Background Paper - Caraga Tourism Industry Cluster PDF

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TOURISM INDUSTRY CLUSTER BACKGROUND PAPER
1. Industry Overview
1.1. Definition of the Industry
Tourism is a multi-dimensional phenomenon. It involves collaborative relationships

arising from the interaction of tourists, business suppliers, host governments, and host
communities in the process of attracting and hosting these tourists and other visitors.
It is said to be the mother of all industries because it comprises a composite of activities,

services and other allied industries that delivers a travel experience: transportation,
accommodations, eating and drinking establishments, shops entertainment, activity
facilities, and other hospitality service available for individuals or groups that are
traveling away from home.
Professor Hunziker and Krapf of Berne University, Switzerland defined tourism as “the
sum of the phenomena and relationships arising from the travel and stay of non-
residents, in so far as they do not lead to permanent residence and are not connected
to any earning activity.” This definition distinguished tourism from migration which
involves taking up permanent residence. Since it necessarily includes both travel and
stay, it excludes day tours.
The definition of the Tourism Society in Britain was: “Tourism is the temporary short-term
movement of people to destinations outside the places where they normally live and
work and their activities during their stay at these destinations.”
This definition was reformulated by the Tourism Society in Cardiff: “Tourism may be
defined in terms of particular activities, selected by choice and undertaken outside the
home environment.”
Burkart and Medik cited five main characteristics of tourism:
1. Because of its complexity, tourism is a combination of phenomena and

relationships.
2. It has two essential elements: the dynamic element- the journey and the static
element- the stay.
3. The journey and stay are to and in destinations outside the place of residence and
work.
4. The movement to destinations is temporary and short-term with the intention to
return within a few days, weeks or months.
5. Destinations are visited for purposes not connected with paid work, that is, not to
be employed and not for business or vocational reasons.
The technical definition of tourism comprises the activities of persons traveling to and
staying in places outside their usual environment for not more than one consecutive
year for leisure, business and other purposes not related to the exercises of an activity
remunerated from within the place visited.
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Tourism has several classifications as follows:
Ecotourism - responsible travel to natural areas which conserves the environment and
improves the welfare of the local people. Responsible tourism is a strong commitment
to nature and a sense of social responsibility both to the community and the traveler. It
emphasizes seeing and saving natural habitats and archeological treasures.
It is a purposeful travel to natural habitats to create an understanding of the cultural

and natural history pertaining to that environment, emphasizing care not to alter the
integrity of the ecosystem, while producing economic benefits to local people and
governments that encourage preservation of the inherent resources of the
environments there and elsewhere.
Business Tourism – travel characterized by conventions, meetings, seminars which is

frequently combined with one or more of the other types of tourism.
Cultural Tourism – travel to experience and, in some cases, participate in a vanishing

lifestyle that lies within human memory. The picturesque setting or “local color” in the
destination areas are the main attractions. Destination activities, typically, includes
meals in rustic inns, costume festivals, folk dance performance, and arts and crafts
demonstrations in “old-style” fashion.
Environmental tourism – similar to ethnic tourism , also called nature tourism, it is

drawing tourists to remote areas but the emphasis is on natural and environmental
attractions, rather than ethnic ones. Travel for purposes of “getting back to nature”
and to appreciate (or become sensitive to) people-land relationships falls into this
category. It is primarily geographic and includes such destinations that are natural
wonders. Typical destination activities include photography, hiking, mountain climbing,
canoeing, and camping.
Ethnic tourism or Indigenous peoples tourism – travel for the purpose of observing the
cultural expressions and lifestyles of truly exotic people. Typical destination activities
would include visits to native homes, attending dances and ceremonies, and possibly
participating in religious rituals, as the community sees acceptable.
Historical tourism – the museum-cathedral tour that stresses the glories of the past like
Rome, Egypt, etc. Guided tours of monuments visits to churches and cathedrals, sound
and light performances that encapsulate the lifestyle of important events by a bygone
era are favored destination activities. Such tourism is facilitated because the
attractions are either in or accessible from large cities. Typically, such attractions seem
particularly adaptable to organized mass tourists.
Heritage Tourism – the educational experience derived from historic and cultural
events partnered with recreational activities, theme parks, and the number one
pastime: shopping
It is an organized process by which people who are not part of the immediate
community are persuaded to visit and enjoy the culture, values, objects, structures and
programs which make up the heritage preserved
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Recreational tourism – centers on participation in sports, curative spas, sun bathing and
social contacts in a relaxed environment. Such areas often promote sand and sea
through beautiful color photographs that make you want to be there in the ski slopes,
on palm-fringed beaches, on championship golf courses, or tennis courts.
Recreation is the action and activities of people engaging in constructive and

personally pleasurable use of leisure time. This may include passive or active
participation in individual or group sports, cultural functions, natural or human history
appreciation, non-formal education, pleasure travel, sightseeing and entertainment.
Rural tourism – the agriculture of an area is the interest of visitors- the type of farming
conducted – livestock, poultry, dairy, crops, vineyards, fisheries, and wine production,
fresh fruits and vegetables. Exemplary agricultural systems provide a point of interest for
farm groups who may wish to visit a particular industry from another part of the country.
Local tours include agricultural developments and services so that visitors can see the
agricultural products and operations within a country and perhaps sample some of the
products.
1.2. Economic Importance of the Industry
Tourism has become the biggest industry in the world. It offers jobs for 200 million
people and contributes 11.7 % to global Gross National Product. Almost 700 million
tourist arrivals are expected for this year, and this number is estimated to grow to 1.5
billion by the year 2020.
In the Philippines, tourism is still relatively small, but a growing sector of the national
economy. Nevertheless, it still contributes significantly to the national economy. It is
estimated that in 1993, the national tourism sector generated P 91.38 billion in tourism
revenues, accounting for 5.27% of the Gross Domestic Product (GDP) and contributing
some P 79.01 billion. The industry also employed an estimated 757,000 people, while
earning some $1.65 billion in foreign exchange.
The data below shows the country’s tourist arrivals and tourism receipt vis a vis the
region’s. While the overall tourism receipt experienced a fall, trends show that
percentage contribution of Caraga to the national tourism receipt also declined. This is
triggered by national and international phenomenon such as former Pres. Joseph
Estrada’s impeachment, Abu Sayaf kidnapping incidence and insurgency problems,
the collapse of the World Trade Twin Tower, SARS epidemic and others. The negative
travel advisories issued by embassies specifically in Mindanao affected tourists’
confidence in their visit to Caraga.
The Department of Tourism however continuous its aggressive promotional efforts to

boost the industry despite these incidence. The Wow Philippines banner program
significantly increased tourist arrivals in the region from 285,068 in 2003 to 314,702 in
year 2004 recording an estimated tourism receipt amounting to US $ 11.10 million.
Caraga’s percentage share of tourism receipts grew by 0.09% from 2003 to 2004. This
trend is expected to rise given the more focused tourism programs at hand.
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Year Philippines Caraga Region Caraga’s % Share
to the Country
Tourist Tourism Tourist Tourism Tourist Tourism
Arrivals Receipts Arrivals Receipts Arrivals Receipts
( in Million US $) ( in Million US $) ( in Million US $)
1999 2,170,514 2,553.66 244,075 12.92 11% 1%
2000 1,992,169 2,133.80 252,006 11.48 13% 0.48%
2001 1,796,893 1,722.70 280,165 8.32 16% 0.48%
2002 1,932,677 1,740.06 277,30 8.35 14% 0.47%
2003 1,907,226 1,522.68 285,068 7.21 15% 0.47%
2004 (not
available)
yet
1,990.81 314,702 11.10 (not yet .56%
available)
Job generation is an important indicator of tourism’s economic impact. Below is a table

showing employment generated in tourism-related establishments in Caraga Region.
EMPLOYMENT GENERATED IN TOURISM-RELATED ESTABLISHMENTS
Female Male Total

Surigao del Sur 122 119 241
Surigao del Norte 77 81 158
Agusan del Norte 188 116 304
Agusan del Sur
Butuan City 392 282 674
Surigao City 130 64 194
Bislig City 42 41 45
Total No. of Employees in Caraga 763 587 1,616
Below shows data on Tourism-Related Establishments’ total investments in the region:
TOURISM-RELATED INVESTMENTS IN CARAGA REGION
CITY/PROVINCE TOTAL INVESTMENTS PERCENTAGE SHARE

TO CARAGA’S
TOTAL INVESTMENTS
Butuan City 142,351,045.25 36.05%
Surigao City 104,870,000.00 26.56%
Bislig City 8,000,000.00 2.03%
Agusan del Norte 20,507,500.00 5.19%
Agusan del Sur no data no data
Surigao del Norte 26,180,000.00 6.63%
Surigao del Sur 93,000,000.59 23.55%
TOTAL 394,908,546.00
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1.3. Status of the Industry (National)
1.3.1 Visitor Arrivals
1.3.1.1 Visitor Arrivals by Country of Residence
Between 1999 – 2003, visitor arrivals to the Philippines grew at an average of -2.14%
per annum. The highest volume of visitors was recorded in 1999 with 2,170,514
arrivals while the lowest was registered in 2001 with 1,796,893 arrivals posting a
decline of 9.8%. During the past five years, the U.S.A. and Japan constituted the
biggest share.
1.3.1.2 Visitor Arrivals by Port of Entry and Mode of Travel
Air transportation remained to be the principal mode of travel of incoming visitors

to the Philippines. In 2003, 1,880,067 visitors (98.58%) arrived to the Philippines by air
while 27,159 (1.42%) by sea.
1.3.1.3 Visitor Arrivals to the Philippines by Nationality
The US market topped the visitor to the Philippines in 2002 and 2003 with 434,680
and 431,632 arrivals, respectively. Japanese market followed with 343,014 and
323,098 for the same period. The Korean market which has been remarkably
growing over the years ranked third with 288,652 and 303,592 arrivals in 2002 and
2003.
1.3.2 Visitor Arrivals of Former Filipinos
The bulk of 67.51% of arrivals of Former Filipinos came from the USA, followed by
Canada and Australia with 10.00% and 7.40% share, respectively.
1.3.3 Visitor Arrivals of Overseas Filipinos
Overseas Filipino arrivals declined from 199,290 in 1999 to 100,324 in 2003. The bulk
of Overseas Filipinos in 2003 came from the USA with 65,772 accounting for 65.56%
of the total volume. Overseas Filipinos from Canada comprised 4.66% of the total
traffic for a volume of 4,674.
1.3.4 Visitor Profile
1.3.4.1 Visitor Arrivals by Sex
For the past five years (1999 – 2003), male travelers outnumbered female travelers.
In 2003, male/female ratio of 1:1.73 was recorded. For Overseas Filipinos, females
outnumbered male travelers.
1.3.4.2 Visitor Arrivals by Age Group
Most of the visitors to the Philippines were between 35-44 years old. In 2003, visitors
within this age bracket totaled to 441,638 while those within the age brackets of 45-
54 and 25-34 years old numbered 408,275 and 356,950, respectively. The age
bracket of 15-19 has the least number of visitors with only 44,341.
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1.3.4.3 Visitor Arrivals by Occupation
Most of the travelers that visited the Philippines in the last five years were
professional/managerial/administrative workers which comprised 32.31% of the
total tourist traffic. This was followed by student/minor (8.15%) and clerical/sales
and services workers (6.62%)
1.3.4.4 Visitor Arrivals by Civil Status
Most of the visitors to the Philippines were married with an average share of 72.74%
from 1999 to 2003 as compared to single’s average share of 25.78% for the same
period.
1.3.4.5 Visitor Arrivals by Highest Educational Attainment
University/College degree holders comprised an average of 72.58% share in the last

five years followed by High School graduates (14.84%), post graduates (7.56%) and
vocational course graduates (4.58%).
1.3.5 Travel Characteristics
1.3.5.1.1 Visitor Arrivals by Purpose of Visit
In the last five years, the bulk of visitors who came to the Philippines were on holiday
trip (41.63%), followed by those who visited their friends and relatives (28.27%) and
on business trip (17.21%).
1.3.5.1.2 Visitor Arrivals by Travel Arrangement
In the past five years, majority (61.30%) of the visitors arranged their own trip while
(18.05%) availed of package tours. Arrivals from the East Asian region were
predominantly on package tours.
1.3.5.1.3 Visitor Arrivals by Frequency of Visit
During the period in review, majority of the arrivals were repeat visitors (53.57%).
Visitors from Vietnam, China, Korea, Taiwan, Commonwealth of Independent
States and Poland were predominantly first-time visitors.
1.3.5.1.4 Visitor Arrivals by Type of Accommodation
For the last five years, most of the visitors preferred to stay in hotels (30.12%). Staying
with friends and relatives, and rented homes, apartments were the second (23.94%)
and third (11.76%) preferences. Proportion of Overseas Filipinos staying with relatives
and friends (70.48%) was higher than those staying in hotels and other rented
accommodations (9.92%).
1.3.5.1.5 Visitor Arrivals by Purpose of Visit and Sex
In 2002 and 2003, majority of male visitors came for holiday, business, official mission,
convention, incentive travel, and to visit their relatives and friends. The ratio of
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visitors who came for business purposes were 7:1 in favor of males. On the other
hand, visitors who came to visit friends and relatives were almost equally distributed
(1.02:1) between the male and female visitors.
1.3.5.1.6 Visitor Arrivals by Sex and Travel Arrangement
Males dominated females both for independent or package tour. In 2003, 65.60%
of the 63.01% who came as independent travelers was male while 55.96% of the
19.05% on package tour was male.
1.3.5.1.7 Visitor Arrivals by Purpose of Visit and Travel Arrangement
Most of the travelers in 2002 and 2003 were independent visitors especially those
who came for business, convention, official mission and to visit their relatives and
friends. On the other hand, significant number of holiday travelers availed of
package tour.
1.3.5.1.8 Visitor Arrivals by Purpose and Frequency of Visit
Visitors whose purpose of visit was for business, official mission, convention, and
incentive were on repeat visit. On the other hand, almost 41.91% in 2002 and
40.94% in 2003 of holiday arrivals were first time visitors to the country.
1.3.5.1.9 Visitor Arrivals by Purpose of Visit and Age Group
Majority of visitors under 25 years and above 65 years of age came to visit relatives
and friends and were on holiday. Visitors whose purpose were business, official
mission and those who attended convention belonged to the 25 – 54 age bracket.
1.3.5.1.10 Average Length of Stay (in nights)
The average lengths of stay in nights registered annually from 1999 – 2003 were 8.91,
8.79, 9.53, 9.12 and 9.17, respectively. Overseas Filipinos stayed longer with an
average of 18.62, 20.25, 18.36, 17.38 and 17.74 nights for the same period. The
average length of stay of foreign visitors posted at 8.50, 8.30, 9.16, 8.78 and 8.91
nights during the period in review.
1.3.5.1.11 Average Daily Expenditure on Major Items per Person
The bulk of expenditure of foreign visitors was for accommodation (38.95%) followed
by food& beverage (19.02%), shopping (16.78%), and entertainment (10.21%). On
the other hand, Overseas Filipinos spent mostly on shopping (29.90%) and food and
beverage (21.96%).
1.3.6 Visitor Receipts
1.3.6.1. Estimated Visitor Receipts
The highest total earnings gained from tourism during the last five years was
recorded in 1999 with an estimated receipts of US$ 2.55 billion. Of the total, 90.43%
was generated from foreign visitors and the rest from Overseas Filipinos. On the
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other hand, 2003’s tourism receipts of US$ 1.52 billion was the lowest registered in
the last five years. This could be attributed to the decline of tourist arrivals and the
low average daily expenditure of foreign visitors at US$ 89.45 (from US$ 134.87).
1.3.6.2. Overall Average Daily Expenditure of Visitors
For the last five years, accommodation accounted for the largest share of the total
expenditure of tourists in the country at 40.91%. This is followed by food and
beverage (20.29%), shopping (15.67%) and entertainment & recreation (13.95%).
Foreign visitors spent almost 38.49% of their total expenditure on accommodation in
the last five years. On the contrary, Overseas Filipinos spent mostly on shopping
(27.01%) and food & beverage (23.19%)
1.3.6.3. Overall Average Length of Stay of Visitors (In nights)
The lowest length of stay was recorded at 8.79 nights in 2000. Overseas Filipinos
spent longer days in the Philippines with an average of 18.47 nights in the past five
years as compared to foreign visitors’ average of 8.73 nights.
1.3.6.4 Visitor Arrivals by Average Daily Expenditure
The highest average daily expenditure in the last five years was recorded in 1999
with US$ 132.26 while 2003 recorded the lowest at US$ 88.25. Foreign travelers spent
an average of US$ 110.55 compared to that Overseas Filipinos of US$ 54.08.
Per regional grouping, travelers from the ASEAN region were the top spender with
an average of US$ 133.58 while travelers from the East Asian region spent the least
with an average of US$ 107.37.
Travelers from Brunei were the highest spender with an average daily expenditure
of US$ 171.05. On the other hand, travelers from Cambodia were the least spender
with an average daily expenditure of US$ 36.54.
1.3.7 Preferences / Psychographic Profile
1.3.7.1 Motivating Factor in Choosing Philippines as a Place to Visit
The warmth and friendliness of the Filipino people remained the top motivating
factor for visitors in choosing the Philippines as a place to visit.
1.3.7.2 Places Visited in the Philippines Outside Metro Manila
Over the years, Cebu was the favorite destination/place to visit by foreign and
overseas outside Metro Manila. Other favorite destinations were Tagaytay/Cavite,
Davao, Batangas and Baguio.
1.3.7.3 Shopping Places
Among foreign visitors, the most popular shopping places were department stores
followed by duty free shops, Overseas Filipinos preferred to buy/shop in Divisoria
/Quiapo/Baclaran/Central Market and other flea markets.
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1.3.7.4 Items Purchased in the Philippines
Food and delicacies, handicrafts, souvenir items and gifts for relatives ,
apparel/textile and garments were the most sought after items by tourists in the
Philippines.
1.3.7.5 Things Liked Most About the Visit to the Philippines
The warm hospitality and kindness of the Filipinos was cited as the most appealing
factor for visiting the country. Other factors that impressed visitors were beautiful
scenery, nice beaches, good food/liquor, and fruits.
1.3.7.6 Things Disliked Most About the Visit to the Philippines
Heavy traffic, air & water pollution, dirty environment, and bad roads were
consistently cited by visitors as things they disliked about their stay in the Philippines.
Other dislikes given were: crime incidents, poor peace and order, wide spread
poverty, beggars, unemployment, cheating and reckless/dishonest taxi drivers.
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VISITOR ARRIVALS IN THE PHILIPPINES BY
COUNTRY OF RESIDENCE
1999 – 2003
Country of Residence 1999 2000 2001 2002 2003

