight years from 2013 to 2015. In the tourism sector, Conde Nast Traveler Choice ranked Cebu as the third Best Island in Asia in 2013 and the 19th Best Island in the World in 2015. Other recognitions and awards have also been received. Visitor arrivals in Cebu have been growing at double-digit rates.

LGUs Covered in the Project The Northern Cebu Tourism Development Area includes 4 LGUs in the northernmost portion of Cebu Island (Bogo City and the municipalities of San Remigio, Medellin, and Daanbantayan) and the 3 municipalities which cover the Bantayan Island group plus Guintacan Island. Bogo City and San Remigio are located 103.5 and 109 kilometers north of Cebu City, respectively. Bantayan is the largest island of the Bantayan island group which also includes many other smaller islands and islets. Bantayan is administratively divided into 3 municipalities: Madridejos covering the northern portion, Bantayan in the central portion, and Santa Fe in the eastern portion closest to San Remigio and Cebu Island. LGU Province Bantayan Bogo City Daanbantayan Madridejos Medellin San Remigio Santa Fe

Income Class 1st 1st 6th 1st 4th 2nd 3rd 4th

Population 2,619,362 74,785 69,911 74,897 34,905 50,047 51,394 27,270

Land Area (hectares) 534,200 8,168 10,352 9,227 2,395 7,319 9,527 2,805

No. of Barangays 1,203 25 29 20 14 19 27 10

Agriculture, fishing, and tourism are the main industries of Northern Cebu. The main agricultural crops of the area are sugarcane (particularly for Medellin and Bogo City), coconut (San Remigio and Bogo), and corn (Daanbantayan, Bantayan, Santa Fe, and Madridejos). The Bantayan Islands are considered as Cebu’s major fishing grounds which produce salted (guinamos) and dried (buwad) fish for consumption in Cebu and nearby Negros Island, as well as for export to Manila, Mindanao, and beyond. In recent years, Bantayan Island has become a major center of poultry raising in the Philippines. More than half a million chicken eggs are gathered daily for export to Manila, Mindanao and many towns and cities of the Visayas. Tourism has become an important industry in the area as well. Bantayan Island started as a popular weekend excursion destination for residents and tourists of Metro Cebu, while Daanbantayan’s Malapascua Island began to gain national and international recognition of one of the top diving sites in the country.

Impacts of Yolanda Northern Cebu was among the areas most severely affected by Supertyphoon Yolanda on November 8, 2013. The typhoon made landfall 6 times as made its way across the Philippines. Two of the 6 points of contact were in Northern Cebu: first, at 10 AM in Daanbantayan, then Bantayan Island 40 minutes earlier. All municipalities of Northern Cebu were totally isolated, with no power and all modes of communication – radio, mobile and landline phones, Internet – cut off. Roads to and within Northern Cebu were impassable to vehicles due to flooding and debris, with Bantayan Island unreachable because of big waves. The Provincial Government’s rapid assessment of damage in the 7 Northern Cebu LGUs as of November 21, 2013 (2 weeks after the typhoon), reported over 128 thousand families affected by the typhoon. Almost 62,000 houses were damaged, 60% of which were considered to be totally damaged. Estimated damage to livestock in the 7 LGUs was placed at PhP 544 million, while damage to crops was estimated to be at least PhP 163.6 million in San Remigio and Daanbantayan only.3

II.

The Tourism Circuit

3 Actual totals should be much higher as the Provincial Government was not yet able to gather data on houses damaged from the municipalities of Bantayan and Daanbantayan, as well as information on crop damage from Bantayan, Sta. Fe, Madridejos, Medellin, and Bogo City.

LGSP-LED Cebu Local Project Completion Report | 3

The Department of Tourism, in its 2011-2016 Philippines National Tourism Development Plan, set out a number of tourism development areas (TDAs) across the country. The idea is that these are the priority tourism areas that have development potential and where much of the DOT’s resources will be focused. Northern Cebu is one of 77 TDAs across the Philippines. LGSP-LED has taken the tourism circuit development approach as a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, it assists the LGUs in working with enterprises by enhancing visitor experience by developing more competitive tourism activities, goods, excursions, and facilities to increase visitors' length of stay and expenditure.

Tourism Access and Infrastructure The Mactan International Airport in Mactan Island, Cebu is the major air gateway of the Visayas, servicing numerous domestic and international flights per day. Domestic flights connect Cebu to Manila and other major cities of the Philippines. International flights connect Cebu to Japan, Hong Kong, South Korea, Thailand, Singapore, Malaysia and Papua New Guinea. From Cebu City, the northern parts of the island including San Remigio, City of Bogo, and Daanbantayan can be reached by bus from the North Bus Terminal in Mandaue City or Mactan Cebu International Airport. From Metro Cebu, the trip (bus or car) will take approximately 3 hours to Daanbantayan, San Remigio, or Bogo City. From Daanbantayan, tourists can cross to Malapascua Island from the Maya Public Port or Abucay Private Port using motorized bangkas, which then dock at the open beachfront of Malapascua Island. San Remigio’s Hagnaya Port, on the other hand, is takeoff point for ferryboats to Santa Fe port on Bantayan Island. The City of Bogo’s Polambato Roll-On/Roll-Off (RORO) Port is the primary sea gateway that connects Northern Cebu to Leyte (Region 8), Negros Occidental and Iloilo (Region 6), Masbate (Region 5), Cebu City, and Manila. All of the towns, except for the island of Malapascua, are serviced by electric cooperatives. The Cebu Electric Cooperative (CEBECO) 2 services San Remigio, City of Bogo, Medellin, and Daanbantayan. The Bantayan Electric Cooperative (BANELCO) services Santa Fe, Bantayan, and Madridejos in Bantayan Island. Malapascua Island has a private generator. Water sources vary in all towns. In many cases, there is a point source (e.g. well, spring) or common faucet that serves as a communal water outlet without a distribution system. There are also areas with individual house connections. Other towns such as Bantayan, Madridejos, and Malapascua have rain water catchment systems.

Tourism Service Center The City of Bogo serves as the service center of the Northern Cebu tourism circuits. It is an economic hub that local businesses in Daanbantayan, Medellin, San Remigio, Bantayan Island and Malapascua Island depend on for logistics, banking, and other economic services. Across Northern Cebu, there are almost 100 accommodation establishments, with a total of almost 1000 rooms. Santa Fe and Bogo City have about half of the total rooms and establishment and Daanbantayan (including Malapascua Island) has about 15% of that total. The rest of the establishments and rooms are spread across the other four LGUs.

Major Attraction Sites Northern Cebu has a growing tourism industry and is known for its sun, beach and diving attractions. Bantayan Island and Malapascua Island (in the municipality of Daanbantayan) are most popular destinations in Northern Cebu. A product-market analysis of the destination conducted as part of the Tourism Circuit Planning activity of LGSP-LED determined that the Northern Cebu tourism sites may be clustered into 3 tourism sub-circuits according to their accessibility to and from each other: 1) City of Bogo-San Remigio-Medellin located on mainland of Cebu 2) Bantayan Island (Santa Fe, Bantayan and Madridejos), and 3) Daanbantayan and Malapascua Island. The larger Bantayan Island is actually shared by three municipalities. Santa Fe is a weekend destination for local and foreign tourists and the gateway to the entire Bantayan Island. It offers fine white sand and beaches with a variety of accommodations and restaurants. Aside from the white sandbar, which is visible from a variety of locations during low tide, the Ogtong Cave Resort has a freshwater cave that can be explored. The municipality of Bantayan, on the other hand, is rich in culture and heritage with several ancestral houses, an old church. It is considered the “Lenten Capital” of the Visayas. There are at least 8 marine sanctuaries and reserves in the area. Finally, Madridejos focuses on educational tourism, attracting LGSP-LED Cebu Local Project Completion Report | 4

students from all over the island to learn about marine and poultry processing. It also holds a “Fish Festival” every December that would attract around 10,000 people. The much smaller Malapascua Island across from the municipality of Daanbantayan is more popular with the scuba diving segments. The key draw is that divers can experience an almost guaranteed, and eco-friendly sighting of thresher sharks and sea snakes. On the mainland, San Remigio has a combination of nature, beach, wellness, and conferences and events destinations. It has the longest shoreline in Cebu Province, 8 Marine Sanctuaries and is the home to the century-old San Juan Nepomuceno Church. The City of Bogo, aside from being the business hub of Northern Cebu has sacred churches and shrines such as Our Lady of Remedies Church, San Vicente Ferrer Church and Our Lady of Miraculous Medal Shrine. Medellin is the destination for eco-tourism adventure and golfing. It contains the Queen’s Island Golf Course and is located near a number of famous nearby islets, i.e. FUNtastic (Gibitngil) Island. Medellin also has several caves, mangrove forests and a river that can be explored.

Market Trends and Opportunities Based on visitor arrivals data from 2011 to 2013, the Northern Cebu LGUs had an erratic trend of percentage contribution to the entire Cebu Province. The visitor arrivals’ percentage contribution of Northern Cebu LGUs to the Cebu Province started at 1.19% in 2011. It dipped to 0.90% in 2012 then went up again in 2013 at 3.24%. Many of the domestic visitors are students and young professionals. Bantayan receives students for educational tourism on poultry and marine industry and caters to around 75 to 200 educational tours from neighboring provinces per year - a source of tourism income when properly planned. Students also visit on summer field trips typically stay in resorts in Santa Fe. Madridejos also focuses on educational tourism and attracting students from all over the island. Medellin caters mostly to international tourists, i.e. Koreans, since the Golf Resort is managed by a Korean . Daanbantayan has mostly international divers frequenting Malapascua Island due to the almost guaranteed sighting of thresher sharks and sea snakes, as well as ship and aircraft wrecks, and underwater cave exploration.

LGSP-LED Cebu Local Project Completion Report | 5

III.

Challenges to Local Economic Development

As a response to the impact of Super Typhoon Yolanda on 16 municipalities of Cebu Province on November 2013, LGSPLED has sought to assist seven (7) LGUs that were among the worst hit by the typhoon. The strategy focuses on rehabilitation, recovery, and development in these areas - Bantayan, City of Bogo, Daanbantayan, Madridejos, Medellin, San Remigio, and Santa Fe - by improving the LGUs' capacity to drive economic growth through tourism development.

Need to Improve the Business Climate for Investments Local Economic and Investment Promotions Office (LEIPO) is present for Bogo City as well as streamlined/ computerized Business Permit and Licensing System (BPLS). Workforce Development and Employment Programs have been conducted in San Remigio, Bogo City, Medellin, and Daanbantayan. Most LGUs do not have full-fledged tourism offices and officers as part of the organizational structure. There is a big data gap in the tourism circuit; most LGUs are not yet implementing the tourism statistics system. Tourism activities of LGUs are not in alignment with the National Tourism Development Plan due to the absence of concrete Municipal Tourism Development Plans. Northern Cebu tourism circuit has a lack of ordinances on solid waste management and pollution control and investment promotions plans. Enforcement of business permit and accreditation system is weak and cost of doing business/investing is high. No target LGUs has Local Climate Change Action Plan (LCCAP) and updated CLUPs. Some have Annual Work Plans (AWP), in lieu of DRRM Plan, which is not based on actual risk assessment. The Disaster Risk Reduction Management Office (DRRMO) at the local level is institutionalized but not fully operational. Some LGUs are not prepared with baseline data and lack data on all forms of risks and hazards. Hazard maps are limited or not updated DRRMOs, disaster responders and volunteers have not received adequate training. The area is quite vulnerable to disasters. All the coastal barangays are vulnerable to sea water levels rising and some member LGUs experience flooding during torrential rains. Most roads in the tourism circuit are susceptible to flooding during extreme weather events. Some tourism establishments are also not prepared since they have not conducted DRRM initiatives. Charcoal making is also a common livelihood and this contributes to the dwindling number of trees in the area. There has been a general increase in extreme weather events, saltwater intrusion, flooding, and temperature fluctuations that have led to noticeable changes in rainfall patterns. Many tourism sites are vulnerable to hazards caused by disasters. All the coastal barangays are vulnerable to the sea water levels rising and some member LGUs experience flooding during torrential rains. In fact, all roads in the tourism circuit are susceptible to flooding during extreme weather events. Both Malapascua and Bantayan Islandsâ&#x20AC;&#x2122; tourist facilities have also become vulnerable with a minimal (0.05 meter) sea level rise. The entire Bantayan Island has been declared a protected area under the Bantayan Integrated Wilderness Area Presidential Proclamation 2151. The DENR is preparing for the amendment of this proclamation to identify multiple use zones that will promote investments and economic development in Bantayan Island. This will also determine the natural habitats such as mangroves, water sources, flora, fauna and nesting sites that will be subject to environmental protection and sustainability. The result of this will be a major input for the updating of CLUPs of the 3 covered municipalities i.e. Bantayan, Madridejos and Santa Fe. Carrying capacity for the various sites should also be defined for environmental sustainability, especially in marine sanctuaries and other sensitive areas. In Malapascua, illegal fishing is an issue. The other areas that need to be looked into are the database establishment on tourism statistics, investments and workforce status. The tourism office reported receiving a total of 128,364 visitor arrivals for 2013 from the Northern Cebu LGSP-LED covered areas. In the previous years i.e. 2011 and 2012, there were no data available for some areas while minimal number were reported for others. There is currently no reliable system for measuring tourist arrivals and the make-up of tourists to the area. According to what poor records that do exist, visitor arrivals to Northern Cebu in 2011 represented 1.2% of all visitors to Cebu Province. Daanbantayan (which includes Malapascua Island) recorded just over 2,000 visitors in 2011, a number that is known to be underrepresented. There is also no accurate system for distinguishing domestic and international tourists. The limited data also suggests that visitors typically stay from 1 to 3 days. LGSP-LED Cebu Local Project Completion Report | 6

Poverty indicators not tracked in LGU Development Plans and national government agencies projects to address poverty alleviation lack sustainability plans. There is a lack of collaboration among organizations against child trafficking. Women are not organized and not well represented in the Tourism Council. Marketing strategies have been observed that objectify women and there is inadequate women’s participation on non-traditional skills training. Gender awareness is needed among tour guides.

Gaps in the Tourism Circuit and Limited Potentials for Growth The major competitiveness concerns affecting the Northern Cebu sub-circuits are: 1) seasonal visitor arrivals, 2) short length of stay, 3) low visitor spending and 4) weak enabling environment for tourism investment. As a diving destination, all of the sites except for Malapascua Island are affected by the first 3 concerns. These factors have affected the increase in visitor arrivals and the needed investments on infrastructure and tourism facilities, which in turn relate to job generation.

Poor Access and Limited Infrastructure Gateways and access points into the TDA need to be improved. Seaports in the circuit need to be rehabilitated since they are substandard in terms of facilities, safety, regular schedules, etc. In Malapascua, there is no available port. The bus terminals are also of poor quality and the overall public transportation system and vehicles do not provide a pleasant and comfortable experience. The circumferential road in Malapascua Island and the access roads leading to most of San Remigio resorts need to be upgraded. The power supply in island destinations i.e. Bantayan and Malapascua is limited. Regular brownouts are experienced and the entire Malapascua Island runs on private generator. Freshwater or potable water supply is lacking especially in the islands. The mobile phone and Internet connection supplied by major service providers are intermittent in some areas. Solid waste management practices and sewage facilities among the tourist attraction sites are poor.

Low Supply and Rehabilitation Needs of Accommodations The impacts of Yolanda can still be seen in Northern Cebu, where some of the resorts in Santa Fe have not been repaired since Yolanda. Accommodations are insufficient, quite basic, not well serviced, and offer a poor level of hospitality. There is also a need for accommodations in mainland Daanbantayan, where tourists are sometimes stranded on their way to Malapascua due to bad weather conditions. Another concern is that a number of accommodation establishments in the circuit have not been accredited yet by the Department of Tourism (DOT). Similarly, not all establishments divulge the number of employees or average occupancy per month due to taxation issues.

Improvements Needed for Tourist Attraction Sites and Products Northern Cebu has a range of highly attractive tourism resources that were affected by Typhoon Yolanda. Some of the resorts and historic churches were badly damaged as well as mangrove gardens forests were destroyed. While the tourism circuit destinations have abundant attraction sites, these sites needed improvements in order to provide better visitor experience. Most of the attraction sites in the circuit lack basic visitor facilities such as information centers, directional signage, rest areas, toilets, and safety equipment (i.e., life jackets on boats). More tourist activities should be developed to increase visitors’ length of stay.

Weak Tourism Workforce Development The local labor force is largely unskilled (e.g. frontline services, tour guiding, customer service) and more tourism training institutions are needed to produce skilled graduates. The stereotyping of gender roles also exists. Women who provide services such as trading and cooking dominate the informal sector. More participation among women in skills training is needed. Within the circuit, there has been no training provided for local tour guides including gender sensitive tour guiding.

Safety and Security Concerns following Recovery from Yolanda To mitigate future damage, accommodation establishments in the circuit need to develop their Disaster Risk Reduction Management (DRRM) and to build the capacity of staff in DRRM.

IV.

Description of the Local Project

LGSP-LED is anchored on the Rehabilitation, Recovery, and Development framework of Cebu Province’s plan for the areas affected by Super Typhoon Yolanda. In this regard, the Project views the development of the 3 sub-circuits as platforms for supporting business recovery by affected MSMEs. Through tour package development to stimulate visitation to different parts LGSP-LED Cebu Local Project Completion Report | 7

of the circuit, the Project can open market linkage opportunities for affected MSMEs to reach buyers from tourists, tourism enterprises and exporters. By converging LGSP-LED efforts with Yolanda Recovery activities not only of the Provincial Government but also of other NGAs and donor agencies, the Local Project can leverage support services and funds that can enable and accelerate business recovery. As such, the establishment of a business recovery center – harmonized with DTI’s Negosyo Center program - is one of the key features of the design for Northern Cebu’s LED project. To hasten economic recovery in Northern Cebu, the Project aims to: 1. Increase tourist arrivals in Northern Cebu by 10% per year (or roughly 177,385 arrivals by 2016) 2. Attract at least PHP 223.6 million in private investments for tourism development in Northern Cebu 3. Create employment in the tourism sector (at least 200 in new direct employment by 2016) These will be achieved by: 1. Working for a more competitive tourism sector in Northern Cebu through 2 LED Initiatives i.e. Tourism Circuit Development and Workforce Development; and 2. Enhancing the capabilities of Northern Cebu’s Local Economic and Investment Promotion, Tourism, Planning, and Public Employment Service Officers to advance an enabling environment for tourism and sustainable local economic development through appropriate policies and support programs. The Outputs relating to Tourism Circuit Development address the support given in terms of private sector collaboration which are: Tourism Circuit Development Plan, New Tour Packages, Investment Profiles/Project Briefs, and Private Sector Stakeholders Trained. As regards Workforce Development, the output indicator is employment/ association members trained. For LED Enabling Environment, the Outputs include: LGU Business Plan for Workforce Development and Investment Promotion, BPLS Installed and Operational, LIIC Formulated, Tourism Code Formulated, Tourism Statistics and Information System Installed, LGU Tourism Development Plan, Business Recovery Center Established, Local Revenue Code Updated, LED Information Portal Established, and Tourism and MSME-related Project Proposals Completed. The figure below summarizes how the outputs in different components lead to the desired immediate outcomes (enabling environment and sector competitiveness), which subsequently lead to the target intermediate outcomes on investments, jobs, and tourist arrivals in the Northern Cebu tourism circuit.

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Summary of Project Target Results

Project Management Project Implementation Team The project has set up a Project Implementation Team (PIT), made up of a mix of individuals from the private and public sectors to plan, lead and monitor the local project. The five-member team includes: 1. Meljun D. Allego – PIT Manager, from the Cebu Investments and Promotions Office (CIPO) 2. Mary Grace Paulino - Provincial Tourism Officer 3. Jonie Montenegro – Project Development Assistant, Provincial Planning and Development Office 4. Totch dela Cruz – DRRM Coordinator, Provincial Disaster and Risk Resource Management Office 5. James Canoy - Office of the Governor A representative from the Cebu Chamber Commerce and Industry (CCCI) also sits on the Tourism Committee core group and a representative from the Bantayan Chamber of Commerce has been actively involved in most of the LGSP-LED activities.

Key Partners Aside from the Department of Interior and Local Government (DILG) Region 7 and Cebu Province, the National Government Agencies (NGAs) and organizations that worked closely with the Project in Northern Cebu are: Department of Tourism (DOT) Region 7 and Planning Office – who have been involved in facilitating and validating the Tourism Circuit and LGU Tourism Development Planning, Tourism Statistics and Information System, and Tour Packages Development. LGSP-LED Cebu Local Project Completion Report | 9

Department of Trade and Industry (DTI) Region 7 and Cebu Province – who initiated and coordinated with the LGU key personnel in the establishment of the Negosyo Center in the City of Bogo, formation of Economic Transformation Team, and the support to Civil Society Organizations through Shared Service Facility Projects. Department of Environmental and Natural Resources (DENR) Region 7 and GIZ Protected Area Management Enhancement (PAME) – who provided research outputs on Wilderness Mapping and Climate Change Adaptation practices for Bantayan and Malapascua Islands which were served as source documents for the updating of CLUP. GIZ ProGED – who has been organizing various activities in Bantayan Island on Green Economic Development including Solid Waste Management Feasibility Studies. With this collaboration, LGSP-LED need not duplicate the project as indicated in the implementation work plan. Cebu Provincial Public Employment Service Office (PESO) – collaborating with LGSP-LED on Workforce Development projects for generating new employment. The Cebu PESO served as the coordinator of activities and output generation among the LGU PESO Managers.

V. Results and Assessment An Improved Enabling Environment for Sustainable and Resilient Business Recovery in Northern Cebu In line with the advocacy for LED, and particularly for business recovery following the destruction brought by Typhoon Yolanda, the capacity development focus for Northern Cebu has been on sustainable tourism development, based on LGSPLED’s tourism circuit planning approach, and development of LGU skills for critical components of the tourism circuit plan – product development and marketing (for tourism officers), workforce development (for PESO managers), and destination development (for LEIPOs and planning officers). As of March 2016, all the eight (8) LGUs including the Province already have their designated LEIPOs, whereas prior to the start of the Project, only Bantayan had designated its LEIPO. In July 2014, the Provincial Government took an important step in strengthening Cebu’s LED agenda when Gov. Hilario Davide III signed Provincial Ordinance 2014-08, which approved the 2014 Provincial Investment Incentives Code, and establishing the Cebu Province Investment and Incentives Board as well as the Cebu Investment and Promotions Office (CIPO, or formerly the Cebu Province Investment and Incentives Center). The CIPO filled the vacuum created with the closing of a similar Cebu City-led investment center in 2013 and started operations on October 2016, with the Provincial LEIPO as head of office. The three priority projects of the CIPO are: the creation of a database on Cebu’s 44 towns and seven cities; establishment of a one-stop shop to facilitate new investments; and the LGSP-LED Local Project for business recovery along the tourism sub-circuits of Northern Cebu. Cebu Province has institutionalized its Provincial Investment Incentives Code. All the LGUs in Northern Cebu have also updated or formulated their Local Investment Incentives Codes (LIIC), which is a headway for the province to achieve LIIC compliance. LIIC formulation provides basis for LGU’s investment policies and programs, investment priority areas, and incentives to attracting and retaining investors. The municipality of Santa Fe has also adopted its LIIC, while the LIICs in the remaining LGUs are in the process of institutionalization. In addition to the LIIC, Local Revenue Codes have been updated in Daanbantayan, San Remigio, and Santa Fe. To further improve business-friendliness and encourage investments, all the LGUs in Northern Cebu have now adopted and installed computerized business permit and licensing systems (Auto-BPLS). The automation of BPLS allowed the implementation of one-stop-shop registry system for all covered LGUs with an average turn-around-time of 30 minutes. The systems also empower the LGUs through easier access to information needed for investment promotion as well as for supporting existing businesses and MSMEs. With a one-stop-shop system already operationalized in 2016, 402 business registrations were recorded in Northern Cebu, a 328% increase from the baseline of 94 business registrations. Tourism Officers prepared Tourism Development Plans together with LEIPOs and MPDOs to guide the respective LGUs on the priorities for infrastructure development, investment promotion, MSME support, and other tourism sector needs within their boundaries, while maximizing opportunities for common or joint initiatives with neighboring communities in the TDA. Moreover, the Municipality of Santa Fe has drafted its Tourism Code, while the Municipality of San Remigio has adopted its Tourism Code.

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Bogo City Mayor Celestino Martinez, Jr. and DTI Regional Director Asteria Caberte inaugurated the Bogo City Negosyo Center on August 19, 2015, together with DILG Assistant Regional Director Elias Fernandez and representatives from the office of Sen. Bam Aquino, primary author of Republic Act 10644, the Go Negosyo Law. At the time of its opening, the center was one of only 3 in Central Visayas that was hosted by a city or municipality..

The City of Bogo Negosyo Center, the initial hub for MSME support services from DTI, particularly for Yolanda-affected MSMEs in Northern Cebu, has been established. Among the support services from DTI are business information, business advisory, and financing services. The Negosyo Center has been established with support from DTI and LGSP-LED in a building that is intended to be a Government Center for Northern Cebu, with space for field offices such as DOST (SET-UP Program), DSWD (Sustainable Livelihood Program), DOLE, and other agencies with MSME support programs. The facility will enable the Negosyo Center to become a true convergence platform to support business recovery not just in Bogo but also for other LGUs in the TDA. Using the City of Bogo Negosyo Center as a model, other Negosyo Centers will be established within the year, i.e. Santa Fe in Bantayan Island and Daanbantayan Municipality. A skilled workforce is important to support tourism development. As such, PESO managers were provided with assistance to prepare Workforce Development Plans together with LEIPOs and Tourism Officers to support job generation and skills enhancement requirements of the Northern Cebu TDA. These workforce development plans are also seen as critical venues for identifying and addressing gender equality concerns related to livelihood and employment opportunities in the TDAâ&#x20AC;&#x2122;s tourism sector. The Provincial PESO then integrated these WFD plans for the Northern Cebu circuit. Measures to ensure environmental sustainability and climate change adaptation in tourism development have also been initiated in the TDA. In particular, the Municipal Mayor of Daanbantayan issued E.O. 16-2015, establishing the first marine sanctuary for rays and sharks in the Philippines. This ordinance prohibits the catching and trading of all shark and ray species within the waters of Monad Shoal and Gato Island, near Malapascua Island. Local Climate Change Adaptation Plans have also been adopted in the Province of Cebu, Bogo City, and the municipalities of Bantayan, Medellin, and Santa Fe. At the Provincial Level, in line with the Governmentâ&#x20AC;&#x2122;s priorities for Northern Cebu, Gov. Davide also approved the Malapascua Island Ecotourism Development Plan in August 2014. The Cebu Provincial Government issued Executive Order 04-2015, reorganizing the Cebu Provincial Solid Waste Management Board and its Technical Working Group for the effective and efficient implementation of the Solid Waste Act of 2000.

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Status of BFCL Programs Enabling Policies LGU Business Plan for Workforce Development LEIPO Designated LEDIP Established LIIC Adopted Business Recovery Center Implemented BPLS Computerized

Total 8

LGU Covered All LGUs

8 3 2 1 6

All LGUs Daanbantayan, Medellin, Santa Fe Province of Cebu, Santa Fe Bogo All LGUs

From the start of the project in 2014, LGSP-LED has trained a total of 132 (69M, 63F) LGU leaders and staff with LED functions to advance business-friendly policies and programs in the LGUs. In addition, the Project has prioritized assistance towards the adoption of specific business-friendliness indicators advocated by DILG: local investment incentives codes, local revenue codes, and computerized BPLS. Status of LGU Officials and Technical Staff Trained Male LCEs 6 LEIPO and Staff 6 Tourism Officers and Staff 6 PESO Managers and Staff 4 Other LGU Staff 47 TOTAL 69

Female 0 10 10 8 35 63

Total 6 16 16 12 82 132

A More Competitive Tourism Circuit in Northern Cebu The Northern Cebu LGUs are now implementing their LED Initiative for tourism circuit development in three sub-circuits: Bantayan Island (Santa Fe, Bantayan, and Madridejos), Malapascua (Daanbantayan), and mainland Northern Cebu (Bogo, San Remigio, and Medellin). Development of tourism activity along the priority sites of these sub-circuits is intended to stimulate business recovery for existing resorts and tourism establishments, and at the same time encourage MSME growth in tourism services and products to enable a greater number of affected residents to benefit from tourism recovery and growth in Northern Cebu. To this end, the key indicators of progress towards the re-establishment of a competitive Northern Cebu tourism sector will be the growth of tourism-related MSMEs as well as the expansion and upgrading of the TDAâ&#x20AC;&#x2122;s supply of environment-friendly and disaster-resilient rooms, facilities, and infrastructure. With the Tourism Circuit Plan as a guide, six (6) tour packages have been developed to integrate LGSP-LED Northern Cebu tourism sites. These packages provide a platform for various sectors in the tourism value chain to collaborate in delivering the desired guestsâ&#x20AC;&#x2122; experience. Tourism marketing brochures that these tour packages have then been designed and printed (with 1,000 copies) to initially support LGUs in marketing. These brochures are available for LGUs and other stakeholders to reproduce and use during travel trade fairs and exhibits.

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Sample brochures of tour packages developed for the three sub-circuits of Northern Cebu: Malapascua Island, Bantayan Island and the mainland-Bogo City, Medellin and San Remigio

Infrastructure is a pivotal aspect of tourism development. Hence, LGSP-LED trained LEIPOs and other LGU personnel on how to prepare investment project briefs for the tourism circuit's development. Six (6) investment project briefs identified in the tourism circuit plan, have been prepared for presentation to potential investors and funding agencies. These include projects to enhance the visitor experience in priority attraction sites of the Northern Cebu circuits, as well as projects to ensure the environmental sustainability of the sites and the tourism destination as a whole. 1. 2. 3. 4. 5. 6.

Solid waste management facility for Malapascua Island (Daanbantayan) Construction of sanitary landfill (Municipality of Bantayan) Capitancillo Islet facilities development (Bogo City) Amenities and facilities for Kota Park (Madridejos Medellin Zip Away infrastructure development (Medellin) Construction of municipal tourism information center (Santa Fe)

Seven (7) LGU Profiles have also been uploaded in LED Information Portal (SPARKBIZ.ph), another tool to attract investments in the area by providing information on the investment opportunities and business-friendly features of each city/municipality. There were several livelihood and business recovery programs from NGAs and non-government institutions that were made available to potential beneficiaries as part of the Yolanda recovery effort. However, many were not fully utilized because the prospective proponents lacked skills in project proposal preparation. Recognizing this constraint, the PIT, with assistance from LGSP-LED provided assistance for people's organizations in Northern Cebu's 7 LGUs to complete and submit 8 project proposals to DTI for funding through its Shared Service Facility program. One of the proposals has already been approved for funding, while the rest of the proposals became recipients of DTI's Livelihood Program. 1. Drying, packaging and labeling facility for marine products - Hilotongan Environmental Rangers and Fishermenâ&#x20AC;&#x2122;s Organization (25M, 35F members) of the Municipality of Bantayan 2. Weaving facility for hats, bags and other accessories - Weavers of Bogo City United for Improvement and Livelihood Development (WEBUILD) (38F members) from Brgy. Odlot, Bogo City LGSP-LED Cebu Local Project Completion Report | 13

3. Production of marine souvenir items – Malapascua Dive Guides and Boat Crew Association (130 members) 4. Trading of marine products - Maya United Fisherman’s Association (47 members) from Daanbantayan 5. Solar fish drier for the processing of nutritional snacks from marine products -- Madridejos Fish and Food Processing Association (35 members) 6. Meat processing facility - Medellin Farmer-Scientists Association (~100 families of corn and vegetable farmers) 7. Production of interlocking concrete earth bricks – 5 People’s organizations from Brgys. Bagtic, Luyang, Batad, Toong, & Mano in San Remigio 8. Solar fish dryer – Hilantagaan Fishermen Association (210 members) and the Kinatarkan Farmers and Fishermen Association (95 members) from Santa Fe – proposal already approved by DTI SSF From the start of the project in 2014, LGSP-LED trained a total of 355 (140M, 215F) from the private sector on local economic development. These LED actors came from People’s Organizations (POs), Civil Society Organizations (CSOs), tourism enterprise owners, managers, and candidates for employment/entrepreneurs. These LED actors/beneficiaries gained skills and knowledge on the development of tourism circuit products, basic tour guiding and customer service, and micro financing for MSMEs. LED Actors Trained MSMEs and Workers Industry Representatives Total

Male 106 34 140

Female 194 21 215

Total 300 55 355

After equipping Danny Milagroso with skills on tour guiding, tour guiding techniques, proper handling of guests and effective customer service, he has received consistent excellent rating in Tripadvisor as tour guide and host starting this January 2016

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Progress Towards Tourism Growth and Economic Recovery The LGSP-LED Local Project in Northern Cebu was aimed to hasten economic recovery by attracting about PHP 223.6M investments in tourism facilities and other infrastructure that will create 200 local employment through additional resort rooms. The overall theme of the project is “Community-based Eco-friendly Sustainable Tourism for Northern Cebu.” Thus, in its effort to support tourism in this area, it has targeted a 10% per year increase in tourist arrivals (or roughly 177,385 arrivals by 2016).