ASIA
Asean
Brunei Darussalam 2,056 1,827 1,786 2,136 2,070
Cambodia* 400 321 738 1,054 1,040
Indonesia 16,446 16,272 16,307 15,352 17,051
Lao PDR** 345 199 427 475 502
Malaysia 49,667 42,067 30,498 31,735 31,161
Myanmar 2,218 2,314 2,394 1,982 2,149
Singapore 51,244 50,276 44,155 57,662 51,257
Thailand 16,097 15,652 15,063 18,817 20,399
Vietnam*** 2,856 3,814 4,198 4,577 5,507
Sub-Total 141,329 132,742 115,566 133,790 131,136
East Asia
China (PROC) 21,220 14,724 18,937 27,803 32,039
Hongkong 160,152 146,858 134,408 155,964 139,753
Japan 387,513 390,517 343,840 341,867 322,896
Korea 133,068 174,966 207,957 288,468 303,867
Taiwan 143,810 75,722 85,231 103,024 92,740
Sub-Total 845,763 802,787 790,373 917,126 891,295
South Asia
Bangladesh 1,509 1,037 1,537 1,457 1,546
India 18,637 18,570 15,391 14,826 15,644
Iran 639 388 707 633 604
Nepal 1,249 996 1,018 974 897
Pakistan 1,882 1,167 1,998 1,591 1,428
Sri Lanka 2,004 1,934 1,542 1,341 1,424
Sub-Total 25,920 24,092 22,193 20,822 21,543
Middle East
Bahrain 1,003 911 1,068 1,358 1,379
Egypt 717 482 868 580 576
Israel 3,242 2,808 2,470 2,062 1,720
Jordan 540 299 404 292 185
Kuwait 1,058 1,007 1,164 1,469 1,449
Saudi Arabia 11,428 10,444 10,409 11,341 9,842
United Arab Emirates 1,122 1,568 2,160 3,460 3,305
Sub-Total 19,110 17,519 18,543 20,562 18,456
AMERICA
North America
Canada 64,986 61,004 54,942 54,563 53,601
Mexico 1,534 1,175 880 1,315 901
USA 463,600 445,043 392,099 395,323 387,879
Sub-Total 530,120 507,222 447,921 451,201 442,390
South America
Argentina 828 603 512 432 448
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Brazil 2,276 2,029 1,724 1,256 876
Colombia 527 400 364 395 245
Peru 275 311 231 182 171
Venezuela 454 297 256 201 134
Sub-Total 4,360 3,640 3,087 2,466 1,874
EUROPE
Western Europe
Austria 8,563 7,761 6,548 6,281 6,264
Belgium 6,995 6,536 5,450 5,512 5,371
France 24,462 19,179 13,918 12,498 11,549
Germany 62,044 51,131 40,605 39,103 38,684
Luxembourg 263 221 248 307 262
Netherlands 17,188 16,150 13,540 12,015 11,441
Switzerland 16,587 14,710 12,268 12,145 11,917
Sub-Total 139,102 115,688 92,577 87,861 85,488
Northern Europe
Denmark 11,603 10,239 7,902 7,164 6,584
Finland 2,980 2,955 2,016 1,597 1,528
Ireland 3,135 2,678 2,323 1,864 1,977
Norway 7,872 7,726 6,650 7,025 6,886
Sweden 10,604 9,197 7,330 6,612 6,592
United Kingdom 88,920 74,507 60,147 48,478 47,447
Sub-Total 125,114 107,302 86,368 72,740 71,014
Southern Europe
Greece 1,368 1,347 940 1,031 944
Italy 13,880 12,454 8,994 8,483 7,711
Portugal 2,700 1,445 856 636 568
Spain 7,478 7,486 5,624 6,349 6,026
Union of Serbia & 745 668 577 582 250
Montenegro****
Sub-Total 26,171 23,400 16,991 17,081 15,499
Eastern Europe
Commonwealth of Independent 2,260 2,487 1,793 3,562 3,068
States
Poland 833 510 1,616 604 549
Sub-Total 3,093 2,997 3,409 4,166 3,617
OCEANIA
Australia 77,732 75,706 68,541 70,735 69,846
Guam 151 741 2,746 25,013 29,220
Nauru 298 129 37 21 12
New Zealand 10,404 9,078 7,832 6,569 6,164
Papua New Guinea 1,185 784 846 1,185 867
Sub-Total 89,770 86,438 80,002 103,523 106,109
AFRICA
Nigeria 305 269 288 272 303
South Africa 1,519 923 1,397 1,193 1,139
Sub-Total 1,824 1,192 1,685 1,465 1,442
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OTHERS & UNSPEDIFIED RESIDENCES 22,548 16,764 19,347 16,120 17,039
TOTAL 1,971,224 1,841,783 1,698,062 1,848,923 1,806,902
OVER SEAS FILIPINOS***** 199,290 150,386 98,831 83,754 100,324
Grand Total 2,170,514 1,992,169 1,796,893 1,932,677 1,907,226
* - Prior to January 1999, statistics from Cambodia was lumped under “Others”
** - Prior to January 1999, Lao PDR and Myanmar arrivals were lumped under “Others”
*** - Prior to August 1995, statistics from Vietnam was lumped under “Others”
**** - Prior to April 2003, statistics from this country includes Slovenia, Croatia,
Bosnia, and Macedonia
***** - Philippine Passport holders permanently residing abroad; exclude Overseas Filipino
Workers
Sources of data: Arrival/Departure Cards and Shipping Manifests
2.0 Market Situation (Caraga Region)
2.1 Tourist Arrival
Caraga Region’s tourist traffic is generally ascending. In the last ten years, it
experienced a dramatic increase. The trends of tourism in Caraga however is
relatively influenced by economic and political situations in the country and in the
international arena.
Tourist arrivals dropped from 252,333 in year 1998 to 244,075 in year 1999. A -3.27%
decrease was recorded. Significantly, it was the transition period for the new
leadership under then Pres. Joseph Ejercito Estrada. The country’s economic
atmosphere dwindled as investors lost confidence over the new administration.
Likewise, the tourism program under the Estrada Administration dubbed as
Rediscovery Program was limited to major specific areas which excluded Caraga
Region. This somehow weakened the tourism promotions initiative resulting to a fall
in the tourist arrival data in 1999. The same year was the height of kidnapping
incidence by the notorious Abu Sayaf group. Mindanao was declared as a hotspot.
Embassies issued negative travel advisories. The south was blacklisted as among
unsafe places to be visited by foreigners. It pulled down the tourist arrivals in the
region.
An increase in tourist arrivals was experienced in 2000 by 3.25%.The same year, then
Vice-President Pres, Gloria Macapagal-Arroyo took over as new president.
Investors’ confidence improved as tourism slowly recovered. This was felt in the
region.
The industry experienced a boost in 2001when Sec. Richard Gordon sat as new DOT
Secretary. Tourism in the region recovered. The figures improved by 11.17% in 2001
with the WOW Philippines tourism program.
In year 2002, the recorded number of visitors in Caraga fell by 1.04%. The
September 11, 2001 bombing of terrorists in the United States was a major event
that hit tourism badly. It was followed by terrorist attack threats in third world
counties known to have Al Queda support. Its effects were felt in the early part of
2002.
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Tourism figures gained momentum in 2003 with 2.28% increase of visitor arrivals. It
was sustained in 2004 as percentage increased to 10.40%. New programs/projects
were added to the regular activities of DOT. The Caraga Madyaw Kardajao – The
Best of Region 13 showcase in Intramuros, Lake Mainit Grand Festival and the
Lanuza Surfing Event were launched in year 2003. Its effects were reaped in 2004
with 314,702 tourist arrivals.
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ANNUAL TOURIST ARRI VALS FROM 1995 TO 2004 - Clustered
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
DOMESTIC/BALIKBAYAN ARRI VALS 129,101 142,683 217,205 241,897 233,730 240,925 271,893 269,427 277,272 303,521
FOREIGN ARRI VALS 4,559 4,702 9,127 10,436 10,345 11,081 8,272 7,827 7,796 11,181
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2.2 Capacity Utilization
The region’s tourism capacity utilization is best described on the data below
which summarize the Regional Occupancy Rates in year 2002 and 2003.
Caraga Region Occupancy Rates from 2002-2004
Classifications Caraga Region Occupancy Rates

2002 2003 2004
(Estimated)
Standard 33% 39.73% 44.20%
Economy 43.88% 59.17% 32.21%
Resorts 32.20% 34.02% 40.65%
Pension & Motels 34% 36%% 36.28%
Inns 42.61% 44.41% 25.23%
Grand Total 38.64% 42.83% 35.01%
An increase of 4.19% was reflected in year 2003 in the region’s occupancy rate.
This denotes a very positive trend for the industry. There are more tourists
occupying our hotels and accommodation facilities in 2003, thereby much has
been contributed to Caraga’s treasury in as far as tourism is concerned. However,
in year 2004, occupancy rate declined by 7.82%. The financial crisis in the country
is one factor that attributed to the fall of the figure.
Below is Caraga Region’s Accommodation Capacity
Tourism-related Number of Tourism Related

Establishments Establishments
Accredited 11
Non-Accredited 202
Total 213
Particulars Capacity
Total Number of Beds 4,878
Total Number of Rooms 2,239
2.3 Major Tourism Market
The local tourism market still dominates Caraga Region. In the recent data
collated in 2004, there were 301,190 recorded local tourists out of the 314,702
total tourist arrivals. Only 4.29% comprises the foreign tourists which totals to 13,512.
16
The table below shows the top three foreign tourists from 1995-2004
YEAR TOP THREE VOLUME

FOREIGN MARKETS
1995 US American 893
Japanese 575
Australian 703
Total 2171
Japanese 554
Australian 825
Total 2,250
Japanese 1001
Australian 1981
Total 4,970
Australian 1704
Japanese 1217
Total 5,668
Japanese 1305
Australian 1550
Total 5,009
Australian 1501
English 1066
Total 5,803
Australian 1318
Canadian 822
Total 4,133
Japanese 1020
Australian 788
Total 4,008
Australia 814
Japanese 1618
Total 4,353
Japanese 1305
Australia 1299
Total 5,702
17
COMPARATIVE TOURIST ARRIVALS FROM YEAR 1995-2004
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Balikbayans 504 276 590 567 814 402 396 1,396 1,159 2,331
Domestic 128,597 142,407 216,615 241,330 232,916 240,523 271,497 268,029 276,113 301,190
TOTAL 133,660 147,385 226,332 252,333 244,075 252,006 280,165 277,254 285,068 314,702
PERCENTAGE GROWTH OF TOURIST ARRIVALS FROM 1996-2004
1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreign 3.14% 94.11% 14.34% -0.87% 7.11% -25.35% -5.38% -0.40% 43.42%
Balikbayans -45.24% 113.77% -3.90% 43.56% -50.61% -1.49% 253.03% -17.10% 101.12%
Domestic 10.74% 52.11% 11.41% -3.49% 3.27% 12.88% -1.28% 3.02% 9.08%
Overall 10.27% 53.57% 11.49% -3.27% 3.25% 11.17% -1.04% 2.28% 10.40%
18
2.4. Major Tourism Competitors
Visitor arrivals are largely influenced by the interplay of existing tourism products
and facilities in a given area.
Adventure Caraga offers primarily ecotourism and heritage destinations. It is

home to Asia’s surfing paradise, exotic wild life, pristine white sand beaches,
exciting islands, tumbling waterfalls, caves, lakes, other natural attractions and
repository of ancient relics. Nearby regions also offer similar attractions to tourists.
While some are exclusively unique to Caraga, its being an ecotourism and
heritage destination is also borne by other regions such as Region 11’s Garden
City of Samal, Region 10’s ecoadventure activities and Region 9’s heritage
destinations. Davao City, Cagayan de Oro and Zamboanga are admittedly
more advanced in terms of its existing infrastructure support and facilities that
respond to tourists’ basic needs. These areas are considered Caraga’s major
competitors. The data on the Distribution of Regional Travelers in the Philippines
shows how these regions fair with Region 13’s tourist traffic.
19
DISTRIBUTION OF REGIONAL TRAVELERS IN THE PHILIPINES
1999-2003
Region/Province/City 1999 2000 2001 2002 2003

CAR 1,043,431 1,139,375 1,240,125 1,278,251 961,404
Abra 12,592 12,767 13,562 4,291 8,661
Apayao 652 635 636 321 155
Baguio City 896,347 986,230 1,077,401 1,182,690 812,526
Benguet 35,210 37,396 40,034 27,553 54,957
Ifugao 47,257 49,441 53,277 31,816 40,352
Kalinga 11,510 11,373 11,558 4,482 16,853
Mountain Province 39,863 41,530 43,657 27,096 27,900
Region I 255,449 289,723 344,709 355,575 307,409