Tourism Investments Generated The total amount of public investment projects totaled PHP 786.534 million, or 251% more than the target amount of PHP223.6 million. Among the public investment projects in Northern Cebu were the construction and upgrading of tourism roads linking the three tourism sub-circuits to the air and sea gateways of Metro Cebu and Mactan. The PHP 386 million, 16.3-kilometer Medellin-Daanbantayan road is almost complete. This road will facilitate travel within the mainland Northern Cebu sub-circuit among San Remigio, Medellin and Daanbantayan. This will also shorten travel time by 30 minutes (currently estimated at around 3.5 hours on average), from Metro Cebu to the jump-off to Malapascua Island, In addition, access roads amounting to PHP395.134 million have been started in various barangays of Bogo, San Remigio and Daanbantayan for accessibility to market and tourism destinations. The Provincial Government has also provided PHP 5.4 million for the circumferential road and police outpost/tourist assistance center in Malapascua Island. These projects were in line with the implementation of the updated Malapascua Island Ecotourism Development Plan (MIEDP), which was approved in August 2014. In terms of public investments, an additional 467 rooms is expected in the Northern Cebu tourism circuit.

New Jobs Created According to International Finance Corporation, hotels create 1.5 to 3 direct jobs per hotel room. The total amount of public investment projects alone amounted to PHP 786.534 million. This is notwithstanding the 467 additional rooms as private investment of resort and diveshop owners in Northern Cebu – a 133% room increase from the projected 200 rooms. By just getting a 1:1 ratio, the 467 additional rooms was able to generate an equivalent number of employment.

Increase in Tourism Arrivals Despite not being able to fully implement the LGSP-LED support for institutionalization of tourism statistics and information systems in Northern Cebu, tourism arrivals based on available data totaled 212,516 or 29% average annual growth rate starting 2013. This is well beyond the target set of 177,385 or 10% growth rate per year for the TDA. However, the data on visitor arrivals currently reported by the LGUs is unreliable. Even before November 2013, collection and reporting of arrival data by the LGUs had been sporadic and inconsistent, particularly for the resort sector on Malapascua Island. The Municipality of San Remigio did not adopt the DOT-JICA standards for tourism statistics until 2014.

Crosscutting Themes Gender Equality The main opportunities for women in tourism identified were in entrepreneurship and business development and employment in accommodation establishments. Thus, the Local Project has undertaken activities to support people’s organizations, especially those with predominantly female members, in seeking funding support for projects with significant potential impact on livelihood and employment for women. 1. The Tour Guide Training conducted in the 3 tourism sub -circuits provided an equal gender opportunity for Northern Cebu stakeholders. PESO Managers were reminded to invite same number of gender to the activity. 2. The LGUs, in partnership with DTI Cebu, provided livelihood training, product enhancement, and market linkage support to women’s groups in Sta. Fe (fashion accessories and recycled bags), Daanbantayan (food delicacies and recycled home decor), Bantayan (handicraft), and Bogo City. Member of Bantayan Craft now earn an average of PhP 6,000 per month from the sale of their products in District 32, the Mactan Cebu International Airport, as well as other resorts in Bantayan Island and Cebu Province. In Bogo City, the Negosyo Center has assisted at least 2 women’s groups: .Coolway Multi-Purpose Cooperative (sling/backpackers’ souvenir bags), and WEBUILD Odlot weavers (hats, purse and other handwoven items). 3. DILG and LGSP-LED coached the PESO managers to prepare Northern Cebu LGUs’ seven (7) workforce development plans for the TRABAJO Program with a similar awareness for promoting equal work and livelihood opportunities for women. The coaching of PESO Managers allowed them to finalize their respective Workforce Development Plans according to the prescribed template and guidelines. They were also able to complete all the requirements for DILG’s approval, thus funds were released accordingly. LGSP-LED Cebu Local Project Completion Report | 15

At the LGU level, major efforts have been done to strengthen the protection of women and children against negative impact of tourism and development. Among which is the operationalization of Violence Against Women and Children (VAWC) Women’s Desk. Aside from this, a holding center for children in conflict with the law has been established in Daanbantayan. The Municipality of Santa Fe has been very active in pursuing human/sex trafficking being Bantayan Island’s entry point to all tourists. The Mayor’s Office regularly monitors movements of doubtful persons within the area. This has resulted in pressing charges to an Australian national for committing violations on the Expanded Anti-Trafficking in Persons Act last year. The City of Bogo has also taken the lead in the fight against sex trafficking involving foreign nationals (especially pedophiles). An executive order was issued requiring all barangay captains to register non-Filipino citizens living in or are visiting their areas. At the same time, an anti-trafficking help desk was put up at the terminal of the Polambato Wharf, where suspicious activities have been noted.

Even for the Malapascua sub-circuit where tour guiding has traditionally been done a male-dominated activity, there were at least 2 females out of 27 participants. After equipping Danny Milagroso with skills on tour guiding, tour guiding techniques, proper handling of guests and effective customer service, he has received consistent excellent rating in Tripadvisor as tour guide and host starting this January 2016

Environmental Sustainability Environmental sustainability and disaster preparedness are important to the people of Northern Cebu not only because of their experiences with Typhoons Pablo (Bopha) and Yolanda (Haiyan) but also because of their recognition of the role that nature plays in their main industries of tourism, fishery, and poultry. All of these sectors are dependent on the sustained quality of the natural environment; yet they also pose significant threats to the same environment through irresponsible development. Thus, CCA-DRRM and environmental sustainability issues are recurring themes and priority concerns of the Northern Cebu LGUs. Through LGSP-LED, there were local project studies done at the onset that created LGU awareness on their CCA/DRRM practices. These include the CCA/DRRM Rapid Scan in Malapascua and Bantayan Islands and the Northern Cebu Tourism Circuit Development Plan. During the information gathering of these studies, the LGU personnel were able to revisit the pre, during and post events that happened during the Yolanda disaster. They identified the preventive measures implemented and the lessons learned from the devastation. LGSP-LED has developed and delivered a training module that provides a six-step approach to preparing community based climate change adaptation plans and/or developing strategies for incorporating CCA/DRRM into tourism circuit planning. This document has been used as inputs for the development of CCA/DRRM related training programs at the provincial level. The Disaster Risk Reduction Management Office (DRRMO) at the local level is institutionalized and is now fully operational. This is due to the support given by the Provincial DRRMO and the active participation of the DRRMO Officers in a quarterly meeting held at the Cebu Provincial Capitol. Bantayan, Bogo, Medellin and Santa Fe updated local Climate Change Action LGSP-LED Cebu Local Project Completion Report | 16

Plans (LCCAP), in lieu of CCA/DRRM Plans. In terms of baseline data, DOST7 has provided latest downloadable Landslide and Multi-Hazard Maps for LGUs reference. The City of Bogo DRRMO has been particularly active in supporting the Northern Cebu LGUs through endeavors such as regular weather bulletin updates through Facebook and SMS (For this program, Bogo received a Galing Pook Award as a Best Practice in ICT innovation, as well as the United Nations Sasakawa Award for Disaster Risk Reduction). It has also conducted free Orientation on Weather Monitoring to Northern Cebu LGUs. The Northern Cebu LGUs have also promoted environmental sustainability through various local initiatives. In June 2015, Daanbantayan established the country’s first marine sanctuary for rays and sharks, creating an almost 300 hectare protection zone for endangered species such as thresher sharks, white tip sharks, and manta rays. San Remigio has launched a Plastic Recycling Program for its 27 barangays, in partnership with a Belgian NGO, to train residents of 27 barangays to produce marketable products out of plastic waste. At the LGU level, the City of Bogo DRRMO conducted Family Disaster Preparedness and Disaster Response Training among the different barangays and schools. The LGU Bogo City employees also underwent Family DRRM Preparedness, Basic First Aid and Basic Firefighting with field practicum in collaboration with Philippine Red Cross and Bureau of Fire Protection Bogo City. In order to provide ready to eat meals before, during and after disaster, DOST 7 donated a set of Meal-Ready-to-Eat (MRE) processing machine. Water Search and Rescue Training has been conducted in Medellin, Daanbantayan and Santa Fe. In Daanbantayan where dynamite and illegal fishing is rampant, the Migo sa Iho (Friend of Sharks) was organized to protect Monad Shoal and its surrounding waters from these “bad elements”. The LGU supported this endeavor by providing patrol boats with police personnel. Beyond its own specific activities, the LGSP-LED Local Project has also supported efforts by other development partners to advance important CCA-DRRM and environmental sustainability concerns in the local economy of Northern Cebu. The project has thus supported and encouraged stakeholders and champions from partner LGUs, as well as the PIT to participate in activities co-organized by GIZ ProGED, GIZ PAME, DENR 7 and DILG 7 related to environmentally critical concerns such as: • Formulation of Bantayan Island Wilderness Area (BIWA) General Management Plan covering the Strict Protection Zones i.e. mangrove areas, water-recharge areas and sea-turtle nesting sites; alienable and disposable Lands; and multiple-use zones for eco-tourism, fishpond, wharf and docking area. • Stakeholder fora on the Protected Area Suitability Assessment of Bantayan Island which has important implications to CLUP updating of the 3 LGU and for the implementation of the BIWA General Management Plan. • Stakeholder consultations for a study on waste generation in Bantayan Island i.e. Madridejos, Bantayan, Santa Fe. This eventually led to an initial feasibility study on a solid waste management facility prepared by the Korea Institute of Geoscience and Mineral Resources. The feasibility study is being finalized together with a group of researchers from the University of San Carlos. The CCA-DRR and/or environmental sustainability initiatives promoted by the LGUs after the experience with Supertyphoon Yolanda, include: 1. City of Bogo’s automated weather projection system and weather updates from various sources such as PAGASA are shared through Facebook and SMS. 2. Text message blasts are used to alert residents to leave for evacuation centers 3. Facebook Accounts for weather updates, precautionary measures and LGU situationers during calamities: • Bogo-initiated I.M. Prepared public group account - https://www.facebook.com/groups/1470624439914928/ • Medellin LDRRMO FB Account - https://www.facebook.com/medellin.ldrrmocebu?fref=ts • San Remigio Municipality FB Page - https://www.facebook.com/municipalityofsanremigio/?fref=ts • Santa Fe Municipality FB Page - https://www.facebook.com/SantaFeCebuGov/?fref=ts • Bantayan Municipality FB Page - https://www.facebook.com/Municipality-of-Bantayan-Cebu1506350289693646/?fref=ts • Bantayan LDRRMO FB Account (not updated) https://www.facebook.com/profile.php?id=100009513273269&fref=ts • Madridejos MDRRMO FB Account (not regularly updated) https://www.facebook.com/mdrrmo.madridejos?fref=ts • Daanbantayan Municipality FB Page - https://www.facebook.com/aboutdaanbantayan/?fref=ts • Migo sa Iho FB Group - https://www.facebook.com/groups/725016084212527/

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Another important aspect of environmental sustainability is the handling of waste as stated in Republic Act No. 9003, the Ecological Solid Waste Management Act of 2000. Among the salient points of this act for cities and municipalities to comply are: Submission of a 10-year Solid Waste Management Plan, Closure of Open Dumpsite, Implementation of Sanitary Land Fill and Functional Material Recovery Facility. In response to R.A. 9003, the Cebu Provincial Government issued Executive Order 04-2015, reorganizing the Cebu Provincial Solid Waste Management Board and its Technical Working Group for the effective and efficient implementation of the Solid Waste Act of 2000. Among the LGSP-LED covered LGUs, the municipalities of Bantayan, Daanbantayan, Medellin and Santa Fe completed and submitted their 10-year Solid Waste Management Plan to DENR-EMB. In terms of implementation, waste segregation at source is strictly implemented in Santa Fe and San Remigio.

Poverty Reduction DTI’s Negosyo Center program is a nationwide program to provide more accessible business advisory and facilitation services to MSMEs in all Provinces. The Negosyo Center program is the flagship program of the Department that serves to integrate all its MSME support programs under one umbrella. For the Northern Cebu project, the implementation of the Negosyo Center in Bogo City was undertaken in the context of the national and provincial governments’ post-Yolanda recovery efforts. Thus, the Local Project’s partnership with DTI prioritized assistance for business recovery in the 7 affected LGUs of Northern Cebu. Technical assistance from LGSP-LED was provided to assist 8 community-based MSMEs to complete project proposals for funding under the special Yolanda Recovery window of DTI’s Shared Service Facility program. These projects would potentially benefit at least 500 families in the 7 LGUs combined. The LGU policies or programs, developed with the assistance of LGSP-LED, with important pro-poor features or innovations were: 1. Enforcement of LED-related plans and programs such as the Workforce Development and Tourism Development Plans. Under DILG TRABAJO Program, the workforce development plans aimed support unemployed local residents of member LGUs of the tourism circuit by providing them skills trainings which were the identified requirements of the industry in the next years. 2. Implementation of livelihood trainings that include start-up kits through Negosyo Center, DSWD’s Sustainable Livelihood Program and DTI’s Product Development and Skills Training 3. Conduct of Jobs Fair in all covered LGUs in collaboration with the Provincial PESO Office

VI.

Lessons Learned

The LGSP-LED project in Northern Cebu paved the way to various learnings that can serve to guide efforts to continue and sustain the gains of the local project, as well as to identify areas for improvement in the planning and implementation of LED programs. 1. LED starts with a common understanding of the local economic conditions, opportunities, and challenges. A seemingly self-evident lesson learned from the Local Project is that a good understanding of the current conditions and future prospects of the local economy is the essential first step in undertaking a LED Program or Project. However, LED must be a multi-sectoral process involving LGUs, private sector, communities, and other stakeholder groups. For these various groups to work well together, they must have a common appreciation of the opportunities and challenges facing their local economy. The stakeholders must also agree on the possible strategies for achieving inclusive local economic growth, given these challenges and opportunities. Thus, the lesson is not just about understanding the local economy but more about LGU, private sector, and other stakeholder groups, understanding it – together. This would then be the first step in planning and implementing the LED Project as a partnership-based undertaking of the LGUs, the private sector, and other partners.

At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

3. Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. This is also true for Mayors at the city and municipal level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. The LCEs must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

4. LGU LED Team members must be trained and qualified to become advocates for business-friendliness and inclusive LED within the LGUs. Well-qualified, trained, and motivated LEIPOs, LGU tourism officers, and PESO managers were key factors in driving their respective LGUs to complete the formulation or planning of business-friendly LGU policies and programs. The adoption and implementation of these policies, plans, and programs will also be dependent on these officers, as well as other LGU staff with LED-related mandates. The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGU’s program for business-friendliness and LED competitiveness. Yet Northern Cebu LEIPO Officers, Tourism Officers, PESO Managers and BPLO Officer generally do not hold permanent, full-time appointments. Most have been designated while simultaneously performing functions for their LGUs, such as Budget Officer, Administrator, HR Officer. Thus, the institutionalization of LED champions such as LEIPO Officers, Tourism Officers, PESO Managers and BPLO Officer with corresponding office, personnel and budget allocation is an important aspect of local economic development. These agents for economic and tourism development must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. They must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. Coaching and mentoring the LGU key personnel is important towards a functional LED project management. A clear LED model that indicate outcomes, outputs and indicators at the project planning stage are critical prior to implementing LED programs. This has to be combined with procedures, guidelines and user-friendly templates. At the same time, an interrelated database system that will connect all reportorial requirements will support the LGU in carrying out the tasks needed Creating a business-friendly mindset in the LGU is important. LED champions within the LGUs must be coached and mentored in summarizing economic indicators (through the Sparkbiz portal) and writing their respective LGU economic profile. The uploaded Sparkbiz data allowed them to have a ready-reference for investors and agencies that need LGU’s economic data. The completed economic profile served as foundation document to all the various plans prepared i.e. tourism development, workforce development.

LGSP-LED Cebu Local Project Completion Report | 19

The operationalization of the LEIPO office In Daanbantayan with a dedicated personnel allowed investors to have a place for queries. In addition, it serves as a showroom of MSME products – a model that can be replicated in other LGUs. .

The Cebu Provincial Government plays a critical role as enabler of LED and partner not only of the Northern Cebu LGUs but all the remaining Cebu LGUs as well. The holding of regular meeting with the LEIPOs, Tourism Officers, Budget Officers, PESO Managers, MPDOs, LDRRMOs and MENROs is important in communicating updates and status as to how the all the LGUs are contributing to the overall provincial LED goals. Unfortunately, the lack of commitment of some PIT members, based in Cebu City, has resulted in minimal sharing of useful information and updates on other LED-related provincial projects. This has lead to the inability to coordinate the progress of key tourism infrastructure projects for Northern Cebu, e.g. Maya Port, Malapascua Circumferential Road in which project status are not properly communicated especially to the business sector. The “Our Cebu” project of JICA and the Ramon Aboitiz Foundation, Inc. (RAFI) that assesses the performance of each LGU based on pre-designed criteria has not been well tapped. At the LGU level, the management style of LCEs has an important bearing on the accelerated achievement of results. There are some LCEs who do not have a clear understanding of the LGU organizational structure and its impact to the constituents, which has resulted to improper assignment of roles and responsibilities and missing out on more important concerns. It is in this light that DILG through its Municipal Local Government Operations Officers (MLGOO) play a critical role in steering the directions that the LCE will take to spur inclusive growth. LGSP-LED Cebu Local Project Completion Report | 20

5. Engaging the private sector in planning and implementing the LED Program Building can lead to a more business-

friendly, entrepreneurial mindset within the LGUs LGUs play important roles in supporting local businesses to build more competitive and inclusive sectors. However, in order to design effective, responsive LED programs and services they need to understand clearly the needs of private businesses and investors. In Northern Cebu, this was done through activities such as clustering of business and private enterprises sector, establishing public-private partnerships, conducting regular dialogue with business associations on status of projects and support needed and organizing entrepreneurial activities for business matching and market linkages of MSMEs. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis a vis the local industryâ&#x20AC;&#x2122;s efforts to become more competitive and inclusive. For instance, the inclusion of the PIT Manager and Partnership Adviser in the Cebu Chamber of Commerce and Industry (CCCI) Tourism Committee core group has made a significant contribution on providing LGU tourism plans and pertinent LGSP-LED documents that served as substantial inputs on Cebu Province overall branding. As a result, the initial plan to undertake a separate destination branding activity for Northern Cebu has been shelved. Instead, the Northern Cebu branding and marketing concerns are now harmonized with the Province-wide branding project of CCCI.

6. Convergence is important to support LGUs in advancing sustainable LED The collaboration of information, efforts and resources with NGAs, INGOs and Cebu Provincial Government allowed for immediate implementation and prevented project duplication. Most of the convergence happened through DTI which has been collaborating with various NGAs and Cebu Province on its endeavor. Cebu, being the center of regional operations was able to take advantage of this opportunity thus, leading to accelerated economic recovery especially in the Yolanda affected areas. The support of various international NGOs such as the German International Cooperationâ&#x20AC;&#x2122;s (GIZ) Promotion for Green Economic Development (ProGED) and Protected Area Management Enhancement (PAME); AFOS Foundation for Entrepreneurial Development Cooperation; Islamic Relief Services; Oxfam; and NGAs such as DOT, DTI, DSWD, DOST, in the Yolanda corridor greatly contributed to the rapid implementation of LGSP-LED projects. These agencies had collaboration meetings in which resources have been shared and complemented to achieve the outcome.

VII.

Conclusions and Recommendations

LGSP-LED Cebu Local Project Completion Report | 21

In turn, DILG’s Regional and Provincial Offices must enable the LGUs to perform these enabling roles by: 1. Continuing to advocate, monitor, and provide incentives for LGUs to continue pursuing its roadmap for more business-friendly and competitive LGUs, while harmonizing the LED-related activities with relevant elements of the Department’s 3 other outcome areas (e.g. safety and social protection, transparency and accountability, disasterresilience), 2. Building the capacities for business-friendliness and competitiveness among LCEs and LGU staff through training programs and technical assistance, and 3. Facilitating convergence among Field Offices of other NGAs for better delivery to and access by LGUs of their own capacity development, technical assistance, and funding/resource support programs and services for LED.

Recommendations for Sustaining the LED-Enabling Environment in the LGU On the aspect of continuing the drive for improved business-friendliness and competitiveness of the LGUs, the general direction should be: 1) to strengthen and ensure the permanence, i.e. regular operations, of the key structures for LED promotion in the LGUs such as LEIPO and Tourism Office, and 2) to institutionalize the key LGU policies and programs for business-friendliness and support to competitive sectors. Thus the main recommendations for continued and improved business-friendliness of the LGUs are : 1. Ensure that the Provincial and City/Municipal Governments have LEIPO, Tourism, and other LED-related Offices with full-time personnel and adequate resources. While all LGUs have designated LEIPOs and Tourism Officers, it is important that they be provided with budget, office, and personnel to effectively perform their investment promotion, business retentions, and MSME facilitation work. ! These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature. ! Creation of a permanent Cebu Provincial Tourism Office, comparable in institutional mandate and funding/logistical support to the Cebu Investment Promotion Office (CIPO) should be a priority of the new Provincial Administration. ! Include in the LGU budgets, sufficient funds and resources for the effective and harmonized operation frontline BFCL LGU offices such as BPLO (and Business-One-Stop-Shop), LEIPO, Tourism Office, PESO, Planning Office, etc. Funding for continuous technology improvement and staff development related to LED information systems (e.g. auto-BPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be included in these budgets, to the extent feasible. ! At the same time, the CIPO and Provincial Tourism Offices need to establish relevant database that can support the economic indicators of LGUs. They can also make use of the sparkbiz portal combined with the ‘One Cebu” indicators which can serve as basis for competitiveness. With these support coming from the Provincial Government plus the coaching and mentoring of C/MLGOOs, convergence not only of information but also of various institutions can be a regular practice within the LGUs. LED champions within the LGUs must be coached and mentored in summarizing economic indicators (through the Sparkbiz portal) and writing their respective LGU economic profile. 2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC, Tourism Codes, and other LED-related local bills formulated through the assistance of DILG and LGSP-LED. 3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and sociallyprotective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: ! Integration of DRRM-CCA, including provisions related to LED and investment promotion, in subsequent updating of the Provincial Physical Framework Development Plan and the corresponding city/municipal CLUP and CDP. ! Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention. ! Building and infrastructure development should strictly conform to the existing Building Code, Environmental Policies and CCA-DRR plans. The city’s zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks. LGSP-LED Cebu Local Project Completion Report | 22

! !

Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant. The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit identified in the PPFDP, the Provincial post-Yolanda assessment and recovery program, the Bantayan Island Wilderness Area (BIWA) General Management Plan and other studies/plans. These areas include: " The Strict Protection Zones i.e. mangrove areas, water-recharge areas and sea-turtle nesting sites; Alienable and Disposable Lands; and Multiple Use Zone for eco-tourism, fishpond, wharf and docking area identified in the BIWA plan " The declared sanctuary for sharks and rays in the Monad Shoal area of Daanbantayan

In updating the plan, it is recommended that the LGUs should Review and consider the adoption of site-specific recommendations from the USAID COMPETE Tourism Product Assessment of Northern Cebu, as well as the integration of policy and site management recommendations related to the Bantayan Island Wilderness Area (BIWA) General Management Plan and the Malapascua Ecotourism Development Plan. The Provincial Government and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 20162022.

5. The Provincial Government, with assistance from DILG, DTI, and DOT, should form a Local Economic Development (LED) Team to oversee the planning and implementation of LED Initiatives in the Province and the Tourism Circuit in particular. The LED Team can be organized in a similar fashion to the project implementation and management arrangements for the LGSP-LED Project. ! The Governor should be the chair of the LED Team, providing overall policy direction, strategic advise and leadership to the team. ! The core LED Team should include members from the Provincial Government’s economic officers (Cebu Investment Promotions Center, the Provincial Tourism Officer, the PESO Manager, and the Planning Officer) and the partner institutions from the private sector. ! The DILG Provincial Director and the LED Focal Person should also be invited to the LED Team, as well as other NGA Provincial Offices, such as DTI, DOLE, DSWD, DENR, etc. with programs critical to the LED Agenda of the Province, and the tourism circuit. However, the NGAs should officially designate their permanent and alternate members to the LED Team, with preference for the focal persons/action officers with direct involvement in key LED-related programs such as DTI Negosyo Center, DOST SET-UP, DSWD Sustainable Livelihoods Program, etc. ! The Provincial LED Team together with the DILG Provincial Office should organize and provide technical assistance to a similarly-composed counterpart team from among the LED officers, NGA action officers, and private sector stakeholders of the cities/municipalities in the tourism circuit. ! Northern Cebu LGUs are among the 16 municipalities on the Yolanda corridor of Cebu. Thus, NGAs and international/local NGOs were very active in providing support for local economic recovery. Partnership with these NGAs, NGOs, private sector, resource institutions and academe is important to sustain local economic development at the LGU level. The LGUs need to be provided with skills on organizational development to streamline all the funds, grants and technical assistance given and realign to their respective plans, vision/mission. DILG Regional and Provincial Offices can continue to lead the LGUs along the roadmap towards more business-friendly and competitive LGUs through the following: 1. Establish a “BFCL Team or Working Group” from among the Regional and Provincial technical staff to provide information, facilitate access to technical assistance and capacity development resources, and to monitor the streamlining of BFCL in LGU operations. 2. Compared with the other LGUs in Cebu Province, the LGSP-LED Northern Cebu LGUs are considered advanced in terms of drafting/updating the LIIC, LRC, Tourism Code, BPLS one-stop-shop implementation and the updating of LGSP-LED Cebu Local Project Completion Report | 23

LED data in the sparkbiz.ph portal. In order to sustain this, DILG must provide a system for fast-tracking the institutionalization and implementation of these BFCL policies 3. Combine advocacy with technical assistance and support â&#x20AC;&#x201C; again, in coordination with LGA and DILG Central Office â&#x20AC;&#x201C; for LGUs to harmonize their LED plans and programs with the updating/enhancement of their respective CDPs and CLUPs. In the process, DILG should emphasize the gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the 2 mother plans to ensure the mainstreaming of these themes in the LGUs LED plans and programs. 4. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: ! Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. ! Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives. ! Facilitating the local planning processes, and mobilize City/Municipal LGOO cluster in the circuit , so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. In relation to this, DILG should mobilize ! Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management.

Recommendations for Sustaining the Tourism Circuit Development and Sector Competitiveness Program Through the Local Project, the Provincial Government and its partners in the cities/municipalities in the tourism circuit have implemented some initial activities to develop the TDA into a more attractive investment destination with a more competitive tourism circuit and industry. While there have been clear gains achieved to date, there are still many important issues to address for this progress to be sustained. More importantly, much work remains to be done in order to ensure that the growth from LED and tourism will become truly inclusive and beneficial to more people. While the private sector should continue to drive the product development, business investment, and employment generation components of tourism circuit development, the Provincial and Municipal Governments must also continue to support and enable its private sector partners through: ! Direct public investments or facilitation of public-private partnerships (PPP) for LED-enabling infrastructure to improve accessibility (e.g. ports and roads) and cost of doing business (e.g. power, water, sewage, sanitation) ! Market-linkage programs and services to connect local communities, businesses, and products to market intermediaries, buyers, and investors through destination marketing and investment promotion activities and events. ! Provision of LGU programs and systems to raise the supply and quality of available human resources in the tourism sector through effective workforce development planning, training and education, and job-employer matching â&#x20AC;&#x201C; in partnership with the local industry. In this regard, the main recommendations for LGUs to enable a more competitive and sustainable tourism sector in the TDA are: 1. Establish a Public-Private Team within the LED Team to focus on ensuring the funding and implementation of priority LED-enabling infrastructure projects identified in the TCP, as well as on organizing investment promotion events and activities to seek investors for priority investments to address competitiveness gaps in the tourism circuit (e.g. hotels and resorts, tourist transport, tourism estates, etc.) !

The LEIPO Officers quarterly meeting on LED-related updates initiated by the Cebu Investment and Promotions Office is a good way of sustaining the learnings of LEIPOs. These can be leveraged to institutionalize the Cebu Province tourism and investment convergence involving NGAs, NGOs, private sector and LGUs. Prioritize the implementation of tourism infrastructure that will have an immediate impact on tourism arrivals particularly the wharves and passenger terminals, which will encourage investments in larger-scale accommodation facilties in the medium term. LGSP-LED Cebu Local Project Completion Report | 24

2. The Provincial Tourism Office, in close coordination with the Northern Cebu Tourism Offices, in partnership with the private sector, should plan and implement a destination marketing program for Northern Cebu. ! Develop branding and marketing program for Northern Cebu TDA compatible with the new Provincial Brand developed through the assistance of Ramon Aboitiz Foundation, Inc. and the Provincial Government. ! There has to be a close coordination with the Provincial Tourism Office and Northern Cebu LGUs on destination marketing activities particularly on marketing materials development. This will allow for minimal expenses on the part of the LGU and will create a bigger impact to the Province. ! The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.) ! The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media. 3. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. 4. Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. ! The Provincial Tourism Office, in partnership with the DOT-VII Regional Office, can facilitate and support marketlinkage efforts of local private sector efforts to sell the new circuit tour packages to the national and international markets. ! Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and communitybased livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination. Maximizing the business advisory and MSME support services of the Bogo City Negosyo Center will be an important part of this initiative. Related to this, the LGUs should lobby with DTI to extend the reach of the Negosyo Center program within the TDA through the establishment of a dedicated center on Bantayan Island and perhaps a satellite Negosyo Center closer to Daanbantayan/Medellin (if viable).

LGSP-LED Cebu Local Project Completion Report | 25

Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

INTERMEDIATE OUTCOMES New Investments

(MARCH 2016) 0

Description

Value (PHP) 223,600,00 0

200 additional hotel rooms Redevelopment of Santa Fe (Bantayan) airstrip

Private Tourism Investments Public Investments

CUMULATIVE

467 new additional hotel rooms 566M Health Care Facility, Dumaguete Boulevard improvement, expansion of Dumaguete Seaport and improvement of airport

Employment (New)

403

100

Male

707

100

10%

29%

128,364

177,385

212,516

403

100

Enabling Policies Adopted

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted

1 0 7

7 0 7

8 3 2

BPLS Computerized

Tourism Statistics system implemented

Tourism Code adopted

LGU Tourism Development plan adopted Others(Local Climate Change Plan adopted) Business Registrations

Female Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

402

LED Actors with Capacity to Plan/Implement

126

LED Initiatives Implemented

LGSP-LED Cebu Local Project Completion Report | 26

OUTPUTS LEIPOs Trained

132

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened

Tourism Code formulated/updated

TOP COP Program/Plan developed

LED Initiatives Planned

122

355

LED Actors Trained

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

120

300

Industry Representatives

LGSP-LED Cebu Local Project Completion Report | 27

LGSP-LED Siquijor Local Project Completion Report | 1

I. Local Government Profile Siquijor Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

91,066 33,749 hectares 6 Siquijor 5th Enrique Villanueva, Larena, Lazi, Maria, San Juan, and Siquijor Agriculture; Fisheries; Livestock and poultry 91,066

Siquijor, known as the Mystic Island of Central Visayas, is the smallest and southern-most province in Region 7, with an estimated land area of 31,812 hectares. Located in the Central Visayas region, Siquijor is a small island midway between Visayas and Mindanao islands. It is located some 30 kilometers from Negros and about 565 aerial kilometers from Manila. It is bounded in the north by the islands of Cebu; Bohol is to the northeast; to the west is Negros Island, to the east is Camiguin, to the south is mainland Mindanao. Facing its northern shores is Bohol Strait, southeast shores is the Mindanao Sea. Geographically located midway between the Visayas and Mindanao, the island-province is basically hilly and mountainous, generally made up of limestone rock. Mt. Bandilaan, the highest peak of the province, rises about 557meter above sea level. Siquijor was estimated to have a total population of 91,066 (50.5% male, 49.5% female) on 2010, distributed among the six municipalities of Enrique Villanueva, Larena, Lazi, Maria, San Juan, and Siquijor. Based on the Official Poverty Statistics of the Philippines,1 the poverty incidence in Siquijor on 2012 is estimated at 24.59%. Poverty incidence is highest in the towns of Lazi (37.27%), San Juan (33.43%), and Maria (32.44%). The capital town of Siquijor (25.79%), and Larena (16.35) have lower estimated poverty incidence. The Human Development Index for 2009, which attempts to measure the complete concept of human development by tracking the progress of three selected aspects of human life, is recorded at 0.4712.

Local Economy Agriculture remains the leading industry in Siquijor in terms of employment generation. Approximately 18,514 hectares or 54% of Siquijor’s total land area is devoted to agriculture. Coconut and corn are the principal crops in Siquijor, combining for around 73% of total cropland. Root crops, principally cassava and sweet potato, are planted on about 13% of the Province’s croplands. As of 2011, the top five agricultural crops in the province consisted of palay, corn, coconut, mango, and banana. Siquijor also produces lanzones, cacao and papaya. Vegetables are not commonly produced in the province, beyond the backyard level. Ampalaya or bitter gourd is the only vegetable grown on commercial scale. There are some livestock and poultry raising activities in the province, though generally small-scale, backyard operations only. Nevertheless, the province is considered a net exporter of livestock and poultry products. There are also livestock and poultry-related support facilities like the Provincial Veterinary Office, Provincial Veterinary Quarantine Port/Unit Breeding Station/Center, and Local Animal Quarantine Units. Being an island province, fishing is a main source of livelihood of the people. Major fishing grounds are found throughout Siquijor Sea, Tañon Strait, Bohol Strait and Mindanao Sea. Fish catch averages around 175 metric tons a year, consisting of frigate tuna, flying fish, ganfish, anchovy, surgeonfish, etc. The province also has 86 hectares of fresh and brackish water fishponds which produce an average yield of 10.30 metric tons per year. Siquijor’s mineral resources include limestone, copper, iron, clay, and silica. Mining is considered a major industry in the province, with most of the activity mainly concentrated in Lazi and Maria.

Philippine Statistics Authority. (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority. Philippine Statistics Authority. (2016). Siquijor Quickstat - February 2016. Quezon City. Retrieved from https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Siquijor.xls

LGSP-LED Siquijor Local Project Completion Report | 2

As of 2015, there were 929 MSMEs registered with the Department of Trade and Industry office in Siquijor. The main products include processed food sector; gifts, décor, and handicrafts; furniture, metalworks; ceramics; as well as toys and houseware. These are predominantly exported and/or of low quality not suitable as souvenir items for visitors and tourists.