Ilocos Norte 113,801 119,385 170,510 179,310 176,160
Ilocos Sur 19,675 32,186 29,924 35,759 36,169
La Union 74,689 84,975 85,514 79,608 34,560
Pangasinan 47,284 53,177 58,761 60,898 60,520
Region II 476,259 443,770 545,064 582,528 595,627

Batanes - - - - -
Cagayan - 319,811 346,396 302,863 249,935
Isabela - 51,476 58,948 71,925 80,665
Quirino - - - - -
Nueva Vizcaya - 44,607 47,245 67,900 85,037
Santiago City - 27,876 37,408 62,932 77,501
Tuguegarao - - 55,067 76,908 102,489
Region III 253,972 234,359 262,430 338,676 351,392

Aurora - - - - -
Bataan - 12,918 11,988 10,961 9,976
Bulacan - 32,550 29,643 33,880 37,110
Nueva Ecija - 11,972 15,372 16,825 17,427
Pampanga - 95,765 111,113 130,229 126,886
Tarlac - 6,396 3,808 2,942 10,651
Zambales - 74,758 90,506 143,839 149,342
Region IV 1,106,174 3,146,912 4,483,874 4065,265 3693,089

Aurora - 2,569 2,740 - -
Batangas - 40,370 63,581 169,240 151,782
Cavite - 1,073,149 1,889,912 2,022,065 908,265
Laguna - 60,117 2,026,761 1,208,007 1,322,830
Mindoro Occidental - 1,739 253 - -
Mindoro Oriental - 60,510 143,367 137,369 733,550
Marindoque - 5,330 80,590 86,887 0
Palawan - 126,958 78,455 113,831 127,081
Quezon - 1,767,508 180,590 326,915 449,581
Rizal - 4,330 17,630 - -
Romblon - 4,335 477 951 -
SUB- TOTAL 3,135,258 5,254,136 6,876,202 6,620,259 5,908,921
20
Region V 340,743 356,724 367,856 389,718 408,973
Albay/Legaspi City 106,617 117,180 123,101 114,229 131,682
Catanduanes 2,665 8,046 5,037 16,718 16,613
Daet/Camarines Norte 59,221 52,627 50,026 54,654 56,221
Iriga City** - - - - -
Naga City/Camarines 101,632 101,979 107,260 108,111 113,716
Sur
Sorsogon 40,339 48,463 51,178 62,646 47,451
Masbate 30,269 28,429 31,254 33,360 37,627
Region VI 560,884 570,898 629,243 836,395 952,580

Aklan 189,215 231,602 273,662 316,292 359,163
Antique - - 4,615 7,165 13,446
Capiz Province - - 22,805 26,363 26,588
Guimaras 319 18,681 78,802 109,430 116,880
Iloilo Province 156,030 169,352 159,885 207,780 214,690
Negros Occidental 215,320 151,263 89,474 169,365 221,813
Region VII 930,686 1,005,071 1,013,711 1,063,398 1,157,597

Bohol 82,798 68,336 81,040 92,752 128,899
Cebu City 751,076 823,498 817,373 836,371 887,115
Negros Oriental 82,854 88,060 86,556 94,319 105,278
Siquijor 13,958 25,177 28,742 39,956 36,305
Region VIII 116,147 135,637 175,027 175,467 185,412

Biliran - 2,202 2,896 2,587 2,383
East Samar - 1,220 1,285 2,587 2,383
Leyte - 4,804 10,130 11,950 8,207
Ormoc City - 15,684 29,559 27,568 33,329
Southern Leyte - 6,723 6,354 6,469 5,543
Tacloban City - 105,004 124,803 123,938 133,338
Region IX 271,635 243,866 233,103 200,691 218,577

Dipolog 31,497 24,341 37,999 25,585 30,636
Zamboanga City & 131,297 130,139 103,943 91,820 102,047
Basilan Province
Zamboanga del Norte 34,097 10,331 10,906 3,948 8,018
& Dapitan City
Zamboanga del Sur & 74,744 79,055 80,255 79,338 77,876
Pagadian City
Region X 591,630 546,208 506,066 550,709 588,640

Bukidnon 42,422 39,040 42,421 44,638 48,087
Cagayan de Oro 337,711 272,692 261,704 271,011 231,642
Camiguin 172,433 192,062 176,161 209,774 244,277
Gingoog City 5,669 5,764 7,490 7,057 10,462
Misamis Occidental – 33,395 36,650 18,290 18,229 54,208
Ozamis
SUB-TOTAL 2,811,725 2,858,404 2,925,006 3,216,378 3,511,779
21
Region XI 586,051 560,957 638,865 540,359 597,016
Compostela 1,347 12,846 10,416 11,248 9,470
Davao City 358,629 333,063 417,915 431,354 496,906
Davao del Sur 30,677 21,811 25,833 22,326 30,026
Davao Oriental 23,566 23,661 17,884 18,615 13,741
General Santos City 89,834 87,352 89,999 - -
Samal Island 10,695 19,779 14,937 18,555 20,622
Davao del 33,903 32,026 34,599 38,261 26,251
Norte/Tagum
South Cotabato 37,400 30,419 27,282 - -
Region XII*** 235,307 203,682 317,765 425,174 545,624

Cotabato City 45,261 - - - -
Iligan City 57,559 - - - -
Marawi City 40,066 - - - -
Kidapawan City 35,076 - - - -
Lanao del Norte 28,076 - - - -
Sultan kudarat 28,516 - - - -
Region XIII 244,039 252,006 280,165 277,306 285,075

Agusan del Norte 4,014 1,066 2,045 3,194 1,719
Agusan del Sur/ 22,912 13,644 30,808 25,188 18,333
San Francisco
Butuan city 142586 155,473 161,945 168,100 183,645
Surigao City 60,134 70,871 66,808 70,174 64,870
Surigao del Norte/ 2,349 1,046 6,712 1,102 8,676
General Luna/ Dapa
Surigao del Sur 12,044 9,906 11,847 9,548 4832
SUB-TOTAL 1,065,397 1,016,645 1,236,795 1,242,839 1,427,715
GRAND TOTAL 7,012,407 9,129,185 11,038,003 11,079,512 10,848,415
Caraga Region ranks 12th among the 14 regions of the country in terms of tourist traffic in
2003. It shares 16% of the total tourist arrivals in the Philippines which is 1,793,548. This is
considerably good taking into account its being the newest region.
22
DISTRIBUTION OF REGIONAL TRAVELLERS
IN THE PHILIPPINES 2003
CAR
REGION I
REGION II
CARAGA’s
REGION III
SHARE
REGION IV
285,075
REGION V
REGION VI
REGION VII
REGION VIII
REGION IX
REGION X
REGION XI
REGION XII
CARAGA
While we capitalize on the tourism assets as a competitive advantage, let us look

into the various attractions that the region offers to tourists. Below is an inventory
of existing tourism attractions:
Beaches 102
Waterfalls 72
Caves 45
Lakes 32
Springs 27
Archeological/Historical sites 25
Mountains 18
Islands 36
Industrial Plant 11
Parks 39
Forest 5
Wildlife Reserve 3
Rivers 10
Festivals 34
Events/Adventure 9
Others 55
Total 499
23
2.5. Average Expenditure of Tourist & Length of Stay
Average Expenditure of Tourist and Length of Stay vary from year 1999 to year 2003.
These are generally influenced by tourist confidence over Caraga given the existing
situations both in the international, national, and regional arena.
COMPARATIVE TOURISM RECEIPTS OF CARAGA FROM 1999-2002
Year Foreign Visitors Overseas Filipinos Grand

Number Ave. Ave. Total Number Ave. Ave. Total Total
Daily Length Receipts Daily Length Receipts Tourism
Expen. Stay (in Expen. Stay (in Receipt
Million Million (in
US $) US $) Million
US $)
1999 10,345 134.87 8.50 11.86 814 69.95 18.62 1.06 12.92
2000 11,081 120.37 8.30 11.07 402 50.23 20.25 0.41 11.48
2001 8,272 105.17 9.16 7.96 396 49.06 18.36 0.36 8.32
2002 7,827 102.89 8.78 7.07 1,398 52.67 17.38 1.28 8.35
2003 7,796 89.45 8.91 6.21 1,159 48.49 17.74 1 7.21
3 Industry Structure (Caraga Region)
3.1 Local Players
Tourism is a dynamic industry that involves the interaction of various local players.
The private sector serves as the engine for tourism development. They are the
following major local players:
3.1.1 Tourism-Related Establishment Associations
Tourism-related Establishments or TRE as forefront providers of tourism

services undergo accreditation process to ensure that standards of
operations are followed to meet the maximum satisfaction of tourists. This
procedure is instituted by the Department of Tourism. In an effort to
strengthen private sectors involvement to the industry, DOT initiated the
creation of an organization that will give stronger identity to TRE operators
and help them in their promotional efforts. This gave birth to the following
associations:
• Butuan and Agusan del Norte Hotel and Restaurant

Association or BAHARA
• Surigao City Association of Hotels and Restaurants Inc. or
SCAHARI
• Surigao del Sur Hotel and Restaurant Association or SSHARA
24
3.1.2 Homestay Providers
The Homestay Program was initiated by the Department of Tourism in

areas where accommodation facilities are limited. Owners of houses who
can accommodate visitors to stay for a night or two were inspected and
went through accreditation procedures. They were subjected to basic
tourism services trainings. The following have established homestay areas:
• Dapa, Surigao del Norte

• Jabonga, Agusan del Norte
• San Agustin, Surigao del Sur
• Cagwait, Surigao del Sur
• Lanuza, Surigao del Sur
• Nonoc Island, Surigao City
• Burgos, Siargao Island
• Sta. Monica, Siargao Island
• Zaragoza, Surigao City
• Bunawan, Agusan del Sur
• San Francisco, Agusan del Sur
3.1.3 Tour Operators
Caraga has a very limited number of local tour operators. There are only
six tour operators in the region, based in Butuan City and two from Surigao
City. Their services offered are mostly limited to air and sea ticketing only.
Butuan City
• Kahimunan Travel
• Almont Tours and Travels
• Purple Horizon
• Butuan Travel and Tours
• Mazaua Bay Travel
• Adventure Tours
Surigao City
• Fare Travel & Tours
• Nickel City Travel & Tours
• Geografika Travel & Tours
Agusan del Norte

• Adventure Specialist Caraga
Bislig City
• Sheillah’s Travel & Tours
3.2 Industry Concentration
The bulk of tourist arrivals in the region are from Butuan City. In 2004, records show
that 66.08% constitutes tourists that visit Historic Butuan. Obviously, this is explained
by the major role of the city as the Regional Center of Caraga. It serves as the
M.I.C.E. (Meetings, Incentives, Conventions and Entertainment) destination. Being
25
the Regional Center, it is also the major gateway to the region by sea, air and
land.
Surigao City ranks next in terms of tourist traffic with 21.56%. It is the sub-service
center of the region. It enjoys spill-over effects of tourists who come to Butuan City
for business meetings or conventions. It has major points of entries such as airport,
seaport and the Lipata Terminal.
Siargao Island is also considered as an area of concentration. It is one of the

region’s major destinations being venue to the annual International Surfing Event.
Eventually, it gained an undisputable name for Siargao as Asia’s Surfing Paradise.
It has become a surfing hub for foreign and local surfers. In terms of readiness, the
island has established a number of Tourism Related Establishments and other
facilities responding to tourists’ basic needs. These are highly concentrated in
General Luna.
26
DISTRIBUTION OF TOURIST ARRIVALS PER LGU in 2004
Butuan Bislig Surigao Surigao Surigao Agusan Agusan

City City City Sur Norte Norte Sur
FOREIGN 6,440 223 3,819 2,062 1,023 163 9
DOMESTIC 201,656 2,055 64,064 9,810 4,912 6,915 11,759
PERCENTAGE DISTRIBUTION OF TOURIST ARRIVALS IN CARAGA REGION BY LGU in 2004
No. of tourist arrivals 208,096 2,278 67,883 11,872 5,935 7,078 11,768
Overall percentage 66.08% 0.72% 21.56% 3.77% 1.88% 2.25% 3.74%
City 74.79% 0.82% 24.40%
Province 32.39% 16.19% 19.31% 32.11%
FOREIGN % 46.87% 1.62% 27.80% 15.01% 7.45% 1.19% 0.07%

DOMESTIC % 66.96% 0.68% 21.27% 3.26% 1.63% 2.30% 3.90%
27
28
3.3. Level of Employment
3.3.1 Number of employment generated and size of employers in the cluster
Butuan City Full Time Part Time Seasonal
Type of Business # of Office Male Female Male Female Male Female

establish- Total
ment
Accommodation
Resort 1 5 44 10
Hotel 8 6 56 23 5 7
Inn 2 9 23 6
Lodging House 2 5 7 7 2 1 2
Pension House 3 6 2 2
Motel 1 3 2 2
TOTAL 17 25 139 50 9 8 4
Dining & Bars
Restaurant 9 54 38 49 71
Bar 3 15 12 2
Food Chain
Travel Agency 2 3
Pasalubong
Center
Others
TOTAL 72 50 49 73
Bislig City Full Time Part Time Seasonal

establish- Total
ment
Accommodation 2
Resort 1 11 11 28 28 12 2 2
Hotel
Inn
Lodging House
Pension House
Motel
TOTAL 3 11 11 28 28 12 2 2
Dining & Bars
Restaurant 5
Bar
Food Chain
Travel Agency 1
Pasalubong
Center
Others
TOTAL 6
29
Surigao City Full Time Part Time Seasonal

establish- Total
ment
Accommodation 28 33 116 300 45 98 118 67
Resort 4
Hotel
Inn
Lodging House
Pension House
Motel
TOTAL 32 33 116 300 45 98 118 67
Dining & Bars
Restaurant 15
Bar
Food Chain
Travel Agency 1
Pasalubong 2
Center
Others:
Carenderia 32
Caterers 13
TOTAL 63
Surigao del Norte Full Time Part Time Seasonal

establish- Total
ment
Accommodation
Resort 26 81 77
Hotel
Inn
Lodging House
Pension House
Motel
TOTAL 26 81 77
Dining & Bars
Restaurant 12
Bar
Food Chain
Travel Agency 9
Pasalubong 15
Center
Others
TOTAL 36
30
Surigao del Sur Full Time Part Time Seasonal

establish- Total
ment
Accommodation
Resort 10 71 67 13 32 26 15
Hotel
Inn
Lodging House
Pension House
Motel
TOTAL 10 71 67 13 32 26 15
Dining & Bars
Restaurant 7
Bar
Food Chain
Travel Agency
Pasalubong
Center
Others
TOTAL 7
Agusan del Norte Full Time Part Time Seasonal

establish- Total
ment
Accommodation
Resort 2/4 2 3 3 1
Hotel 3 5 17 26 7 4 7
Inn
Lodging House
Pension House
Motel
TOTAL 5 7 20 29 8 4 7
Dining & Bars
Restaurant 3 12 10 2 3
Bar
Food Chain
Travel Agency
Pasalubong
Center
Others
TOTAL 3 12 10 2 3
31
Agusan del Sur Full Time Part Time Seasonal

establish- Total
ment
Accommodation 3 11 28 8 4 7 4 5
Resort 5
Hotel
Inn
Lodging House
Pension House
Motel
TOTAL 8 11 28 8 4 7 4 5
Dining & Bars
Restaurant 3
Bar
Food Chain
Travel Agency
Pasalubong 3
Center
Others
TOTAL 6
3.4. Tourism Flow
3.4.1. Inter-Market Connectivity
The basic element of tracing tourism flow is to look into important transport nodes,
particularly at airports and other major passenger terminals. These major nodes are:
• Metro Manila • Butuan City