LGUs Covered in the Project There are 6 municipalities in Siquijor: Enrique Villanueva, Larena, Lazi, Maria, San Juan, and Siquijor. The town of Siquijor which serves as the provincial capital is the largest of the 6 towns in terms of both population and land area. Siquijor’s port has daily ferry services to Dumaguete City. However, the port in Larena is larger and provides passenger and cargo services to Cebu City, Tagbilaran (Bohol), and Plaridel (Misamis Occidental), in addition to Dumaguete City. Thus, Larena has historically served as the business and trading hub of the Province. LGU Province Enrique Villanueva Larena Lazi Maria San Juan Siquijor

Income Class 5th 5th 5th 4th 5th 5th 4th

Population 91,066 5,972 12,931 20,024 13,383 13,525 25,231

Land Area (hectares) 33,749 2,860 4,981 7,064 5,337 4,437 9,070

No. of Barangays 134 14 23 18 22 15 42

All six (6) municipalities of the province have their own share of vulnerabilities to hazards. As an Island Province, all coastal barangays can be subject to storm surge. Three coastal barangays in the southwest portion of Lazi as well as five coastal barangays in Maria are particularly susceptible because of the funnel shape of the bay. Risk of storm surge for coastal barangays in the northwest portion of the municipality of Siquijor is significant because these areas have many resorts, and include portions of the Siquijor Airport. All municipalities have sites that should be declared as no-dwelling zones because their unstable slopes are at risk for landslides. The Municipality of San Juan has comparatively fewer areas with unstable slopes. However, portions of its Bulalakaw Forest Reserve are high susceptibility to landslides. Historical records show that the LGU is also flood-prone.

LED Enabling Environment Province of Siquijor passed Seal of Good Governance that include as one of its components, LGU business friendliness and competitiveness. It has LEIPO designated but unfortunately it was not yet a finalist of PCCI Business Friendly LGUs award which would mean exerting more effort to become one. At the start of the project, Siquijor,Larena,San Juan and Lazi have designated their respective LEIPOs. In their efforts to retain and promote investments, Province of Siquijor and the 6 municipalities have adopted Local Investment and Incentives Code(LIIC). On the other hand, all municipalities have also automated their Business Permit and Licensing System(BPLS). While they have these essential indicators, all municipalities of Siquijor were not business friendly and competitive. On the provincial level, the Siquijor Provincial Tourism Office is headed by a senior tourism officer, and is under the supervision of the Office of the Governor. The Provincial Tourism Officer oversees 6 tourism operations assistants, each detailed to the various municipalities. The office is responsible for the collection of tourism statistics and information, which are then reported to the DOT Regional Office for Central Visayas. In 2005, Siquijor prepared a 10-year Tourism Master Plan to guide tourism development in the Province. However, the recommendations of the plan have yet to be fully implemented. In relation to this, the Province has yet to adopt a provincial tourism code. None of the municipalities in Siquijor have updated municipal tourism development plans. However, all 6 municipalities have Integrated Coastal Resource Management Plans (ICRMP) covering the time frame 2009-2013. These were prepared with technical assistance from ADB and UNDP-GEF through DENR and DA-BFAR. These plans include analysis and recommendations for the establishment and sustainable management of coastal tourism zones, ecotourism zones, and marine protected areas (among others).

II.

The Tourism Circuit

As a tourist destination, Siquijor is a serene place, ideal for those who want to get away from the hustle and bustle of city living. It is a haven for hikers, bikers and nature lovers. White sandy beaches cover the 102 kilometers of shoreline surrounding the island. Siquijor's historic reputation as a place of magic and sorcery both attracts visitors and keeps them away. Siquijor is also well known for its festivals that focus on primitive healing rituals where incantations are sung while the old folks make potions out of herbs, roots, insects and tree barks. In hushed talks, locals would share a story or two about folk legends pointing to the existence of witchcraft and witches in the island. LGSP-LED has taken the tourism circuit development approach as a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, it assists the LGUs in working with enterprises by enhancing visitor experience by developing more competitive tourism activities, goods, excursions, and facilities to increase visitors' length of stay and expenditure.

Tourism Access and Infrastructure Dumaguete City Seaport is the closest air gateway to Siquijor. Daily fast craft ferry services take around 90 minutes to transport visitors from Dumaguete’s seaport to Siquijor. Ports in Larena and Siquijor town link the island to Cebu City and Tagbilaran City (Bohol) – the Province’s main entry points. A small airstrip in the town of Siquijor, about 400m x 15m, occasionally receives small, chartered aircraft carrying passengers to and from Dumaguete as well as Cebu. This airport serves mainly as an emergency access to and from the province when sea access is not available. Recently, various improvements in Siquijor airstrip are underway such as the construction of passenger terminal building, expansion/repair of the runway with apron. Total public investment for the development of Siquijor airstrip amounts to PHP 93.5M.

Tourism Service Center The capital town of Siquijor and the municipality of San Juan are the main tourism service centers for the Province. San Juan hosts approximately 40% of the total supply of commercial accommodations on Siquijor Island, with 41 out of 108 establishments located there. These small-to-medium-sized hotels and resorts combine for 290 out of the total 678 rooms recorded in the Province as of 2014. As an island-Province, Siquijor is a natural tourist circuit. Blessed with a good quality road network and low vehicular traffic, the whole island can be traveled in less than half-a-day by car, motorcycle or even bicycle.

Major Attraction Sites White sand beaches make up most of the 102-kilometer coastline of Siquijor. The coral reefs surrounding the island such as the Tulapos marine sanctuaries in San Juan, offer some of the best diving in the Philippines for snorkelers and scuba divers. PADI, CMAS and NAUI dive courses are provided by several dive operators on the island. It is not a surprise that Siquijor tourism is largely associated with marine activities and beach resorts. Siquijor also boasts of some historical and cultural elements that help create a distinct identity for its own brand of island experience. Among these are Lazi’s San Isidro Labrador Church and Convent, the latter being the largest convent in the whole country. Of course, Siquijor is renowned in the Philippines to be the home of many practitioners of traditional healing. Siquijor is also able to project an image of a relatively unspoiled natural getaway because of other natural attractions, beyond its many coastal sites. Among these priority natural sites are Bandilaan Natural Park

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III.

Challenges to Local Economic Development

Despite its wealth of natural and cultural assets, Siquijor has not yet been able to maximize their potential economic benefits from tourism. There has been a consistently increasing trend of visitor arrivals to Siquijor in recent years –33,431 in 2013, 40,485 in 2014 and 61,217 in 2015. However, these pale in comparison to the arrival figures for the other provinces of Region 7 (Central Visayas): Cebu, Bohol, and Negros Oriental. Overall, Siquijor accounts for only 1% of annual visitor arrivals to the region. Dumaguete City, alone, receives almost ten times the number of visitors to the entire province of Siquijor.

Challenges to Enabling Environment While the Province passed one of the essential criteria of the Seal of Good Governance, which is the business friendliness and competitiveness, there was a need to intensify efforts especially that it was not considered as finalist during the 2014 PCCI Business Friendliness and Competitiveness awards. Except Maria, other member LGUs of Siquijor Province has designated their LEIPOs. While these LEIPOs have their tools (LIIC and auto-BPLS) in place at the start of the project, all of these municipalities did not pass in the Business Friendliness and Competitiveness criteria. This meant revisiting the implementation of those enabling policies and program to sustain or expand businesses in their localities.

Challenges to Tourism Sector Competitiveness Accommodation Siquijor’s supply of commercial accommodations must expand if the Province aims to encourage more overnight visitors. The majority of accommodation establishments in Siquijor are owned by foreigners in partnership with local stakeholders. However, with 627 rooms distributed across 75 hotels and resorts, the average establishment offers only 8 to 10 rooms for guests. There is a clear need for higher capacity properties – at least medium-sized accommodation facilities – that can host larger groups of visitors at a time.

Access and Infrastructure Limited accessibility is the biggest constraint to tourism growth for Siquijor. There is an existing air strip in the municipality of Siquijor. However, there are, as yet, no commercial passenger services to Siquijor. Nevertheless, work is proceeding on the on-going repair and extension of the airstrip as well as of a passenger terminal.

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Without direct air services, visitors are limited to the regular ferry services from Cebu City, Dumaguete City and Tagbilaran City. Travel time from Cebu City to Larena Port via Tagbilaran takes approximately 6 hours. However, the actual travel time from Dumaguete City (the last leg) takes only 30-45 minutes for fast craft and an hour-and-a-half for slow boats/RORO vessels. Lite Shipping ferries passengers coming to the island from Cebu City via Tagbilaran City to Larena Port 3 times a week and vise-versa. For visitors arriving from Dumaguete City, daily trips by Montenegro Shipping, Orlines, Aleson Shipping, Oceanjet fast ferries & JL Express are available at specific times in approximately 1- to 2-hour intervals. Under normal weather conditions, there is an average of 35 trips to and from Siquijor daily. However, ferry services are dependent on sea conditions. Trips are automatically cancelled whenever a typhoon warning is raised. As a result, Siquijor experiences significant lows in arrivals during the wet season compared to the summer months. Travel within Siquijor is also constrained by the limited supply and unreliable schedules of inter-municipal public transportation. A traveler wishing to travel from one town to the other must often wait more than half an hour for his or her jeepney to be filled with passengers before it moves. Unregistered (LTFRB) and expensive vans/vehicles for hire are also major constraints that may discourage tourists and affect local tourism growth.

Attractions and Tourism Products With regard to its tourism products, Siquijor has a good mix of historical, cultural, and natural assets on which to build a more competitive tourist destination. Assets including San Isidro Labrador Church and convent, St Francis Church, 100 year old tree in Lazi, Mt Bandilaan Park, Cambugahay falls and Tulapon marine sanctuaries complement the nearby destinations of Metro Dumaguete (Negros Oriental) and Panglao Island (Bohol) well. However, these tourism assets have not yet been properly enhanced, developed and packaged into marketable products. In relation to this, there is a major gap in terms of qualified travel and tour facilitators. There is only one accredited travel and tour operator in the whole of Siquijor. There are also no DOT-accredited tour guides in the Province. Typically, the island guides or community guides, whom visitors will encounter during their visit to Siquijor, will not have undergone any formal training for the work that they do. Many of Siquijorâ&#x20AC;&#x2122;s attraction sites are also largely undeveloped, with minimal on-site facilities and amenities for visitors. The local stakeholders have not maximized the opportunities for extending the tourism value chain in terms of producing higher quality souvenir items, food products, as well as herbal oils and other products of Siquijorâ&#x20AC;&#x2122;s community of herbalists.

IV.

Description of the Local Project

To support LGSP-LED's ultimate goal of local economic development for Filipino men and women, the Siquijor Tourism Circuit Development Project sought to improve the local conditions for sustainable local economic development. By 2016, the Project sought to generate PHP 200 million worth of investments, to create 400 new jobs (for 185 males and 215 females), and to increase tourist arrivals annually by 10%. In order to achieve these outcomes, the Project focused its interventions on two major components, namely the Enabling Environment, by strengthening the ability of participating LGUs to advance sustainable LED; and Sector Competitiveness, by strengthening the ability of LED actors to plan and implement sustainable LED initiatives in participating LGUs. In particular, the Project sought to have policies and programs adopted in the LGUs to advance business-friendliness and competitiveness in the Siquijor tourism circuit and to develop LED actors to be able to implement joint and sustainable LED initiatives for the Circuit. Towards this end, activities and assistance have focused on strengthening the Enabling Environment for LED, which includes LED policies and reforms such as LIIC and BPLS, and implementing Key LED Activities to improve the tourism sector's competitiveness, which, in the case of Siquijor, focuses on Tourism Circuit Development and Workforce Development. The figure on the next page summarizes how the outputs in different components lead to the desired immediate outcomes (enabling environment and sector competitiveness), which subsequently lead to the target intermediate outcomes on investments, jobs, and tourist arrivals in the Siquijor tourism circuit.

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Summary of Project Target Results

Project Management Project Implementation Team The LGSP-LED Project Implementation Team (PIT) for Siquijor is headed by Gov. Zaldy Villa, with Ms. Gladys Estrellada, Provincial Planning and Development Officer (PPDO) as the PIT Manager. Other members of the PIT from the Provincial Government are Provincial Administrator Pedro Samson, Provincial Tourism Officer Josette Armirola, OIC Provincial Agriculturist Evelyn Tumarong, and designated LEIPO Mr. Jemrin Pal-ing. Ms. Arlene Mack, President of the Siquijor Tourism Council represents the private sector.

Key Partners In addition to the official members, the PIT has often included other key stakeholders in its regular planning/working group such as Municipality of Siquijor Mayor Mei Ling Quezon, Siquijor Chamber of Commerce and Industry Executive Director Bambi Chan, and DTI Provincial Director Nimfa Virtucio. The Provincial DILG headed by Provincial Director Kenneth Kilat and LED Focal Person Judy Armirola have also provided technical support and supervision to local LED champions through the Municipal Local Governance Operation Officers in 6 LGUs.

V. Project Results and Assessment An Improved Enabling Environment In order to strengthen the ability of the LGUs to create an enabling environment conducive for Local Economic Development in the province of Siquijor, a total of 114 (57M, 57F) LGU officials and staff participated in various training and coaching LGSP-LED Siquijor Local Project Completion Report | 7

activities to assist them in develop business-friendly policies, programs, and regulatory reforms. For LEIPOs, tourism officers, and PESO Managers, the key knowledge and skills were: ! !

Awareness of their specific roles and responsibilities in achieving increased investments and more job opportunities for Siquijudnons, primarily by providing leadership in institutionalizing Business-Friendly LGUs. Consciousness on gender issues which need to be placed in the forefront of LED planning such as local economic and employment situation of women, risks and vulnerabilities of women (e.g. more women are employed in accommodation establishments and may be at risk of unwelcome sexual advances, harassment, etc. by their employers or guests). Responsiveness in recommending for affirmative action in promoting LED such as local policies, tourism support infrastructure as well as mobilizing resources to address the gaps.

For the Mayors, the main learnings were on understanding their roles in championing investments for LED and tourism in their LGUs; providing leadership in the prioritization of infrastructure, support services, and investment projects; and knowledge on the importance of local policies to institutionalize sustainable LED in the locality (specifically LIIC and e-BPLS). The 13(10M,3F) local legislators trained from the province and its member municipalities during the reporting period gained knowledge on the process of formulating and the salient features of local investment and incentives codes, as well as the urgency of passing support legislation to ensure meaningful and responsive implementation of LED plans and programs, that also consider the concerns of poverty alleviation, environment, and gender. Status of LGU Officials and Technical Staff Trained Male LCEs 5 LEIPO and Staff 2 Tourism Officers and Staff 1 PESO Managers and Staff 2 Other LGU Staff 47 TOTAL 57

Female 1 5 5 3 43 57

Total 6 7 6 5 90 114

Convergence Meeting for Tourism Circuit Development Program for Siquijor at the Siquijor Provincial Capitol -- Project Implementation Team (PIT) and Project Management Team (PMT) Meeting .

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Investment promotion was a priority area for capacity development for the Provincial Government as well as for the 6 municipalities. Thus, the LGU investment teams, led by their respective LCEs, LEIPOs, and legislative champions were able to produce the following investment promotion tools through the Local Project: ! ! !

7 Local Investment and Incentives Codes (LIIC) formulated for the Province and the 6 municipalities through coaching and training by consultants from LGSP-LED and the Local Government Academy 1 Provincial Investment Guide and 6 Municipal Profiles for investors 8 Investment briefs for priority investment projects of the Province of Siquijor and the 6 municipalities of the circuit.

LGSP-LED also partnered with the Negros Oriental Chamber of Commerce and Industry to train and coach the Mayors and LEIPOs of Siquijor to participate in the 2015 Visayas Area Business Conference (VABC 2015) held in Dumaguete City last July 2015. Applying techniques learned from the NOCCI coaches and using the project investment briefs written and packaged through LGSP-LED assistance, Mayors and LEIPOs were able to secure concrete expressions at VABC 2015, for the following projects: ! ! !

P 200M Maria Bay Cruise project (Interest from: Maribago Beach Club/Resort) P 100M Larena Shopping Center (Interest from: Prince Warehouse Club) P 200M Siquijor Business Center (Interest from: Dynamics Corporation/Lee Super Plaza)

The interested investors have since visited and met the LEIPOs and/or Mayors in the respective municipalities after the July business conference. NOCCI and the Siquijor Chamber of Commerce and Industry continue to provide mentoring to the LEIPOs on investor handling and management to convert the interest into actual investments. The Maribago Blue Water and Prince Mall have already forged formal agreements with Maria and Larena, respectively, for their business ventures. However, the planned investment of Dynamics Corporation/Lee Super Plaza to construct a P200M Siquijor Business Center is currently put on hold, pending the resolution of some issues on the proposed site by Siquijor LGU with DENR.

The six municipalities took another important step towards a more business-friendly Province by computerizing each of their respective business permit and licensing systems. By adopting software and technology from the electronic Governance for Municipal Development (eGov4MD), all 6 LGUs of Siquijor have significantly eased the local registration processes for new and existing businesses. Pioneering its implementation is the Municipality of Siquijor which has generated about P2.5 Million income derived from business taxes in January 2016 compared to its income in January 2015 which was only P1.6 Million. The other 5 LGUs have geared up for 2017 by acquiring new IT equipment, training additional personnel and familiarizing/ customizing minor details of the Auto-BPLS. The six municipalities have also approved Municipal Workforce Development Plans to train local residents on priority tourism and hospitality skills identified by the local private tourism sector. The Plans also include activities to strengthen the municipal Public Employment and Service Offices (PESO) by institutionalizing skills registry systems (SRS) in line with DOLEâ&#x20AC;&#x2122;s national system, as well as support for the conduct of industry forums with the private sector for more effective pre-employment training and job-matching. DILG, through its Training for Better Access to Jobs (TRABAJO) program, has allotted PhP 3 million for each LGU to implement their respective workforce development plans starting 2016. LGSP-LED also provided technical assistance and training for the Tourism Offices of both the Provincial Government and the municipality of Siquijor to enhance their capabilities for collecting and analyzing tourism data. The tourism officers from these LGUs were trained on the use of a local Tourism Statistics and Information System (TSIS) developed by Naga City, another LGSP-LED partner LGU, which allows for customized analysis and reporting of tourism information within the framework of DOTâ&#x20AC;&#x2122;s national system of tourism statistics.

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Three LGUs of Siquijor Province have successfully implemented the Automated Business Permit and Licensing System (Auto-BPLS) with technical support from e-Gov starting January 2016. Siquijor LGU through its dynamic LED Team headed by Mayor Mei Ling Quezon and the local treasury headed by Mr. Fortunato P. Maglinte have attributed the increasing revenue collection from Php1.6M in January 2015 to Php2.5M in January 2016 to Auto-BPLS. LGUs of Maria and Lazi were equally grateful of this automation initiatives and the gains that goes with it such as the increase in the number of business establishments and increase in revenue collection. LGUs of Larena, San Juan and Enrique Villanueva plan to fully implement Auto-BPLS by 2017.

A More Competitive Tourism Sector The Tourism Circuit Development approach of the Local Project provided Siquijor with a tourism development agenda that has helped build a stronger, more competitive local tourism sector. ! Through the tourism circuit planning process, the LGU and private sector stakeholders are more aware of the tourism situation in the province and have recognized the value of interdependence among tourism industry players and the private sectors to achieve a vibrant local economy through tourism. ! The stakeholders have Workforce Development Plans ready for implementation in partnership with local training institutions (i.e. Provincial TESDA and Siquijor State College) to ensure the quality and supply of human resources for local resorts and tourism establishments to become more competitive. ! The tourism sector has a new destination brand for the Province and new packaged tour itineraries â&#x20AC;&#x201C; with which to build the tourism product development, marketing, and promotions programs for Siquijor, in line with the Tourism Circuit Plan and the newly-updated Provincial Ecotourism Master Plan The Local Project also supported and facilitated the development of new packaged tours to bring the tourism circuit to life for prospective visitors. With technical assistance from LGSP-LED, the Siquijor tourism sector now has 3 themed tour packages ready for selling and marketing to foreign and domestic travellers. The primary target markets for these packages are those from nearby islands linked to Siquijor by fast crafts services, particularly Negros Oriental (Dumaguete), Bohol (Tagbilaran), and Cebu. Secondary markets will be those segments originating from Metro Manila (residents or foreign visitors), with higher purchasing power and on the lookout for unique travel adventures The tour itineraries highlight Siquijor unique marriage of healing heritage and folk Catholicism, to complement the islandâ&#x20AC;&#x2122;s natural blessing of ecotourism sites and beaches. 1. Healing Festival Tour (3 days/2nights; Good Friday to Easter Sunday only) 2. Healing and Heritage Tour (day trip; available year-round) 3. Love Potion Tour (3 days/2nights; available year-round)

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The art of island living”, the brand identity visual for Siquijor is inspired by a top view of the island. A continuous bold line, like a road, traces its periphery and spirals towards the center, creating a sort of “inner spiritual eye”. It is rendered in red and ringed in gold, depicting the kilometers of pristine beaches that skirt Siquijor. Red and yellow are flame colors, they hearken back to old times when it was called Isla de Fuego, because of the light from thousands of fireflies. The font chosen for the name Siquijor has a mystical, primordial quality that matches the main visual, making Siquijor’s brand identity similar to an amulet with the power to reduce

TOUR(PRODUCTS(FOR(SIQUIJOR(

(A(CELEBRATION(OF(HEALING(HERITAGE(

#1:(HEALING(FESTIVAL(TOUR( 3(DAYS(/(2(NIGHTS(

(

THE(MARRIAGE(OF(( FOLK(CATHOLICISM(

(

((((Day(1:(Good(Friday( (

I  I  I  I  I  I  I  I  I  I  (

(f(( ((

TOUR(PRODUCTS(FOR(SIQUIJOR(

#2:(HEALING(&(HERITAGE(TOUR( DAY(TRIP( (

I  Take%part%in%gathering%of%herbs% %

I  Experience%the%tradi0onal%healing%methods%of% Siquijor%like!himulso!(pulse%consulta0on),%toob% (smoke%herbal%healing),%tawal%(ritual%healing)% I  Cooking%Demo%of%Lauyang%Manok%followed%by%% %%%%%%lunch%at%Kuya’s%KTV% %

I  Visit%ot%San%Isidro%Labrador%Church%&%Convent%% %

I  Bring%home%some%skills%of%learning%the%the% tradi0onal%healing%massage,%“Hilot”%% I  Stop%at%Pan%Bisaya%for%snacks%

Take%a%ferry%from%DumagueteISiquijor% Meet%and%Greet%at%the%Siquijor%Pier% CheckIin%at%the%resort% Lunch% Visit%the%Lazi%Convent% Visita%Iglesia% AQend%the%Holy%Mass% Evening%Procession% Partake%in%“The%Way%of%the%Cross”% Dinner%In%Dagsa%

TOUR(PRODUCTS(FOR(SIQUIJOR( #3:(THE(LOVE(POTION(TOUR( 3(DAYS(/(2(NIGHTS(

%(((((Day(1:(Arrival(in(Siquijor(

(

I  Breakfast%in%Dumaguete% I  Take%a%ferry%ride%from%DumagueteISiquijor% ( I  Meet%and%greet%at%the%port% I  Proceed%to%the%resort%to%checkIin%and%freshen%up% I  Late%lunch%&%orienta0on%at%the%resort%% I  Insights%on%Lec0o%Divina,%a%medita0ve%% %%%%%prayer%journey% I  Visit%to%San%Isidro%Labrador%Church%&%Convent% I  Learn%of%how%to%make%a%“Pan%Bisaya”% I  Cooking%demonstra0on%of%Lauyang%Manok% I  Welcome%dinner%of%curated%meals%with%% %%%%%Lazi%Comparsa%+%Balak%(courtship%poetry)%

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In all of the activities conducted in Siquijor, the private sector was considered as a developmental partner and thus thirty-nine (39) private sector representatives (24M, 15F) participated and collaborated with the LGU officers on programs and projects of the local projects by: !

Providing updated information and data vital to the crafting of the TCP, WfDP Business Plan, CCA-DRRM, GAD Plan, etc.

Actively participating in dialogues, open forums and key informants interviews.

Assisting in the identification of data gaps, issues, concerns in the locality.

Guiding the LED implementers to be familiar with the context and leadership dynamics which might either hinder or facilitate implementation of LED initiatives in Siquijor

With the LGSP-LED activities in these areas, private sector and academic institutions such as the Siquijor Tourism Council, Siquijor Hotels Restaurants and Tourism Association (SHORETA), Siquijor Chamber of Commerce and Industry, and the Siquijor State College will become stronger champions for inclusive and sustainable tourism development of the Province.

Emerging LED Results in Siquijor The LGSP-LED Local Project on Tourism Circuit Development for Siquijor Island sought to accelerate local economic development in the province by attracting PhP 200M investments in tourism facilities and other support infrastructure; creates 400 local employment in the circuit and increasing tourist arrivals by an average of 10% per year by 2016. Reviewing the accomplishments of the LGU as of March 2016 shows that the Province of Siquijor exceeded its targets for the Local Project, in terms of investments, employment and visitor arrrivals. Overall, it has exceeded its target for investment generation with an estimated PhP 523.5 million in public and private investments combined. The on-going public investment projects, worth P 223.5 million are the following ! P 20M Rehabilitation of Siquijor Port, Construction of Passenger Terminal and Improvement of Pier (PPA) ! P 73.5M Improvement of Siquijor airport runway and apron, and construction of airport terminal ! P 40M Phase 1 Construction of New Provincial Hospital ! P 70M Retrofitting of Lazi Convent ! P 20M Concreting of Bolos Road, Municipality of San Juan In addition, new tourism-related investments of the private sector, include a PhP 200 million resort development in Maria by Maribago Bluewater and a PhP 100 million retail development by Prince Mall in Larena. In addition, there were approved infrastructure projects in the pipeline for the Siquijor tourism circuit. This includes the coordinating roads and infrastructure investments for development amounting to PhP490M, airport development amounting to PhP200M and KALSADA program amounting to PhP 70M. With the implementation of the LGUsâ&#x20AC;&#x2122; workforce development programs under the TraBaJo Program, about 300 newly trained workers to acquire jobs along the tourism value chain across sectors like transporttion, accommodation, food and beverages, souvenir shops, etc. Annual visitor arrivals to Siquijor grew from only 33,431 in 2013 to 61,217 for the whole of 2015. This represents an average annual growth rate of 35.3% per year over the period of the Project. Extending the analysis earlier to 2011 shows that average growth rate from 2011 to 2015 was a robust 26.6% per year. Despite this, overall numbers are still low compared to comparable island destinations such as Panglao in Bohol which has 164,447 tourist arrival for the whole 2015. These trends suggest that market demand in the short-to-medium term will remain strong. However, long-term growth may require expansion of the seaports and frequency of ferry services â&#x20AC;&#x201C; and possibly, redevelopment and opening of the Siquijor Airport to passenger services.

Crosscutting Themes Gender Equality The participation, involvement and contribution of women from the project preparation activities, implementation ad monitoring were highly recognized as much as the participation and contribution of the men. Out of 114 LEIPOs and LGUs Staff trained on investment promotion, tour package development, and destination branding, 50% was women. On the other hand, out of 39 tourism workers, MSMEs and industry representatives trained on LED 38% was women. These men and women were provided with right information and guidance by including topics on gender and development on the trainings conducted. LGSP-LED Siquijor Local Project Completion Report | 12

As mentioned above, Siquijor has been able to tap 38% of women LED Champions to participate in its LED activities such as tourism workforce development, planning, tour package development and most recently the “destination branding” workshop. Participants actively shared valuable ideas mostly pertaining to protection of women in media and advertisement. That is why during the deliberation of the logo design, the one with a woman’s face was voted out for reasons that advertisement materials should not use women even if the message is promoting the island as a wellness destination. Participation of key women leaders in LED activities increased the probability of realizing the LED outcomes in terms of prioritizing funding, implementing and sustaining the gains of LGSP-LED programs. Among the women LED champions who have been involved in planning and implementation of the LGSP-LED project are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Mayor Mei Ling Quezon – Municipality of Siquijor Board Member Darlene Honrubia – Chairperson, Committee on Women and Family Affairs of the Provincial Board Gladys Estrellada – Provincial GAD Focal Person/ PIT Manager Blezilda Omictin – Provincial DRRM Officer/ CCA-DRRM Consultant for Negros Oriental Councilor Joy Lopez de Andrade - Author, Siquijor Municipal Gender Code Roselyn Asok – Tourism Coordinator of Maria and member of the Provincial Tourism Council Nimfa Vertucio – Provincial Director, DTI Siquijor Arlene Mack – Chairperson, Provincial Tourism Council Joy Chan – Executive Director, Siquijor Chamber of Commerce Joy Erikkson – Manager, Cocogrove Resort Prof. Cyd Charisse Sarmiento – Siquijor State College School of Tourism

Environmental Sustainability Environmental rapid scanning of the tourism circuit of Siquijor conducted. The case study developed for Siquijor highlighted the observations on how LGUs ensure environmental sustainability. These observations were validated along with the risks assessment in the tourism circuit planning conducted for Siquijor. Based on the approved Local Investment Incentive Codes of the Province of Siquijor and all member municipalities, there was a huge emphasis on attracting investments that are environmentally sustainable. The proposed Biodiversity Learning Complex in Enrique Villanueva was a good illustration of their efforts towards an environmentally sustainable tourist destination area. This complex was proposed to be one of the stops of the tour package and will be a learning hub on how to sustainable ecosystem works. Given that Province of Siquijor is mostly timberland, promoting investment opportunities take into consideration the environmental laws regulating them. The LED team composed of the LCE, LEIPO and Tourism Officers have undergone orientation and meetings on the legal processes, responsibilities in protecting and preserving the environment and their limitations.

Poverty Reduction The Workforce Development component enables LGUs to map out existing establishments with corresponding number of employees, the gaps/issues in terms of labor force and vulnerabilities for exploitation. It has likewise created an opportunity for future convergence for employment and skills upgrading. To date, workforce development plans developed through LGSP-LED’s assistance was now approved for the six municipalities of Siquijor. Target beneficiaries of the TRABAJO Project were unemployed local residents who were members of the Pantawid Pamilyang Pilipino Program, Indigenous People, Out of School Youth and Persons with Disability (PWD). Skills trainings that will be provided to these target beneficiaries were based on the project requirement of the tourism sector in the next years. The tour packages developed for Siquijor provided prospective opportunities for men and women particularly MSMEs to be integrated with the tourism circuit. Barangay Napo Women Weavers Association, the Artists Association and local healers who currently are producing handicrafts and work crafts for souvenirs forged partnership with DTI Siquijor for support.

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VI.

Lessons Learned

2. The Provincial Tourism Circuit promotes multi-sectoral and inter-municipal partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed in the Province. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single municipality. By adopting a Province-wide approach to destination planning, the TCP emphasized how interdependent the municipalities are with each other. Thus, it also highlighted how the municipalities in Siquijor do not compete against each other, but rather compete together against other island-destinations in the Philippines and Southeast Asia. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

3. Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. This is also true for Mayors at the city and municipal level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. The LCEs must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCEâ&#x20AC;&#x2122;s engagement and reinforce their role as LED Champions. The encouraging, albeit preliminary, developments achieved by the municipalities of Maria and Siquijor from their participation in LGSP-LED investment promotion activities demonstrate the possibilities when LCEs are open to learning and adopting new approaches to economic governance. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

LGSP-LED Siquijor Local Project Completion Report | 14

The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGU’s program for business-friendliness and LED competitiveness. However, sustaining the active participation of these LED Champions beyond June 2016 is not yet certain most of the LEIPOs & some of the tourism officers have interim appointments, co-terminuous with the incumbent Mayors. Not surprisingly, they also have temporary offices and working budgets. These LED officers are more effective, and work better with each other, when they are confident in their mandates, their capabilities, and the support that they receive from their respective LGUs. Thus, agents for economic and tourism development within the LGUs such as LEIPOs, Tourism Officers, and PESO managers must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. Finally, they must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. Strong Provincial LEIPO, Tourism, PESO, and Planning Offices are necessary to provide technical support and mentoring to their municipal counterparts, who may not have the same resources, experience, and institutional connections to NGAs and national or regional industry. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit. On a related note, DILG as the implementing and monitoring agency should establish a unit primarily tasked to support the LGUs on their efforts to improve their business-friendliness and competitiveness rankings for LED. The members can come from a core of focal persons from the Provincial Office and the MLGOOs assigned to the different LGUs. As with the LGU LED Team, DILG’s LED unit should also have properly trained personnel and appropriate budget.

5. Engaging the private sector in planning and implementing the LED Program Building can lead to a more businessfriendly, entrepreneurial mindset within the LGUs LGUs need to understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. The LEIPOs must engage local proponents through the local business chamber in order to be ready with the investment information, identify the priority projects, and match them effectively with investors. PESO Managers cannot implement effective job-training and employment matching programs without partnering with the local employer sector to determine their anticipated workforce needs. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis a vis the local industry’s efforts to become more competitive and inclusive. The participation of the Siquijor Chamber in the implementation of the LED Project was not well maximized. Similarly, SHORRETA was less active at the beginning of the Project. However, they were more involved during the branding and tour package activities in the later stages of the Project. These can be attributed to relatively limited understanding of their role in project implementation and, more broadly, on partnering with the LGUs for LED and tourism. As with the LCEs and the LGU LED Team, there may also be a need for knowledge building and LED orientation for private sector champions. This may deepen their appreciation and understanding of the Tourism Value Chain and the private sector’s role in local economic development for the province.