• Cebu City/Mactan • Surigao City
• Cagayan de Oro • Tandag
• Davao City
These nodes generated a total traffic of 2.24 million passengers for the period 1993-1997,
equivalent to an annual traffic of 456,733 or an annual daily traffic (AADT) of 1,252.4
The existing internal traffic generated within the Cagayan de Oro-Caraga land-based
and port-based transport system was estimated at 6,233 passengers/arrivals as follows:
Land-based transport system
* CDO - Butuan -900 overland passengers daily
* Butuan - DVO -1,000-1,300 overland passengers daily
* Butuan - Surigao -700 estimated overland passengers daily
Seaport-based transport system
* Surigao, Dapa, Lipata
Tandag seaports -1,235,807 arrivals (1996) equivalent to:
-102,984 arrivals per month or
-3,433 arrivals per day
32
Leyte
Surigo
City
Butuan SDS
(Tandag)
City
Surigao
Norte
Cebu
Manila
Agusan
Norte
33
Cagayan
De Oro ADS
Bxu
SDS
Cotabato
Zamboanga Davao
Bislig
General
Santos
34
3.4.1.1 The General Target Market
• Businessmen, executives and professionals with regular business in the Region

• Professionals who regularly go on family (and even office) holiday breaks and
vacations.
• The scientific and academic community, including research organizations,
professional associations and donor agencies.
• Balikbayans and their tag-along friends from the Region planning to visit the
country.
a. The Domestic Market Segment
The major target market is the domestic market. It will be recalled that Caraga’s tourism
market is generally dominated by domestic tourists accounting to 95.71% of the total
arrivals.
The domestic market could be segmentized according to the following groups:
• Family Market. Family or community outings should be encouraged to visit the

scenic beauties of Caraga. This is addressed not only to families in the Region but
to adjoining areas and regions including Metro Manila. Such activity is another
means of maintaining family solidarity.
• Short Break Market. This is directed to business executives in and outside of the
region to enable them to relax and get out of the maddening pressures from
work and the metropolis.
• Special Interest Market. A number of groups or association specifically organized
around an interest area could be targeted. These include scientific/research
organizations, societies including the academic institutions.
b. The Foreign Market Segment
Although the foreign market segment of Caraga visitors is relatively smaller compared to
the domestic segment, the former has experienced encouraging growth rates and tend
to spend more for activities planned prior to departure. Among the top foreign arrivals,
are the US American, Japanese and Australia. They dominated the foreign tourist.
Most of the foreign visitors to Caraga are surfers (who come for maybe five days during
the surfing season), balikbayans’ friends or on business-related trips. Some visit to marry
Filipino fiancees/fiances while others visit as a side-trip on the way to or from other
destinations.
Information about the Region was obtained by these visitors from their friends by word of
mouth and from special interest magazines. However, it is obvious that a remaining large
percentage of this market is either still unaware of the existence of Caraga and its
tremendous tourism potentials or have insufficient information as to remain unconvinced
of the virtue of visiting. An intensive information and awareness campaign focused at
attracting the attention and interest of this remaining segment is in order.
35
3.4.1.2. The General Market Profile
The general profile of the Region’s visitor arrivals are summarized below:
• Purpose of Visit. Among domestic tourists, commercial/business was the primary

reason for the visit (29.5%); for the foreign tourists, pleasure/holiday were the
primary motivation for the visit.
• Level of Education. Travelers to the Region were a well-educated lot with 63%
(foreign) and 68% (domestic) having had university/college degrees and from
13% (foreign) and 15% (domestic) having post-graduate degrees.
• Occupation. About 42% of the domestic tourists were employees or personnel of
private firms (21.5%) and government (20.1%). The managers, executives and
businessmen accounted for 23.8% while the professionals and students
accounted for 13.7% and 11.2%, respectively, of the total domestic tourists.
Among the foreign arrivals, more than 1/3 or 37.3% were employees of private
firms (19.5%) and government (civilian and military, 17.8%). The managers,
executives and businessmen accounted for 23.5% -- the same proportion as their
local counterparts.
• Source of Information. Nearly 70% among the local tourists sourced their
information about the place visited from friends/relatives and/or previous visit.
Among foreign visitors, information were sourced from friends/relatives (33.6%),
travel publications and/or brochures (28.3%) and previous visit (15.9%). It is
interesting to note that some foreigners married to Filipina women own and
operate some of the interesting island/beach resorts/destinations in Surigao. Most
of the general information were adopted from the results of the UP-AIT Tourism
studies (1993 and 1997).
• Travel Arranger / Form of Travel. Most of the travels made were self-arranged
(51.4% for domestic tourists and 60.4% for foreign travelers). Most of these travels
were also not-on-package.
• Mode of Transport. For both (domestic and foreign) tourist groups, air transport
represented the most common mode used. Among the land-based transport
system, the private car was the dominant mode used by local tourist although
the use of public bus is not far behind. About the same proportion (21.1%) of
foreign travelers also used the public bus.
36
4 Product Development
4.1 Strategic Thrusts
The strategic thrusts for tourism product development will focus on the following:
Historical sites
Potential ecotourism sites and destinations
Major ecotourism destinations
Quality support facilities such as hotels, restaurants, handicrafts/souvenir
shops, rest areas and roads leading to sites and destinations
Intensified government-community participation in the management of
tourism activities through the creation/operationalization of tourism
councils and cooperatives
The specific type and sites for the above are summarized in the table below. The primary
responsibility for the development and maintenance of tourism products (sites and
facilities) are summarized below:
Type of Tourism Product Primary Center of Responsibility
Historical sites Government

Archeological sites Government
Ancestral Homes Government /private
Cultural Villages Government
Ecotourism sites (Protected Area) Government/PAMB
Other ecotourism sites Private sector
Other destinations Private sector
Access Government/private sector
Support facilities Private sector
Institutional mechanism Government/private sector partnership
Table - Summary of strategic thrust for tourism development by zone, Caraga
TOURISM TOURISM ZONE

PRODUCT AND Butuan Agusan Surigao Island Surigao Island South Caraga Northeastern
FACILITIES Norte Zone Zone Zone Zone Caraga Zone
Historical * Balanghai Japanese Ancestral
Sites & Shrine Retreat Site/ Homes
Ecofacts * Archeolo Marker (Waloe)
gical sites
* Regional
Museum
* Magellan
Landing Site
* Ancestral
Homes
* Ancestral
Burial sites
Ecotourism *Lake Mainit * Siargao * Agusan
Sites and Island Protected Marsh
Destinations Seascape Wildlife
37
Sanctuary
Establishment * @ Lusong, * @ Salug, * @/within
of Cultural Puting Bato, Esperanza, the
Village Cabadbaran, ADS boundary of
ADN Lanuza,
Tandag and
San Miguel,
SDS
Support * 5-Star * 5-Star *Dive/Beach * Floating *Accommo-
Facilities Resort Hotel Resort Hotel Resorts cottages dations
*Convention *Convention * Telecom * Telecom * Telecom
facilities facilities facilities facilities facilities
* Shopping * Shopping
Malls Malls
* Telecom * Telecom
facilities facilities
Activities/ *Commemoration *Commemoration Surfing
Events of the 1st Mass of the Battle of
Surigao Strait
4.2 Facilities and Site Development
Accommodations
There is a need to immediately improve the quality of accommodations and the services
offered. Additional capacities need to be put up to cope with the foreseen increase in
visitor traffic.
Special/Upscale Facilities
The development of high-end/upscale and complex sites and areas including facilities is
consistent with the above thrust. The examples of special sites and facility development
are given below.
1. Dive Resorts, Dinagat Island

Establishment of resort facilities consisting of accommodation rooms,
dining area, dive information center and other basic amenities
Construction of a dive shop that will house diving equipment and
supplies
Acquisition of dive boats and equipment
Training of manpower
Promotion campaign in coordination with the LGUs, DENR and DOT.
Provision of a cruise boat for sightseeing tours which may be operated
and managed by a separate private investor.
The estimated cost largely depends on the scope of planned are of operation which will
require a detailed study to determine the number and the type of accommodation
rooms and facilities, dive boats, equipment, etc.
2. Beach Resorts
These will be for Dinagat Island and Siargao Island. They will have the following elements:
38
a recreation area and clubhouse complete with sports facilities
convention hall that includes function rooms and restaurant
15 individual beach cottages each with an area of 300 square meters
marina and swimming pools
ample parking space
The estimated cost is Php 37.27 million
3. 5-Star Resort Hotel.
This will be for Butuan City and Surigao City. Features of the resort-hotels include:
2-storey main building, a pavilion/clubhouse and ten units of cottages

restaurant, souvenir shops, business offices and kitchen at the first floor
with an estimated area of 1,152 sqm
25 accommodation rooms classified into ordinary, suite, family and VIP at
the second floor with an estimated floor area of 1,095 sqm
a roof deck which will serve as function room
swimming area consisting of one pool, a wading pool, picnic huts and
bath/dressing rooms.
The estimated cost is Php 33.7 million.
4. Agusan Marsh Ecotourism Project
4.1 Access to the Marsh
The three existing jump-off points to the marsh will be improved: The
Bunawan wharf, IPAS complex and Sabang Kawayanan Junction. These will
involve the construction of docks which will ensure the safe
embarkment/disembarkment of tourists to motorized bancas that will ferry them
to the Agusan Marsh tour.
4.2 Infrastructure and facilities/equipment
4.2.1 Rehabilitation of the ASSCAT Guest House
This will include the renovation of existing Community Outreach

Center (COC) of ASSCAT. The COC has a 30-bed capacity (12 for
females and 18 for males) with comfort rooms and air-conditioning units.
The improvement should meet the standard accommodation of the
tourists.
4.2.2 Bunawan Wharf Improvement
As the gateway to Agusan Marsh, all tourists and guests will pass
through the existing wharf that is situated in Barangay San Teodoro.
Various facilities will be constructed to ensure better services to the
tourists. These include:
1. Construction of Municipal Tourism and Display Center.
39
The center should be constructed in the existing wharf with
the design bearing semblance of ethnic culture. This will provide
tourists with the information regarding Agusan Marsh and other
tourist attractions in Bunawan. Likewise, the center will sell products
of the IPs and Bunawan residents.
2. Construction of Comfort Rooms
To maintain sanitation, two comfort rooms will be

constructed for each gender.
4.3. Improvement of the IPAS Complex
The Integrated Protected Area System (IPAS) complex was established to

protect and preserve the marsh. The complex will serve as the briefing area for
visitors (thru multi-media presentation). It will also provide lodging for guests who
will stay overnight in the area. The improvement of the complex will involve:
4.3.1 Construction of floating boat deck
The dock will allow easy and safe embarkment and

disembarkment of guests.
1. Construction of lodging house
Made of native/indigenous materials, the house will

accommodate 30-50 guests.
2. Establishment of mini-theatre with complete audiovisual

equipment (computer-based AV equipment, screen, etc.)
3. Establishment of a Display Corner for souvenir items

available in the area.
4.4. Development of Sabang Kawayan Junction
Due to its strategic location, (crossroad to Agusan Marsh) Sabang

Kawayan will be developed as a major stop-over center to cater to the various
needs of the visitors. Facilities to be provided include:
4.4.1 Construction of floating restaurant with amenities
The floating restaurant will also serve as the wharf. The design of
the restaurant will make use of native materials like logs and bamboos as
floats, sapling for posts and skeleton of the cottage, sasa, a clopped
flattened bamboo for walls and nipa for roofing. Also in this structure,
visitors may transfer to smaller bancas or canoes in exploring the marsh.
40
4.4.2 Construction of floating cottages
Four (4) floating cottages, made of native/indigenous materials

(bamboos, anahaw, nipa shingles) with a capacity of 5-8 persons per
cottage shall be constructed to accommodate tourists who will stay
overnight in the Marsh. This will allow the guests to enjoy the tranquility
and the moving scenery of the Marsh. It shall have standard beddings
and other amenities such as kitchen, dining and portalet comfort room.
The floating restaurant and cottages will be provided with a

generator set to ensure electricity especially in the evening.
4.5 Construction of viewing decks/watch towers with accessories
Four units of view decks (3 meters above the water level) will be
constructed. Each view deck has a carrying capacity of 10-15 persons. The
decks will be established in the Bunawan part of the Agusan Marsh: Lake Mihaba,
Lake Malawan, Lake Dinagat and Lake Tikgon. The view deck is a structure
where the panoramic view of the Marsh can be seen. Through a binocular, the
guests will have clear pictures of the flora and fauna of the marsh.
Portable toilets for both genders will be made available the four identified
areas of the view decks.
4.6. Establishment of Waterways
To allow the unhampered access of the view decks by the motorized

bancas and canoes, four (4) floating waterways will be constructed. The
waterways will keep water lilies from obstructing the bancas and canoes.
4.7. Procurement of motorized rubber boat
The motorized rubber boat will be used by the marsh guard to monitor the
safety of tourists and visitors by providing them with prompt assistance during
emergencies.
4.3 Other Programs and Projects
The development of program and projects will be done simultaneously in the different
tourism zones consistent with their resource endowments and distinctive character. The
table below provides illustrative examples of programs and projects for the different
zonal clusters.
TOURISM ZONE (TZ)

Program/Projects BAN SCNM SI NC SC
√ √ √ √ √
1. Municipal Recreation Parks ( All Forms )
√ √ √ √ √
2. Local Training for Community Hosting &
Services ( Service Center & Jump-off Points
41
3. Miscellaneous Programs & Projects
• Bamboo Farming √ √ √
• Crocodile Farming √ √
• Training School For Tour Guides √
• Center for Performing Arts √
• Fish Culture in Lakes √ √
• Transport Terminal & Exhibit Center √ √ √ √ √
• Observation Decks & Viewpoint √ √ √ √
• Adventure Facility & Themed Sites √ √ √ √ √
• Cultural Village √ √ √
• Palm Farms & Arboretums √ √ √ √
4.4. Infrastructure
4.4.1. Transport Development
a. Caraga Road Network Development
Upgrading and rehabilitation of transport infrastructure is of immediate importance not

only for tourism but for the overall development of the region. At present, network
formation is incomplete. Most roads branch off from a trunk road without forming a
network. There are minimal linkages between major roads due to the lack of east-west
links. Lack of transport efficiency is primarily due to inadequate linkages. The road
improvement projects which may contribute largely to tourism development were
identified as follows:
Surigao-Tandag-Bislig Coastal Road is roughly 270 kilometers in length. It
isestimated to cost approximately P=2.16 billion for concreting and bridge
construction. Funding for the road project is needed to pursue
improvement works.
Paving of the Bayugan-Tandag Road will provide access to the tourist
areas located in the east.
Improvement of three kilometer PASu Office Access Road to the Agusan
Marsh jump-off point
Concreting of east-west laterals, such as the San Francisco - Barobo road,
and the Trento - Bislig road.
b. Air Transportation
The lack of facilities at airport terminals pose a constraint to air transport development.
Modernization of navigational equipment, widening of runway, and the improvement of
airport terminal buildings are some of the required improvements to upgrade airport
facilities to meet international standards. Airline operations along the trunk and
secondary routes have begun to shift to bigger and wider- bodied aircraft, mostly Airbus
300 and Boeing 737. To address this development, the airports in the region will need to
be improved to accommodate these aircrafts.
Major construction works are necessary to make operational the Bislig Airport. The
resumption of operations at the Bislig Airport will promote tourism development. The
Butuan Airport is among the six city airports programmed for improvement and
expansion under ADB’s Third Airports Development Loan. The project will expand and
42
improve civil aviation infrastructure to conform with international standards. The project
will upgrade and extend runways, improve air navigation and safety facilities; expand
cargo capacities; build new passenger terminals; rehabilitate existing facilities as well as
provide equipment for airfield maintenance, communications, navigation, meteorology,
crash and fire response and rescue. Total project cost is estimated at $167 million, with
the European Investment Bank expected to provide co-financing of $29 million. Just
recently, the Department of Transportation and Communications (DOTC) invited
Constructors to apply for pre-qualification and bid for the Butuan Airport runway
widening and improvement of access road.
c. Water Transportation
Upgrading seaport facilities are also necessary to meet standards required for
international trade. Port development and expansion projects are required for all the
major ports in the region. The Philippine Ports Authority is encouraging private sector
participation specifically in the form of Build-Operate-Transfer agreements or Joint
Venture agreements.
Table 4.1 - Transport Infrastructure Development Projects
Project Location Description Cost ( In M ) Implementing