VII.

Conclusions and Recommendations

The Local Project has been able to make progress towards creating a more enabling environment for sustainable development of the local economy, and particularly the tourism sector, in Siquijor. However, the work is far from complete, and there are many remaining opportunities not just to sustain but also to extend the gains of the Local Project beyond LGSP-LED. The key lesson learned from the Local Project is that the main role and responsibility of local government in advancing LED is to enable sustainable and inclusive local economic development to grow. It does this primarily by providing a local policy and public service environment that facilitates the efficient, effective, and ultimately profitable operations of local enterprises. Another role for local governments is to support the growth and integrated development of its tourism enterprises (micro to large) as one competitive value chain operating across the circuit. In this role, the LGU continues to play an enabling position in functions such as business investment, product development, and workforce development where the private sector and LGSP-LED Siquijor Local Project Completion Report | 15

other non-government players are more capable. However, the LGU can take a stronger leadership role in functions such as destination marketing and public infrastructure investments where the local private sector does not have the resources and/or interest in taking the lead. Thus, the main LED priorities for the LGUs remain : 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more businessfriendly environments for sustainable and inclusive economic development, and 2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry.

These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature. Include in the LGU budgets, sufficient funds and resources for the effective and harmonized operation frontline BFCL LGU offices such as BPLO (and Business-One-Stop-Shop), LEIPO, Tourism Office, PESO, Planning Office, etc. Funding for continuous technology improvement and staff development related to LED information systems (e.g. auto-BPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be included in these budgets, to the extent feasible. Considering their importance as the main service centers for the Siquijor tourism circuit, priority should be given to strengthening the capabilities of the municipal tourism offices of Siquijor and San Juan to provide visitor information and assistance services as well as collection and reporting of tourism statistics and information

2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC, Tourism Codes, and other LED-related local bills formulated through the assistance of DILG and LGSP-LED. 3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and sociallyprotective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: !

! !

Integration of DRRM-CCA, including provisions related to LED and investment promotion, in subsequent updating of the Provincial Physical Framework Development Plan and the corresponding city/municipal CLUP and CDP. Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP and PETDP to identify key locations/sites for priority attention. Building and infrastructure development should strictly conform to the existing Building Code, Environmental Policies and CCA-DRR plans. The cityâ&#x20AC;&#x2122;s zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks. Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant.

4. The Provincial Government should continue to work closely with the LGUs and DOT to ensure the integration of Siquijor Ecotourism Development Plan with DOTâ&#x20AC;&#x2122;s National Tourism Development Plan which is currently being LGSP-LED Siquijor Local Project Completion Report | 16

updated for 2017-2022. In this regard, the LGUs may develop a workplan to implement the Provincial Ecotourism Development Plan using the tourism circuit planning experience from the LED Project. !

The Provincial Government and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 20162022. The implementation of the Siquijor Ecotourism Development Plan should include a review of the disaster- and site-vulnerability issues and concerns identified in the PPFDP and in the Integrated Coastal Resources Management Plans prepared for each municipality. These are areas with low elevation and are vulnerable to flooding as a result of high rainfall during tropical cyclones. Coastal areas along the Tourism Circuit are also susceptible to sea level rise associated with climate change. Improvement of accessibility will need to ensure that major roads leading to the tourism sites will not be impeded in the event of major tropical storms as these serve as lifelines to facilitate evacuation, rescue and delivery of relief assistance, and that these roads have well lighted posts. Alternate routes need to be identified and roads comprising the routes should be upgraded to ensure all weather conditions. Strict implementation of zoning ordinances to prevent settlements in hazard zones and in environmentally constrained areas Ensure that adequate forest cover is maintained in slopes above 18 percent and environmental laws are implemented to prevent degradation of areas with steep slopes.

The Governor should be the chair of the LED Team, providing overall policy direction, strategic advise and leadership to the team. The core LED Team should include members from the Provincial Government’s economic officers ( the LEIPO, the Provincial Tourism Officer, the PESO Manager, and the Planning Officer) and the partner institutions from the private sector (i.e. Siquijor Provincial Tourism Council, Siquijor Chamber of Commerce and Industry, Siquijor Hotels Resorts Restaurants and Tourism Association). A LED Project Manager should be designated from among these action officers to lead the team in overseeing the regular concerns of the LED program. The DILG Provincial Director and the LED Focal Person should also be invited to the LED Team, as well as other NGA Provincial Offices, such as DTI, DOLE, DSWD, DENR, etc. with programs critical to the LED Agenda of the Province, and the tourism circuit. However, the NGAs should officially designate their permanent and alternate members to the LED Team, with preference for the focal persons/action officers with direct involvement in key LED-related programs such as DTI Negosyo Center, DOST SET-UP, DSWD Sustainable Livelihoods Program, etc. The Provincial LED Team together with the DILG Provincial Office should organize and provide technical assistance to a similarly composed counterpart team from among the LCEs, LED officers and key private sector champions of the 6 municipalities in the tourism circuit.

Designation of LEIPOs and establishment of local economic development and investment promotions offices New or updated LIIC harmonized with new/updated LRC Institutionalization of LGU skills registry system Institutionalization of LGU tourism statistics and information systems

LGSP-LED Siquijor Local Project Completion Report | 17

3. Encourage learning exchanges among the LGUs of Siquijor to meaningfully sustain the LED program, particularly on BFCL initiatives. For example, Siquijor can mentor Larena or other LGUs on automated-BPLS. Larena may be host other LGUs on LIIC and other support legislation for other investment opportunities & BFCL in general. Etc. 4. Combine advocacy with technical assistance and support – again, in coordination with LGA and DILG Central Office – for LGUs to harmonize their LED plans and programs with the updating/enhancement of their respective CDPs and CLUPs. In the process, DILG should emphasize the gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the 2 mother plans to ensure the mainstreaming of these themes in the LGUs LED plans and programs. 5. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: !

Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives. Facilitating the local planning processes, and mobilize City/Municipal LGOO cluster in the circuit , so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. In relation to this, DILG should mobilize Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management.

The Provincial LEIPO, in partnership with the Siquijor Chamber of Commerce and Industry, may organize regular (quarterly or twice a year) meetings with the counterpart LEIPOs and chambers from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities LGSP-LED Siquijor Local Project Completion Report | 18

Fast track implementation of tourism support infrastructures and programs like airport, hospital, seaports, power and water systems which are mostly on-going and others already in the pipeline. LGUs to follow-up investment leads and other investment opportunities. Explore on PPP ventures if necessary. 2. Through the Provincial Tourism Office, and in partnership with the Siquijor Tourism Council, SHORRETA, and SCCI, design and implement a program for the full roll-out and market/industry launch of the “Siquijor. The art of island living” brand. !

The destination marketing and promotions program should aim to increase market awareness and interest for the tourism circuit, through the use of traditional collaterals (e.g. brochures, video, etc.) and new media (e.g. website, social media, etc.). These should include revival of the Siquijor Tourism Website through the Provincial Tourism Office, with sponsorship or membership-based contributions from private tourism establishments for regular and continuous updating of its content and features. The marketing program should also include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and inbound familiarization trips for tour operators and travel media. Organize joint marketing with Negros Oriental and Dumaguete City tourism offices, including arrangements for the promotion and distribution of Siquijor tourist information materials, promotional collaterals, and tour packages at the Dumaguete Airport and sea port terminals. Partner with fast-craft ferry services out of Cebu and Tagbilaran to promote new brand

3. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. 4. Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the Province, consistent with the recommendations of the TCP, the Provincial Ecotourism Development Plan, and the overall “Art of island living” position of the destination. ! !

The Provincial Tourism Office with support from DOT can facilitate and support market-linkage efforts of the local private sector to sell the new Siquijor tour packages to the national and international markets. The Provincial Tourism Office, Provincial Tourism Council and SHORRETA can initiate cross-promotional programs with tour operator associations in Negros Oriental (e.g. NOATTA and ATTIN) for their members to sell the Siquijor tour packages as stand-alone products, or twinned with compatible packages of Negros Oriental. Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and communitybased livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the new Siquijor marketing and branding strategy. In this regard, DTI’s MSME support programs for ecotourism product development – through the Negosyo Center – is a key implementation partner.

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Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

CUMULATIVE

INTERMEDIATE OUTCOMES

(MARCH 2016)

New Investments

Description

Value (PHP)

523.5M

Private Tourism Investments

Marina Bay Cruise, Larena Shopping Center and Siquijor Business Center

200M

300M Maribago Blue Water development Prince Mall commercial establishment in Maria

Rehabilitation and reopening of Cangalwang (Siquijor) Airport Public Investments

Construction of new terminal for Siquijor seaport; rehabilitation of provincial roads

568.5M 332.3M New hotels, tourist inns and lodges 480M Coron Busuanga Road,Access Road to the jump off point to Calauit Wildlife Sanctuary road connecting Busuanga airport-Kiwit Road 100

Employment (New)

400

Male

185

Female

215

10.00%

35.32%

33,431

52,360

61,217

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated

LIIC Adopted BPLS Computerized LRC Adopted

7 6 0

0 6 0

7 6 2

LED Information Portal Established

Tourism Statistics system implemented

Tourism Code adopted TOPCOP Program/Plan implemented

0 0

2 7

Business Registration

LED Actors with Capacity to Plan/Implement LED Initiatives Implemented

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

243

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OUTPUTS LEIPOs Trained

114

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened

Tourism Code formulated/updated

TOP COP Program/Plan developed

LED Initiatives Planned

LED Actors Trained

152

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

150

Industry Representatives

LGSP-LED Siquijor Local Project Completion Report | 21

Mainstreamin g Public Privat e Economic Initiatives Proje ct in Negros Occidental

Mainstreaming Public Private Economic Initiatives Project Another important component of this project was to support the governmentâ&#x20AC;&#x201D;national and localâ&#x20AC;&#x201D;to better enable the private sector to invest and create jobs, in order to reduce poverty for women and men and ensure environmental sustainability.

I. Local Government Profile Negros Occidental Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

Poverty Incidence (2012) Employment Rate (2014) Climate Change Vulnerability

2.4 million 792,607 hectares 13 19 Bacolod City 1st Bacolod City, Talisay City, Silay City Agriculture Sugar, agriculture (sugar, rice, corn, coconuts, abaca, and other fruits like bananas, mangoes, durian, pineapples, and lanzones); Livestock and poultry; cutflowers and gamefowl breeding; Fishery; Tourism 26.16% (National: 27.9%) 89% (National: 93.2%) 19th of the 20 vulnerable provinces to temperature increase

Located on the western side of Negros Island, the Province of Negros Occidental has a land area of 792,607 hectares. Negros Occidental, known as "Buglas" by its early inhabitants, is approximately 375 kilometers long from north to south. It is bound by the Visayan Sea in the north, Panay Gulf on the west, TaĂąon Strait and Negros Oriental province on the east, and Sulu Sea to the south. Its soil is mostly volcanic, making it ideal for agriculture. Eighty percent (80%) of all arable land is cultivated, and agriculture is a major industry. The Province is composed of 13 cities and 19 municipalities, with Bacolod City as the capital. The provincial population is 2.4 million people. Urban areas in the province occasional flood during the monsoon season although the Province is not within the usual typhoon path. The province has been recognized as a model for disaster preparedness and hosts a regional Disaster Training Center. The private sector is actively involved in emergency response operations, with the Filipino-Chinese community running their own volunteer units. Sugar, the lifeblood of the Province of Negros Occidental, flourished in the Philippines in the mid-1900s and gave the Province its distinctive character. The boom of the sugar industry brought wealth to the Negrenses, making Negros Occidental the center of culture and the arts in the country. Today, the Province is positioning itself as the Organic Province in the country where local restaurants, farmers, and growers are encouraged to patronize organic farming. Negros Occidentalâ&#x20AC;&#x2122;s employment rate is at 89%1 and the 2012 poverty incidence in Negros Occidental is estimated at 26.16%. The 2009 Human Development Index rating for the Province, measuring the complete concept of human development by tracking the progress of three selected aspects of human life including education, income and health, was 0.5372. While poverty incidence in Negros Occidental is lower than the national level, which is 27.9, human development, which considers the people and their access to long and healthy life, education and, a decent standard way of living is still low. An important social issue within the Province is the high number of Violence against Women and Children (VAWC) cases within Bacolod City. Increased tourism activities raise the risks in VAW, child sex tourism and HIV/AIDs. As reported in Panay news last November 23,2014, Bacolod registered the highest incidences of VAW in Region 6. Negros Occidental has 12 out of 24 human trafficking cases for 2014 as recorded by DSWD R6 with cases involving undocumented OFWs, three illegally recruited minors, one kidnap case, OFW deportation, abused OFW, one rescued entertainer in Boracay. Province of Iloilo, on the other hand, has recorded 310. An earlier report from Panay news last March 2,2012 also cited that the Police Regional Office 6 Women and Children Protection Desk reported 1,076 incidences of violence against children in 2012. Of which, Bacolod reported 407 and Province of Negros Occidental reported 310.

Philippine Statistics Authority (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority. Philippine Statistics Authority. (2016). Negros Occidental Quickstat - January 2016. Quezon City. Retrieved from https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Negros%20Occidental_28.xls

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The sex industry, which forces women to prostitution and to be treated as commodities, is also prevalent in the Province. There were 1,239 cases of sexual abuse and rape of women recorded as reported in Panay News, March 2,2012. Of this, 536 were recorded in Bacolod City, 380 in Negros Occidental and 323 in Iloilo City.

Local Economy Negros Occidental is the Philippines’ major sugar producer, contributing at least 51% of the country’s 2012 total production. Some 54 per cent of agricultural land is sugarcane-based, and raw sugar is its leading export. There are 9 mill districts and 3 sugar refineries. Sugar farms produce 800,000 metric tons of raw sugar annually. Other countries such as Thailand, have eaten into Negros Occidental’s world market for sugar with their lower priced product, thus threatening not just its export income but the stability of the industry itself. The province also produces rice, with a 2012 rice sufficiency level of 97.31. Other agricultural products include corn, coconuts, abaca, and bananas, mangoes, durian, pineapples, and lanzones. The Province is positioning itself as the Organic Province in the country where local restaurants are encouraged to patronize organic farms. Fishing boosts the economy of the province. Livestock and poultry have become growth industries in the countryside (the province is certified free of foot-and-mouth disease). Other emerging industries include cutflower and gamefowl. Tourism emerged as a priority industry in the 1980s, when plummeting prices of sugar in the world market pushed the Province to diversify. Although beach and island destinations to the North (Sagay City) and South (Sipalay) are growing, tourism is primarily concentrated in Bacolod, Talisay, and Silay. These are driven by business, convention, and educational groups; visiting-friends-and-relatives (VFR) and balikbayan; and the two large annual festivals. Negros Occidental has a vibrant crafts sector. The Association of Negros Producers has been successfully staging the longest running province-focused trade fair in Metro Manila to promote Negros-made gifts and accessories, furniture and home decors, pastries and heritage recipes, pottery, garments and silk to the national limelight. The province produces almost 90% of the country’s silk supply.

Cities Covered in the Project The Project focuses its efforts in the cities of Bacolod, Talisay, and Silay, which have a combined population of 759,011 or around a quarter of the Province's population. LGU Bacolod

Income Class 1st

Population 540, 441 (2013)

Land Area (hectares) 16,145

No. of Barangays 61

Poverty Incidence (2012) 22.6%

Talisay Silay Province

4th 3rd 1st

97,571 (2007) 120,999 (2010) 2,396,039

20,110 21,479.9 792,607

27 16 601

15.86% 46% 26.16%

The capital city of Bacolod has a land area of 16,270 hectares. It is the most populous city in Negros Island and is the main education and trade center. Bacolod City is a fast-growing center for Business Process Outsourcing (BPO) and information technology (IT) businesses, and has been ranked among the top 10 “Next Wave Cities” in the country. Talisay City is located between the cities of Silay and Bacolod with a land area of 20,118 hectares. Of the City’s land area, agricultural land comprises the biggest with 12,092.55 hectares or 60.11% of the land area. Forestland covers 6,628 hectares or 32.95% of the total land area. The remaining 1,397.45 hectares or 6.95% of land is in built-up areas, composed of industrial (1.04%), commercial (1.07%), residential (4.57%) and institutional (0.27%) areas. With a land area of 21,486 hectares, Silay City is a 3rd-class city that grew into prosperity through the cultivation of sugar starting around the middle of the 19th century. Many of the oldest and biggest sugar plantations are in Silay. The City became known as “Paris of Negros” for artists, shows and European-influenced lifestyle afforded by the prosperity of the old Silaybased sugar barons. Today, Silay City still highly reliant on sugar. Emerging sub-sectors are focused on organic agriculture (non-sugar), crafts, and garment manufacture.

LED Enabling Environment In 2013, the Province and Bacolod City received DILG’s Seal of Good Governance (SGLG), for meeting or exceeding the DILG’s standards for local governance including LGU reforms for business friendliness and competitiveness. The National Competitiveness Council also listed Bacolod City among the most competitive cities in the Philippines based on its criteria LGSP-LED Negros Occidental Local Project Completion Report | 3

economic dynamism, government efficiency and infrastructure. As of 2013, all LGUs including the Provincial Government of Negros Occidental has designated their respective Local Economic and Investment Promotion Officers (LEIPO). In addition to this, important enabling tools for promoting investments have also been established. City of Silay has adopted their Local Investment and Incentives Code. On the other hand, cities of Bacolod, Talisay and Silay have automated their business permit and licensing system. For tourism development, all LGUs including the Provincial Government of Negros Occidental has designated their LEIPOs.

II.

The Tourism Circuit

Tourism Access and Infrastructure The Bacolod-Silay International Airport is a 55 minute flight from Manila, 30 minutes from Cebu and serves as the air gateway to Negros Occidental. There are daily domestic flights from these points. The airport is located 15 kilometers northeast of Bacolod City. Visitors can also access Bacolod-Talisay-Silay by sea through two wharves: Banago and BREDCO. BREDCO is busy with daily ferry and Roll-On Roll-Off (car ferry) trips to Iloilo. From Manila there are regular 18-hour cruises on world-class vessels. Land-and-sea travel from Cebu City takes 7 hours. Bus terminals plying northern and southern Negros Occidental are located within Bacolod City. Basic utilities such as electricity and water are widely available within the circuit. With a rapidly growing population of more than half a million people, the safe and efficient management of solid waste is of major concern. Both Talisay and Silay have active solid waste management initiatives with environmentally friendly and sustainable goals.

Tourism Service Centers Bacolod City has the highest tourist arrivals among the three cities in the TDA. It also has the highest number of accommodation establishments and rooms. The city is friendly with genuinely hospitable people, whose lilting Hiligaynon dialect and winsome smiles have made Bacolod famous as the "City of Smiles." Bacolod holds an annual popular MasKara Festival, held every October. Dancers in bright, colourful costumes and masks take over the city’s major streets.

Major Attraction Sites Negros Occidental offers a varied range of physical and natural attractions. However, sugar remains the lifeblood. The industry gave Negros Occidental its distinctive cultural and historical flavor. The “Story of Sugar” is a core theme of its tourism sector, particularly in the Bacolod-Talisay-Silay Tourism Circuit. The BTS Tourism Circuit capitalizes on the opulent heritage structures, tradition and cuisine. Traditional sugar plantations are evolving into specialty organic farms and leisure estates. Families in the BTS have used their sugar capital to diversify into tourism-related services and products such as specialty restaurants, high-end crafts and products, and artisanal food products. The BTS Tourism Circuit now offers at least 4 clusters of attractions: 1. Central Bacolod City from the Bacolod Plaza to the Provincial Capitol and Lagoon. Other attractions are the Central Market, Pope John Paul II Tower, Palacio Episcopal, the San Sebastian Cathedral, The Negros Museum, and The Fountain of Justice. 2. The Lacson Strip. Lacson Street is one of Bacolod’s major streets where festivals and public events are held. The street is popularly known as the City’s restaurant strip with historic restaurants serving local families for more than 50 years to modern, trendy establishments opened by a new generation of professional chefs. 3. Talisay City. This includes heritage sites such as Balay ni Tana Dicang, the Shrine of San Nicolas de Tolentino, the Old City Hall, the Don Simplicio Lizares Mansion, the Lacson Ancestral House, and “The Ruins”. “The Ruins” is what remains of an early 20th century mansion and the most iconic and photographed attraction in Negros. 4. Silay City Ciudad. They’re some 30 ancestral houses in this cluster. Most are still maintained as private residences, although several have been converted into museums, e.g. Balay Negrense and the Bernardino Jalandoni House. The San Diego Cathedral and Hawaiian Sugar Milling Company are also included. LGSP-LED Negros Occidental Local Project Completion Report | 4

These heritage clusters are complemented by nature, adventure, farm, and ecotourism sites such as Campuestohan Highland Resort, Melba’s Farm, By the Sea Garden Resort, and Buro-buro Spring in Talisay. Silay City also offers natural sites for upland/bukid experiences like Sulfatara geyser, Pulang Tubig and Dumalabdab waterfalls, Tinagong Dagat lake, and Silay Outdoor Recreation and Eco-Tourism Area (SORETA). Barangay Balaring in Silay also provides the seashore/ baybay experience through mangroves, oyster farms, and seafood restaurants. The uma or farm experience is emerging in Silay through the Hacienda Adela Folk Village (a sugarcane plantation) and Fresh Start Organic Farm.

A little farther outside Metro Bacolod are agri- and ecotourism activities at the Provincial Government-operated Mambukal Hot Springs and Bat Sanctuary in Murcia, OISCA Silkworm in Bago, and trekking/mountain climbing in Mt. Kanlaon.

Market Trends and Opportunities Annual visitor arrivals grew by 12.85% in the 4-year period from 2009 to 2013. Bacolod City accounted for the large majority of overnight visitor arrivals to the area. In 2013, 95.7% of all tourist arrivals to the Circuit were to Bacolod. Average lengths of stay are relatively short. Tourism in Talisay and Silay is dependent on same-day visits. Talisay and Silay reported 89,308 and 13,876 same-day visits in 2013. Numbers for Talisay and Silay may be underreported due to limited capabilities in tourism data collection. The majority of visitors to Negros Occidental, and to BTS in particular, are domestic tourists. Of the 1.12 million visitors to the Province in 2013, less than 7% were foreign. Visitor arrivals to Negros Occidental are also highly seasonal, with distinct peaks during the summer months, the December holiday season, and a small spike in October for the Masskara festival.

III.

Challenges to Local Economic Development

As a first step in analyzing the key factors for economic growth through tourism in Bacolod, Talisay, and Silay, LGSP-LED assisted Negros Occidental to prepare a Tourism Circuit Plan (TCP). The tourism circuit development approach provided a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. The TCP served as the primary tool for identifying and analyzing the key factors for addressing this problem, and ultimately lead to sustainable and inclusive local economic development for the Bacolod-Talisay-Silay Tourism Corridor. The Tourism Circuit Plan’s analysis of the tourism industry situation in Negros Occidental indicated that the challenge for the Province was not simply to increase total arrivals to BTS. The more complex challenge was to ensure year-round visitation to BTS and beyond – encouraging longer lengths of stay, in the process. LGSP-LED Negros Occidental Local Project Completion Report | 5

Need to Improve the Business Climate for Tourism Investments in the Destination While there are some business policies already in place to enable local economic development in the Corridor, there was still a need to enhance these strategies further and capacitate the Local Economic and Investment Promotion Officers (LEIPOs) for more business-friendly and competitive LGUs. At the start of the LGSP-LED Project, the designated Provincial LEIPO had limited knowledge and skills in promoting investments. In addition to this, there was no dedicated Provincial LEIPO office for transactions related to investments. While Negros Occidental had recently adopted a Local Investments and Incentives Code, the Provincial Government had not yet approved the implementing rules and regulation for the LIIC. In addition to the need to formulate or update the Investment Codes for the three cities, technical assistance was also needed to formulate Tourism Codes for Talisay and Silay, to prepare LGU Business Plans for Workforce Development and Investment Promotion, as well as institutionalizing the Tourism Statistics and Information Systems of the LGUs.

Gaps in the Tourism Circuit and Local Industry Limited the Potential for Growth Important constraints on the potential growth and development of the BTS tourism circuit were identified through an analysis of the tourism assets, sites and transportation infrastructure of the destination, as well as the value chain of tourism establishments making up the local tourism industry

Areas for Improvement in air and road infrastructure The Bacolod-Silay International Airport is not able to cater to international flights. Customs, Immigration and Quarantine Systems (CIQS) are expected to be installed soon. The low numbers in visitor arrivals could also be attributed to the poor road connections from the BTS circuit to other destinations in the Province. This situation prohibits the development of tour packages that encourage longer lengths of stay by combining the BTS circuit with complementary destinations in other parts of Negros.

Need to upgrade the supply of accommodations and convention facilities There are a good variety of accommodation establishments in the three cities but the Department of Tourism (DOT) does not accredit some. In addition, there is a need for investment for improved accommodation facilities and services, including upgraded convention facilities given the weaknesses in the current supply of hotels and other accommodation establishments.

Improvements needed for better quality visitor facilities and more variety in tourist experiences The TCP found that a good number of attractions in Bacolod, Talisay and Silay, especially the ancestral houses, were in satisfactory condition, with strong private sector support for the maintenance and management of facilities. However, there was a lack of tourist amenities such as quality restrooms and on-site activities in many sites. In addition, many sites are underdeveloped, poorly maintained, and/or under-promoted. There were also limited options for tour packages which could encourage year-round visitor activities outside of the festival months. Finally, the TCP determined that although the Circuit had a satisfactory supply of quality crafts and pasalubong items, there were not very many souvenir shops and outlets in Talisay and Silay where tourists could find these items.

Service quality improvements for frontline workers The low quality of service among tourism front liners and workers was a recurring issue in several areas of the tourism sector, including accommodation establishments and attraction sites. Furthermore, there are not enough local accredited tour guides available.

Weak Branding for Negros Occidental as a destination The marketing brand currently being used by the Provincial Government, â&#x20AC;&#x153;Negros Occidental: Sugar and More,â&#x20AC;? did not encompass the totality of experiences and products that the Circuit can offer. Negros Occidental, and the BTS Circuit by extension, needed to have a unifying and attractive theme that sets it apart from other destinations and allows it to capture the attention of the tourist market.

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Other Concerns Other concerns with the influx of tourists into the circuit were the prevalence of sex tourism and the resiliency of tourism establishments and attraction sites from disasters and other forms of crisis. In the development of the tourism circuit, these considerations must be taken into account to minimize the negative impacts of tourism.

IV.

Description of the Local Project

To achieve sustainable and inclusive local economic development, the Project sought to attract PHP 500 million worth of investments in infrastructure and tourism-related developments, create employment for 300 people within the circuit, and drive the growth in the tourism sector by increasing tourist arrivals by 20% per year. The local project focused on: (a) building business-friendly and competitive LGUs, consistent with DILGâ&#x20AC;&#x2122;s thrust and (b) building a more competitive local tourism industry. The first target outcome involved establishing the Provincial Economic Development and Investment Center (PEDIC) that provides investment promotion services to business owners and MSMEs and strengthens capacities of LEIPOs to promote investment. The second target outcome involves improving tourism quality standards and marketing the BTS corridor as a major hub for culture, creativity, and innovation. To enhance the capacity of the PEDIC and PIT for tourism in the local enabling environment, LGSP-LED focused on training Local Economic and Investment Promotion Officers (LEIPOs) to build skills in developing and strengthening enabling policies and programs that included Business Plans for Workforce Development and Investment Promotion, Local Investments and Incentives Code, Tourism Code, and Tourism Statistics and Information System. In order for the BTS heritage corridor to become a major hub for culture, creativity, and innovation, the Local Project supported activities in tour packaging; branding and marketing strategies; and provided technical assistance to prepare investment packages and briefs on priority investment projects identified in the TCP. The Project also supported skills training workshops for front-line workers, farm tour operators, and tour guides in relevant skills that are in demand within the tourism sector. The figure on the next page summarizes the five activity areas of Negros Occidental's Local LED Project: tourism product development, destination marketing, workforce development, investment promotion, and development of LED-enabling policies, plans and programs for the LGUs.

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Summary of Project Target Results

Project Management A Project Implementation Team (PIT), composed of tourism industry stakeholders, led implementation of the local project. The Governor and Vice-Governor of Negros Occidental acted as Chair and Vice-Chair of the PIT. The other members are:

Member PIT Manager (Provincial Tourism Officer) and Executive Officer (Provinceâ&#x20AC;&#x2122;s Consultant on Economic and Investment Promotion) DILG Provincial LED Focal Person Tourism Officers of Bacolod, Talisay, Silay Provincial LEIPO and Provincial Planning and Development Officer (PPDO)

Oversaw the implementation of Project activities and provided regular updates to the Governor and Vice Governor Liaison to DILG Provincial Office and provided regular updates to the DILG Provincial Director Provided implementation support Provided administrative and secretariat support

The PIT (8M, 9F) conducted regular monthly/bi-monthly meetings with the active involvement and participation of other members of NGAs, academe (Association of Colleges and Universities in Negros Occidental) and the private sector (FilipinoChinese Chamber of Commerce, National Association of Independent Travel Agencies-Bacolod, Negros Island Sustainable Agriculture for Rural Development, Small and Medium Enterprise Development Council, Western Visayas Tourism Council). The involvement of these members provided a participatory approach to ensure services and technical assistance would reach desired participants for the development of the Tourism Circuit. LGSP-LED Negros Occidental Local Project Completion Report | 8

Key Partners Department of the Interior and Local Government (DILG) provided technical assistance and tools to enable the Provincial Government and the cities of Silay, Talisay and Bacolod to become business friendly and competitive. Department of Trade and Industry (DTI) provided technical assistance and resource persons from the Board of Investments to enhance the investment promotion skills of the PEDIC and LEIPOs and to augment the organizational capacity of the PEDIC as well as link BTS products to trade fairs. Department of Tourism (DOT) provided technical assistance in Product and Workforce Development Training such as Tour Guiding and Customer Service and tour package design, as well as participation in travel marts, trade fairs and expositions. Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA) provided assistance in Workforce Development programs and plan formulation. Organic Na! Negros Organic Producers Association (ONOPRA) and the Negros Island Sustainable Agriculture for Rural Development (NISARD) developed and linked organic farms and sugarcane farm communities and products together with the Small and Medium Enterprise Development Council to the tourism circuit to enhance visitor experience. Member schools of the Association of Colleges and Universities in Negros Occidental that offer tourism courses were updated on the tourism development program of the Province to discuss and share with their students since this will help narrow the skills gaps within the industry.

Project Result and Assessment

An Improved Enabling Environment for Business and Investment in Negros Occidental The Project helped improve the local enabling environment in Negros Occidental and the cities of Bacolod, Talisay and Silay by strengthening the LGUs capabilities to adopt LED policies, plans, and other reforms for improved business and investment. One indicator of the improved business and investment climate in Negros Occidental was the increase in business registrations across the 3 cities. There were 1,745 new tourism-related business registrations in the Tourism Circuit during the project’s duration: Bacolod City reported 1,604, Silay City 141 and Talisay and Silay reported expansion of existing businesses from 2014 to 2016. The project trained 213 (97M, 116F) LGU leaders and staff to enhance their capacities for formulating and advocating for the adoption of LED-enabling policies, plans, systems, and programs among the LGUs in the corridor.

LEIPO and Staff Tourism Officers and Staff PESO Managers and Staff Other LGU Staff TOTAL

Male

Female

Total

1 19 1 76 97

3 29 5 79 116

4 48 6 155 213

LGSP-LED’s capacity development assistance to LGU officials focused primarily on the priority indicators of DILG’s BusinessFriendly and Competitive LGUs program. As a result, the local enabling environment for business and investment in the Bacolod-Talisay-Silay Heritage Corridor has been improved in the following ways: The establishment of the Provincial Economic Development and Investment Center (PEDIC) and the designation of a Provincial LEIPO. The PEDIC (launched in September 2015) is the main platform for the Provincial Government’s program for LED and business-friendliness. Through the PEDIC, the Province has supported 30 out of 31 cities and municipalities in designating LEIPOs and orienting them in LED

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To narrow the gap between the academe and the industry on workforce development, teams from the Provincial Government and the 3 city governments adopted LGU Business Plans for Workforce Development (WFD) to support the expected human resource needs of the BTS Tourism Circuit. With assistance from LGSP-LED, the LGUs ensured that their planned training and employment activities directly responded to the needs of tourism sector by directly engaging the employer groups in the planning process. They also conducted small group meetings with DOLE, Negros Occidental Language Institute and Training Center, TESDA and PESOs to establish a convergence of programs among the NGAs in relation to the workforce development plans for the tourism circuit. The Cities of Bacolod, Talisay, and Silay, through coaching have adopted three (3) new Local Investment Incentives Codes. In addition, the Provincial Government has approved the Implementing Rules and Regulations (IRR) for its own LIIC. Four LGUs have provided potential investors with a quick information guide by uploading LED Information data of about Negros Occidental and the 3 BTS Cities to the SPARKBIZ, DILGâ&#x20AC;&#x2122;s LED Information Portal Anchored on the Tourism Circuit Development Plan, Talisay and Silay City formulated new local Tourism Codes while Bacolod City updated and enhanced its existing Tourism Code. Tourism officers from Bacolod City and the Provincial Government enhanced their local tourism statistics and information systems for improved data organization, analysis and reporting.