Agency
Airports
Siargao Feeder
Airport Del Carmen, Terminal building
Development Siargao Island and runaway 17.40/19.9 DOT/ATO
Project expansion
Tandag Airport Extension of
Development Awasian 30mx100m 193.75/ DOT/LGU
Projects Runway and 193.8
installation of
lighting and water
facilities
Seaports
Siargao Port Develop cargo
Development Siargao Island handling and
Project passenger terminal 40.00 PPA
infrastructure and
facilities
Lipata Ferry Lipata, Improvement and PPA
Terminal Surigao City expansion of ROO 10.00
facilities
Ongoing under a
25-year
development plan.
Works to be
undertaken
Tandag Port Barangay include:
Development Bongtud ▪ general 121.00 PPA/DOTC/LG
Project Tandag, SDS rehabilitation of the U
43
port
▪ dredging of
the water bed
along side docks for
a 10-m draft
▪ extension of
inward RC wharf
▪ water and
administration
facilities
Nasipit Port Nasipit Improvement and
Expansion Agusan Del expansion of
Project Norte facilities of existing
port. As of June PPA
1997, FS with Master
Plan was to have
been prepared
Bislig Port Bislig, Surigao Improvement and
Development del Sur expansion of
Project facilities of the 50.00 PPA
existing port
Surigao Port Surigao City As a June 1997, PPA
Expansion was looking for a
Project developer willing to
go into a BOT or JV
agreement
Projects entails the
improvement and PPA
expansion of
facilities bat the
existing port
located in Bilang
Bilang Bay
Aras-Arasan Cagwait, Development of
Port Surigao del required port
Development Sur infrastructure and
Project facilities including
RORO ramp and
passenger terminal
facilities to 80.00 PPA
accommodate
inter-island ferry
vessels. Projects still
at conceptual
stage and subject
to BOT or JV
agreement
Road Infrastructure
Surigao-Davao Surigao del
Coastal Road Norte, Surigao Construction, 10.00/ DPWH/LGU
del Sur improvement and 2,170.0
44
rehabilitation
Butuan B. Agusan del
Tandag Norte, Agusan
Road del Sur and 10.00 National
Surigao del Government
Sur
4.4.2. Telecommunications
Telecommunication facilities are already available at the major service centers of

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

sufficient to supply the requirements of the industries that will locate in the region in the
future. Needless to say, the power requirements for the development of tourism will be
minimal as compared to the future supply. Thus, the availability of power supply to
support tourism development will not pose a serious problem in the future. Nevertheless,
there still remains the need to develop alternative sources of power to ensure stable
supply. Heavy dependence on a single source may cause massive problems in the future.
Transmission facilities may have to be expanded to handle increased demand. Sites
identified for tourism development should have access to power. Though this might
prove incompatible with eco-tourism, the proper design and planning of such facilities
may even enhance the attractiveness of certain tourist destinations.
4.4.4. Water Supply
Since the supply of water does not seem to pose a constraint for future
development, proper management should be exercised so as not to drain the potential
of water sources. Similar to power, distribution systems need to be expanded and
upgraded to ensure stable supply and to maintain the standards of water quality.
4.4.5. Sanitation and Waste Management
Proper garbage and waste disposal is an important element of a healthy

environment. Solid waste collection systems are sorely lacking in most areas of the region.
Open dumping and disposal would pose environmental hazards in the future. Before this
situation grows into an alarming, it is necessary to institutionalize a waste management
disposal system at all levels of local government units in the Region.
4.4.6. Indicative Cost
The strategic objectives of the Caraga Tourism Master Plan is to position the
Region as a key tourist destination and to optimize its development potentials for
45
sustainable tourism development. These require the development of the various
sectors and the installation of development management systems to transform
Caraga as a worthwhile destination and as added spur for regional growth and
development. To achieve these require financial investments from the public and
private sectors, an estimated amount of P 21.604 billion financial resources is required
to carry out the Plan. These are summarized in the following tables below:
DEVELOPMENT PROGRAM IMPLEMENTATION PERIOD

1ST 5 Years 2nd 5 Years 3rd 5 Years TOTAL
INFRASTRUCTURE DEVELOPMENT
8,800.0 8,607.2 2,803.2 20,210.4
▪ Roads and Bridges 1,787.1 1,787.1 3,574.1
▪ Airports 4,249.6 3,955.8 19.9 8,225.3
▪ Seaports 60.0 161.0 80.0 301.0
▪ Other infrastructures and Utilities 2,703.3 2,703.3 2,703.3 8,110.0
TOURISM FACILITY DEVELOPMENT 300.4 510.6 1,321.6
CULTURAL PRESERVATION & 5.6 0.6 0.6 6.8
ENHANCEMENT
ENVIRONMENT MANAGEMENT 10.3 5.3 5.3 21.0
MARKETING & INVESTMENT 8.4 1.3 1.3 11.0
PROMOTIONS
INSTITUTIONAL DEVELOPMENT & 11.8 11.0 11.0 33.8
POLICY SUPPORT
TOTAL 9,136.5 9,136.0 3,332.1 21,604.6
(Annexes for details- Table 4.4)
4.5. Existing Structures and Mechanisms
a. Organization
The Department of Tourism’s (DOT) Regional Office in Butuan City is the primary
government agency tasked to promote the development of tourism in the Region. It is a
newly established office coincident with the creation in 1995 of Caraga as the thirteenth
Administrative Region of the country. In accordance with the Local Government Code
of 1991, tourism services, among with other basic services, have been devolved to local
government units. Correspondingly, the LGUs organized tourism offices, or their
equivalent units, for the purpose. The set up of tourism offices or units vary from one LGU
to the other. For example:
Butuan City and the province of Surigao del Norte each has a Tourism Office
manned by organic staff;
Surigao City has a Tourism Assistance Center (TAC) under the City Planning and
Development Office (CPDO);
Surigao del Sur. A Tourism Assistance Center (TAC) was set up under the Office of
the Governor;
Agusan del Norte. The tourism development functions are subsumed within the
Civil Affairs Office (CAO) under the Office of the Governor; and,
Agusan del Sur: A tourism unit is integrated within the Provincial Planning and
Development Office (PPDO).
46
There are no tourism offices at the municipal level. Tourism development functions are
subsumed within those performed by the Municipal Planning and Development Offices
(MPDOS).
Tourism councils have been organized at the city and provincial levels. Presently,
municipal tourism councils exist only in designated growth areas of Economic
Development Clusters and those within the program scope of CIA-LISP capability
building program on community-based tourism development.
In addition to the DOT and the different city and provincial government units, practically
the entire government machinery is involved in the tourism sector. At least 20 line
departments, authorities, commissions, councils and government-owned or controlled
corporations are involved. About the same number of institutional groups and
associations are involved from the private sector. These do not include the individual
tourism facility operators and services providers (see attached partial list of development
actors involved in the tourism sector).
b. The Coordination Mechanisms
Integrative and coordination mechanisms exist at various organizational levels:
Regional level:
The Regional Development Council (Caraga or RDC XIII) for developmental

planning. NEDA NRO XIII acts as the Technical Secretariat of the RDC.
Regional Tourism Council - for tourism promotions and coordination.
The RDC is composed of the heads of regional offices of the national government,
congressmen and senators in the region, provincial governors, presidents of the regional
federation of the league of municipal/city mayors and barangay chairmen and
representatives from private sector and the non-government organizations.
The RDC Chair is elected by the members. The NEDA Regional Director serves as Vice
Chair. There are a number of committees that tackle specific sectors, e.g.: agriculture,
infrastructure, tourism, etc.
An Executive Committee exists and is empowered to act for and in behalf of the Council
when the latter is not in session. The RDC Chair and the NEDA Regional Director chair and
co-chair the ExCom.
The Regional Tourism Council is composed mostly of representatives from the private
sector with tourism and tourism-related activities as the main line of business or concern.
The DOT Regional Director sits in the Council with DOT R-XIII as the Council’s Technical
Secretariat.
Provincial level:
Provincial Development Councils (PDCs) of each province - for the integration of

development programs and projects.
47
Provincial Tourism Councils for each province - for the promotion and
development of tourism in the province.
The PDCs are composed of the Governor as Chair, congressmen from the province,
municipal mayors, president of the Association of Barangay Chairmen and
representatives of non-government organizations.
Like the RDC, the PDCs have sectoral committees and Executive Committees. The
Provincial Tourism Councils are likewise organized from representation mostly of tourism-
related organizations and establishments in the province.
City/Municipal level:
City Development Councils (CDCs) for each city and the Municipal Development
Councils (MDCs) for each municipality - for the integration of development
programs and projects at the city and municipal levels.
City Tourism Councils (CTCs) and Municipal Tourism Councils (MTCs) - for the
promotion and development of tourism-related projects and activities at the city
and municipal levels.
The CDCs/MDCs are composed of the City/Municipal Mayors, representatives of the

Congressman covering the city/municipality, barangay chairmen and representatives
from the nongovernment organizations.
The CDCs/MDCs also have sectoral committees and Executive Committees.
5. Industry Support
5.1 Financing Options
a. Modes
Public finance. This is usually borne by government, through its various

line/operating departments and/or agencies.
Self-financing. This is by the project proponents, individual entrepreneurs,
partnerships, corporations or joint ventures. A distinctive feature of this mode is
the use the proponents-owned resources to undertake the projects.
Joint Venture Agreements (JVAs). These are institutional agreements between
various parties, normally public and private, for a joint venture in pursuing a
development project.
Build-Operate-Transfer (BOT)/Build-Operate-Own (BOO). These are recent
variants of the JVA. In this instances, a private group undertakes the
development initiative under prior consent of government within a set or
framework of arrangements. The private groups uses its own resources, pays the
government the corresponding dues (rentals, levies, franchise, etc). For its side,
government allows the proponent to operate the facility, charge service fees to
recoup investment and operating expenses.
48
b. Sources
Generally, the sources of financing development projects and activities are the (i) public
sector, represented by the government through its various instrumentalities, (ii) private
sector [banks, investment houses, or owned capital], and/or (iii) foreign donor institutions.
Government, through:
¾ appropriations as (i) Subsidy, (ii) Technical Assistance, (iii) Capital Outlay or
(iv) Equity or Capital to a line agency or government-owned or controlled
corporation, whichever is the case, to enable it to perform its obligations,
by itself or in joint venture with a private group;
¾ Guarantee in the form of a Fund or sourced from an existing Guarantee
Fund; and
¾ Credit tranches, relending operations or Credit Windows coursed through
its GFIs (Government Financing Institutions).
Private through either any or all of the following:

¾ Equity Participation
¾ Equity Loan-Financing
¾ Joint Venture Arrangements
Donor Assistance
The following provide some of the concepts and examples of the modes/sources of
investment finance for tourism-related projects.
Projects Open to Purely Private Sector Financing:
Projects which are business-oriented and inclined to make profits are those which interest
the private sector. Most tourism projects are private-sector type of projects, although
some, particularly those which support tourism development, may be jointly financed by
the government and the private sector. Some infrastructure projects, which were
formerly
government-funded, are now open for private sector financing. Certain types of tourism
projects are recommended for purely private sector financing, among others:
construction of tourist accommodations and facilities such as resorts, hotels,

hostels, inns, motels, camping grounds and other types of lodging places;
recreational establishments such as theaters and movie houses, museums and
galleries, music halls, swimming pools, bowling alleys and billiard halls, casinos and
game rooms, golf courses, sports complexes, shopping malls and the like;
restaurants, fastfood establishments, cafes, bake shops, carenderias, snack bars,
ice cream parlors, bars and lounges and other eating places;
tourism-related establishments such as travel agencies and booking offices, tour
arrangers and reservation offices, seminar and conference halls, sports rental and
training establishments such as dive shops, foreign-exchanges, souvenir shops,
and the like; and
tourism service providers such as caterers, hotel service personnel agencies,
training agencies, security offices, laundry shops and laundromats, postal and
package couriers, vehicle rental agencies, etc.
49
Certain types of infrastructure projects may also be purely private sector funded.
Examples of these projects which are supportive of tourism development are:
communication projects such as the provision of telephone, cellular, beeper and

other telecommunication services, FAX and e-mail services, postal services,
establishment of public calling stations;
roads and bridges subject to toll fees, weighbridge stations and road construction,
repair and maintenance services;
construction, modernization, expansion and management of ports and airports;
transport services such as bus, shipping and airline services;
water supply and distribution services;
power generation and distribution services; and
waste disposal and collection services.
Financing for private sector projects come in various forms and from various sources and
in combinations: purely capital, loans, equity-loan combinations or technical assistance
from NGOs, NGAs or ODA.
9 Equity Participation: Equity may come in the form of capital (stocks), land,
building, equipment or technology. The establishment of tourism
accommodations, facilities and related establishments are generally purely
private sector endeavors (although some projects utilizing natural assets such as
waterfalls, lakes and caves have government participation in order that the
government is assured of sustainable use of the natural asset).
The extent of equity participation from foreign partners is determined by the type
of project but, under current investment laws, may be allowed up to 100%.
Foreign equity participation may be limited in certain projects in order to ensure
that the project is Filipino-owned.
9 Equity-Loan Financing: This scheme is resorted to mostly for projects requiring

bigger capitalization. When capital is insufficient, this is, almost always,
complimented by loans from banks and other financing institutions. Loans are
often secured from private banks but may also be provided by government
financing institutions (GFIs) for qualified projects, such as SME projects or tourism
projects. When the capitalization is extremely high such as for infrastructure
projects or when the private-sector project is government-sponsored or
supported, loans may also be secured from international agencies such as the
Asian Development Bank. Most loans are collateralized, especially those from
banks and GFIs while others are provided guarantees by the government such as
from the Guarantee Fund for Small and Medium Enterprises (GFSME).
Loans are often secured for major capital expenditures such as the purchase of
land and the construction of the tourism facility (hotels). These are normally long-
term collateralized loans. Expansion, modernization, diversification and restoration
projects also require long-term loans. However, short-term loans may also be
obtained for the purchase of raw materials, equipment, transport facilities and for
working capital.
9 Joint Venture Arrangements: When there is a need for new or added

capitalization, new technology or new markets, the private sector seeks out joint
50
venture (JV) partners. JV agreements are also inked with local partners when
international chains of establishments desire to establish branches in the country.
Joint venture partners may come from other provinces, other regions, other
countries or other tourism sub-sectors. Oftentimes, joint venture agreements are
entered into to (i) expand existing markets in order to cover those of the JV
partners, (ii) to cover new destinations such as newly-discovered beaches, (iii) to
complement current tours. JV agreements are also resorted in order to import
new schemes, technologies, processes or equipment into the country.
Projects Open to Purely Government Financing
Some projects are understood to be the realm of government but at present, these same
projects are opened for private sector financing due to the lack of funds. Some projects
may be undertaken by the NGAs such as the DOT, LGU such as the Provincial
Government. Government corporations or revenue generating agencies such as the
Philippine Tourism Authority, National Power Corporation and the Local Water Utilities
Authority may also open projects for private sector financing. Examples of tourism and
tourism-related or supported projects that may be purely government funded are,
among others:
o regional tourism planning, monitoring and impact evaluation;

o establishment of tourism planning, monitoring and impact evaluation agencies;
o environmental projects such as coastal resource management;
o regional tourism product planning and development;
o regional tourism marketing and promotion projects;
o sectoral training and capability building projects;
o construction of farm-to-market roads, bridges, seawalls and riverwalls; and
o construction of wharves, ports, jetties and airports.
Financing for purely government-funded projects may come from different sources. The
funding sources may be varied or combined, depending on the activity or the project.
Funding for projects of regular government agencies may be sourced from regular
budgetary appropriations, special funds such as those for the National Centennial
Celebration, grants and aids from the USAID or loans from the ADB or the World Bank for
sector loans. Local government units may fund projects from regular budgets, IRAs,
Congressional contributions, NGA budgets especially for road construction, from bond
flotation (in the case of Cebu), from the sale of assets such as of government land or
from loans. LGUs, under the Local Government Code of 1991, may also incur loans on its
own. The Development Bank of the Philippines (DBP) opened Window III specifically for
LGUs: the DBP's Lending Program for LGUs. To be eligible for the program, LGUs need to
meet the following criteria:
Has beneficiary population of approximately 100,000;