Status of Key BFCL Programs and Policies in the BTS Circuit Enabling Policies Adopted

Total

LGU Covered

LGU Business Plan for Workforce Development

All LGUs

LEIPO Designated

Province of Negros Occidental

LEDIP Establishment

Province of Negros Occidental

LIIC Adopted

Bacolod, Talisay, Silay

Tourism Statistics system implemented

Province of Negros Occidental, Bacolod

Tourism Code formulated (not yet officially adopted)

Bacolod, Talisay, Silay

A Stronger Tourism Sector in the BTS Corridor Technical assistance from LGSP-LED enabled Negros Occidental to develop a tourism circuit plan for the Bacolod-TalisaySilay heritage corridor through a participatory, stakeholder driven process. The value-chain based tourism circuit plan identified the key tourism sites in the area, and provided site-specific recommendations to increase the competitiveness of the TDA as a whole. The public and private sector partners in the LED project jointly planned LED initiatives for tourism circuit development and workforce development, based on the TCP. The Bacolod-Talisay-Silay Heritage Corridor is now in a LGSP-LED Negros Occidental Local Project Completion Report | 10

stronger competitive position – as the tourism gateway of Negros Occidental and the rest of NIR. Through the LED Project, the LGUs and private sector partners have accomplished:

Negros Occidental has a new destination brand with the tagline “Land of sweet surprises”

The logo is a visual simplification of the spirit and history of Negros Occidental, and an invitation to travellers who want to know more about the province. It features the image of a jumping/dancing figure, with a colorful scarf blowing in the wind to symbolize the celebratory nature of Negrenses. The elements that make up this figure are derived from two of the province’s main properties: sugar and mountains. The raised arms are two sugarcanes, while the legs represent Mount Kanlaon which is a source of Negros’ fertile soil. The scarf is a gust of wind, symbolizing spontaneity. The color green represents the province’s vast greenery and natural resources, while the color red signifies the creative spirit of its people The LGUs and local tourism sector now have six (6) themed tour packages for the BTS Tourism Circuit to encourage more tourists to visit the key attractions in the 3 cities. LGU tourism officers and private sector stakeholders developed these packages after receiving training on culture and heritage-themed tours. The tour packages were test-marketed and promoted at numerous national conventions and the 2015 Philippine Travel Mart (PTM). Within one month of the PTM 2015, local tour operators generated about P80, 000 income from the tour packages. The PEDIC and the LEIPOs of Bacolod, Talisay, and Silay have tools and materials for promoting investments to the BTS Circuit, after receiving assistance from the Project to prepare a Provincial Tourism Investment Guide, and four (4) investment briefs for priority projects. The PEDIC’s harmonized operations with the Provincial Negosyo Center (jointly operated with DTI and the Provincial SMED Council) also provides MSMEs with business advisory services and resources that can improve their productivity, product quality and market reach. Steps have been made to improve the quality of services in the BTS tourism circuit. Nine (4M, 5F) entrepreneurs have been trained in developing culture and heritage themed attractions, and 10 (4M, 6F) workers trained to provide local site guiding and heritage interpretation services. In addition, the Project trained 23 (7M, 16F) frontline workers in Customer Service to prepare for the 2015 APEC meeting in Bacolod. The workforce development plans for the 3 cities are intended to guide the LGUs on future training priorities for more competitive enterprises and workers in the area.

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In the past 2 years, the LED Project engaged 23 (13M, 10F) private sector LED actors in training and technical assistance activities related to its investment promotion, destination marketing and product development components. Private sector stakeholders of Negros Occidental are now better prepared to work with LGUs and be champions of LED in the Province for the foreseeable future: To ensure that the Tourism Circuit Plan is properly implemented, the Provincial Government and its private sector partners reactivated the Provincial Tourism Council of the Province after 3 years of dormancy. The new Tourism Council is chaired by the Governor and includes the SP Tourism Committee chair, the Head of the Economic Enterprise Department, the Provincial Tourism Officer, Chair of Negros Association of Chief Executives, President of Association of Tour Operators of Negros Occidental and representatives from NGOs, Hotel and Restaurants Association of Negros Occidental, travel agencies, resort owners, tour guides, museum association, academe and DOT. Through an Executive Order by the Governor, seven private sector champions of the Province have been appointed to the Projectâ&#x20AC;&#x2122;s Project Implementation Team and tasked to jointly plan and implement sustainable LED initiatives with members of the Provincial LED Team. Over the course of the Project, additional representatives from various private and civil society institutions were involved in the activities and strategic decisions of the past 2 years. With the end of the LED Project, the following institutional partners are expected to continue to be strong partners of the LGUs in sustainable LED and tourism for Negros Occidental. ! ! ! ! ! ! ! ! ! ! ! ! !

Organic Na! Negros Organic Producers Association (ONOPRA) Negros Island Sustainable Agriculture for Rural Development (NISARD) National Association of Independent Travel Agencies-Bacolod (NAITAS) Small Medium Enterprise Economic Development Council (SMEDC) Association of Colleges and Universities in Negros Occidental (ACUNO) Filipino-Chinese Chamber of Commerce and Industries Western Visayas Tourism Council Association of Tour Operators of Negros Occidental (ATONO) Hotel and Restaurant Association of Negros Occidental (HRANO) Hugyaw Silay Foundation Inc Silay Heritage Foundation, Inc SIMAG Foundation, Inc Japan-Negros Partnership for Environmental Protection Foundation Inc.

The cities of Silay and Talisay institutionalized private sector representatives as LED Champions through an Executive Order from the Office of the City Mayors. Five from Silay City (2M/3F) were from ONOPRA, Hugyaw Silay Foundation, Inc., Silay Heritage Foundation, Inc., SIMAG Foundation, Inc. and Ikaw-Ako Japan-Negros Partnership for Environmental Protection Foundation, Inc. On the other hand, three private sector representatives (1M/2F) were from Talisay City. All of them have been equipped with skills in developing tourism circuit and its required workforce as well as marketing destination and promoting investments for Bacolod-Talisay-Silay corridor to become more competitive. LGSP-LED Negros Occidental Local Project Completion Report | 12

Emerging Results Since 2014, Negros Occidental has generated a total of about Php2.5B worth of tourism-related investments in the BTS circuit -- higher than the Project’s initial target of PhP500M both public and private investments .The majority of these investments are in tourism-enabling infrastructure such road networks and energy. The biggest investment is of Philippine Renewable Energy Co. (Cititcore Inc) for a Solar Farm in Silay City of Php2.2B. Other notable investments include: ! ! ! !

Rehabilitation of the Sum-ag River (Bacolod City)– Php 3,970,000.00 Road Project (Jct. National Road-Talisay-Campuestuhan) – Php80,000,000.00 Road Project (Silay-Lantawan-Patag) – Php200,000,000.00 Road Project (Silay-Lantawan) – Php10,000,000.00

Talisay City reported 883 (463M/420F) new direct jobs in tourism in 2014. For 2015, Bacolod City reported 1,450 (636M/814F) new hires, for a total of 2,333 beneficiaries of new employment generated from 2014 to 2015. Although visitor arrivals to the BTS increased, the project reached only about half of its target growth rate for the Local Project of 20% by 2016. Total visitor arrivals to the 3 cities reached 743,359 in 2015, 10.14% above arrivals for the baseline year of 2013. The Provincial Tourism Office reports the proportion of foreign visitors is increasing, now accounting for almost 16%, compared to 5% in 2013.

Crosscutting Themes Gender Equality Among the gender concerns highlighted include: giving attention to cases of HIV/AIDs and the existence of an underground sex industry, giving prominence to the role of women and contribution of women in the “Story of Sugar”, equal opportunities for men and women for local economic development and improving monitoring and evaluation system adding gender lens to the template. The Provincial Government has accessed the GAD budget to address the concerns of disadvantaged women. Provincial Inter-Agency Committee on Human Trafficking and Women’s and Children’s Desks in the main police stations of Bacolod, Talisay and Silay cities offered services to disadvantaged women but intensified effort to disseminate information should be continued. Cases of HIV/AIDs and the existence of an underground sex industry can be attributed to limited job opportunities and possibly the limited preparation for employment afforded to disadvantaged women in the circuit. In providing assistance for the development of tourism workforce development plans for the 3 cities, the Project coached participating stakeholders to also ensure proper consideration of gender-related concerns related to job training and employability. These included direct consultation with potential employers to determine their specific skills requirements and employment needs, including positions which might be associated more commonly for women, as well those more traditionally performed by men. Safe working conditions in tourism establishments including protection from harassment and intimidation were also considered in the TCP and workforce development plans. The Project Implementation Team were aware of ensuring equal representation of women, to the extent possible, in the invitation of participants to the various activities implemented during the Project. These included the skills training workshops for entrepreneurs and workers, as well as the various stakeholder consultation workshops conducted to develop the TCP, the destination brand, and other key outputs of the project.

Environmental Sustainability Based on the PDPFP of the Province of Negros Occidental, the cities of Talisay and Silay are highly sensitive to tropical cyclones and storm surges. All three cities of the BTS are vulnerable to flooding. Owing to these risks, climate change adaptation and disaster risk reduction programs were integrated in the development plans of the LGUs. The Province of Negros Occidental is recognized as a model for disaster preparedness. The mandatory budget reserve enabled each LGU to address environmental problems through programs like rehabilitation of drainage systems, improved solid waste management, erosion prevention through mangrove and riverbank tree planting, among others. Recommended measures are submitted to the Provincial Disaster Risk Reduction Management Council and the Provincial Environment Management Office for appropriate mitigating measures. Records indicate that weather disturbances caused flooding within the tourism sites and affected accessibility of the BTS Circuit. During November 2013’s Typhoon Yolanda, 1,805 families in Bacolod City reported to have sought shelter in 137 evacuation centers and 211 families were evacuated in Silay City. As such, in the developed and enhanced LIIC and Tourism LGSP-LED Negros Occidental Local Project Completion Report | 13

Codes, tour products and tour packages within Negros Occidental and in the identified priority investment projects, DRRMCCA and environmental sustainability has been a consideration. The Province is the countryâ&#x20AC;&#x2122;s biggest organic producer and the most advanced in the Country. As part of its advocacy to promote environmental sustainability in agriculture, organic farms were included in the enhanced tour packages assisted by the local project. Six farm tour guides were trained to enhance tourist experience in these farms along the tourism circuit. The Provinceâ&#x20AC;&#x2122;s Local Investment and Incentives Code prioritized green energy projects and other renewable energy sources. This was why most of the energy investments in the province are in renewable energy, including the recently established solar farm in Silay City. LGSP-LED supported developing investment briefs mainstreaming climate change adaptation through the development of the Campuestuhan Eco-park in Talisay City. The recently formulated Tourism Code have provisions that promote, protect and preserve green, sustainable tourism development as one of the duties and functions of the Tourism Council.

Poverty Reduction Integrating poor communities in the Bacolod-Talisay and Silay tourism circuit is an important advocacy of the project The enhanced tour packages along the tourism circuits include stops to buy souvenir items and native delicacies -- products of MSMEs from the neighboring municipalities and cities pooled by the Association of Negros Producers. Tour and site guides in haciendas and sugarcane farms trained by the Project reporting earning extra income. Conscious efforts to integrate the poor were also done by providing technical assistance to develop the four (4) LGU Business Plans for Workforce Development developed for the Province of Negros Occidental and cities of Bacolod, Silay and Talisay. Workforce development plans highlight skills training that were provided to about 1,596 OSY, PWD, IPs and 4Ps beneficiaries and will be matched to potential employers (tourism, agriculture and BPO) based on project human resource needs for the next five years. There is continuous effort for investment promotion to create more employment opportunities. One of the supported investment opportunities is construction of a Health and Wellness Center in Silay City to complement Negros Occidental as an Organic Province.

IV.

Lessons Learned 1. LED starts with a common understanding of the local economic conditions, opportunities, and challenges. A solid understanding of the current conditions and future prospects of the local economy is the essential first step in undertaking a LED Project. LED must be a multi-sectoral process involving LGUs, private sector, communities, and other stakeholder groups. For these groups to work well together, they must have a common appreciation of the opportunities and challenges facing their local economy. Stakeholders must agree on possible strategies to achieve inclusive local economic growth, given these challenges and opportunities.

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The lesson is not just about understanding the local economy but more about LGU, private sector, and other stakeholder groups understanding it – together. This would be the first step in planning and implementing the LED Project as a partnership-based undertaking of the LGUs, the private sector, and others.

2. Ensuring reliable LED data and information is a valuable investment for business-friendly and competitive LGUs. The collection of LED- and investment-related data is not yet fully appreciated by LGUs. Ensuring information accuracy is a struggle without dedicated staff to generate and validate data. This is also true for some National Government Agencies, where the “most recent” data available may be 2 years old at best. Tools such as the LED information portal and the TSIS would have aided the LGUs to enhance their competitiveness profile by generating, analyzing and electronic sharing data. Because of the lack of staffing, time and other reasons, these tools have been used minimally or not at all by the LGUs.

3. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment requires regional economic solutions beyond any single city/municipality. The TCP emphasized how interdependent the member cities and municipalities. The TCP highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving competitiveness of the tourism sites, as well as the supporting enabling environment for business and investment. The TCP points

4. Developing LGU LED Champions is essential to successful LED Programs. Local Chief Executive (LCEs) can become entrepreneurial leaders and walking advocates of the project. This is true for Mayors at the city level, but Governors have an additional opportunity to encourage and support inter-LGU cooperation for LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive. LCEs should be oriented specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods should be employed to gain knowledge on LED facilitation and business-friendliness. These can include learning exchanges or peer mentoring programs, and workshops for producing specific BFCL policies and programs where they can learn-by-doing.

5. LGU LED Team members should be trained and qualified to advocate business-friendliness and inclusive LED. Convergence is key to minimizing problems and pitfalls in the implementation of LED Programs. The Project Implementation Team includes members of key National Government Agencies partnering in the implementation of LED. The multi-sector composition of the PIT facilitated NGAs and private sector partners to support the Project because they were engaged from the start. Regular meetings on project updates and status have helped the PIT in the conduct of same activities with NGA partners. Effective convergence allowed various agencies to complement each other’s activities thus maximizing the outputs (at minimized effort) for the members of the PIT and EDT. DOT’s active involvement and intervention in the development of the tourism circuit proved to be invaluable, as tour packages were launched and sold, standardization of tour package rates negotiated and the branding and tagline of the Province materialized. DTI’s assistance and mentoring and coaching of the PEDIC team has equipped them with the skills they needed to promote investment and investor servicing. The putting up of the Negosyo Center in the PEDIC has ensured that systems are now being put in place to assist MSMEs and big investors alike. The EDT and Provincial Tourism Council have active multi-stakeholder members that have complemented their activities in line with the goals of the Province in tourism, biodiversity, investment, among others).

LGSP-LED Negros Occidental Local Project Completion Report | 15

Convergence is necessary to build the business friendly mindset of LGUs. PIT convergence meetings were conducted to complement NGA and private sector activities. The PEDIC served as the liaison to investors and MSMEs to other LGUs, NGAs and other business organizations.

6. Convergence as a key element of successful implementation of LED and BFCL programs. Convergence is key to minimizing problems and pitfalls in the implementation of LED Programs. The Project Implementation Team includes members of key National Government Agencies partnering in the implementation of LED. The multi-sector composition of the PIT facilitated NGAs and private sector partners to support the Project because they were engaged from the start. Regular meetings on project updates and status have helped the PIT in the conduct of same activities with NGA partners. Effective convergence allowed various agencies to complement each other’s activities thus maximizing the outputs (at minimized effort) for the members of the PIT and EDT. DOT’s active involvement and intervention in the development of the tourism circuit proved to be invaluable, as tour packages were launched and sold, standardization of tour package rates negotiated and the branding and tagline of the Province materialized. DTI’s assistance and mentoring and coaching of the PEDIC team has equipped them with the skills they needed to promote investment and investor servicing. The putting up of the Negosyo Center in the PEDIC has ensured that systems are now being put in place to assist MSMEs and big investors alike. The EDT and Provincial Tourism Council have active multi-stakeholder members that have complemented their activities in line with the goals of the Province in tourism, biodiversity, investment, among others). Convergence is necessary to build the business friendly mindset of LGUs. PIT convergence meetings were conducted to complement NGA and private sector activities. The PEDIC served as the liaison to investors and MSMEs to other LGUs, NGAs and other business organizations.

7. Engaging the private sector in planning and implementing the LED Program Building can lead to a more business-friendly, entrepreneurial mindset within the LGUs LGUs are aware that they need assistance and expertise of NGAs and the Private Sector and academe to help them become more business friendly and competitive. LGUs need to understand clearly the needs of private businesses and investors in order to design effective, responsive LED programs and services. The Tourism Office cannot determine the priority tourism product development and destination marketing needs of the circuit without inputs from private tourism establishments and tour operators. LEIPOs must engage local proponents through the local business chamber to be ready with investment information, identify priority projects, and match them effectively with investors. PESO Managers cannot implement effective job training and employment matching programs without partnering with the local employer sector to determine anticipated workforce needs. Exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team. Continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU with local industry efforts to be more competitive and inclusive. Through the PEDIC and the Economic Development Team, the LGU has strengthened partnerships with the private sector by involving them in consultation dialogues, focus group discussions, trainings and workshops especially in the formulation of plans, policies and important LED initiatives.

VI.

Conclusions and Recommendations The Province of Negros Occidental exceeded investment and employment targets in the LED project. The BTS Tourism Circuit generated more than PhP 2.5B in investments for tourism-related infrastructure and facilities, compared to the target of Php500M. The Local Project also exceeded its target (300) for employment, generating a total of 2,333 new employment opportunities from 2014 to 2015. While tourist arrivals to the three cities increased, the growth in visitor arrivals to the Circuit increased at a moderate rate of 10% per year, half of the 20% target. The two-year LGSP-LED Project has resulted in better tourism products and services, stronger convergence mechanisms through institutionalization of the PEDIC and the Economic Development Team and concrete LGU policies to become more business friendly and competitive. The Local Project has made significant progress in creating a more enabling environment for sustainable development of the local economy, and particularly the tourism sector, in the Tourism Circuit LGUs. Work is far from complete, and there are many remaining opportunities to sustain and extend the gains beyond LGSP-LED. LGSP-LED Negros Occidental Local Project Completion Report | 16

The main LED priorities for the LGUs remain: 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more business-friendly environments for sustainable and inclusive economic development, and 2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry. DILG’s Regional and Provincial Offices should enable the LGUs to perform these roles by: 1. Continuing to advocate, monitor, and provide incentives for LGUs to continue pursuing its roadmap for more business-friendly and competitive LGUs, while harmonizing the LED-related activities with relevant elements of the Department’s 3 other outcome areas (e.g. safety and social protection, transparency and accountability, disasterresilience), 2. Building the capacities for business-friendliness and competitiveness among LCEs and LGU staff through training programs and technical assistance, and 3. Facilitating convergence across Field Offices of NGAs for better delivery to and access by LGUs to capacity development, technical assistance, and LED funding/resource support programs and services.

Recommendations for Sustaining the LED-Enabling Environment in the LGU To continue the drive for improved business-friendliness and competitiveness of the LGUs, the general direction recommended is: 1) to strengthen and ensure the permanence, i.e. regular operations, of the key structures for LED promotion in the LGUs such as LEIPO and Tourism Office, and 2) to institutionalize the key LGU policies and programs for business-friendliness and support to competitive sectors. Thus the main recommendations for continued and improved business-friendliness of the LGUs are: 1. Ensure that the Provincial and City/Municipal Governments have LEIPO, Tourism, and other LED-related Offices with fulltime personnel and adequate resources. While all LGUs have designated LEIPOs and Tourism Officers, it is important to provide budgets, office, and personnel to effectively perform investment promotion, business retentions, and MSME facilitation work. In particular, funding for technology improvement and staff development related to LED information systems (e.g. auto-BPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be budgeted. 2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC, Tourism Codes, and other LED-related local bills. 3. In addition to the BFCL policies and programs listed above, LGU Executive-Legislative teams should prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and socially-protective LED. This includes integration of LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: ! Include in the Provincial Executive Legislative Agenda, the LED Program to roll out to the rest of the LGUs in the Province. ! Integration of DRRM-CCA, including provisions related to LED and investment promotion, in updates of the Provincial Physical Framework Development Plan and the corresponding city/municipal CLUP and CDP. ! Improve monitoring and evaluation by making the M&E template gender sensitive, allocating a portion of GAD budget for M&E data collection and reporting to include maintenance of a sex disaggregated database system ! Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention. ! Building and infrastructure development should strictly conform to Building Codes, Environmental Policies and CCADRR plans. The city’s zoning ordinances should be implemented with emphasis on maintaining required setbacks in coastal areas and riverbanks. ! Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally compliant. 4. The Provincial Government should continue to work closely with the LGUs in the tourism circuit to update and continue implementation of the Tourism Circuit Development plan formulated through the assistance of LGSP-LED. LGSP-LED Negros Occidental Local Project Completion Report | 17

! ! !

The Province could consider TCP planning for circuits north and south of BTS. Negros Occidental should integrate its TCP planning and updating with that of Negros Occidental—leading to a NIR destination cluster plan within the overall regional development plan The Provincial Government and partner cities/municipalities should coordinate with DOT’s Regional Office to ensure that priority infrastructure, site development, and institutional and human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 2016-2022. Updating the TCP should include a review of identified disaster- and site-vulnerability issues affecting the Tourism Circuit identified. These include areas with low elevation vulnerable to flooding. Coastal areas along the Tourism Circuit are also susceptible to sea level rise associated with climate change. The absence of mangrove forests increases vulnerability. Improved access and lighting will ensure roads leading to the tourism sites are not impeded in tropical storms and will serve to facilitate evacuation, rescue and delivery of relief assistance. Alternate routes should be identified and upgraded for weather. Strict implementation of zoning ordinances to prevent settlement in hazard zones and in environmentally constrained areas. Adequate forest cover should be maintained in slopes above 18 percent and environmental laws implemented to prevent further degradation. The City of Talisay and was identified as having very high sensitivity and exposure to landslide primarily due to areas with slopes above 18 percent and the presence of settlements and activities that threaten forest cover. These concerns should be adequately considered in future enhancements of the tourism circuit.

5. The Provincial Government, with assistance from DILG, DTI, and DOT, should continue and sustain the Economic Development Team as the core unit for the planning and implementation of LED Initiatives in the Province and the Tourism Circuit. PEDIC serves as the liaison connecting investors and MSMEs to LGUs, NGAs and business organizations. PEDIC can be the convergence platform for the EDT. The Governor should chair the LED Team, providing overall policy direction, strategic advice and leadership to the team. ! The core LED Team should include members from the Provincial Government’s economic officers (LEIPO, Provincial Tourism Officer, PESO Manager, and Planning Officer) and private sector partner institutions, particularly from the Province’s active SMED Council ! Coordination and integration of programs and operations of the PEDIC and the Negosyo Center should be strengthened. The EDT should ensure publication and dissemination of a compendium of rules/regulations on investment and licensing through the PEDIC ! Strengthen the revitalized Negros Occidental Tourism Council and expand members as necessary to complement plans, programs and activities DILG Regional and Provincial Offices can continue to lead LGUs to be more business-friendly and competitive: !

1. Establish a “BFCL Team or Working Group” of Regional and Provincial technical staff to provide information, facilitate access to technical assistance and capacity development resources, and to monitor the streamlining of BFCL in LGU operations. 2. In coordination with LGA and the DILG Central Office, provide technical assistance and training for LGUs to fast-track the adoption and approval of key BFCL initiatives undertaken through the Local Project, specifically: ! ! ! !

Designation of LEIPOs and establishment of local economic development and investment promotion offices New or updated LIIC harmonized with new/updated LRC Institutionalization of LGU skills registry system Institutionalization of LGU tourism statistics and information systems

3. Combine advocacy with technical assistance and support, in coordination with LGA and DILG for LGUs to harmonize LED plans and programs with the updating/enhancement of CDPs and CLUPs. DILG should emphasize gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the two plan to ensure mainstreaming in LED plans and programs. 4. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: !

Ensuring LCEs and LED teams are fully oriented as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. Relevant recommendations and concerns should be taken up as part of their Executive-Legislative Agendas and various local development plans. LGSP-LED Negros Occidental Local Project Completion Report | 18

Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives.

Facilitating local planning processes, and mobilizing City/Municipal LGOO cluster in circuits to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner.

Coordinating and facilitating technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management.

Recommendations for Sustaining the Tourism Circuit Development and Sector Competitiveness Program Through the Local Project, the Provincial Government and its partners in the cities/municipalities in the tourism circuit have implemented initial activities to develop the TDA into a more attractive investment destination with a more competitive tourism circuit and industry. While there have been clear gains achieved to date, much work remains in order to ensure that LED and tourism will become truly inclusive and beneficial to more people. The private sector should continue to drive product development, business investment, and employment generation components of tourism circuit development. Provincial and Municipal Governments must also continue to support and enable its private sector partners through: • Direct public investments or facilitation of public-private partnerships (PPP) for LED-enabling infrastructure to improve accessibility (e.g. ports and roads) and cost of doing business (e.g. power, water, sewage, sanitation) • Market-linkage programs and services to connect local communities, businesses, and products to market intermediaries, buyers, and investors through destination marketing and investment promotion. • Provision of LGU programs and systems to raise supply and quality of available human resources in the tourism sector through effective workforce development planning, training and education, and job-employer matching, in partnership with local industry. The main recommendations for LGUs to enable a more competitive and sustainable tourism sector in the TDA are: 1. Establish a Public-Private LED Team to focus on ensuring funding and implementation of priority LED-enabling infrastructure projects identified in the TCP, and organizing investment promotion events and activities to seek investors for priority investments to address competitiveness gaps in the tourism circuit (e.g. hotels and resorts, tourist transport, tourism estates, etc.) •

• •

The Provincial LEIPO, in partnership with the Local Chamber, should organize regular (quarterly or semi-annual) meetings with counterpart LEIPOs and chambers from the circuit to plan and coordinate investment promotion priorities and activities Expansion of the airport, a priority public investment to improve accessibility. Aggressive promotion of green economic development in the destinations and sites.

2. Through the Provincial Tourism Office, in partnership with the private sector partners of the Province, should design and implement a destination-marketing program for the Province and the tourism circuit in particular. • • • •

Full rollout and market/industry launch for “Negros Occidental. Land of Sweet Surprises” brand, ensuring ownership of key tourism stakeholders through the Provincial Tourism Council. Coordinate with Association of Negros Producers and DTI, through Negosyo Center and SMED Council, to harmonize the new tourism brand with local souvenir products. Destination marketing and promotions program should increase market awareness and interest for the tourism circuit, through print and e-promotional material to include brand and tagline The marketing program should include support for selling and market intermediation activities by local tour operators and sellers together with LGU tourism officers. These activities may include participation in local and international trade fairs, organizing selling missions and familiarization trips.

LGSP-LED Negros Occidental Local Project Completion Report | 19

•

Concrete collaborative efforts with industry and academe to address skills gap as identified in the workforce development plans. Develop and implement a Continuous Productivity and Quality Improvement (CPQI) Program for the Workforce. Implement standard recruitment, accreditation system and continuing education of professional tour guides, in collaboration with the Department of Tourism. Continuous building of skills and capacity of tourism frontliners to provide excellent service quality in the tourism circuit as stated in the Workforce Development Plan. It should encourage business owners to capitalize or invest in training to enhance the service level of frontline service providers. LGUs should conduct tour programs that promote experimental learning.

4. Support and encourage private sector efforts to enhance and diversify tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. !

! !

Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to national and international markets. The new tour packages should have uniform pricing agreed with the association of tour operators, hotel and restaurant owners, and visible marketing and promotion with the Province’s destination branding and marketing campaign. There should be continuous innovation and improvement of tour products and services. Seek support from DTI, development partners, ANP and other NGOs for technical assistance to MSMEs and community-based livelihood groups to produce high quality souvenirs (especially made from local bamboo) and tourist merchandise based on the overall marketing and branding strategy. DOT accreditation and practice of green energy for sites. Clean, fully-equipped, well-maintained, PWD and gender sensitive restrooms accessible and compliant with ASEAN and international standards. More activities in destinations and sites showcasing local dance, music, cuisine, crafts, folk traditions, giving prominence to the role and contribution of women in the “Story of Sugar” e.g. Tana Dicang, Olympia Severino, El Circulo Femini de Silay, 11 Gran Damas of Negros, the ANP Women, the women in hacienda, the “calalao” women and women in the arts and culture.

LGSP-LED Negros Occidental Local Project Completion Report | 20

Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

CUMULATIVE

INTERMEDIATE OUTCOMES New Investments

(MARCH 2016) 0

Description

Value (PHP)

Private Tourism Investment

2.49B 2.2B

Public Investment

Improvement of Bacolod-Silay airport; road rehab to North Negros Forest Reserve

500M

293.97M

Employment (New)

2473

300

2333

Male

1284

150

1099

Female

1189

150

1234

20%

10.14%

674,939

728,042

743,359

Enabling Policies Adopted

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted BPLS Computerized

3 0 0 3

1 0 3 1

1 1 3 0

Tourism Statistics system implemented Business Registrations

Tourist Arrivals (Growth Rate per Year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

3946

1745

LED Actors with Capacity to Plan/Implement

LED Initiatives Implemented

LGSP-LED Negros Occidental Local Project Completion Report | 21

OUTPUTS LEIPOs Trained

213

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

154

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LED Information Portal Established

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened Tourism Code formulated/updated

LED Initiatives Planned

LED Actors Trained

193

123

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

180

Other non-LGU

LGSP-LED Negros Occidental Local Project Completion Report | 22

LGSP-LED Negros Oriental Local Project Completion Report | 1

I. Local Government Profile Negros Oriental Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

1,286,666 540,230 hectares 6 19 Dumaguete City 1st Dumaguete City, Tanjay City, Bais City, Dauin, Manjuyod, Agriculture (sugar, coconut, rice, corn, banana, mango, and coffee); Livestock production; Aquaculture; Fisheries; Information Technology Business Process Outsourcing; Tourism

The province of Negros Oriental, also known as the City of Gentle People, makes up the eastern half of Negros Island in the Visayas, Central Philippines. Together with its counterpart province, Negros Occidental, it forms the Negros Island Region (NIR), the newest administrative region of the Philippines. With a total land area of 540,230 hectares, Negros Oriental is composed of 6 component cities and 19 municipalities. Negros Oriental has a total population of 1,286,666 with a slightly greater number of males (51.1%) than females (48.9%). Based on the Official Poverty Statistics of the Philippines,1 the poverty incidence in Negros Oriental on 2012 is estimated at 45.27%, which is considered as the highest among the Central Visayas provinces along with Cebu, Siquijor, and Bohol. The Human Development Index for 2009, which attempts to measure the complete concept of human development by tracking the progress of three selected aspects of human life, is recorded at 0.5042.

Local Economy The major industries of Negros Oriental are agriculture, livestock production, aquaculture, and fisheries. Agricultural land occupies 302,729 hectares, 167,515 hectares of which are planted to major crops.. The main agricultural commodities of Negros Oriental are sugar, coconut, rice, corn, banana, mango, and coffee. More than half (52.09%) of provincial land area is covered by forest. The rest are utilized for the cultivation of industrial and minor crops The Province is also considered an emerging technological center in Central Philippines with its growing business process outsourcing (BPO) and other technology-related industries. The fiber optic telecommunications backbone of the Philippines is located in Negros Oriental. As a result, the province boasts of state of the art telecommunications facilities. Furthermore, geothermal power plants in the province ensure stable supply of electricity. Negros Oriental is becoming an important tourist destination in the Visayas as the province is packed with scenic landscape, rich marine life, and deep history that make the province one of the most diverse and versatile tourism destinations in the country.

LGUs Covered in the Project In the province of Negros Oriental, LGSP-LED covers the cities of Dumaguete, Tanjay, and Bais, as well as in the municipalities of Dauin and Manjuyod. The LGUs of Manjuyod, Bais, and Tanjay are geographically adjacent to one another, and are located north of Dumaguete City, the main gateway of the province. Meanwhile, Dauin is located south of Dumaguete City and serves as the jump off point to Apo Island, one of the major tourist destinations of Negros Oriental due to its worldrenowned marine sanctuaries.

Philippine Statistics Authority. (2015). 2015 First Semester Official Poverty Statistics of the Philippines. Quezon City: Philippine Statistics Authority. Philippine Statistics Authority. (2016). Negros Oriental Quickstat - February 2016. Quezon City. Retrieved from https://psa.gov.ph/sites/default/files/attachments/ird/quickstat/Negros%20Oriental_29.xls

LGSP-LED Negros Oriental Local Project Completion Report | 2

LGU Province Bais City Dauin Dumaguete City Manjuyod Tanjay City

Income Class 1st 3rd 4th 1st 2nd 4th

Population 1,286,666 74,722 25,239 120,883 41,107 79,098

Land Area (hectares) 540,230 31,964 11,410 3,362 26,460 27,605

No. of Barangays 557 35 23 30 27 24

LED Enabling Environment Negros Oriental is determined to grow a province that boasts of diverse activities and investment opportunities. Now part of the Negros Island Region (NIR) and cited as one of the most livable islands in the world, the 20th most populous province in the country offers diverse investment opportunities in geothermal energy, agriculture, mining, education, BPO, and tourism. Province of Negros Oriental passed Seal of Good Governance that include as one of its components, LGU business friendliness and competitiveness. It has LEIPO designated but unfortunately it was not yet a finalist of PCCI Business Friendly LGUs award which would mean exerting more effort to become one. Dumaguete City, Dauin and Tanjay were compliant to business friendliness while Bais City and Manjuyod were not. At the start of the project, Dumaguete City, Dauin, Tanjay and Manjuyod have designated their respective LEIPOs. In their efforts to retain and promote investments, Province of Negros Oriental, Tanjay and Dumaguete City LEIPOs adopted Local Investment and Incentives Code(LIIC). On th other hand, all cities and municipalities have automated their Business Permit and Licensing System(BPLS).

II.

The Tourism Circuit

In its 2011-2016 Philippines National Tourism Development Plan, the Department of Tourism (DOT) set out a number of tourism development areas (TDAs) across the country. Negros Oriental is one of 77 TDAs across the Philippines. LGSP-LED has taken the tourism circuit development approach as a framework for assisting Negros Oriental in analyzing the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, the following are current conditions of tourism in the province:

Tourism Access and Infrastructure The gateway to Negros Oriental and the local tourism circuit is Dumaguete City, where the Dumaguete Airport is linked by regular commercial flights to Manila (4 daily flights) and Cebu City (1 flight per day). Alternatively, visitors can get to Dumaguete by ship or fast-craft ferries coming from Manila, Cebu City, Tagbilaran City (Bohol), Siquijor and Dapitan City (Zamboanga del Norte). There are three main ways to access Negros Oriental by land: from Bacolod via Kabankalan-Mabinay or San Carlos (4-6 hours travel time), from Cebu City via Oslob to Sibulan (4-6 hours travel time), and from Zamboanga del Norte via Dipolog/Dapitan (5-6 hours travel time via Roll-On, Roll-Off or RORO Ferry).

Tourism Service Center Dumaguete City is the capital city of Negros Oriental and serves as the circuit's main tourism service center. It is the gateway for destinations in the Province of Siquijor, Dipolog City, and Cagayan de Oro City, providing a steady flow of visitors and transient traffic coming in and returning to Manila, Cebu, and Bacolod City. The City is the hub of culture, education, and healthcare of the Province housing four (4) major universities and three (3) major hospitals, which attract a large population of students, tourists, and retirees. Many accommodation and dining establishments are located along the Dumaguete City’s waterfront and commercial district, extending up to the Silliman Campus Area. Idle properties along these areas are still open for investment opportunities. Dumaguete City has been recognized as one of the World’s 9 Most Affordable Places to retire by Yahoo News and ranked 5th among the 7 best places to retire around the world by Forbes Magazine considering affordability, cost of living and quality of life, presence of quality education institutions, and cultural opportunities not typically found elsewhere in the Philippines, including theater, ballet, art shows, and libraries. A growing population opens up attractive opportunities for tourism establishments such as a transient traveler’s lounge, hotels, budget inns, and homestay accommodations. Other possibilities include BPO, educational and training institutions, LGSP-LED Negros Oriental Local Project Completion Report | 3

restaurant, fast-food and entertainment establishments positioned for each specific segment of the population, real estate development, financial, retail and wholesale merchandising.

Major Attraction Sites The main attraction sites of the Circuit combine historical and natural sites, and a range of visitor activities. Negros Oriental has identified three tourism clusters within the Circuit by grouping the attractions and activities according to proximity and type of activity: •

Metro Dumaguete links the historic, college-town attractions of Dumaguete City with other nature-based and historic sites accessible through half-day excursions to neighboring municipalities such as Valencia (for Tierra Alta, Forest Camp, Tejeros Adventure Park, Japanese Shrine, Mountain Trek and Climb to Mount Talinis) and Sibulan (for Balinsasayaw Twin Lakes).

•

Dauin-Apo Island – the municipality of Dauin is the jump-off point to well-known marine sanctuaries, beaches, and snorkeling/dive sites, highlighted by the world-famous Apo Island. Thus, Dauin is also characterized by a concentration of special interest resorts and dive shops catering to the marine-ecotourism markets.

•

Manjuyod, Bais, Tanjay Marine and Nature sub-Circuit combine marine attractions such as the Manjuyod White Sandbar, Talabong mangroves, and dolphin watching in the Tañon Strait (via Bais City), with land-based tours such as farm and hacienda tours in Tanjay City.

These tourism clusters complement each other, collectively providing an extensive range of tourist experiences to suit varying interests of different markets. These clusters are important in extending duration of visits and increasing tourism spending, thus pushing for greater economic activity.

LGSP-LED Negros Oriental Local Project Completion Report | 4

Market Trends and Opportunities The Province of Negros Oriental enjoyed a good performance in tourism arrivals in previous five (5) years before LGSP-LED, with an approximate annual growth of 10-15%. In 2010, the Province ranked as the 13th most visited destination in the Philippines. In 2013, it received the 2nd highest number of visitors in Central Visayas after Cebu. Further, marketing efforts of the provincial government and local tourism stakeholders were heightening tourism promotions to maintain such performance. In the next few years, Sun-and-Beach, Diving, and Marine-based Wildlife activities will still be the main attractions drawing tourists into Negros Oriental. Education (workshops, conferences, camps), Meetings, Incentives, Conferencing, Exhibition or MICE (homecoming, events), and Sports (adventure-based) tourism will likely increase and attract more tourists. Retirement, health and wellness, and cruise/nautical tourism are also potential product opportunities. Based on the market analysis by DOTâ&#x20AC;&#x2122;s tourism marketing and promotions unit, the following potential international markets appear to have the interest and demand for the tourism products of Negros Oriental: Thailand, Indonesia, Vietnam, Russia, India, and the Middle East.

III.

Challenges to Local Economic Development

Given the increasing demand for Negros Oriental as a destination, the Project see the following challenges discussed in the following paragraphs

Challenges to Enabling Environment Enabling Policies and Programs While the Province passed one of the essential criteria of the Seal of Good Governance which is the business friendliness and competitiveness, there was a need to intensify efforts especially that it was not considered as finalist during the 2014 PCCI Business Friendliness and Competitiveness awards. Bais City and Manjuyod, on the other hand, did not passed the business friendliness and competitiveness last 2013 assessment. These results indicate therefore the need to review the economic data, institutionalize of LEIPO who is the economic and investment agents, review and update the LIIC along with the Local Revenue Code. For these LGUs to be ready with workforce requirements of incoming investments, there should be a clear and viable workforce development plan. In addition to this, the tourism statistics and information should be strengthened so this can help in profiling the market segment and other processing so it would serve as an input to decision makers. Additional work to the cities and municipalities to facilitate business permit transaction is the automation of BPLS. While Dumaguete City, Dauin and Tanjay City passed the Seal of Governance on Business Friendliness, there would still be a need to revisit the implementation of those enabling policies and program to sustain or expand businesses in their localities.

Private Sector Partnership Negros Oriental had a strong and dynamic private sector that has been supporting the Provincial Government in the bid to promote Negros Oriental as an emerging tourism and investment destination in the Visayas Region. The presence of the Negros Oriental Investment Promotion Center (NOIPC) and the Negros Oriental Chamber of Commerce and Industry (NOCCI) was an affirmation of the strong private and public sector partnership that works hand in hand in promoting investment and tourism development in the province. The Center is headed by an Executive Director and a Manager and coordinates with the provincial and municipal governments in investment promotion, and project implementation, monitoring and evaluation. NOCCI also values its strong coordinating influences in ensuring that the activities for investment promotions are well coordinated and successfully conducted.

Challenges to Tourism Sector Competitiveness Need to expand and upgrade the supply of accommodations With the expected influx of tourists, more rooms and upgraded accommodation facilities are vital in order to provide a good impression to tourists and to maintain tourism growth. Although beach resorts and large hotels, such as Hotel Essencia and Go Hotels, exist in the province, there has been no major international hotel chain investments to further support Negros Oriental's claim as an emerging tourism destination.

LGSP-LED Negros Oriental Local Project Completion Report | 5

Complementary to the upgrading of accommodation facilities and promoting accommodation investments, enhancing the skills in Dumaguete’s hospitality industry (i.e. hotels and restaurants) was also needed to provide tourists value for money and good customer service.

Critical upgrades needed for Dumaguete Airport and Sea Port as gateways to the destination. Negros Oriental’s main transportation gateways, the Dumaguete Airport and its Sea Port, needed upgrading to accommodate more routes and provide comfort and convenience for tourists. Aside from being congested, the Dumaguete City Airport also has limited night landing facilities and navigational aids, which limited the number of flights it could accommodate and posing problems during bad weather conditions. The Dumaguete City Sea Port, including its passenger terminal and docking berth, also needed to upgrade its facilities to provide better services to incoming and outgoing passengers.

Access roads and jetties leading to tourist attractions also required to be rehabilitated. Some of the major opportunities identified were the following: • •

Pavement of road networks leading to Punta Wharf in Manjuyod and its neighboring municipalities Improvement of the jetty/port facilities to enhance the Dolphin and Whale Watching Tour in Bais City and marine activities on Apo Island

Among the critical infrastructure priorities included the following: • Dumaguete Boulevard Boardwalk Development Project • Multi-purpose Building in Apo Island • Gateway and Waiting Shed (with restroom) in Mantalip Reef, Bindoy • Construction of water works system in Mantalip Reef, Bindoy • Electrification of areas from Campuyo to Punta Wharf

Diversification and upgrading of the tourism product portfolio Negros Oriental’s tourism product portfolio needed development and diversification. Aside from having one of the top diving destinations in the country, it has the potential for the development of nature-based tourism, i.e. adventure and nature-based activities, and for historical-cultural tourism. Tour packages that focused on adventure (spelunking, trekking, bird watching, mountain climbing), culture, and food could be developed. Public-private partnerships were necessary to successfully develop these tour packages and execute a sustainable marketing strategy. Media coverage and publicity needed to be increased through sustained promotion and information dissemination in using all types of media.

Gaps in Visitor Handling Quality, Facilities and Services Despite the increasing tourist arrivals, visitor spending had been relatively low in the circuit, particularly in some attraction sites since facilities and services were not properly developed. Many attraction sites lack interpretation signages, gateways, as well as quality tourist facilities (e.g. toilets, parking areas, and shower kiosks). In addition, many attraction sites have inefficient and slow payment facilities for tours and other activities. Major tourism activities and services were offered and concentrated in the service center, Dumaguete City, through tour operators and travel agencies based in the area. Tourism products and services in other sites must be enhanced to spread the benefits of tourism development at the local area.

Safety And Security Considering the coastal nature of the circuit, many sites were susceptible to disaster-related risks. Eighteen (18) barangays in Bais City and Manjuyod were identified as highly susceptible to landslides. Some sites were identified as at risk of fish migration and species extinction (Apo Island, Bais Dolphin Watching), inundation (Apo Island, Manjuyod Sand Bar), storm surges (Apo Island, Bais Dolphin Watching, Manjuyod Sand Bar), and disease outbreaks (Manjuyod Sand Bar). Tourism promotion and development in these areas needed to consider these risks and take the necessary precautions to prepare against potential disasters. The Negros Oriental TCP has identified a lack of security and emergency facilities, such as police patrol or lifeguards in major beaches. Decompression chambers for diving were required to ensure the safety of divers in case of emergencies.

LGSP-LED Negros Oriental Local Project Completion Report | 6

Lastly, tourism establishments are in areas with high risk for child labor and exploitation, sexual abuse and human trafficking. As such, gender awareness should be increased in the community and an updated list of tourism establishments and their owners and operators had to be prepared.

IV.

Description of the Local Project

To support the Provinceâ&#x20AC;&#x2122;s goal of local economic development, the Negros Oriental Tourism Circuit Development Project sought to improve the local enabling conditions for sustainable local economic development. By 2016, the Project sought to generate PHP 500 million worth of investments, to create 450 new jobs (for 225 males and 225 females), and to increase tourist arrivals annually by 10%. To achieve these outcomes, the Project intervened in two major components, namely the Enabling Environment, by strengthening the ability of participating LGUs to advance sustainable LED; and Sector Competitiveness, by strengthening the ability of LED actors to plan and implement sustainable LED initiatives in participating LGUs. In particular, the Project sought to advance business-friendliness and competitiveness in the Negros Oriental tourism circuit and to develop LED actors to be able to implement joint and sustainable LED initiatives for the Circuit. The figure on the next page summarizes how the different components lead to the desired outcomes in enabling environment and sector competitiveness, which subsequently contribute to investments, jobs, and tourist arrivals in the Negros Oriental tourism circuit.

Summary of Project Target Results

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Project Management The DILG Negros Oriental Provincial Office acts as the coordinating body and as the Project Management Team with their LED Focal Person and Provincial Director as main program coordinators in the province. Administrative and logistical support is also provided by DILG to ensure effective and efficient implementation of the LED activities.

Project Implementation Team The Provincial Government is headed by the Governor Roel Degamo, who has some supervision and control of the project. The Governor also created the Project Implementation Team (PIT) of LGSP-LED through Executive Order No. 14-10, specifying the members of the team, their duties, and functions. The following are the members of the PIT: Project Manager Co-Project Manager Members

Mr. Bimbo Miraflor Mr. Edward Du – Private Sector Representative Atty. Richard Enojo - Provincial Administrator Atty. Froilan Joseph Pinili – Alternate / Asst. Prov’l. Admin. Ms. Myla Abellana – Provincial Tourism Officer Engr. Leo Labe - Provincial Planning Officer I Ms. Syndey Uy – Alternate – Private Sector

To expedite implementation, the Provincial Tourism Unit (PTU) has been tasked to coordinate activities related to Tourism Circuit Development (TCD), including working with project partners and support organizations and agencies. The Mayors of the five (5) local government units (LGUs) covered by the tourism circuit were also part of the team.

Key Partners The main project implementation partner is the Negros Oriental Chamber of Commerce and Industry (NOCCI) , through its Negros Oriental Investment Promotion Center (NOIPC) . The Center, headed by an Executive Director coordinates with the PIT activities on investment promotion, and project implementation, monitoring and evaluation. The NOIPC also serve as the official station of the Partnership Adviser (PA) and the Finance and Administration Assistant (FAA). Resources of the Office are also shared with the program for its implementation, monitoring and evaluation. Other key partners are some NGAs and NGOs that support the local LED project such as the Department of Tourism (DOT), Department of Trade and Industry (DTI), Department of Science and Technology (DOST), Department of Environment and Natural Resources (DENR), Department of Public Works and Highways (DPWH) Philippine Ports Authority, Civil Aviation Authority of the Philippines, Negros Oriental Association of Travel and Tours (NOATTA), Association of Travel and Tours in Negros (ATTIN), and the Negros Oriental Hotels, Resorts, and Restaurants Association (NOHRRA), to name a few. The Mayors of the 5 LGUs function as local coordinators of their respective tourism sites and products, with their local tourism and agriculture officers as their link to the project. It is also through their executive power to designate the Local Economic and Investment Promotions Officer (LEIPOs) and participate in the various capacity and coaching trainings initiated by LGSPLED and become effective and efficient investment agents of LGUs.

V. Project Results and Assessment More Business-Friendly and Competitive LGUs The various investment promotion trainings and technical assistance of the LGUs, particularly their LEIPOs and LCEs have improved the understanding their roles and functions as LGUs’ investment and LED agents. The activities have improved the skills on business and investment planning, developing and formulating investment briefs, communicating and nurturing relationships with businessmen/investors, organizing and delivering investment presentations and pitches, participating in investment fairs and exhibitions. These activities have generally improved services and programs that encourage increased business investment and new business registration in the area. For example, in July 2015, PCCI’s Visayas Area Business Conference (VisABC 2015) afforded the mayors and LEIPOs of Negros Oriental with a platform to meet with prospective investors and present the priorities and investment opportunities in their cities and municipalities. As a direct result of their participation in the Investors Fair activity of VisABC 2015, Dumaguete City, the municipalities of Manjuyod, and Dauin, were able to establish relationships with potential investors for priority investment projects in their respective communities:

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1. A proposed Convention Hotel in Dumaguete City – proponent has signified his intention to conduct investment study by November 2015 2. A proposed Resort at the Manjuyod White Sandbar – proponent discussed his intention to visit Negros Oriental anytime for further investigation of the project site. 3. A proposed PHP 200 million mountain resort and convention center in Dauin – according to Mayor Credo, a Korean developer has already prepared a development plan for the project. This investor was introduced to Dauin at an International Business Exchange conducted in Dumaguete City by NOCCI and LGSP-LED in November 2015.

With NOCCI as strong partner in promoting investments in Negros Oriental, LEIPOs were capacitated from investment brief preparation, pitching and business matching. Sarah Paray, LEIPO of Municipality of Dauin, discusses their investment proposal with Koreans during the International Business Conference last November 2015 in Dumaguete City. The proposal was to establish of small cottages and other amenities that will serve as health and wellness spa using the mineral rich water to offer medicinal baths to tourists. The Korean investor recently visited the proposed site and prepared development plan for the project.

Over the last two years, LGSP-LED capacity development activities trained a total of 127 LGU officials and staff (66M, 61F) to develop various LED-enabling policies, programs, and reforms from 2014 to 2016. More specifically, the LEIPOs and other LGU officers (e.g. tourism officers, PESO managers, BPLOs, etc.) gained experience in the preparation, formulation, review and updating of local policies to raise the business-friendliness and competitiveness of their LGUs. The table below summarizes the total number of LGU officials and staff who benefited from LGSP-LED training and coaching over the course of the Local Project. Summary of LGU Officials and Technical Staff Trained LCEs LEIPO and Staff Tourism Officers and Staff PESO Managers and Staff Other LGU Staff TOTAL

Male 4 3 8 3 48 66

Female 1 2 12 4 42 61

Total 5 5 20 7 90 127

As a result of these capability training activities, several LGU programs and reforms have already been adopted by participating LGUs. These include: !

Automated business permit and licensing systems (auto-BPLS) by 3 LGUs – Bais City, Dauin, and Manjuyod – starting with the annual renewal period in January 2016. With Dumaguete and Tanjay having already adopted automation before LGSP-LED, all LGUs in the circuit have automated BPLS in place. Data from the 3 LGUs assisted by the Project suggests that business registrations have been increasing in these communities LGSP-LED Negros Oriental Local Project Completion Report | 9

Dauin Bais City Manjuyod TOTAL

2014 591 515 442 1548

2015 716 574 453 1743

% Increase 21% 11% 3% 13%

Source: LGU Business Permits and Licensing Offices

•

Adoption of 6 LGU Business Plans for Workforce Development for the Province of Negros Oriental and the 5 participating LGUs of the DaDMTB Tourism Circuit. DILG will be providing funding assistance for the implementation of these LGU Business Plans for Workforce Development through its Training for Better Access to Jobs, or TraBAJo Program. Among others, TraBAJo will strengthen the LGU Public Employment Service Offices (PESO) to institutionalize their local skills registry systems, as well as to conduct industry forums for more effective matching of training programs with the employment requirements of local industries.

•

Formulated Public-Private Partnership Codes for the LEIPOs and LGU Investment Teams to further support local economic growth and fast track negotiations, contract drafting, selection of private sector proponent and implementation of the PPP projects within the locality. The proposed PPP Codes for the cities of Bais and Dumaguete as well as the municipality of Manjuyod have gone through the process of drafting and formulating their PPP code and are now in the approval and adoption stage.

•

Enhanced capabilities in organizing, and analyzing tourism statistics and information collected using the national DOT-JICA protocols

•

Enrollment of the LGUs in SparkBiz, DILG and LGA’s, Web-based LED information portal that showcases the competitiveness of the cities and municipalities as a potential business and investment destination.

As the Negros Oriental LGUs seek to sustain these gains, the following would be among their concerns in the immediate term: •

Formal approval by the new LCEs and Sangguniang Bayans of the local ordinances drafted through the assistance of DILG and LGSP-LED, specifically LIIC, LRC, and PPP Codes

•

Continued development and refinement of the tourism statistics and information system (TSIS) software introduced by LGSP-LED to further improve integration with the DOT-JICA reporting requirements while enhancing capabilities for analysis and interpretation for customized local needs.

•

Need to complete and constantly update the information uploaded to the LED portal from the different LGUs, to show the full potential of the LGUs as business and investment destinations.

Tourism Sector Competitiveness Negros Oriental implemented a joint LGU-private sector LED initiative for tourism circuit development covering the tourism sites from Metro Dumaguete to the neighboring LGUs of Dauin, Tanjay City, Bais and Manjuyod, which involves the development of a distinct tourism destination brand and representative tour packages for the circuit, the itineraries of which define the priority places for investment promotion, product development, and tourism workforce development. The private sector LED actors of Negros Oriental, in partnership with the LGUs, were able to apply the training and technical assistance from LGSP-LED to plan two main LED Initiatives. One LED Initiative is the Tourism Circuit Development based on the Tourism Circuit Plan for the Dauin-Dumaguete-Manjuyod-Tanjay-Bais Circuit (DaDMTB), which included components for tour packaging and product development, destination marketing, and investment promotion. This LED Initiative became the basis for the LGSP-LED local project workplan by which Negros Oriental attempted to implement the short-term components of the LED Initiative. One immediate outcome has been the strengthening of the leadership roles of the local private sector associations in the planning and implementation of LED Initiatives in the Province, and in the tourism circuit. Six (6) representatives (4M, 2F) of local private sector institutions were particularly active in collaborating with the PIT on the planning and implementation of these activities. Based on the their engagement and leadership in the planning and implementation of the various LED Initaitives, they are expected to continue to play very active roles in subsequent LED and tourism initiatives of the LGUs: ! Mr. Edward Du, NOCCI President ! Mr. Francisco C. Martinez, NOIPC Executive Director, NOIPC ! Ms. Syndey Uy, NOIPC Secretariat LGSP-LED Negros Oriental Local Project Completion Report | 10

! ! !

Mr. Jose Ramon del Prado, Acting President of NOHRRA (Hotel, Resort and Restaurant Association) Ms. Macrina Fuentes, NOATA President Mr. Neil Quiambao, One Big Trip Travel and Tours

NOCCI, together with NOIPC, demonstrated their capacity to champion and support the investment promotion initiatives of the Province as well as the member LGUs of the circuit. With NOCCI as the lead partner, the local LED project was able to perform functions related to investment promotions such as : !

Production of new investment materials for Province and the LGUs of the Circuit, such as Provincial Investment Guides, and City/Municipal Invesment Profiles, as well as Investment briefs for priority business investment projects in the Tourism Circuit: " Privatization of Bahia de Bais Hotel (Bais City) " Baslay Health and Wellness Spa (Dauin) " Traveller’s Lounge (Dumaguete City) " Manjuyod White Sandbar Resort (Manjuyod) " Privatization of Negros Oriental Convention Center (Provincial Government) " Boardwalk Viewpoint (Tanjay City) Coaching for LGU investment teams to engage in business-matching activities to link the LGU priority projects to potential investors. These included the July 2015 Visayas Area Business Conference and the November 2015 International Business Exchange with delegates from Alameda City, California, USA and Yeongdong, South Korea.

NOATA was the lead institutional partner of Negros Oriental’s Provincial Tourism Office in organizing the Local Project activities that led to the development of a new Negros Oriental destination brand, as well as new tour packages for the DaDMTB circuit. Another local group, the Association of Travel and Tour Operators in Negros (ATTIN) has also come on board to support the operation and marketing of these new packages. A stakeholder-driven activity, facilitated by the branding consultant from Foundation for Communication Initiatives (FOCI), produced an initial design for a logo and tagline – “Negros Oriental. This is where you want to live”. The new brand as well as new tour packages developed for the circuit were approved by the local stakeholders in January 2016,

New Tour Packages Developed Three (3) circuit tour packages for the 3 sub-circuits were identified in Negros Oriental’s tourism circuit plan: 1. Metro Dumaguete sub-circuit including the City as well as nearby excursion sites in Valencia, Bacong and Sibulan 2. Apo Island sub-circuit from Dumaguete to Dauin (also including Zamboanguita) 3. Tanjay-Bais-Manjuyod sub-circuit of farm, coastal, and marine activities.

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With sustainable eco-cultural tourism as theme of the Tanjay-Bais-Manjuyod sub-circuit, mangrove forest situated in Tanjay City was included in the tour package developed with the assistance of LGSP-LED project.

The tour packages provided recommended areas for improvement and/or investment by the LGU and participating tourism enterprises with regard to the current level of product quality, service quality, as well as facilities and infrastructure. Recommended market linkages that would further promote the destinations in the circuits and the recommended strategies and directions for LGUs and private sector partners to further enhance and develop the circuit sites of the province of Negros Oriental were also presented. The developed tour packages enabled the LGU to observe and monitor the critical product development and service quality gaps in the tourism circuit, based on feedback from tourists as well as the service providers. These also provided a platform for sub-sectors of the local tourism industry (i.e. commercial accommodations, local land and/or sea transportation, tour guides, restaurants, souvenir manufacturers and shops, etc.) to collaborate with each other in marketing and delivering a convenient visitor experience in the area. Further, recommended itineraries and activities were provided to encourage visitors to stay longer and spend more within the destination, and particularly to the priority sites in the area. As traffic flow into and around these sites increases, these sites may then become more attractive to investors.

New Destination Brand for Negros Oriental To further enhance, improve and make the tourism circuit of the province a more competitive destination that can attract more visitors and generate greater investments that create employment and income for the locals, the local LED project conducted the Strategic Communications Workshop last September 2015 and created the destination branding for the circuit. The activity was facilitated by the branding consultant from the Foundation for Communication Initiatives (FOCI) and produced the logo and the tagline for the Negros Oriental tourism circuit.

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The initial design, agreed and selected from 11 alternative studies by a total of 47 (22M, 25F) LGU and private sector stakeholders, symbolizes the Ridge-to-Reef attractions of the circuit with green mountains on top, and a green wavy stripe to define the coastal beach areas. “Negros Oriental” is written below the symbol using all-capital letters. The logo is interpreted as a stylized leaf, thematically compatible with the Province’s priorities with regard to environmental conservation and organic agriculture. The tagline “This is how you want to live.” is meant to reflect the stakeholder’s vision of the destination as “the eco-tourism capital of Negros, where culture meets adventure.” At the same time, it also positions the area for the retirement sector, which the LGUs have also identified as a priority.

LED Initiative for Workforce Development The continuous availability of human resources with adequate knowledge and skills needed by enterprises is an essential requirement for local economies to grow and develop. Unfortunately, there is a mismatch between what local industries need and what educational and training institutions in LGUs can produce. Thus, the local LED project aimed to support training and development activities through a LED Initiative for Workforce Development to ensure that existing and future labor force would correspond to what enterprises and industry need

The local tour operator participants simulate effective handling of customers during their customer service training last January 2016.

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The Provincial Tourism Office of Negros Oriental in collaboration with the local LED project conducted a two-day customer service training for local tourism transport operators last January 2016. The training, conducted in two batches, was the provinceâ&#x20AC;&#x2122;s response to the need identified in the Negros Oriental Tourism Circuit Plan to improve the services of existing tourism industry frontliners. The purpose of the customer service training was to orient and improve the knowledge and skills of the local transport operators to become world-class front line professionals in the Philippine tourism industry. Participants were oriented on the impact and benefits of tourism to the local economy and the importance of communication, professionalism and customer service in their profession/business. A total of 81 (42M, 39F) participants mostly owners/operators, drivers and staff from tourism transport operators in Dumaguete City joined the training held at the Provincial Tourism Office Conference Area. The training was conducted in two batches. DILG and LGSP-LED assisted the province of Negros Oriental and the five participating LGUs in developing local workforce development programs to address the mismatch of skilled labor in the local market and the growing manpower demands of the local business sectors. As a result the 3 cities and 2 municipalities of the circuit received a combined total of PHP 26M in funding from DILGâ&#x20AC;&#x2122;s TRABAJO Program to undertake their workforce development plan activities after LGSP-LED.

Investment Generated The Local LED project promoted a sustainable agro-eco adventure tourism circuit in the province of Negros Oriental and committed to deliver at least PHP 500M investments by the end of 2016. The Project easily exceeded this target by generating an estimated total of PHP 2.75B investment from both the private and public. The significant accomplishment is attributed to the very good and strong public and private partnership in the province, working hand in hand to achieve economic development and inclusive growth. NOCCI investments alone have been generated in Dumaguete City and other key sites of the Negros Oriental tourism circuit since since the start of the LGSP-LED program in Negros Oriental. These new investments include: ! PHP 300M 2-storey mall (2.5 hectares) along the National Highway of Dumaguete City ! PHP 200M Bay Resort/Commercial Complex in Brgy. Piapi, Dumaguete City ! PHP 1.2B Health Care facility in Dumaguete City ! PHP 1.3M solar energy farm in Bais City, and ! PHP 60M themed resort in Dauin

As Negros Oriental position itself as retirement destination, NOCCI and LGSP-LED facilitated investments for a health care facility in Dumaguete City. This photo shows the ongoing construction of the 1000 bed capacity Allied Care Experts (ACE) Medical Center in Dumaguete City.

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The LEIPOs of Dumaguete City, Dauin, Tanjay City and Bais City, being the investment agents and facilitator in their respective locality and direct beneficiaries of the various capacity development trainings conducted and facilitated with the local LED project also reported investment generation as follows: • P 136M Commercial/Food Arcade along the Dumaguete City Boulevard • P 50M Commercial Arcade at the Dumaguete Business Park • P 170M in new resort developments in Dauin • P 40M Jollibee branch with drive-thru in Bais City – Jollibee Bais City with Drive-thru • P 30M Jollibee branch in Tanjay City – Jollibee Tanjay City In addition to these private investments, an estimated PHP 566 million in public investments from the LGUs and the national government investments were made for tourism-enabling, and health care infrastructure including: • PHP 300M Provincial Health Care Facility Expansion (Provincial Hospital) in Dumaguete City • PHP 26M Improvement/extension of Dumaguete City Boulevard • PHP 120M Expansion of Dumaguete City Seaport • PHP 120M Runway repair and improvement of Dumaguete City Airport

New Employment Created With the increase in investments pouring into the Negros Oriental Tourism Circuit, 230 (143M, 87F) new, direct jobs were created as reported by the LEIPOs. However, this number missed the Project’s target by almost half (49%). Nevertheless, according to NOCCI President Edward C. Du, these figures do not yet include the estimated employment opportunities of around 500-750 jobs (direct and indirect) expected to be generated once other ongoing private investments in new establishments are fully operational.

Increased Visitor Arrivals As shown in the table below, annual visitor arrivals to the Province of Negros Oriental grew by 15.29% per year from 2013 to 2015, exceeding its target growth rate of 10%. If this trend holds for 2016, the Province could expect total arrivals of more than 720 thousand by end of December 2016. Focusing only on the 5 LGUs in Negros Oriental’s priority DaDMBT Tourism Circuit, the table shows that average annual growth for the circuit grew by 13.36% per year from 2013 to 2015. This figure is heavily skewed by Dumaguete City, which accounts for 92% of all arrivals to the circuit. From 2013 to 2015, official arrivals to Dumaguete grew by 11.56%. In contrast, visitor arrivals to the 4 other LGUs in the circuit grew significantly faster over the past 3 years, albeit from much lower baseline numbers. Annual Visitor Arrivals

Negros Oriental (Entire Province) Dumaguete Dauin Tanjay Bais Manjuyod Total

2013

2014

2015

470,438 393,718 11,644 909 2,260 5,540 414,071

519,429 434,207 18,653 997 5,782 7,640 467,279

625,295 490,046 20,283 1,816 7,679 12,267 532,091

Average Annual Growth Rate 2013-2015 (%) 15.29 11.56 31.98 41.34 84.33 48.80 13.36

While these results are positive, a more detailed examination reveals that they may even represent a deceleration of tourism growth for Negros Oriental, and particularly for Dumaguete City. If visitor arrival figures for 2011 (260,312) and 2012 (307,890) are included, the CAGR for visitor arrivals to the Province for the 5 year period (2011-2015) comes out to 24.49% per year. This suggests that growth may be accelerating in the smaller destinations of Dauin, Tanjay, Bais, and Manjuyod. At the same time, Dumaguete may be experiencing a relative slowdown of growth that could be addressed by new investments to expand the supply of rooms in the City.

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Crosscutting Themes Gender Equality Promotion of gender equality was an integral part of the Negros Oriental Tourism Circuit Local LED Project. The tourism circuit plan developed for Negros Oriental considered gender and development issues. Among the concerns highlighted in the tourism circuit plan were the lack of female representation in decision-making and policy making, lack of equal opportunities for men and women to economic development and absence of gender sensitive brand for the tourism circuit. Female representation was ensured in the Project Management and Project Implementation Teams, through the Provincial Focal Person as well as two key members of the PIT: Ms. Myla Bromo-Abellana, the Provincial Tourism Officer, as well as Hon. Mariant Villegas, the chair of the Sangguniang Panlalawigan’s Tourism Committee. In addition, Ms. Macrina Fuentes, President of NOATA stood as an important leader in the local tourism industry throughout the Project. Implementation of the local project was undertaken with a conscious effort to ensure equal opportunities for men and women to be able to participate and benefit from the various training and coaching activities. All told, 326 private sector LED actors as well as LGU officials and staff participated in the LGSP-LED training and coaching activities in Negros Oriental. The participants were almost equally divided by gender with 164 men and 162 women benefiting from the activities. This equitable participation was observed for both the LED-enabling (66M, 66F) and tourism sector competitiveness (98M, 101F) components. The new “ridge-to-reef” branding of Negros Oriental with the tagline “This is how you want to live” is consciously gendersensitive in that it does not lend itself to applications that might encourage inappropriate depiction of women and children. Rather the branding strategy would remind tourists on the importance and their role in preserving the environment and culture of Negros Oriental so that tourism in Negros Oriental will remain sustainable as well as wholesome.