Performed important local, commercial, transportation, industrial, educational or
similar activities;
Has a gross average annual income of at least P 3.0 MM over the last 3 years;
Has a balance or surplus prospective income stream for the next 3 years duly
validate by DBP;
51
Has no adverse findings from banks or suppliers, both for the LGU or current
Executive or Treasurer; and Has shown efficiency in the collection of real estate
and other local taxes.
To qualify for the loan program, projects to be financed should have passed through the
first and second readings and shall be included in the approved local development plan
and public investment programs, duly endorsed by the local development council
through a resolution. Moreover, priority is given to income generating projects such as,
but not limited to, transport terminals, municipal water systems, storage/refrigeration
facilities. public markets and slaughterhouses. Priority is given to projects which are
income generating projects and those which will be operated by the LGU.
Loanable amounts have no limits but are based on total project costs with at least 85:15
debt-equity ratio. Interest rates depend on funds sourced from the DBP shall be based on
super prime rates, renewable quarterly or annually. Maximum terms of 12 years inclusive
of 2 years grace period are based on project requirement and projected cash flows in
monthly, quarterly, semi-annual or annual payments. Loans are to be secured by real
estate and/or chattel mortgages, assignment of a specified portion of the IRA allotment
in the amount equivalent to one (1) amortization payment and insurance policies must
be endorsed in favor of the DBP.
The government may also directly participate in or support but indirectly financially
support the project. Such support may come in various forms such as:
• Guarantees and Guarantee Funds: The government may either directly

guarantee a project or set aside a guarantee fund for sets of projects. Some
government projects requiring large capitalization, especially those financed by
loans from international banks, require a government guarantee and this may be
provided by the sponsoring NGA or LGU. For some loans of the Philippine
government, the government is required by the loan covenant to set aside in the
National Treasury a stand-by guarantee fund that will be utilized in case of sub-
project amortization defaults. The Small Business Guarantee and Finance
Corporation (SBGFC) and the Guarantee Fund for Small and Medium Enterprises
(GFSME) may be accessed for private sector tourism projects undertaken by SMEs.
• SME and Livelihood Financing: Government financing programs are set aside to
encourage the development of specific sectors, such as the SME sector, or
specific activities such as livelihood and entrepreneurial activities. Special
financing lines have been set aside for qualified projects. Tourism and tourism-
related projects may qualify for most of these lines. Examples of these lines are the
Tulong-sa-Tao Micro-Credit Program and Livelihood Corporation funds. Most
government financing institutions have also allocated certain funds for SMEs due
to the recognized contribution of SMEs to regional distribution of wealth and
catalyzing regional economic development.
• Technical Assistance: Although government support may come in cash, most
come in the form of direct assistance, generally in the form of direct service
delivery and technical assistance. Technical assistance in tourism projects may
come in the following forms, among others:
product development, standards setting and accreditation;

manpower development such as in curriculum development and skills
and entrepreneurial training delivery and/or subsidy;
development of marketing and promotional programs, strategies and
schemes;
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site identification and planning, land acquisition and conversion;
technology, machinery and equipment, process, funds, skilled
manpower and raw material sourcing;
joint venture, partnering, negotiations and contract formulation; and
institutional development such as for the organization of tourism NGOs
and PVOs.
Joint Private-Public Sector Financing
Some projects require partnerships between the government and the private sector, not
only to include the business sector but the NGO/PO community as well. These projects
generally have the following characteristics:
¾ require extremely huge costs which the private sector is unwilling to fully
shoulder such as for major infrastructure projects;
¾ require government exposure to encourage the private sector to invest
such as for the development of rural infrastructure;
¾ require a substantial government contribution such as in the form of land;
¾ require provision or improvement of accessibility such as for projects very
far from existing roads;
¾ require government share in the risks such as for projects with high social
components;
¾ require the delivery of a set of services that are mandates of both the
public and private sectors such as for manpower development; and
¾ require government participation in management to ensure adherence
to certain covenants such as environmental sustainability.
Government participation also comes in various forms such as outright equity

contributions, in-kind equity shares such in the case of land and buildings as equity share,
government guarantees for loans, government loans as equity share, counterpart
funding or subsidies in planning and development stages such as in the funding of pre-
feasibility/ feasibility studies, site plans or EIAs and technical assistance in project
development or implementation such as through the provision of technical experts.
Government in project management is dictated by the extent of participation but must

ideally be limited to minority shares. It is also recommended that an eventual
government participation phase-out plan be part of the joint venture agreement.
Examples of projects recommended for joint private-public sector financing include,

among others:
establishment of income-generating infrastructure projects such as construction,

expansion, modernization of ports and airports;
development and generation of new energy sources, preferably of non-
conventional sources such as solar power;
construction of infrastructure projects with high social components
development of tourism sites not readily accessible to major road networks;
manpower development programs such as the development of a sufficient pool
of qualified skilled manpower where the government leads in manpower
planning, training of trainors and curriculum development while the private sector
leads in training delivery;
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conduct of marketing and investment promotion activities such as investment
missions where both sectors cost-share in eligible counterpart costs;
piloting of new technologies, processes, equipment and machineries where the
government funds research and development and the private sector funds
piloting and experimental expenditures;
construction of museums and cultural/historical display centers where the
government
funds the site acquisition and construction of buildings while the private sectors
donates lends its artifacts, heirlooms, antiques and similar art pieces;
restoration of historical and cultural assets where the government shoulders
restoration costs and the private sector donates its technical expertise or
companies sponsor some costs;
conduct of researches and studies where the government carries operational
costs and the private sector acts as resource persons and key informants for free;
and
conduct of tourism events such as festivals where the government and the
private sector both offer sponsorships of certain cost components.
LGU-Private Sector Partnership
The Local Government Code of 1991 enables the local government to undertake
business activities and this allows LGUs to partner with a private sector in purely business
activities.
Huge infrastructure projects with income generating capabilities may also have joint
LGU-private sector equity participation, with the LGU usually having minority share but
sufficient management voice. In addition, government, as a strategy, puts in seed
capital in order to entice the private sector to invest in the project.
BOT and BOT Schemes
In order to encourage the private sector to participate in priority economic projects

which were historically not of private sector interest, the government developed the BOT
Program through the passage of the BOT Law. Since then, the private sector has been
actively involved in major infrastructure projects such as the construction of the MRT lines
and other road projects, power generation and distribution and the Metro Manila water
supply improvement and upgrading project.
The Build-Operate-Transfer (BOT) program has generated encouraging results such that
variances such as the Build-Operate-Own and the Build-Transfer-Operate schemes have
been developed. Examples of tourism or tourism-related or -supportive projects which
are more popularly acceptable to BOT and BOT-variations are, among others:
• power generation and/or distribution, especially for regional, municipal and

estate types of projects;
• transport projects such as toll roads and highways, port and airport expansion,
modernization, facilities operation and service provision;
• transport services, including bus and other transport terminals;
• municipal water supply systems;
• telecommunication services;
• municipal waste disposal systems;
• public markets, slaughterhouses and abattoirs;
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• nature parks management and eco-tourism estates;
• health delivery and health management; and
• tech-voc education and skills training institutions.
Overseas Development Assistance (ODA)
ODA may come in the form of donation of buildings, machineries, equipment, tools,
computers and other hardware, grants in the form of technical assistance from experts,
subsidized or soft loans or the provision of services such as construction management
and free medical care. ODA may come from other governments such as the EEC,
international development organizations such as the UNDP, private sector organizations
such as the World Tourism Organization, sectoral organizations such as International
Travel Agents Associations, international loan agencies such as ADB, special government
assistance windows such as the JICA and international civic organizations such as the
international Rotary chapters.
ODA may come in one form or may come in combinations. ODA may be purely
technical assistance, may be a loan with a technical assistance component, may be
purely in the form of a loan. Some ODAs come without any Philippine counterpart
contributions while some ODA may come with Philippine counterpart requirements such
as in the form of the following:
contributions in terms of land, building, personnel services, local transport for

expatriates and project operations;
provision of office space, furniture, fixtures and equipment and project supplies;
provision of local counterpart experts;
outright project fund contributions;
subsidies as for purchase of local raw material inputs;
policy or program support commitments;
provision of loan counterpart funds; and
guarantees for foreign and local loans.
Tourism and tourism-related or -supportive projects recommended for Overseas

Development Assistance include:
tourism planning, monitoring and impact evaluation, including the conduct of

researches and studies;
tourism data banking and establishment of a regional tourism data bank and MIS;
development of tourism marketing and promotional programs and projects;
site assessment, development and planning for government-owned, -sponsored
or -supported projects;
product development such as for developing new or expanded tourism
destinations or tour clustering and multi-activity tours;
institutional and organizational development such as for the conduct of tourism
study tours and observation missions;
manpower development and capability building;
social development such as improvement of health delivery services;
transport planning;
tourism environmental studies;
conduct of historical and cultural researches, studies, programs and projects,
including for IPs; and
establishment of cultural and historical centers such as museums.
55
Official ODA may be accessed only through government channels. International
development agencies and those from other governments require the endorsement of
the National Government, often through NEDA, through the form of a government-to-
government agreements. Such covenants spell out the terms of the ODA related to what
is expected from both governments, the implementing agencies and the project
beneficiaries, the expected project outputs and results and sometimes even follow-on
activities. The contents of the ODA agreements take the form of commitments and are
necessarily binding.
Loan and financing ODA with Philippine counterpart funds, subsidies or guarantees
require Department of Finance, Department of Budget and Management and National
Treasury certifications that the counterpart funds are indeed officially appropriated and
deposited in trust with the National Treasury solely for specified project purposes. The
ODA agreement also specifies fund withdrawals and other deposit and withdrawal
preconditions, roles and responsibilities of concerned parties and repayment/availment
schedules of project beneficiaries. Monitoring and impact assessment schemes
accompanying ODA agreements cover targets and deliverables.
ODA from private sector business, civic and sectoral organizations do not take the nature
of official documents but are nevertheless binding on all parties concerned. However,
agreements covering such types of ODA are equally binding, albeit the fact that these
are spearheaded by the private sector. Although the local lead agencies are
counterpart private sector organizations, certain government agencies play active roles
in their implementation and such participation infuse a semi-official nature on the
agreement and in project implementation.
5.2. Tourism Investment Incentives
As the Philippine tourism industry is expected to continue to grow, there will invariably be
greater demand for tourism superstructures, facilities and services.
Hotels, resorts and other types of accommodation facilities especially in the regions will
have to be built to address the lodging requirements of both foreign and domestic
travelers. The need for improved accessibility will likewise open investment opportunities
in air, water and land transport operations. In response to worldwide demand for
integrated tourism development, The Department of Tourism is also encouraging
investments in tourism estates, historico-cultural heritage projects and ecotourism and
agri-tourism projects.
The investment incentives framework for tourism development in Caraga is governed by

and contained in existing policy framework, to wit:
a. Executive Order No. 63
This Executive Order grants incentives to foreigners investing at least US $50,000 in a

tourist-related project or in any tourist establishment as determined by the Committee
created in the same law.
E.O. 63 grants the foreign investor a Special Investor’s Resident Visa (SIRV) for as long as
the investment subsists. The E.O. also recognizes the right of the investor to remit earnings
from his investment in the currency in which the investment was originally made and at
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the exchange rate prevailing at the time of remittance. In case of liquidation, the
investor is also allowed to repatriate the entire proceeds f the liquidation of the
investment in which the investment was originally made. Lastly the right of succession is
also recognized.
An investor may apply for SIRV at the Philippine Embassy or Consulate in his home
country or place of residence. If already in the Philippines, the investor may file the
application at the Department of Tourism for endorsement to the Bureau of Immigration.
b. Omnibus Investment Code(Executive Order No. 226)
This Executive Order authorizes the Board of Investments to grant fiscal and non-fiscal
incentives for local and foreign investors engaged in tourism activities listed under
Investments Priorities (IPP).
Incentives granted included income tax holiday (4-6 years for non-pioneer and pioneer
projects, respectively) and the employment of foreign nationals.
c. Foreign Investment Act of 1991 (Republic Act No. 7042 as Amended by Republic
Act No. 8179)
With the passage of Foreign Investment Act, foreign nationals are now allowed to invest
up to 100% equity participation in new or existing economic activities including
restaurant operations that are incidental to the hotel business. Foreign equity
participation of up to 40% is allowed in the operation and management of utilities (i.e.
land, air and water transport).
d. Build-Operate-Transfer (BOT) Law (Republic Act No. 6957 As Amended by