Environmental Sustainability The local LED project strongly advocated environmental sustainability through climate change adaptation and disaster risk reduction program in the province of Negros Oriental. This was highlighted in the CCA-DRRM plan that the local project initiated as most of the sites identified in the Negros Oriental Tourism Circuit are prone to natural disasters. To mitigate these potential environmental threats, the province of Negros Oriental has adhered to the principles of restorative, sustainable and equitable local economic development by adopting environmentally sustainable approaches in the conduct of local LED initiatives. Outputs of the various activities undertaken by the local LED project all adhered to the promotion of environmental sustainability of the area with emphasis on the CCA-DRRM. Investment promotion proposals and briefs were all prepared with a conscious effort of recognizing their environmental impact and consideration as most are in areas with greater environmental hazard. The tour packages developed for the Negros Oriental Tourism Circuit were all prepared with strict compliance to environmental conservation and sustainability as the sites identified in the packages were all covered by existing environmental regulations such as the NIPAS (National Integrated Protected Area System) Act and DENR Protected Marine Seascapes and Sanctuaries. The destination brand developed for the tourism circuit revealed the rich natural characteristics of the local environment and thus it also followed the same perspective of environmental sustainability, conservation and preservation. The provincial government initiated programs and projects that promoted environment protection, climate change adaptation and disaster resiliency. The province developed and launched the Negros Oriental Disaster Preparedness and Operations Manual to counter the continuing threat of natural disasters that assailed the province. The province also spearheaded information campaign programs to LGUs and barangays on CCA-DRRM, the importance of preparedness before and during disasters and the relevance of strengthening LGUs and barangay Disaster Preparedness Action Plan/Convergence Plan.

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Promotion of gender equality was an integral part of the Negros Oriental Tourism Circuit Local LED Project. The tourism circuit plan developed for Negros Oriental considered gender and development issues. Among the concerns highlighted in the tourism circuit plan were the lack of female representation in decision-making and policy making, lack of equal opportunities for men and women to economic development and absence of gender sensitive brand for the tourism circuit. Female representation was ensured in the Project Management and Project Implementation Teams, through the Provincial Focal Person as well as two key members of the PIT: Ms. Myla Bromo-Abellana, the Provincial Tourism Officer, as well as Hon. Mariant Villegas, the chair of the Sangguniang Panlalawigan’s Tourism Committee. In addition, Ms. Macrina Fuentes, President of NOATA stood as an important leader in the local tourism industry throughout the Project. Implementation of the local project was undertaken with a conscious effort to ensure equal opportunities for men and women to be able to participate and benefit from the various training and coaching activities. All told, 326 private sector LED actors as well as LGU officials and staff participated in the LGSP-LED training and coaching activities in Negros Oriental. The participants were almost equally divided by gender with 164 men and 162 women benefiting from the activities. This equitable participation was observed for both the LED-enabling (66M, 66F) and tourism sector competitiveness (98M, 101F) components. The new “ridge-to-reef” branding of Negros Oriental with the tagline “This is how you want to live” is consciously gendersensitive in that it does not lend itself to applications that might encourage inappropriate depiction of women and children. Rather the branding strategy would remind tourists on the importance and their role in preserving the environment and culture of Negros Oriental so that tourism in Negros Oriental will remain sustainable as well as wholesome.

Poverty Reduction Poverty reduction is the ultimate goals of the local LED project. Coordinated efforts with LED local partners were made to address and eradicate this issue. The LED initiatives- workforce development and tourism circuit development planned and implemented were meant to contribute to the reduction of poverty incidence in Negros Oriental. The Province Government of Negros Oriental and member LGUs of the tourism circuit were supported by LGSP-LED in terms of providing technical assistance in order to come up with a Workforce Development Plans. These plans mapped out opportunities on tourism and BPO within the area in partnership with the private sector. With these opportunities, the cities and municipalities of tourism circuit proposed specific workforce development requirements such as skills trainings. Target participants for the skills training were unemployed residents of the target and should be indigenous people, Pantawid Pamilya Pilipino Program (4Ps) beneficiaries, out-of-school youth or persons with disabilities (PWDs). Except for the Province of Negros Oriental, all LGUs of the tourism circuit will be implementing the skills trainings starting this year until 2017 and was hoped to generate jobs. On the other hand, development of additional three new tour packages: (1) Metro Dumaguete (2) Apo Island sub-circuit) and (3) Tanjay-Bais-Manjuyod sub-circuit of farm, coastal, and marine activities and new destination brand depicting ridge-to-reef attraction were all meant to increase tourist arrival or lengthen stay of tourists. In turn, this meant additional employment for the local communities. The development of investment briefs was also meant to attract investors. With new investments, there would be a need of additional jobs for tourism. The provincial government will likewise continue to deliver its various programs and projects that result to poverty reduction. The province has proposed a total of PHP 150M for the BUB projects in the grassroots with the aim of delivering economic services to the marginalized sectors so to provide them with economic growth and sustainable development.

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VI.

Lessons Learned

1. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single city or municipality. Thus, the TCP emphasized how interdependent the cities of Dumaguete, Tanjay and Bais and municipalities of Manjuyod and Dauin are with each other. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

2. LGU LED Team members must be trained and qualified to become advocates for business-friendliness and inclusive LED within the LGUs. Well-qualified, trained, and motivated LEIPOs, LGU tourism officers, and PESO managers were key factors in driving their respective LGUs to complete the formulation or planning of business-friendly LGU policies and programs. The adoption and implementation of these policies, plans, and programs will also be dependent on these officers, as well as other LGU staff with LED-related mandates. The LED Team of the LGU (both, provincial and municipal) must be the day-to-day champions/advocates for the LGUâ&#x20AC;&#x2122;s program for business-friendliness and LED competitiveness. Yet, key LGU offices with LED-related mandates such as LEIPO, Tourism Office, and PESO are still interim appointments with temporary offices and working budgets. These LED officers are more effective, and work better with each other, when they are confident in their mandates, their capabilities, and the support that they receive from their respective LGUs. Thus, agents for economic and tourism development within the LGUs such as LEIPOs, Tourism Officers, and PESO managers must be made permanent as quickly as possible, and officially supported with appropriate staff development and financial resources needed to implement sustainable LED and BFCL programs. They must be empowered to work closely with the LGU Planning and Development Offices as well as the frontline regulatory offices (e.g. BPLO) and to partner with the private sector on various LED initiatives. Strong Provincial LEIPO, Tourism, PESO, and Planning Offices are necessary to provide technical support and mentoring to their municipal counterparts, who may not have the same resources, experience, and institutional connections to NGAs and national or regional industry. At the same time, the Provincial LED Officers can facilitate cooperative activities or programs among the peer officers of LGUs in the circuit.

3. Engaging the private sector in planning and implementing the LED Program Building can lead to a more businessfriendly, entrepreneurial mindset within the LGUs Strong collaboration with the private sector was the key factor that led to the successful implementation and acceptance of the various activities undertaken and initiated by the local LED project in the province of Negros Oriental. And in doing so, there was also a very good support from the local government unit in the promotion of the LED program and activities at the local level. The Negros Oriental experience is a good lesson and example in partnering with private sector organizations that have proven track records in supporting local programs and initiatives for LED. These organizations can provide assistance to the LGUs in the form of financial resources, capacity development and facilitation of activities that delivered specific results as in the case of NOCCI and NOIPC with the investment promotions program as well as the travel operators associations (NOATA and ATTIN) who conducted and facilitated activities on tour package and destination brand development. Strong collaboration with the private sector is not only a key factor for successful implementation of LED Activities. The exposure to private sector practices and perspectives can also strengthen the client-orientation of the LED Team (especially LEIPOs, Tourism Officers, and PESO Managers). At the same time, continuous implementation of the LED Program as a joint public-private undertaking helps clarify the enabling roles of the LGU vis a vis the local industryâ&#x20AC;&#x2122;s efforts to become more competitive and inclusive. LGSP-LED Negros Oriental Local Project Completion Report | 18

4. NGA convergence is facilitated with early engagement, clear communication, and regular monitoring of project activities. The conduct of a convergence forum which was considered as a very good initiative of the local LED project that brought together NGAs that support a sustainable local economic development. Through the convergence forum, NGAs provided platforms for collaboration and alliances by sharing resources, projects and activities geared towards local economic development in the province. An integral approach was the conduct of a follow-through mechanism that continually monitored and evaluated NGAs support to promoting local economic development. This was done in periodic consultation and discussion through the conduct of coaching, workshops and seminars for the LED initiatives in Negros Oriental.

VII.

Conclusions and Recommendations

Sustaining the LED-Enabling Environment in the LGU On the aspect of continuing the drive for improved business-friendliness and competitiveness of the LGUs, the general directions are: 1) to strengthen and ensure the permanence, i.e. regular operations, of the key structures for LED promotion in the LGUs such as LEIPO and Tourism Office, and 2) to institutionalize the key LGU policies and programs for businessfriendliness and support to competitive sectors. Thus the main recommendations for continued and improved business-friendliness of the LGUs are: 1. Ensure that the Provincial and City/Municipal Governments have LEIPO, Tourism, and other LED-related Offices with fulltime personnel and adequate resources. While all LGUs have designated LEIPOs and Tourism Officers, it is important that they be provided with budget, office, and personnel to effectively perform their investment promotion, business retentions, and MSME facilitation work. !

These offices can initially be established through Executive Orders, and eventually institutionalized through local legislation in partnership with the local legislature.

2. The new or re-elected City and Municipal Local Chief Executives should work immediately with their respective Sangguniang Bayans Monitor and ensure that related policies and regulations such as the LIIC, Revenue Code, Tourism Code PPP Code etc. are properly formulated and adopted to support the needs of the businessmen and investors !

Continuous enhancement of the auto-BPLS so as to provide ease and speedy processing of business permits and licenses

Come up with an effective and efficient monitoring mechanism that would track reliable and concrete results of the LGUs business friendliness and competitiveness and promote continuous improvement

3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and socially-protective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: !

Development of protective enabling policies on human trafficking, child labor, and safe workplaces should be developed, using the TCP to identify key locations/sites for priority attention. LGSP-LED Negros Oriental Local Project Completion Report | 19

Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant.

In updating the plan, it is recommended that the process should officially include the other LGUs of the Metro Dumaguete sub-circuit in the TCP, e.g. Sibulang, Valencia, Zamboanguita. Negros Oriental should also integrate the TCP planning process with that of Negros Occidental — leading to an NIR destination cluster plan within the overall regional development plan, with Silay/Bacolod and Dumaguete Airports as the gateways to the Regional loop.

The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit identified in the PPFDP. These are areas with low elevation and are vulnerable to flooding as a result of high rainfall during tropical cyclones. Coastal areas along the Tourism Circuit are also susceptible to sea level rise associated with climate change. The absence of mangrove forest further increase theIr vulnerability. Improvement of accessibility will need to ensure that major roads leading to the tourism sites will not be impeded in the event of major tropical storms as these serve as lifelines to facilitate evacuation, rescue and delivery of relief assistance, and that these roads have well lighted posts. Alternate routes need to be identified and roads comprising the routes should be upgraded to ensure all weather conditions. Strict implementation of zoning ordinances to prevent settlements in hazard zones and in environmentally constrained areas Ensure that adequate forest cover is maintained in slopes above 18 percent and environmental laws are implemented to prevent degradation of areas with steep slopes.

The Governor should be the chair of the LED Team, providing overall policy direction, strategic advise and leadership to the team.

The core LED Team should include members from the Provincial Government’s economic officers ( the LEIPO, the Provincial Tourism Officer, the PESO Manager, and the Planning Officer) and the partner institutions from the private sector.

In this regard, the Provincial LGU may sustain the practice of private sector engagement by officially recognizing NOCCI and NOIPC, such as through a MOA, as the lead Partner on Investment Promotion Partner of the province and of the LGUs in the Tourism Circuit. A similar working arrangement may also be pursued with tourism sectoral associations such as NOATTA, ATTIN, NOHRRA, NDA to pursue tourism competitiveness.

Conduct periodic meetings, dialogues, and consultations to monitoring, evaluate and update the plans for the tourism circuit and related LED plans "

The Provincial Government and DILG must create a plan or system to pursue and promote further LED initiatives in the province and build a strong collaboration for economic competitiveness with the private sector.

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On a similar track, DILG and the Provincial Government can regularly convene the NGA partners for LED for updating, monitoring, and planning of converged efforts to support the updated programs and activities for LED and for continued development of the TDA.

Sustaining the Tourism Circuit Development and Sector Competitiveness Program Through the Local Project, the Provincial Government and its partners in the cities/municipalities in the tourism circuit have implemented some initial activities to develop the TDA into a more attractive investment destination with a more competitive tourism circuit and industry. While there have been clear gains achieved to date, there are still many important issues to address for this progress to be sustained. More importantly, much work remains to be done in order to ensure that the growth from LED and tourism will become truly inclusive and beneficial to more people. While the private sector should continue to drive the product development, business investment, and employment generation components of tourism circuit development, the Provincial and Municipal Governments must also continue to support and enable its private sector partners through: !

The Provincial LEIPO, in partnership with NOCCI and NOIPC, may organize regular (quarterly or twice a year) meetings with the counterpart LEIPOs and chambers from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities

2. Through the Provincial Tourism Office, and in partnership with NOCCI, NOIPC, NOATTA, NOHRRA, and other key private sector associations in tourism should design and implement a destination marketing program, starting with the full roll-out and market/industry launch for â&#x20AC;&#x153;Negros Oriental. This is how you want to liveâ&#x20AC;? brand. !

The Provincial Tourism Council and the Provincial Tourism Office should establish a public-private LED Destination Management/Marketing Team that will effectively sell and operate events and are capable of producing tourism promotion for the tourism circuit. Provincial Tourism Council and Provincial Tourism Office together with the key private sector associations in the province should work closely with the DOT Regional Office and the Tourism Promotions Board to pursue destination marketing efforts;

Partner with NOCCI and other industry stakeholders on leveraging the tourism brand for marketing Negros Occidental and Dumaguete as a retirement destination as well as re- location site for BPOs and other green, highLGSP-LED Negros Oriental Local Project Completion Report | 21

tech sectors. 3. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. !

Trainings and seminars for the major sectors in tourism specifically for the manpower and services would be a great contributing factor that would ensure the competitiveness of the local tourism circuit.

4. Support and encourage private sector efforts to enhance and diversify the tourist activities and key attraction sites of the TDA, consistent with the recommendations of the TCP and the overall marketing and branding position of the destination. !

Provincial Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell the new circuit tour packages developed by NOATTA through LGSP-LED assistance.

Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and community-based livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination.

Encourage/promote local entrepreneurship or private sector operation of tourism sites; offer opportunities for private sector to manage and operate relevant services in the tourism site where they can provide their expertise better than LGUs operating their site services.

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Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

INTERMEDIATE OUTCOMES New Investments

(MARCH 2016) 0

Description

2,753,300,000 2.19B

Health Care facilities, tourism establishments, power

Public Investments

Upgrading of Dumaguete Airport runway and terminal with night landing/take-off capabilities; boat slips/docks along boulevard

Employment (New)

1219

Private Investments

CUMULATIVE

500M

Health facility, bay resort, malls and other tourism facilities 566M Health Care Facility, Dumaguete Boulevard improvement, expansion of Dumaguete Seaport and improvement of airport

450

230

Male

225

143

Female

225

10.50%

13.36%

414,071

505,500

532,091

Enabling Policies Adopted

LGU Business Plan (Workforce)

5 3

1 5

6 4

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted

BPLS Computerized

Tourism Statistics system implemented

Business Registrations

195

LED Actors with Capacity to Plan/Implement

LED Initiatives Implemented

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OUTPUTS LEIPOs Trained

127

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

LGU Business Plans & Policies Formulated LGU Business Plan (Workforce) LGU Business Plan (Investment Promotion) LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened

Tourism Code formulated/updated

TOP COP Program/Plan developed

LED Initiatives Planned

LED Actors Trained

205

199

PIT Members Trained (non-LGU)

Workers, Entrepreneurs Trained

200

144

Industry Representatives

LGSP-LED Negros Oriental Local Project Completion Report | 24

LGSP-LED Negros Oriental Local Project Completion Report | 25

Project to support the national and local governments enable the private sector to invest and create jobs, in order to reduce poverty for women and men and ensure environmental sustainability. Project

Project

Local Government Profile LGSP-LED Davao del Norte Local Project Completion Report | 1

Davao del Norte Fast Facts Population Land Area Cities Municipalities Capital City Income Class Project Coverage Economic Drivers

945,764 342,697 hectares 3 8 Tagum City 1st Island Garden City of Samal (IGACOS) Agriculture; Tourism

The Province of Davao del Norte, as its name implies, is located in the north central part of Davao Region (Region XI), which occupies the southeastern portion of Mindanao. It is bounded on the north by Agusan del Sur, Bukidnon on the northwest, Davao City on the southwest, Davao Gulf on the south and Compostela Valley on the east. It has eight (8) municipalities and three (3) cities divided into two (2) congressional districts, with Tagum City as the provincial capital. Davao del Norte is primarily an agricultural province with principal crops of rice, maize, banana, coconut, abaca, ramie, and coffee. The Province is the leading producer of bananas in the Philippines, with large multinational (Dole and Del Monte) as well as local (Lapanday, TADECO, and Marsman) corporations operating industrial plantations in Davao del Norte. Davao del Norte is also one of the leading producers of rice in Mindanao. In addition, Davao del Norte’s fishery sector has brackish water (milkfish or bangus, tilapia, shrimp, and crab) and freshwater (catfish or hito, tilapia) products. The Province is a major producer of gold, with small-scale mining activities thriving in several areas. Other mineral resources in Davao del Norte are silica, silver, copper, and elemental sulfur. Tourism is also a major part of the Davao del Norte economy, with the Island Garden City of Samal as the main tourism destination.

About the Island Garden City of Samal (IGACOS) The Island Garden City of Samal (IGaCoS) is a local government unit within the province of Davao del Norte in Davao Region, Philippines. It is a group of islands made up of a main island and seven (7) islets located in the northeastern part of Davao Gulf. Largest among the islets is Talikud Island, the focal area for tourism circuit development. IGaCoS has almost 120 kilometers of continuous coastline and a land area of 30,130 hectares. It is composed of three (3) districts: Babak, Samal, and Kaputian. These districts were previously independent municipalities before being merged into one city. Today, Babak is the main commercial center of IGaCoS, while Samal District is the City’s local governance center. Kaputian District, together with Talikd Island has been identified as the key site for future development and expansion of tourism. IGaCoS is made up of 46 barangays with a population of 104,406 (2012). Agriculture contributes most significantly to the City’s local economy. IGaCoS is rich in Bolinao clay soil, which is ideal for producing mangoes, which are now at the core of its One-Town-One-Product (OTOP) program. Other crops produced in the island are copra, rice, corn, banana, root crops, citrus, and assorted vegetables. However, most of these other crops are for local consumption only. The local government also supports production of cattle, carabao, hog, and goat and marine resources, such as tuna, tuna-like species, big-eyed scad, flying fish, sardines, parrot fish, siganid, seashells, seaweeds, sea cucumber, milkfish, and tipalia. A significant limestone deposit also resides in the island. By and large, tourism contributes mostly to the economic growth of IGaCoS. In terms of tourist arrivals, the island has sustained an annual growth rate of 29.13% from 2006 to 2014. In light of the recent impressive growth in tourist traffic, the city government of IGaCoS has established a fully functioning city investment and tourism office with a separate and specific mandate to focus on investment and tourism development alone. Tourism councils were revived and strengthened in the provincial and city level, including in some barangays where tourism is a major industry. Talikud Island has its own tourism council, in addition to a resorts federation and a budding community that manufactures limited souvenir items utilizing locally available materials. The local government ratified its Tourism Code, together with other local measures aimed at creating a policy environment conducive to faster growth and entry of investments in the tourism sector. Among these reforms are the creation of the OneStop-Shop for business regulatory processes and an investment incentives mechanism. There are now specific programs and projects designed to improve current state of infrastructures, particularly on accessibility and connectivity of tourists to LGSP-LED Davao del Norte Local Project Completion Report | 2

the target destinations, including those in the tourism product development, human resource development and destination marketing, among others. LGU Province IGACOS

II.

Income Class 1st 4th

Population 945,764 95,874

Land Area (hectares) 342,697 30,130

No. of Barangays 223 46

The Tourism Circuit

In its 2011-2016 Philippines National Tourism Development Plan (NTDP), the Department of Tourism (DOT) set out a number of tourism development areas (TDAs) across the country. The idea is that these are the priority tourism areas that have development potential and where much of the DOT’s resources will be focused. The NTDP identified Davao City-Island Garden City as a priority TDA. LGSP-LED has taken the tourism circuit development approach as a framework for a more specific and localized analysis of the LED-enabling and tourism sector competitiveness issues of the area. Using the Tourism Circuit Plan (TCP) as a guide, it assists the LGUs in working with enterprises by enhancing visitor experience by developing more competitive tourism activities, goods, excursions, and facilities to increase visitors' length of stay and expenditure. From a mere 38,536 domestic arrivals in 2006, IGaCoS registered domestic tourist traffic of 187,973 individuals in 2013. Since 2012 until the first half of 2014, foreign visitors comprised 3.11% only of the total traffic. Eighty percent (80%) of tourists spend at least 1-2 days in the island group, mostly traveling in groups, about a third of which spend an average of PHP 4,000-6,000 per day. Leading activities are swimming, beach partying, snorkeling, deep and scuba diving, kayaking, island hopping, and many sorts of boating, among others. Different natural attractions, such as natural rock formations, caves, falls, hills and mountain peaks also offer other outdoor adventure opportunities, such as spelunking, hiking, camping and mountaineering, among others. Main attractions in IGaCoS are categorized into three, namely: natural, cultural and sun-and-beach destinations. Leading natural attractions are the Monfort Bat Sanctuary, home of the Guinness World Records holder for largest collection of Geoffrey’s Rousette fruit bats, Hagimit Waterfalls, Puting Bato, the island’s highest peak famous for trekking and camping and a number of stunning coral reef systems cum dive spots at par with the rest of the world. There are only three cultural villages in the entire island group; most of them are largely underdeveloped and require more site improvements. All sun-andbeach destinations are mostly privately owned resort beaches, majority of which have the white sand beach line, gendersensitive facilities, decent accommodations and many sorts of aqua-sports equipment and services. Unspoiled white sand beaches abound in Talikud Island, Samal’s major islet composed of 3,000 hectares. Because of its huge potential to become the major tourist destination in Samal, Talikud has been the center of the tourism circuit development in the province of Davao del Norte.

Tourism Gateway and Access to the Destination The Francisco Bangoy International Airport in Davao City is the air gateway for domestic and international visitors to the Davao Region, and IGaCoS, in particular. Davao City is the regional capital and primary commercial, transportation and communications hub of Mindanao. It is no surprise, therefore, that the Airport is the busiest and most modern in Mindanao. From Davao City, there are two (2) main ports of entry to the island: •

Sasa Wharf – 7-minutes by taxi from the Airport – at Km. 11, Sasa, Davao City. The wharf services both mediumsized passenger boats as well as ferry boats for almost all types of land vehicles that transport people and goods to Villarica Wharf in IGaCoS’ Babak District.

•

Sta. Ana Wharf beside Magsaysay Park, downtown Davao City. Sta. Ana is the jump-off point for travellers and vessels going to Talikud Island and some points in Samal District, the political governance center, and Kaputian District, the key site for future tourism developments.

Both wharves are government-owned and operated. In addition, there are two (2) privately operated ferry landing sites also located near the Sasa Wharf area. These serve as the sole transport facilities for vehicles coming into the main island of Samal. Currently, no such facility is available for Talikud Island. LGSP-LED Davao del Norte Local Project Completion Report | 3

Tourism Service Center Davao City, the regional center of Davao Region and the most developed urban area in Mindanao, serves as the primary tourism service center and gateway to the local tourism circuit. Davao City is only a little less than a kilometer away from the island group: Travelers from Davao del Norte and from other places in the region and in the country have to pass through Davao City to get to IGaCoS. Davao city is the leading land transportation hub and has the greatest number of land transportation facilities and services. Leading and quality providers of all tourism-related services, such as tour guiding, travel bookings, banking and foreign exchange, entertainment, food and beverage, pasalubong centers, telecommunications and information technology, consular and other strategic government offices, are found in the big city as well. Davao City is home to the greatest concentration of hotels, inns, pension houses and other accommodation facilities in the whole Mindanao. It boasts of world-class convention amenities and is currently positioned as a prime destination for MICE (meetings, incentives, conventions and exhibits) market in the country. For many years, Davao City hosted numerous regional, national and international events, conveniently providing a captured potential market niche for the island group. As of 2013, there were a total of 65 resorts on IGaCoS itself. These resorts offer 724 rooms of varying types. Majority of available rooms are air-conditioned, comprising 71% of the total accommodation facilities. Only 23% are non-air-conditioned while the rest are of dormitory type suitable for groups seeking cheaper accommodation facility. Average occupancy rate for air-conditioned rooms for the whole island group ranges from 85 to 100% during peak season.

Major Attraction Sites in Samal Island The Island Garden City of Samal offers an almost complete list of conventional tourist product elements necessary for a satisfactory tourism experience. Its proximity to the industrial, commercial and transportation hub of Mindanao facilitates convenient and easy connectivity for its tourists seeking leisure after business in the urban center. The island group itself has long stretches of white sand beach line, varied natural attractions suitable for those who are into conservation and adventure, as well as its newly re-strengthened cultural villages, rolling into one, the typical â&#x20AC;&#x153;culture-adventure-natureâ&#x20AC;? formula. There are numerous other beach resorts and destinations in the entire IGaCoS, many of them remain undeveloped with only bare facilities. A significant number of these resorts remain unaccredited by the Department of Tourism (DOT) and/or the local tourism office in the island city. These offer cheaper cost for use of facilities and services, hence, with little incentive for accreditation, third-party promotion and future resort development initiatives. Located next to the main island of Samal is Talikud Island, a smaller island with potential for tourism development. There are 12 existing resorts in Talikud Island. The island has become popular for scuba diving, snorkeling, boat tours around the island, and beach holidays. However, because Talikud Island is not connected to the main grid in Samal Island, power supply is a major challenge, with electricity available only from 6pm to 6am. Talikud also does not have a reliable source of potable freshwater. No infrastructure is available to service the water requirements of residents and resorts.

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III.

Challenges to Local Economic Development

Talikud Island is a pristine tourism destination with increasing numbers of tourists every year. The local government has been faced with the challenge of sustaining tourism development in Talikud Island, ensuring that vital infrastructure requirements are provided and regulations are put in place ahead of the surge in visitor arrivals.

Challenges to the Enabling Environment for Sustainable Tourism Development Enabling Policies and Programs While the Province passed one of the essential criteria of the Seal of Good Governance which is the business friendliness and competitiveness, there was a need to intensify efforts especially that it was not considered as finalist during the 2014 PCCI Business Friendliness and Competitiveness awards. Before the local project started to implement, there was no LEIPO designated for the Province of Davao del Norte and Island Garden City of Samal. While the Local Investments and Incentives Codes were already in place, there were no implementing rules and regulations yet. On the other hand, the business permit and licensing system of the Island Garden City of Samal was not yet computerized at the start of the project. Disputes between the LGU and Private Sector. One of the current issues between the local government and the private resort owners (SCROA) is the implementation of City Ordinance 2009-150. This ordinance prohibits construction of permanent structures along the shorelines, including jetties. Citing the provisions of CO 2009-150, the LGU has issued penalties to establishments on Samal Island that it sees to be in violation of the ordinance. SCROA has resisted the LGU actions and has instead filed suit against the local government. On the other hand, Talikud Island has been the subject of a demonstration of the Open Beach Access Policy espoused by City Ordinance 2009-150, or the Revised Comprehensive Zoning Ordinance which prohibits beach resorts from building jetties and other structures along the shorelines. This initiative hopes that demonstrating the benefits of an open beach line to the Samal Island-based stakeholders will convince them to see how change is in every stakeholders ultimate interest. It aims to show that more open beaches will encourage more visitors and eventually raise revenues of resorts and other establishments from increased occupancy rates, as well as overall spending by tourists. In order to balance the interest of ensuring sustainable business operations of many resorts and the need to protect the fragile marine environment of the island group, there is a need to find a suitable win-win solution to satisfy the conflicting interests of all parties.

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Challenges to a More Competitive Tourism Sector in IGaCoS The local project in the Island Garden City of Samal particularly in Talikud Island provided an overview or a blueprint on how value-chain based tourism should spur the local economy. This local project, which ran for 2 years, meanwhile, saw various challenges and opportunities that make the tourism sector in IGACOS more competitive.

Access and Infrastructure Poor Access and LED-Enabling Infrastructure on Talikud Island. Samal Island is not beset with major challenges in infrastructure. In fact, the convergence program on tourism roads between Department of Public Works and Highways (DPWH) and DOT awarded Samal Island with a circumferential road. It is in Talikud Island, a developing tourism destination in the region, where there are serious issues on infrastructure. Water and wastewater treatment facilities are required in order to sustain the needs of the people in the island and the guests coming to the resorts. The tourism circuit plan has identified areas where water can be sourced. There is also a need to provide a cheaper and more sustainable form of electricity in Talikud Island so that electricity can be made available day and night. Talikud has accessibility challenges. The existing circumferential road needs to be improved or better maintained. There is also a need to improve port facilities starting from the jump-off point in Davao City to the island of Samal especially in the Kaputian District port as well as in the Sta. Cruz (Talikud) port.

Market Trends and Opportunities Annual visitor arrivals to Samal Island have been growing by around 20 to 25% per year. Despite this growth, the island destination’s earning potential from tourism has been limited because day-visitors make up the larger segment of the current visitor market. Because of its proximity to Davao City, IGaCoS is a popular leisure destination for residents and those who visit the City to attend conferences/conventions. The downside to this is that the average length of stay for visitors to Samal Island tends to be short. Most people opt to travel back to Davao City after spending only hours in the white sand beaches of Samal Island. As of December 2013, Samal Island recorded a total of 525,767 visitor arrivals, of which 337,792 (64%) were excursionists and only 187,975 were overnight visitors. Only 6,014 or 3% of these overnight guests were foreign tourists, all the rest were domestic tourists.

Attractions and Tourism Products Limited Tourism Products. Aside from island-hopping experiences and scuba diving, the island destination has very limited tourism product offerings. This is the reason why Samal and Talikud Islands remain as day tour destinations for most guests who come to Davao to attend conventions and other business-related events. Moreover, because scuba diving has a select market, tourism stakeholders in Samal and Talikud Island need to have more activities and experiences in the island that can encourage extended or overnight stays of tourists.

Visitor Handling, Facilities and Services Lack of Skilled Workforce in Tourism. A recent skills inventory conducted revealed that the current skills of the people in Talikud island do not match the requirements of the tourism sector. Hence, there needs an updating and upgrading of skills especially those coming from Talikud as it prepares to become a premier tourist destination in the Davao Region. Talikud has a good number of young workforce. However, they need to undergo various specific training courses in the tourism sector so that they get employment brought about by the increase in investments in the island.

Destination Marketing No established link with Davao City for collaborative marketing. Samal Island takes advantage of Davao City’s reputation as the country’s key MICE destination. Because of this, Samal receives tourists for post MICE tours ran by the tour operators based in Davao City. But little effort has been done in order to connect the tourism stakeholders of both Davao City and Samal Island, to discuss collaboration on marketing and other concerns. This has been DOT’s, being one of the active partner agencies in this project, primary concern as it helps this local project move forward with its Product Development and Destination Marketing.

IV.

Description of the Local Project

The local project addressed those key issues identified in the tourism circuit especially in Talikud Island. In order to create more employment opportunities in the island destination, the local project sought to generate at least PHP500 million in new investments particularly in the development of resorts and other tourist facilities. These investments are expected to create at least 596 employment for the people in Samal and Talikud. LGSP-LED Davao del Norte Local Project Completion Report | 6

The framework below summarizes how the local project in Davao del Norte realized its targets for 2016.

Summary of Project Target Results

Project Management The DILG Regional Office acts as the coordinating body and as the Project Management Team with their LED Focal Person and Regional Director as main program coordinators. Administrative and logistical support is also provided by DILG to ensure effective and efficient implementation of the LED activities.

Project Implementation Team The governor of Davao del Norte endeavored to make himself available in the major project activities. He provided his insights through his appointed team from the province to the PIT. The governor received timely updates on the project through his team, especially from the Provincial Information Office Head and the Provincial Planning and Development Coordinator. The Provincial Planning and Development Coordinator, Engr. Josie Jean Rabanoz, was the PIT Manager. She ensured timely implementation and efficient use of the project resources through conducting monthly PIT meetings. She also received timely updates from the Partnership Adviser and the DILG Regional LED Focal Person. The PIT had two members from the LGU (Province and City) and two members representing the Private Sector. These private sector leaders represented their associations (hotel and resorts).

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The following are the members of the PIT: Project Manager Members

Engr. Josie Jean Rabanoz Mario Reta, President Talikud Island Federation of Brgy Tourism Councils Araceli Ayuste, President Provincial Tourism Council Noel Daquioag, Provincial Tourism Officer Sofonias Gabonada, Executive Assistant IV, Provincial Government Office

Key Partners The Local Project in Davao del Norte was directly supported by the various regional offices of national government agencies through a Memorandum of Understanding (MOU) with the Provincial Government, and the Region XI Office DILG, as the Project Management Team (PMT). In keeping with Davao del Norte’s approach to optimize the convergence of NGA programs for the Local Project, the PIT and PMT ensured that all the NGA partners were directly involved in the planning and implementation the Local Project activities. Focal persons from the various NGA partners, most particularly DOT, were active participants from the very start, i.e. the workshops to develop the Tourism Circuit Plan for Samal and Talikud Islands and the subsequent sessions to develop the Local Project Workplan. Based on this Workplan, the PIT organized the Project into four sub-components and organized technical working groups (TWG) to prepare more specific workplans or integrated activity designs for each subcomponents. The members of the PIT were distributed to these TWG such that each working group was headed by one PIT member from the LGU together with another PIT member from the private sector. The NGA partners involved themselves in the TWGs relevant to their own mandates, taking joint leadership with the PIT and PMT when the work clearly involved their Department’s core mission and expertise. For example, DTI was the lead NGA in the planning and implementation of the Local Project workplan related to investment promotion. Similarly, DOT was the lead NGA on the workplan for tourism product development and marketing. DOLE was the lead partner on the workforce development component. The specific contributions of Davao del Norte’s NGA partners to the Local Project activities and accomplishments are briefly described below: 1. Department of Tourism (DOT) – Worked with the local project team in developing tour packages together with the consortium of tour operators from Davao City. DOT was a vital agency in forging partnership between the Davao City and Samal Island private tourism stakeholders, which resulted to the collaborative marketing program/campaign dubbed, Visit Davao Fun Sale (VDFS) and Visit Samal Islands (VSI). 2. Department of Trade and Industry (DTI) – DTI worked with the project in developing Implementing Rules and Regulations (IRRs) of the Province and the City’s Local Investment Incentive Code (LIIC). DTI also helped the project team come up with a list of priority tourism investment packages. 3. Department of Social Welfare and Development (DSWD) – Assisted the project in developing a Workforce Development Program. Also funded several trainings identified in the WFD. 4. Department of Labor and Employment (DOLE) – Together with TESDA and DSWD, helped the project develop the WFD Program. Also funded several skills and livelihood training in the WFD Program. 5. Technical Education Skills Development Authority (TESDA) – TESDA worked with DOLE and DSWD in helping the project develop its WFD Program. 6. Department of Public Works and Highways (DPWH) – DPWH provided technical assistance to the local project team in conducting a parcellary survey of the proposed concreting of the Talikud Island circumferential road. 7. Philippine National Police (PNP) – The PNP worked with DILG and DOT in developing a program that established tourism safety and security program in Samal and Talikud.

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IV.

Description of the Local Project

Davao del Norte’s LGSP-LED Project sought to strengthen the capacities of the IGaCoS stakeholders’ capacities for sustainable tourism development and promotions. In addition, it aimed to establish the City, and Talikud Island in particular, as a major tourism destination with improved quality of services, tourist facilities and enterprises and enhanced destination marketing capabilities.

Davao del Norte and IGACoS as more Business-Friendly and Competitive LGUs Both Davao del Norte and the Island Garden City of Samal have not only designated but also permanently appointed LEIPOs and staff with the necessary annual budget appropriated. One particular point of emphasis for the LED Project was to improve the LGUs’ capacities, specifically those of the LEIPOs, with regard to investment promotion. Following the various training and technical assistance activities provided by LGSP-LED, the improved capacities of the Provincial Local Economic Development and Investment Promotions (LEDIP) team have been manifested through the following: ! !

Development of an LGU business plan for Investment Promotions towards achievement of the PhP 500 million target for new investments Development of investment promotion tools: 1 LGU Investment Guide plus Five (5) Investment Briefs/Funding Proposals for priority projects for Samal and Talikud Island: " Construction of San Isidro Wharf " Integrated Renewable Energy solutions for Talikud Island " Integrated Level-3 Potable Water System for Talikud Island " Themed Resort and Park development (80 ha.), Bgy. Cogon and Sta. Cruz, Talikud Island " Upgrading of Talikud Island circumferential road Planning and completion of a GIS-based inventory of real property on Talikud Island, to guide potential investors on available sites for investment through purchase, lease, or joint venture. The inventory is available in electronic and printed form. Conduct of investment promotion and sales pitching activities at various business-to-business matching and investment mission events, including Philippine Business Conference 2015, Mindanao Business Conference 2015, BIMP-EAGA LGSP-LED Davao del Norte Local Project Completion Report | 9

Business-friendly policies now in place in the Provincial and City governments Both Davao del Norte and IGaCoS now have functional Local Investments Incentives Codes (LIIC) with the adoption of Implementing Rules and Regulations (IRR) in both LGUs. The Local Project, through the facilitation of the Department of Trade and Industry (DTI), was instrumental in the finalization of these IRRs which provide the specific guidelines and procedures for investors to avail of the LGUsâ&#x20AC;&#x2122; approved fiscal and non-fiscal incentives.

The Island Garden City of Samal successfully installed an automated Business Permits and Licensing System (auto-BPLS), in time for its full operationalization for the January 2016 period for renewal of business permits and licenses. LGSP-LED provided technical assistance and training support, through the Electronic Governance for Municipal Development LGSP-LED Davao del Norte Local Project Completion Report | 10

(eGov4MD), to the Cityâ&#x20AC;&#x2122;s BPLO team. With the new system in place, the BPLO reports that processing time for the renewal of business permits/licenses has been cut by half. Baseline information for Samal shows that there were 492 registered businesses in the tourism sector at the start of the LGSP-LED engagement. According to the Business Permits and Licensing Office, there were a total of 38 new tourismoriented or related businesses registered in IGaCos over the course of the LED Project, 14 in 2015 and an additional 24 new businesses (so far) in 2016

On September 21, 2015, three foreign nationals and 1 Filipina were abducted from a high-end marina-resort in Samal Islandâ&#x20AC;&#x2122;s Babak District. This was the first high-profile case related to kidnapping of tourists in Samal Island, since a failed attempt at another high-end resort in 2001. In response, the Provincial and City LGUs, jointly with a convergence of NGA Regional Offices including the Philippine National Police (PNP), Philippine Navy, Philippine Coastguard, DILG, and DOT, developed a Safety and Security Program for Talikud Island to improve coordination and prevent the occurrence of similar incidents in the future. With assistance from the Project, the agencies made sure that the Program was planned in close consultation with the private sector from the Island Garden City of Samal as well as Davao City. The program will be used to protect the tourists and the people in the island through more active involvement of the Barangay peacekeeping forces and an enhanced system of communication between the private sector (resorts) and the authorities. The local project believes that this will deter crimes and terrorism in the island destination. The plan will be submitted to the IGACOS City Council for approval. Davao del Norte was the first province to develop and implement an LGU Business Plan for Workforce Development through LGSP-LED. The plan enabled the Local Project to access at least PHP3.5 Million in approved funds from DSWD- Sustainable Livelihood Program (SLP), as well as funds for emergency employment from DOLE and the office of the Congressional PartyList Representative for A TEACHER. As part of its sustainability strategy for the Project, Davao del Norte and IGaCoS likewise completed the Workforce Development Plan for the DILG-TraBAJO project to access funds for training more workers for Samal and Talikud after the conclusion of the LGSP-LED Local Project . The Island Garden City of Samal was granted PHP10 million to implement its WFD Plan which consists of the identification and conduct of industry-related training courses and livelihood projects, as well as employment tracking and skills inventory/skills mapping by the City, through its PESO Office. The provincial government of Davao del Norte will be able to access PHP5 million in DILG funds for the establishment of its own skills registry system as well as to support facility and curriculum improvement of local technical-vocational institutions (TVI) in line with the needs of the tourism industry in IGaCos. The project will be implemented after the local elections in 2016. Provincial (1 male) and City (2 females) Tourism Officers completed technical training, through LGSP-LED, to install and use an enhanced Tourism Statistics and Information System (TSIS) to improve data gathering and reporting. including tourism information for use in LGU planning and decision-making.

Developing and Marketing the Island Garden City of Samal as a Major Destination of Mindanao The Tourism Circuit Plan was the mother document for all plans developed under the Local Project on Sustainable Tourism Development in Samal and Talikud Islands. The recommendations of the TCP served as the bases for the crafting of two specific LED Initiatives of the Davao del Norte local project: (1) tourism circuit development and (2) workforce development. Tourism Circuit Development through collaborative Product Development & Marketing between Davao City and Samal Island

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The Tourism Circuit Plan recognized that Samal and Talikud Islands are directly linked to Davao City, all being part of the same TDA. Thus, the Tourism Circuit Development Initiative of the Local Project sought to leverage the assistance from LGSP-LED, together with the programs of DOT and the other NGA-partners, to strengthen the Davao City-IGaCoS circuit as the core destination within Region XI, as well as Mindanao as a whole. In this regard, many of the Local Project activities were closely coordinate with the overall marketing effort for the Davao Region led by DOT and the regional private sector players

DOT with support from LGSP-LED organized Business-to-Business matching meetings, which included ocular, visits to the hotels, resorts and attraction sites in Samal Island for selected tour operators from Malaysia.

DOT-XI and LGSP-LED facilitated the collaborative undertakings for new product development and destination marketing among Davao del Norte, IGaCoS, and the private tourism stakeholders from both Samal and Davao City. These activities focused primarily on developing tour itineraries or packages to be operated by a Davao Tours Consortium of tour operators from the City as well as IGaCoS. DOT XI and the LGUs would then support the Consortium in marketing and selling these tours through a joint regional program called Visit Davao Fun Sale (VDFS). The immediate interest of the Samal and Talikud Island stakeholders from these exercises was in developing packages, which would encourage tourist to visit the islands for, longer than the usual day-tours/excursions out of Davao City. Aside from holiday-makers, the stakeholders identified the Meetings, Conventions, Incentives, and Exhibitions (MICE) segment as a possible target for these new packages. For meetings and conventions, IGaCoS could be packaged with Davao City as a pre- or post-convention complement. On the other hand, the exclusive, higher-end resorts on Samal could appeal directly to incentive travel groups. The initiative led to the development of at least 4 new tour packages for Samal/Talikud, which have been integrated into the portfolio of the DOT XI and the Davao Tours Consortium, along with other packages for Davao City and the other destinations in the Davao Region. The Consortium (which includes at least 12 of the biggest tour operators in Davao Region) has been promoting the tour packages under the Visit Davao Fun Sale (VDFS) and Visit Samal Islands (VSI) brands for the summer of 2016. Further, the Davao and Samal stakeholders agreed on specific Incentive Travel Packages, which will be sold to the markets in Singapore and Malaysia. Cebu Pacific and Silk Air, which both offer direct flights to Davao from Singapore (plus flight connections to Malaysia via Manila or Singapore) are also partners in promoting these incentive packages. DOT XI, with support from the Local Project, and the airlines organized Business-to-Business Matching meetings for selected incentive travel organizers from Singapore and Malaysia on April 1-10, 2016 in Davao City. The B2B sessions included ocular visits and familiarization trips to the hotels, resorts, and attraction sites included in the proposed incentive packages.

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Maximizing Tourism Workforce Development through Convergence Davao del Norte was the first among the participating provinces in LGSP-LED to implement a tourism workforce development LED initiative. More significantly, Davao del Norte’s workforce development activities under the Local Project did not involve any skills training activities directly organized and funded by LGSP-LED. Rather, Davao del Norte’s implementation strategy for the workforce development activities was built around the skills training and livelihood programs already available from its partner-NGAs. This implementation approach generated at least PHP3.5 Million in approved fund from the DSWD- Sustainable Livelihood Program (SLP). The initial activity of the Skills Training under this WFD produced 19 trainees with new skills on Electronics focusing on Solar Lamp Assembly and Repair. The program, delivered by trainers provided by the Technical Education Skills Development Authority (TESDA), was as an identified priority of the Local Project because of the interests from several investors in renewable energy in Talikud Island. The training program was offered to all interested applicants, regardless of sex. However, only 1 woman applied – and subsequently completed the training program.

Emerging Results New Public and Private Investments The local project committed to deliver at least PHP500 million investments in the tourism circuit by the end of 2016. Based on available data from the local government of Samal, total investments to date are estimated at only PHP221.7 million as of March 31, 2016. This includes PHP185.7 million from private investors and PHP36 million investment for public infrastructure specifically related to the improvement of the ports in Samal Island (Kaputian Port) and Talikud Island (Sta. Cruz Port). The private sector investments in IGaCoS have been mostly related to the development of small resorts and tourism transport facilities. According to the IGaCoS City Investment and Tourism Office, in coordination with the Public Employment Service office (PESO), these new investments resulted in the creation of 269 new jobs for a total of 135 men and 134 women. The project expects to raise the employment gains in the tourism sector after the implementation of the skills training under the DSWD-SLP and DILG-TraBaJO programs. However, several public infrastructure projects anticipated to be initiated during the Local Project were either put on hold or were never realized because of certain requirements. For instance, the provincial and city governments were not able to propose the Talikud Island circumferential road project for inclusion in the 2016 workplan of the DOT-DPWH Tourism Road Infrastructure Project (TRIP) convergence. Completion of the proposal was delayed because LGUs still had to negotiate rightof-way and acquisition concerns with some owners of the lots that would be affected. Nevertheless, the project remains a priority investment project of the local governments. The plan is to submit the proposal to the national government for funding after the conduct of the May 2016, local and national elections. One of the priority investment projects for Talikud Island is the project on Renewable Energy Solutions for the island. A German-based company has already expressed interest in the project to the Provincial Government, particularly through the LEIPO. The company, which has a Philippine affiliate, has already completed technical and ground validation in the island to be included in their proposal to the provincial and city governments. However, the group decided to hold talks with the provincial government in abeyance, and advised that it would wait until after the elections to resume negotiations.

Increase in tourist arrivals The local project targeted 324,821 annual visitor arrivals by the end of 2016, or a 20% annual increase in arrivals from the baseline data of 187,973 in 2013. For 2015, the City Tourism Office has reported a total of 266,883 total arrivals to IGaCos, of whom 251,014 were domestic tourists, while 15,869 were foreigners. The 2015 results represent a relatively low year-onyear increase of only 4% over the 2014 totals. By comparison annual visitor arrivals had been growing at an average rate of 18.5% per year in the preceding 2 years. The Provincial and City Tourism Offices suggest that the latest visitor arrival numbers may be underestimated due to the nonsubmission by some resorts of their guest-arrival data. According to the city government, there were minimal cancellations noted after the kidnapping incident on September 21, 2015.Thus, the low cooperation from the hotel sector might be an artifact of the ongoing conflict between the LGU and the private sector on the former’s enforcement of regulations related to beach access.

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Crosscutting Themes Gender Equality Fom the start of the planning for workforce development, the local project team already identified training of 500 composed of 250 men and 250 women workers and micro-entrepreneurs. In implementing the project through the various NGA partners, the Project Management Team sought to ensure that opportunities for skills training and employment matching would be equally accessible for both men and women. This required some understanding of the current gender profile of the tourism sector on Samal and Talikud Islands. The Davao-Samal Island Tourism Circuit Plan prepared for the Project indicated that there were a total of 748 workers employed resorts in the island group as of 2014. Of these, 487 were male, while there were 261 females, or about 35% of the total (employed) workforce. Interestingly, data from the IGaCos Public Employment Service Office showed that women made up 55% of the Talikud Island workforce registered in the City’s Skills Registry System. The system includes unemployed residents looking for employment opportunities through the PESO. This might suggest that a higher percentage of these unemployed individuals may also be women. The workforce development plans developed for IGACOS through LGSP-LED assistance, e.g. the Local Project Workforce Development Initiative implemented in 2015 and the Workforce Development Plan for DILG’s TRABAJO Project, considered these factors in determining their respective employment and livelihood skills training programs. IGaCoS’ TRABAJO proposal includes an inventory of jobs/skills identified as immediate priorities for training and subsequent job-matching by local industry associations. Although the inventory did not break down these skill areas by gender. Nevertheless, it can be observed that all of the priority jobs identified by the private sector would be equally accessible to male or female applicants with appropriate skills. Skills Requirement Samal Island Tourism Council Samal City Resort Owners Assocation (SCROA)

Association of Civil Society Organizations

Food and Beverage Services Front Office Housekeeping Bartending Nail Care Hair Dressing Massage Therapy Tour Guiding

Estimated Number of Workers to be Trained 120 50 100 50 215 153 23 30

The LGU is now reporting some encouraging indicators of progress from its conscious efforts to mainstream gender equality into its LED and workforce development programs. According to IGaCoS, the newly-registered, tourism-related businesses created 269 new jobs for a virtually equal distribution of men (135) and women (134), within the period of the Local Project.

Environmental Sustainability The tourism circuit involves a small island (Samal) and an islet with fragile ecosystems that can easily be adversely affected by activities and development if not managed properly. Owing to this concern, the project activities were planned and implemented with due consideration of environmental sustainability. The tour packages developed by a consortium of tour operators based in Davao City with inputs from the stakeholders in Samal and Talikud involved activities that do not endanger the ecosystem in the island destinations. Based on the approved Local Investment Incentive Codes and their corresponding Implementing Rules and Regulations (IRRs) of both the Province of Davao del Norte and the Island garden City of Samal, there was a huge emphasis on attracting investments that are environmentally sustainable. According to letter C of Article 15 (Investment Priorities Plan) of the Davao Del Norte LIIC-IRR, the Investment Priorities Plan will include specific activities that promote the utilization of non-petroleum based fuels or sources of energy. And consistent with this IPP, one of the investment priority areas of Davao del Norte is Power Generation BUT limited to projects using renewable energy sources such as but not limited to hydro, solar, wind and tidal. Hence, during the planning for investment promotions for the priority tourist destination (Talikud-Samal), one of the identified priority infrastructure projects to sustain tourism was renewable energy solutions for the island destination of Talikud. Another LGSP-LED Davao del Norte Local Project Completion Report | 14

priority was the establishment of a water system for both domestic needs and the water requirements of resorts in the island. A wastewater treatment facility was also identified as a priority to treat domestic and commercial sewage. This is to ensure that wastewater will not contaminate the ground water and the coastal and marine ecosystems in Talikud and Samal. Consistent with DRRM-CCA considerations in planning, the proposed sites for development in Talikud Island were subjected to vulnerability assessment using GIS-based geohazard analysis and had been cleared by the Provincial Planning and Development Office as least prone to natural disasters (e.g. flooding and earthquake).

Poverty Reduction The 2-year projectâ&#x20AC;&#x2122;s focus was to address unemployment of the people in Samal, especially in Talikud Island. The partnership with the DSWP-SLP (Sustainable Livelihood Program) was a manifestation that this project had its focus on the poor and marginalized. The program was conceptualized with the 500 family- beneficiaries of the Conditional Cash Transfer (CCT) as the primary targets. The objective was to enroll at least 1 member of the family under the CCT (or 4Ps) in either tourism skills or livelihood trainings. The DSWD-SLP funded the training requirements of its 500 beneficiaries in Talikud Island. To date, there were 15 (14M,1F) trained on electronics(solar lamp and street lamp assembly). On the other hand, the DILG TRABAJO Project supports poverty reduction through training potential workers in the priority sector, which was tourism. Target beneficiaries of the TRABAJO Project were unemployed local residents who were members of the Pantawid Pamilyang Pilipino Program, Indigenous People, Out of School Youth and Persons with Disability (PWD). Skills trainings that will be provided to these target beneficiaries were based on the project requirement of the tourism sector in the next years. The plans for rolling-out the program were already approved. However, DILG deemed that it would be best to implement the program after the conduct of the local and national elections on May 9, 2016. This means that the program will be implemented in the post LGSP-LED phase. The LGSP-LED left behind a more sector-focused and demanddriven workforce development program, which hopes to employ or provide sustainable livelihood to the locals.

IV.

Lessons Learned

2. A geographic cluster framework, like the Tourism Circuit, can promote multi-sectoral and inter-LGU partnerships for LED by facilitating the identification of common concerns as well as opportunities. The tourism circuit plan heightened the importance of inter-LGU cooperation by graphically showing where the key LED interventions were most needed across the TDA as whole. The TCP clearly showed how issues of infrastructure, environmental sustainability, tourism product development, destination marketing, and employment required regional economic solutions beyond any single city or municipality. Thus, the TCP emphasized how interdependent the member cities and municipalities are with each other. At the same time, the TCP also highlighted the roles and responsibilities of LGUs, NGAs, and the private sector in improving the competitiveness of the various tourism sites, as well as the enabling environment for business and investment around them. By doing so, the TCP also showed the specific areas where converged efforts of LGUs, NGAs, and/or private sector were most needed.

3. Developing LGU LED Champions is essential to successful LED Programs. The LED Project will not move, or will not move as quickly, if the Governor does not fully appreciate the process of sustainable and inclusive LED. Thus, LCEs should be properly educated on LED as a strategy to reduce poverty and promote inclusive growth by becoming more business-friendly and competitive LGUs. The local project in Davao del LGSP-LED Davao del Norte Local Project Completion Report | 15

Norte was successfully completed because there was a champion in the person of Governor Rodolfo del Rosario. He was a very engaged provincial governor in the implementation of the local project. The LCEs must then be oriented more specifically on the activities and target results of the LED Project. This is useful to ensure their buy-in as well as to encourage their assignment and empowerment of qualified, competent, and dedicated LED staff. Finally, regular updates and opportunities to participate in training, benchmarking, and other LED activities can sustain the LCE’s engagement and reinforce their role as LED Champions. Given that LCEs rarely have free time on their schedules to take part in prolonged training activities, alternative learning methods for gaining knowledge on LED facilitation and business-friendliness can be used. These can include learning exchanges or peer mentoring programs, as well as workshops for producing specific BFCL policies and programs where they can learn-by-doing.

6. LED is a partnership-driven process among LGU, private sector, and national government. The local project in Davao del Norte was started as a convergence effort of the LGUs, private sector and the National Government Agencies (NGAs). These groups started with inventory of the sites, planning for the local project workplan, and identification of possible services by the NGAs. The convergence was formalized through a Memorandum of Understanding (MOU). Thus, it was very easy to identify support or assistance in the project implementation because everybody knew what their roles were in the local project. Destination Marketing and Product Development was a collaborative effort between the private sectors of Samal and Davao. Davao draws more tourists for MICE while Samal offers leisure destination such as beach holidays. Because of this, the local project through the DOT endeavored to bridge the 2 private sectors in order to work jointly on destination LGSP-LED Davao del Norte Local Project Completion Report | 16

marketing and product development. This resulted to the development of tour itineraries for Davao and Samal which is now jointly promoted through major campaigns such as the Visit Davao Fun Sale (VDFS).

7. Enhanced systems work for those who value innovation. The Island Garden City of Samal welcomed the entry of the Auto-BPLS to their licensing system citing that transactions were reduced to half the time, or only a matter of 1-2 hours assuming that requirements were complied with. The city government used the system to satisfy more clients through enhanced and faster system.

IV.

Conclusions and Recommendations

The Local Project has been able to make significant progress towards creating a more enabling environment for sustainable development of the local economy, and particularly the tourism sector, among the LGUs of the Tourism Circuit. However, the work is far from complete, and there are many remaining opportunities not just to sustain but also to extend the gains of the Local Project beyond LGSP-LED. The key lesson learned from the Local Project is that the main role and responsibility of local government in advancing LED is to enable sustainable and inclusive local economic development to grow. It does this primarily by providing a local policy and public service environment that facilitates the efficient, effective, and ultimately profitable operations of local enterprises. Another role for local governments is to support the growth and integrated development of its tourism enterprises (micro to large) as one competitive value chain operating across the circuit. In this role, the LGU continues to play an enabling position in functions such as business investment, product development, and workforce development where the private sector and other non-government players are more capable. However, the LGU can take a stronger leadership role in functions such as destination marketing and public infrastructure investments where the local private sector does not have the resources and/or interest in taking the lead. Thus, the main LED priorities for the LGUs remain: 1. Establishing, strengthening, and enhancing the effectiveness of local policies, plans, and programs for more business-friendly environments for sustainable and inclusive economic development, and 2. Supporting and engaging local businesses, including MSMEs and investors, in continuing to build a more competitive priority economic sector, i.e. local tourism industry. In turn, DILGâ&#x20AC;&#x2122;s Regional and Provincial Offices must enable the LGUs to perform these enabling roles by: 1. Continuing to advocate, monitor, and provide incentives for LGUs to continue pursuing its roadmap for more business-friendly and competitive LGUs, while harmonizing the LED-related activities with relevant elements of the Departmentâ&#x20AC;&#x2122;s 3 other outcome areas (e.g. safety and social protection, transparency and accountability, disasterresilience), 2. Building the capacities for business-friendliness and competitiveness among LCEs and LGU staff through training programs and technical assistance, and 3. Facilitating convergence among Field Offices of other NGAs for better delivery to and access by LGUs of their own capacity development, technical assistance, and funding/resource support programs and services for LED.

! Include in the LGU budgets, sufficient funds and resources for the effective and harmonized operation frontline BFCL LGU offices such as BPLO (and Business-One-Stop-Shop), LEIPO, Tourism Office, PESO, Planning Office, etc. Funding for continuous technology improvement and staff development related to LED information systems (e.g. autoBPLS, skills registry system, tourism statistics, land-use and hazard maps, agricultural statistics, etc.) should be included in these budgets, to the extent feasible. 2. The new or re-elected Local Chief Executives should work immediately with their respective Sangguniang Bayans to approve the new or updated LIIC, Tourism Codes, and other LED-related local bills formulated through the assistance of DILG and LGSP-LED. 3. In addition to the BFCL policies and programs listed above, the LGU Executive-Legislative teams should also prioritize the formulation and adoption of enabling LGU plans and policies for more inclusive, sustainable and socially-protective LED. These include the integration of the LED and tourism development plans with the CDP and CLUP, and other local regulatory measures. Among the priorities should be: !

! !

To utilize the recent studies on Samal Island commissioned by national agencies, such as DOST, in identifying areas of concern and ensure science-based decision-making. The studies can also provide valuable information in finding solutions to address the issue on the disputes between the LGU and the resort owners concerning the prohibition to construct permanent structures along the shorelines including jetties. These structures if constructed improperly can indeed cause problems such as coastal erosion but there are engineering solutions and designs that can avoid this. Establish an environmental monitoring system for Samal Island and Talikud to regularly monitor ground and coastal water quality and inland ecosystems particularly those in the tourism circuit Strictly implement the requirements under the Philippine Environmental Impact Statement (EIS) System to ensure that developments are environmentally-compliant. The cityâ&#x20AC;&#x2122;s zoning ordinances should be implemented strictly with emphasis on maintaining the required setbacks in coastal areas and river banks. To ensure that carrying capacities are not exceeded, tour operators and tour guides should be capacitated to enhance their knowledge on environmental considerations. In subsequent updating of the CLUP, considerations on DRRM-CCA should be adequately integrated and adequate provisions should be established.

As there will be new Local Chief Executives to be elected on May 9, 2016, it is important that these LCEs especially at the provincial level, carry out what was championed by the current governor on LED. It is important that the orientation for Newly-Elected Officials (NEO), should include an orientation on the LGSP-LED project, the Tourism Circuit Plan in Davao del Norte and the updated National Tourism Development Plan (NTDP. In updating the plan, it is recommended that the scope of the TCP be expanded to include the participation of the LGUs and key private sector partners of Davao City and other Davao del Norte municipalities, which the private sector might recommend as ready for inclusion in the circuit. The Provincial Government and the partner cities/municipalities should coordinate with the DOT Regional Office to ensure that the priority infrastructure, site development, and institutional as well as human resource development needs for the circuit are integrated into the updated National Tourism Development Plan for 2016-2022. The updating of the TCP should include a review disaster- and site-vulnerability issues and concerns affecting the Tourism Circuit identified in the PPFDP.

5. The provincial government through the assistance of DILG may propose to continue with the convergence work in Davao del Norte, which was formally agreed through an MOU signed for the purpose of the LED project in Davao del Norte. This inter-agency document, which may be extended, can become the basis for further collaboration in the other LED initiatives of the province or the city. !

The Provincial Government, with assistance from DILG, DTI, and DOT, may formalize the project implementation and management arrangements for the LGSP-LED Local Project into a Local Economic Development (LED) Team to oversee the planning and implementation of LED Initiatives in the Province and the Tourism Circuit in particular. In light of the recent incident and attendant negative attention from the kidnapping of foreign nationals in Samal Island in the last quarter of 2015, a sub-unit of the LED Team from relevant LGU offices, NGAs, and private sector representatives should be organized as a team focused specifically on convergence for tourism safety and security in the Davao City-Samal-Talikud Island circuit. LGSP-LED Davao del Norte Local Project Completion Report | 18

DILG Regional and Provincial Offices can continue to lead the LGUs along the roadmap towards more business-friendly and competitive LGUs through the following: 1. Establish a “BFCL Team or Working Group” from among the Regional and Provincial technical staff to provide information, facilitate access to technical assistance and capacity development resources, and to monitor the streamlining of BFCL in LGU operations. 2. In coordination with LGA and the DILG Central Office, provide technical assistance and training for LGUs to fast-track the adoption and approval of key BFCL initiatives undertaken through the Local Project. 3. Combine advocacy with technical assistance and support – again, in coordination with LGA and DILG Central Office – for LGUs to harmonize their LED plans and programs with the updating/enhancement of their respective CDPs and CLUPs. In the process, DILG should emphasize the gender, social protection, poverty reduction, environmental sustainability, and disaster-resiliency features of the 2 mother plans to ensure the mainstreaming of these themes in the LGUs LED plans and programs. 4. The DILG should ensure that the draft program on tourism safety and security is presented to the IGaCoS city government for its review, adoption, and subsequent implementation with Implementing Rules and Regulations (IRR). 5. Support LGU efforts to update and continue implementation of the Tourism Circuit Plan by: !

Ensuring that the LCEs and their LED teams are fully oriented, as part of the NEO program, on the key issues, priorities and recommendations from the TCP, as well as the updated 2017-2022 NTDP. The LGUs may then take up the relevant recommendations and concerns as part of their Executive-Legislative Agendas and various local development plans that they will be formulating. Facilitating coordination and communication with counterparts in the Regional Offices of partner NGAs, especially those without Provincial units such as DOT, to ensure effective, harmonized delivery of support services and programs for planning and implementing the various LED initiatives. Facilitating the local planning processes, and mobilize City/Municipal LGOO cluster in the circuit , so as to encourage inter-LGU coordination such that common LED and tourism concerns can be addressed in a coordinated manner across the circuit. In relation to this, DILG should mobilize Coordinating and facilitating the provision of technical assistance and coaching, through convergence, of technical assistance and coaching from DENR, DSWD, PCW, and other NGAs/development partners, so that the updated TCP and related municipal plans and programs continue to integrate issues and concerns related to gender equality especially the protection of women and children, environmental sustainability, and disaster risk reduction and management.

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The Provincial LEIPO, in partnership with the Local Chamber, may organize regular (quarterly or twice a year) meetings with the counterpart LEIPOs and chambers from the LGUs of the circuit to plan and coordinate investment promotion priorities and activities There have been keen expressions of interest received for various investment projects such as renewable energy in Talikud Island. Davao del Norte and IGaCoS should pursue these investment leads through their respective LEIPOs, with assistance from NGA and private sector agencies such as the Mindanao Development Authorityâ&#x20AC;&#x2122;s (MinDA) Investment Promotions Unit.

2. The Provincial Tourism Office in partnership with DOT Regional Office and the private sector in Davao del Norte and Davao City should continue and strengthen the Davao Region marketing convergence as with VDFS program of DOT-XI. !

3. Through the Provincial Public Employment Service Office (PESO), working within the LED Team, implement the LGU Tourism Workforce Development Plan for the Tourism Circuit. !

This combines the component training activities for developing the basic as well as enhanced skills of local tourism workers with LGU-employer association programs to match qualified trainees with employment opportunities in local tourism establishments. Since the Workforce Development Plans have already been approved by the DILG- TraBaJo project, there is a need, under a new administration for both the provincial and city governments to implement the program as planned. Specifically for the Island Garden City of Samal, there is a need to ensure that the funds amounting to PHP10 million for specific workforce development programs, be released from the DILG Regional Office.

The LGU Tourism Offices can facilitate and support market-linkage efforts of local private sector efforts to sell circuit tour packages to the national and international markets. These can be part of the ongoing convergence program for marketing and promotion of the Davao Region. Seek support from DTI, development partners and NGOs for technical assistance to MSMEs and community-based livelihood groups to design and produce high quality souvenirs and tourist merchandise based on the overall marketing and branding strategy for the destination.

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Annexes Local Project Performance Summary INDICATORS

NEGROS OCCIDENTAL BASELINE

RESULTS

TARGET RESULTS

INTERMEDIATE OUTCOMES New Investments Private Tourism Investments

CUMULATIVE (MARCH 2016)

Description

Value (PHP)

New hotel/resort developments and expansion of existing resorts

190,000,000

221,700,000 185,700,000

Power, water, and sewage for Talikud Island Public Investments

Talikud circumferential road; wharf improvements

310,000,000 36,000,000

Employment (New)

836

596

269

Male

521

298

135

Female

315

298

134

187,973

324,821

266,883

Enabling Policies Adopted

LGU Business Plan (Workforce)

0 0

2 0

2 2

Tourist Arrivals (Growth Rate per year to 2016) Tourist Arrivals (Annual Volume by 2016) IMMEDIATE OUTCOMES

LGU Business Plan (Investment Promotion) LEIPO Designated LEDIP Establishment LIIC Adopted

BPLS Computerized

Tourism Statistics system implemented

LGU Tourism Development plan adopted TOPCOP Program/Plan implemented Others (ordinances regulating tourism activities in Donsol,Sorsogon and Mt Mayon in Albay) Business Registrations

492

LED Actors with Capacity to Plan/Implement

LED Initiatives Implemented

LGSP-LED Davao del Norte Local Project Completion Report | 21

OUTPUTS LEIPOs Trained

141

LCEs

LEIPO and Staff

Tourism Officers and Staff

PESO Managers and Staff

Other LGU Staff

123

LGU Business Plans & Policies Formulated

LGU Business Plan (Workforce)

LGU Business Plan (Investment Promotion)

LIIC Formulated/Updated

LGU BFCL Action Plan Formulated

BPLS Installed

LGU Tourism Statistics Action Plan Formulated

Tourism Statistics system installed/strengthened

Tourism Code formulated/updated

TOPCOP Program/Plan developed

LED Initiatives Planned

LED Actors Trained

502

261

500

244

PIT Members Trained (non-LGU) Workers, Entrepreneurs Trained Industry Representatives

LGSP-LED Davao del Norte Local Project Completion Report | 22