Republic Act No. 7718)
The BOT Law authorizes the financing, construction, operation and maintenance of
infrastructure projects by the private sector. It allows national implementing agencies
and local government units to enter into BOT arrangement as a means of encouraging
the participation of foreign and local companies in the country’s infrastructure
development program.
Tourism estates including related infrastructure facilities and utilities are among the priority
projects eligible for BOT implementation.
Backed up by a wide range of credit enhancement and investment incentives, the BOT
Law opens to the private sector another window of investment opportunity.
Salient points of the amended BOT Law include the following:
• Provides flexibility to both the government and private sector allowing the
use of variety of arrangements under the BOT scheme to suit specific
conditions;
• Broadens the type and variety of projects that can be implemented
under the BOY process;
• Recognizes the need for private investors to realize rates of return
reflective of market conditions;
• Institutionalizes government support for BOT projects; and
57
• Allows government agencies and local government units (LGUs) to
accept unsolicited proposals.
The BOT Law mandates the BOT Center to coordinate and monitor all projects
undertaken under RA 7718. The BOT Center is empowered to actively promote all modes
of private sector participation in the implementation of development projects in the
country. Under the Administrative Order 67, the BOT Center expands the coverage of the
program to include the BOT scheme, joint venture agreement, concession agreement,
lease and contractual management, among others.
The BOT Center specifically involved in:
• Project Development
• Policy advocacy
• Institution-Building
• Marketing and promotions
• Monitoring
e. Special Economic Zone Act of 1995 (Republic Act No. 7916)
This Republic act provides for the legal framework and mechanism for the creation,
operation, administration and coordination of Special Economic Zones in the Philippines,
creating for this purpose, the Philippine Economic Zone Authority (PEZA) and for other
purposes.
On October 7, 2002, the DOT entered into a Memorandum of Agreement (MOA) with
PEZA that will grant Special Economic Zone status to tourism development zones and
tourism estates upon registration with PEZA subject to the issuance of the required
Presidential Proclamation.
The PEZA consider for registration tourist-oriented enterprises to be located in PEZA-

registered tourism development zones/tourism estates which are endorsed by the DOT as
enterprises that will be established and operated with foreign tourists as primary clientele.
Incentives available are:
a. Up to 100% foreign ownership of locator-enterprises;

b. Income tax holiday (ITH) for six years for pioneer firms and four years for non-
pioneer firms. If a non-pioneer firm is located in a less developed area, it shall
be entitled to six years ITH;
c. After the ITH period, the option to pay a Special 5% Tax on Gross Income, in
lieu of national and local taxes except real property taxes;
d. Tax and duty-free importation of capital equipment required for the technical
viability of registered tourism activities;
e. Special Investor’s Resident Visa;
f. Employment of foreign nationals;
g. Other incentives as may be determined by the PEZA Board
f. Retail Trade Liberalization Act of 2000 (Republic Act No. 8762)
This is an act liberalizing the retail trade business, repealing for the purpose Republic Act
No. 1180, as amended, and for other purposes.
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With the enactment of implementation of the Trade Liberalization Act of 2000, up to
100% foreign equity participation in restaurants is now allowed for enterprises with a paid-
up capital of US $ 2.5 million
6 THE CLUSTER MAP
Understanding the cluster map is parallel to understanding the Industry Clustering

concept. By definition, Industry Clustering is the tendency for like-minded firms and
talents to cluster in specific geographic areas to achieve synergy, facilitate business
transactions and to utilize hard and soft infrastructure. Michael Foster defined a cluster
as a geographically proximate group of interconnected companies and associated
institutions in a particular field.
One major benefit of Industry Clustering is that cluster relationships and inter-linkages
facilitate collaboration to overcome shared problems and obstacles, and maximize
resources. With these, it is important that elements of the tourism cluster and its
corresponding functions/roles be properly identified to be able to interpret its
relationships. The diagram below shows the components of the tourism cluster.
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Tourism Cluster Map
Customers Domestic Foreign Tourists Excursionist
Marketing & Promotion Support
Product &
Service
Hotel Resto Resort Homestay Tour BrgyTour
Providers Operator Operator Operator Operators Operator Operator
Supporting
Transportation Souvenir Shops Food & Entertainment/ Wellness
Industries Services Communicatio Beverage Recreations (Spas,
n Facilities Massage
Services (Bars, theatres) services
Gov’t. ( DOT, Academe Financial Industry Airports &

DENR , TESDA, Institution. Associations Sea Ports Roads
DTI LGU PNB
Specialized
Infra
Water Power Hospitals NGOS POs Civic &
Religious
G
Tri-Media Business Org. Tri-media Business Culture & Arts

( Tourism Tourism (Tourism Press Organizations
Press Core) Champions ) Corps)
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7. SWOT Analysis
7.1.Strengths and Advantages
The development of the Region’s tourism industry draws strength from and is
favored by the abundance and quality of its natural and man-made resources --
habitat of exotic wildlife, rich cultural and historical past and strong local
initiatives to develop the sector. The following summarizes Caraga’s strengths and
advantages for tourism development:
a. Natural Resource Endowments for Tourism-Related Activities
World-class white sand beaches,

lagoons, waterfalls and complex
of caves;
Extensive forest cover (natural
and commercial) including the
presence of other industrial crop
plantation, e.g., oil palm;
Mountain peaks and ranges and

extensive valleys of rich
biodiversity; and,
Islands, coves and marshlands of

Picture 5.1. Caraga is famous for its white sand
diverse features. beaches comparable to Boracay and Bali. Above
shows the Cagwait White Sand Beach in Cagwait,
Surigao del Sur.
b. Rich Historical and Cultural Heritage
Caraga’s prehistory could be dated back 500,000 years ago; the Balanghays
discovered in Libertad, Butuan City are carbon-dated at 320 B.C.
Masawa, Butuan City has already been recognized and declared by Vatican
as the seat of the First Mass in Mindanao.
The biggest naval battle in the Philippines during the Second World War
occurred in the Surigao Straits.
Indigenous people still roam the Region’s hinterlands.
c. The ‘Gateway to Luzon and Visayas’ and Strategic Location Within the Context of
the Emerging Mindanao Pacific Rim Growth Corridor
The Maharlika Highway connecting Mindanao and Luzon via the Ferry in
Surigao del Norte, passes through and practically bisects the region.
It fringes the Mindanao Pacific Rim Growth Corridor, an emerging growth

center for regional cooperation with its outlying Pacific neighbors, particularly
Palau, Federated States of Micronesia, Guam, Northern Mindanao and
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Pohnpei, on one hand, and Australia and New Zealand, on the other.
Strategic development actions are ongoing to operationalize such initiative.
d. Strong National and Local Partnership for Tourism Development
There now exist tourism councils at the provincial and city levels; a number of
such councils have also been organized in some municipalities, especially
those designated as growth centers.
Since 1993, tourism development planning and promotions have been

initiated. Today, all provincial and city LGUs have formulated marketing
slogans and brand names while a community-based tourism master planning
and capacitation program has been launched with assistance from the
CIDA-PCLGSP.
7.2. Challenges and Obstacles
Caraga has vast potentials for tourism. The growth and development of the
sector, however, is constrained by the following:
a. Underdeveloped Transport Infrastructures and Telecommunications Facilities
Butuan City, Surigao City and the urban centers of major towns have more or less a
well developed road infrastructure. The major road network in the coastal areas,
however, are still underdeveloped with few lateral roads linking the western-eastern
portions of the region.
Commercial air passenger traffic is serviced by three secondary airports (Butuan City,
Surigao City and Tandag).
Most of the telecommunications facilities are concentrated in Butuan City and, to a

lesser extent, in Surigao City. Regional networks are currently being put in place by
the different telecommunications companies franchised for the purpose. A few
urban centers (Mangagoy, Bislig and Tandag, Surigao del Sur) have communication
facilities for international access. All municipalities, however, are linked through the
PNP-based communications system.
b. Lack of Quality Accommodation Facilities
Only over 100 accommodation facilities exist for the region. Most of these are lodging
or pension houses. There are 21 hotels, most of which are of standard class and are
concentrated in Butuan City. There are 19 beach resorts, some with limited
accommodation facilities; and 13 inns. These facilities have an estimated combined
capacity of 1,787 rooms and 3,126 beds.
In the short term, the capacity of these facilities appear sufficient to accommodate
the expected visitor arrivals. There is the need, however, to improve the quality of
these facilities to enhance their attractiveness. In the long term, there is the further
need to expand existing capacity.
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c. Slowly Vanishing Traditional Culture
Acculturation and technological improvements were the primary factors causing the
threat on traditional cultures. The Indigenous Peoples have slowly assimilated into
their traditional culture some of the lifestyles and practices of the lowland migrants.
This is exacerbated by the growing lack of appreciation of traditional culture and
local history and aggravated further by the greater emphasis put on science and
technology in curricular offerings.2
The forested areas and hinterlands used to be the traditional domain of indigenous
groups. The unmitigated natural resource exploitation held in these areas and which
characterized Caraga’s past -- some illegal activities are claimed to be still ongoing -
- resulted in the disruption of indigenous lifestyles. Together with the sporadic clashes
between the military and the insurgents, the tribal groups either moved higher into
the mountains or were resettled on the more populated lowland areas.
For the tourism industry, the loss of skills and oral tradition associated with traditional
cultures would thus become a disincentive.
d. Anxieties about Caraga’s Peace and Order Situation.
As affect of the peace process, Caraga today is relatively peaceful. Yet, it still suffers
from the negative impact of the sporadic clashes between the military and the
insurgents in the recent past. Anxieties on the peace and order situation still prevail.
Unless finally resolved, the unstable peace and order situation could militate against
drives for faster tourism growth.
e. A rather alarmingly fast rate of developing tourism assets and high level of
interest to pursue tourism activities.
The fast growth of Caraga’s tourism industry is indicative of the emerging

attractiveness of the region as a destination. This could spur wanton development of
tourism assets for short term commercial profits without due regard to their long term
sustainability.
The declaration as Protected Area of Caraga’s two important nature-based assets,

the Siargao Island Protected Land and Seascape and the Agusan Marsh Wildlife
Sanctuary are positive indications. The managements plans for these areas, however,
still need to be finalized as basis for guiding sustainable development activities. Thus,
plans to put up more tourist facilities in Siargao Island need to be considered very
carefully. Figure 5.1 shows the location of the two protected areas.
Also, by Year 2011, over 760,000 ha of TLA areas would have expired, rendering these
as open access. These areas contain some of the tourism assets and are the habitat
of some of Caraga’s exotic wildlife species. These are additional attractions for visitors.
Unless protected, the tourism value of the these resources will diminish.
Another area which is vulnerable to rapid tourism development is the role and
welfare of womenand children. Women are positively and negatively affected by
tourism: positively in the sense ofopening opportunities for women to participate in
beneficial activities like livelihood, socialpromotion and education; negatively in the
sense of being exposed to exploitation and abuse forreason of their sex. This problem
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which is well documented in the Philippines and other countries shall be recognized
in Caraga as well and shall warrant a cautious planning of GAD in the Caraga
tourism areas.
7.3 The Tourism Development Imperatives
Tourism is now recognized as an important sector of any country’s economy. Its

development, therefore, is an added spur to help achieve national and regional
development objectives. Such development helps attain higher gross value-
added and, more importantly, provide employment and livelihood opportunities
for the citizenry.
For Caraga, the role of the tourism sector needs to be enhanced. Its
development, however, require various imperatives such as the careful balancing
of the need to maximize the value-adding character of the region’s natural
resources upon which most, if not all, tourism activities are based and of the need
to preserve their natural quality for long-term sustained yield. The following
summarize the development imperatives for Caraga’s tourism:
a. Development of the transport infrastructure
Priority must be given to the following:
Improvement of the coastal road access linking the growth and service
centers and jump-off points for identified priority tourist destinations in
Surigao del Norte and Surigao del Sur
Improvement of lateral roads linking the eastern and western segments of

the region
Improvement of the Surigao Airport to accommodate higher capacity

commercial flights and increasing the number of commercial air traffic in
accordance with projected demands
b. Expansion of accommodation and other support facilities and services
In the short term, there is the need to improve the quality of the present
accommodation facilities and to install additional telecommunications
facilities. In the medium term, the expansion of accommodation capacities
should be pursued.
c. Sustainable development of tourism assets
Development of site-specific tourist destinations should be pursued within the

context of sustainable development.
d. Investment incentives and promotions
The public sector investment capability is limited. This imperative requires the
promotion of public-private-community partnership or joint ventures for
investments in tourism-related development activities.
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For tourism promotions and marketing, there is the imperative of pursuing the
same within a unified or integrated framework in order to achieve greater
efficacy.
e. An integrated institutional mechanism for sustainable tourism development
This imperative covers the following concerns:
Strengthening of the various organizational hierarchies for a unified

tourism development efforts at all level
Clarifying the roles of the various local government units in tourism

development
Manpower development for the various needs of tourism-related activities
Strengthening broad-based advocacy for sustainable tourism
8. Strategic Directions
8.1 Vision for Tourism Development: Regional Level
The DOT Regional Office, Tourism Councils and local government units have
formulated the regional-level vision as the framework for tourism development.
This Vision Statement is as follows:
By the Year 2008, Caraga Will Be the Major Ecotourism Destination

and Investment Haven, a Show Window of Culture and History in
Mindanao, Where People Are Empowered and Socio-
economically Sound, and Where the Ecosystem Is Protected,
Sustainable and Accessible.
8.2 The Shared Practical Vision for Tourism Development: Local Level
Through the participatory nature of the master planning approach, local-level

visions on tourism were generated by the various groups of stakeholders. These
Vision Statements of various local government aggrupations are summarized
below:
Butuan City
Show Window of History, Culture and MICE Destination in Mindanao

in the Context of Sustainable Development
The above is founded on the following specific vision pillars:

Historic Butuan
Cruising Historic Butuan
City of Museum and Historical Sites
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Cosmopolitan City with World-Class Amenities
Sustainable Tourism Development
Convention or Conference Center
Agusan del Norte
By 2008, Agusan del Norte Is: an Internationally Acclaimed

Historical Cultural and Ecotourism Destination Where Adventure
Never Ends.
The specific foundational pillars of the above vision are:

Infrastructure Facilities and Utilities of International Standard in Place
Identified Tourist Attractions Developed, Preserved and Enjoyed
Fully-developed Ecozone in Support of Tourism
Institutionalization of Tourism Administrative Support
Internationally Acclaimed Provincial Identity
Agusan del Sur
By Year 2008, Agusan del Sur Will Become a Major Tourist

Destination with Unique Tourist Sceneries and Cultural Events
Supported by Environment-Friendly Facilities and Amenities
The foundational vision pillar of Agusan del Sur’s Vision are:

Accessible and Fully Equipped Facilities that Satisfactorily Cater to Tourists
Needs
Protected and Sustainable Environment
Preservation of Culture and Upliftment of Socio-economic Activities
A Well-known Tourist Destination
Surigao del Norte
A World-Class Tourist Destination Where an Empowered Local

Community Actively Participates in and Benefits from a Sustainable
Industry That Promotes Socio-Cultural and Environmental Preservation.
The specific vision pillars:

Empowered Community Actively Involved in Tourism Development
Availability of Hi-Tech Telecommunications and Transportation Facilities
World-Class Tourist Destination
Availability of World-Class Amenities
Socio-Economic Stability That Respects Environment and Cultural Heritage
Sustainable Tourism Projects in Place
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Surigao del Sur
By the Year 2008, Surigao del Sur Is the Major Tourist Destination in
Caraga, Provided with Infrastructure Facilities, Utilities and Amenities
Where People Are Empowered and Communities Ecologically
Sound in the Context of Sustainable Development.
The foundational pillars of the above Vision are:

Improved Tourism Infrastructure Support Are in Place
Improved Tourist Facilities and Support Utilities in Place
Socio-Economically and Politically Stable
Ecologically Sound Communities
Sustainable Development
Strong Political Will Attained
Site of International National Sports Tourism Activities
8.3 Goals, Objectives and Purpose of the Master Plan
The goals and purposes of the Tourism Background Paper are to:
Provide a framework and direction for the government and the private
sector in developing the tourism industry in the region, anchoring on the
tourism attractions that will be developed, improved and promoted as a
package of attractions along strategic locations; and
Enhance the environmental, historical, and cultural assets of the region as

tourism resources and promote their conservation and preservation.
The Tourism Background Paper is a programmatic means to help attain

national and regional development objectives, particularly along the
following concerns:
Regional balance;
Conservation of natural resources, historical and cultural heritage;
Local autonomy and community empowerment; and
Socioeconomic stability.
The Background Paper, therefore, seeks to achieve the following

development objectives:
Provide benchmark data from which the industry can chart direction for
growth
Provide pool of ideas from which projects can emanate
Generate appreciation for the dynamics of the industry
Increase tourism revenues, thereby increasing the sector’s contribution to
the gross regional domestic product;
Facilitate the development of infrastructure linkage support to tourism
development;
Define the spatial organization of tourism assets; and
Provide the institutional mechanism for catalyzing sustainable tourism.
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9 ANNEXES
ACTION AGENDA : Proposed Alternative Inter-Market Connectivity
a. Target Market Segment
Caraga Region has evolved into an alternative destination to foreign tourists specifically
the Korean, Japanese and Chinese tourists. The region capitalizes on its unique natural
attractions and rich cultural heritage which traces historical bonds among our Asian
neighbors. This is one tourism advantage that captivates Asian visitors’ interests in going
to Caraga.
The Korean, Japanese and Chinese tourists are Caraga’s emerging markets. They usually
come in groups on cruise thereby, dominating the region’s top five foreign visitors in 2004
Tourist Arrival Data. The recorded volume is expected to increase given the growing
trends of cruise tours. Caraga Region with its abundant bodies of water is likewise
favorable to these types of transport modes.
Similarly, the region’s emerging Asian markets are the focused target markets considered
by the Department of Tourism National Office. Specific programs and projects are
tailored to support efforts in attracting these focused markets.
b. Transport Nodes
Given the projected market segment, various transport nodes were determined. The
presence of major ports of entries or docking areas is a primary consideration in
identifying these nodes. Projected influx of tourists is via cruise on tour thus, the following
locations with ports and docking areas as major gateways were considered as follows:
1. Nasipit Transport Node

2. Camiguin-Tubay Transport Node
3. Surigao City Transport Node
4. Bislig City Transport Node
c. Types of Tours
The unique tourist destinations, attractions and activities an area can offer are also
requisites of a transport node. A more than the usual experience makes up an excellent
tour package. Caraga Region known as the land of extremes and superlatives lacks
nothing to offer for a more than the usual experience to visitors. The following types of
tours are available in the 5 identified transport nodes:
I. Nature Tour
1. Island Hopping
2. Wild Life Observation Tour (Agusan Marsh Wildlife Sanctuary)
3. Bird Watching
4. River Cruise
5. Lake Cruise
II. Cultural Heritage Tour
68
Visit to:
1. Ancestral Houses
2. Old Churches
3. Museums
4. Historical Sites
5. Religious Sites
III. Adventure Tour

Visit to:
1. Surfing Sites
2. Dive Sites
3. Mining Tunnels
d. Cruise Tour Routes
Tourism flow is traced through the identified tourism nodes. Upon entry to specific areas,
various activities and destinations to visit can be lumped into specific Tour Packages. The
following traces possible routes of our target market on cruise tour:
1. Nasipit Transport Node
Heritage Tour &Nature Tour
From Nasipit Port as point of entry, tourists can take a Heritage Tour. The first itinerary
will be Historic Butuan, the region’s regional center. The city is only a 20- minuteslamd
trip drive from Nasipit. A City Tour which will highlight visits to the Regional Museum
and Balanghai Shrine will interest historians on cruise. Shopping for souvenirs will be
part of the tour package. Cabadbaran, Agusan del Norte is also an interesting area
for a Heritage Tour. It showcases ancestral houses and old churches. One will only
take a 30-minute land travel from Butuan City. Other destinations are historical sites,
ancient relics and the miraculous church of Magallanes, Agusan del Norte. It is only
45 minutes away from Butuan City by land. Tubay is also an excellent area to visit for
a sand and sea destination.
Wildlife Observation Tour
Nature lovers can opt for a Wildlife Observation Tour in Bunawan, Agusan del Norte.
The jump-off point to Agusan Marsh Wildlife Sanctuary is approximately two hours
away from Butuan City by land. The tour offers a river cruise and an observation tour
of the wild flora and fauna of the Mysical Wetland of Agusan. The area is also host to
Indigenous People, the Manobos, natives of Agusan who lives in the area in unusual
stilt houses and floating cottages.
2. Camiguin-Tubay Transport Node
Nature & Heritage Tours
From Camiguin as point of entry, cruise passengers can take an alternative route for
a Nature Cum Heritage Tour via Tubay, Agusan del Norte. The area boasts of long
stretch of beaches and a mountain resort. Visits to heritage sites in Tubay and
Cabadbaran will only take 20 minutes and 30 minutes land travel respectively. More
69
exciting, is the trip to Surigao City for an Island Hopping Adventure. From Tubay,
Agusan del Norte, Surigao City is 1 ½ hour drive by land.
3. Surigao City Transport Node
Island Hopping
Surigao City can also be a major point of entry. The City Island of Adventure offers
splendid natural wonders. Hop from island to island and explore more as one visits
Sagisi , Buenavsita and San Jose.
From Surigao City, one can go further and visit Asia’s surfing Paradise, Siargao Island.
The area is host to the famous annual International Surfing Cup Competition in
General Luna. Enjoy the white sand beaches and dare the waves of Siargao. More
adventure awaits divers as they explore more astounding dive sites in the area. There
are more islands to see - Guyam, Daku and Naked Islands
4. Bislig City Transport Node
Bird Watching
Bird watchers can find their paradise in Bislig City’s Tinuy-an Falls. What is more
captivating is the majestic, three-tired falls enclosed by heavily forested hills. Not only
migratory birds can be found in its forests but other forms of wildlife thrives in the area.
The city is also host to PICOP, a large forest concession, which is an attraction in itself.
Bislig City can be an alternative itinerary for the Wild Life Observation Tour. From
Bunawan, one can take a three-hour land trip drive worth for bird watcher
enthusiasts.
70
ALTERNATIVE TOURISM FLOW
11/2 HRS.
(96 KMS.). 1HR. 45 MINS.
AG USAN SURIGAO
D EL N O RTE
15 MINS. CITY SIARGAO
TUBAY (30 KMS.)
20 MINS.
2 HRS. (20 KMS.) A G USA N
D EL N O RTE
A G USA N
CABADBARAN
D EL N O RTE
MAGALLANES
BISLIG CITY
30 MINS.
CAMIGUIN 45 MINS.
(30 KMS.)
3 HRS.
(105 KMS.)
45 MINS.
AGUSAN
DEL SUR
BUNAWAN
BUTUAN
2 HRS.
CITY (101KMS.)
NASIPIT
- DOCKING AREA
71
INDICATIVE COST OF PROPOSED PROJECTS
Program / Project Location / Description Indicative Periods Remarks

Costs
S M L
I. Roads & Bridges 20,210.4
3,574.1
1.1 Surigao – Davao Coastal Road (SDCR) Improvement/rehabilitation & 2,170.0 ● ● ODA: DPWH
construction of bridges: From Bacuag,
SDN to Lingig, SDS
1.2 East- West laterals DPWH
a. San Fransisco – Barobaro Road Completion of concreting 8.0 ●
b. Trento – Bislig Road Improvement/concreting 80.0 ●
c. Prosperidad – Azpitia- Lianga Road Improvement 80.0 ●
d. Bayugan-San Miguel-Tandag Road Completion/improvement 645.8 ● ●
e. Butuan-Tandag Road Concreting 10.0 ● ●
1.3 Tubay–lake Mainit Construction/concreting 400.0
1.4 PJFH-PASu Access Road Banawan, Concreting of access to jump- ● DENR, PAMB
off-point 0.3 members
2. Airport Development 8,225.3
2.1 Surigao City Airport Expansion Surigao City, Upgrading of airport facilities ●
& expansion of runway to accommodate 200.0 DOTC
large aircrafts
2.2 Siargao Feeder Airport Del Carmen, Siargao Island, Runway ● DOTC
expansion and terminal building 19.9
2.3 Tandag Airport Improvement Project Awasian, Tandag, Runway extension, ● DOTC
installation of lighting and water facilities 193.8
2.4 Bislig Airport Rehabilitation project Bislig, SDS. Rehabilitation 100.0 ● DOTC
2.5 Butuan Airport Improvement Project Butuan City, Improvement and expansion ● ● Ongoing through
of facilities 7,711.6 the 3rd Airport
Loan (ADB)
3. Seaport Development 301.0
72
Dapa, Siargao Island, Development of DOTC
3.1 Siargao Port Development Project cargo handling and passenger terminal 40.0 ●
infrastructure and facilities
Lipata, Surigao del Norte, Improvement 10.0 ● PPA
3.2 Lipata Ferry Terminal and expansion of RORO Facilities
PPA; included
Bongtud, SDS. Rehabilitation , dredging, under a 25-year
3.3 Tandag Port Development Project extension of inward RC wharf, installation 121.0 ● Development
of power, water, & administration facilities. Plan
PPA/NANIE; FS &
Nasipit, AND. Improvement & expansion MP was to have
3.4 Nasipit Port Expansion Project of facilities ● been prepared
PPA bidding the
3.5 Surigao Port Expansion Project Bilang-Bilang Bay, Surigao City, ● project under BOT
Improvement & expansion of facilities or JV
3.6 Bislig Port Development Project Improvement & expansion of existing port 50.0 ● PPA
Development of required ort PPA
3.7 Aras-Arasan Port Development Project infrastructures and facilities including Roro 80.0
ramp and passenger terminal facilities to ●
accommodate inter-island ferry vessels
LUWA, Water
4. Caraga Water Supply & Distribution Region-wide: Upgrading and expansion 8,110.0 ● ● ● Districts, LGUs
NAPOCOR.
5. Power and Energy/Electrification Region-wide: Expansion/extension of ● ● ● Electric
transmission Cooperatives,
LGUs
DOTC, private
6. Telecommunications Region-wide: Installation, improvement ● ● ● telecom providers
7. Waste Disposal & Management Region-wide: Installation of municipal ● ● ● LGUs
waste mgt system
ACCOMODATION DEVELOPMENT 1,321.5 Private sector
investment
♦ Short- Term All types, additional 635-room capacity,
70% occupancy 300.4 ●
73
♦ Medium – Term All types, additional 1,078 room-capacity,
♦ Long – Term All types, additional 1,078 room-capacity,
CULTURAL PRESERVATION AND ENHANCEMENT DOT as Lead
Establishment of two (2) Cultural Villages 6.8 Implementing
Agency
♦ Interpretive Centers Two in the Agusan Marsh Area; one in the
Butuan Zone 1.5 ●
♦ School for Living Traditions Two: Agusan Marsh Sub-Zone and Butuan
Zone 1.8 ● ● ●
♦ Home hosting Training DOT’s regular
* ● ● ● function
♦ Documentation of Rituals, etc. Research and documentation 1.0 ●
Three: 2 in Agusan Marsh area; 1 in the
♦ Trading Outlets Butuan Zone 1.5 ●
DOT’s regular
♦ Capability Building Training * ● ● ● function
DOT’s NM/GUs
♦ Community Museum Improvement (Cabadbaran); 21.0
establishment:
ENVIRONMENTAL MANAGEMENT 21.0
TA for LUP;
♦ Land Use / Management Zoning Completion of LUPZ Plans / Ordinates 5.0 ● Regular function
DENR’s regular
function; EIS
♦ Enforcement of EIS Information. Training, Enforcement preparation by
* ● ● ● proponents
* ● Regular function
♦ Community Tourism Training
DENR’s regular
♦ Env’l Quality Control/Management Capability building, enforcement * ● ● ● function
IFC campaign, linkages with DECS/tour DENR, DECS
♦ Environment Education/Sign ages operators 5.0 ● ● ●
74
♦ Research on Biodiversity Research in the protected areas 11.0 ● ● ● DENR
MARKETING AND INVESTMENTS PROMOTIONS
11.0
♦ Design/implementation of marketing strategy Design/implementation of a unified Seed fund;
marketing strategy 5.0 ● ● ● succeeding
requirements to
be shared by
participating
agencies and
LGU’s
Seed fund; others
to be shared
♦ Investments fora and symposium Conduct of fora/symposia on investments 1.0 ● ● ● proportionately
♦Tourism Market Information Infrastructure Establishment of TMII 5.0 ● To be shared by
the participating
LGU’s and DOT
INSTITUTIONAL DEVELOPMENT AND POLICY 38.8
SUPPORT
♦ Organization & Operationalization of an Generating support/advocacy for 7.5 ● ● ● To be sourced
Integrated Coordinating Structure for Tourism institutionalization efforts; creation of the from participating
Development TDCAC agencies
♦ Institutional/Manpower & Skills Development Training 15.0 ● ● ● Regular function
o Tour/Narrative Guide Training
o Home hosting
o Service Standards & Skills
♦ Institutionalization of TCs/Related Strengthening of TCs; organizing tourism 7.5 ● ● ● DOT, Tourism
Associations associations Council
♦ Tourism Monitoring, Evaluation & Re – Continuous monitoring, evaluation and re- 3.8 ● ● ● DOT/Tourism
planning planning Councils, ONGAs,
LGUs
Total Indicative Costs 21,604.4
75
Directory of Tourism Stakeholders
Agusan del Norte
Company Name Garay Beach Resort I Company Name Rose Beach Resort
Address Tinago, Matabao, Address Tinago,Buenavista,
Buenavista, Agusan Norte Agusan del Norte
Year Started 1980 Year Started July 2004
Contact Person Rosminda Climente Contact Person Frician / Norie Garces
Position Owner Position Owner
Contact Numbers Contact Numbers 09217853317
Type of Business Resort Operator Type of Business Resort Operator
Form of Org. Single Proprietorship Form of Org. Single Proprietorship
Available Facilities Cottages Available Facilities
Company Name Garay Beach Resort 2 Company Name Vinapor Blue Waters
Address Tinago, Matabao, Address Vinapor, Carmen,
Buenavista, Agusan Norte Agusan del Norte
Year Started 1993 Year Started 2003
Contact Person Susan Raganobag Contact Person Verginia C. Masongsong
Position Owner Position Manager
Contact Numbers (085) 343-5097 / Contact Numbers (085) 343-3786
09193078226
Type of Business Resort Operator Type of Business Resort & Restaurant
Available Facilities Cottages Available Facilities Rooms, Restaurant,
Cottages
Company Name Carmen Veranda Beach Company Name Kitana Beach

Address Mantata, Tagcatong, Address Tagcatong, Carmen,
Carmen, Agusan Norte Agusan del Norte
Year Started Year Started
Contact Person Roger S. Ramirez Contact Person Marites Y. Mercado
Position Manager Position
Contact Numbers 09162914073 09196708664 Contact Numbers 09208037866
09172546738
fax no (085) 342-7367
Type of Business Resort & Restaurant Type of Business Hotel / Resort Operator
Form of Org. Single Prop & Partnership Form of Org. Single Proprietorship
Available Facilities Cottages, Function rooms, Available Facilities Rooms, Disco, Beach
Halls
Company Name Secuanda Resorts Dev’t. Company Name Casa Alburo, Inc.
Corporation
Address Brgy. Tolosa, Cabadbaran, Address L. Dagani cor. Mortola Sts.,
Agusan del Norte Cabadbaran, Agusan
Norte
Contact Person Rodulfo B. Sevilla Contact Person Crispina A. Cosicol
Position Chairman Position Operation Officer
Contact Numbers (085) 818-1341, 343-0926 Contact Numbers (085) 343-1148 / 818-0151
Fax no. 818-0005
Type of Business Hotel & Resort Operator Type of Business Hotel & Restaurant
Form of Org. Corporation Form of Org. Corporation
76
Available Facilities Restaurant, Hotel Rooms, Available Facilities Catering Services,
Swimming Pools, Tennis Conference, Banquet
Court facilities, Seminar Hall,
Bar, Souvenir Shop, Rent a
Car
Company Name Karl’s Kitchenette Company Name Yang Chay Uptoen Grill
Address Burgos St., Buenavista, Address T. Curato Ave.,
Agusan del Norte Cabadbaran,
Agusan Norte
Year Started July 2002 Year Started
Contact Person Ferlinda V. Magsipoc Contact Person Roy Joseph Mahinay
Position Proprietor Position
Contact Numbers (085) 343-4862 Contact Numbers (085) 343-0645
Type of Business Restaurant Type of Business Restaurant
Available Facilities Catering Services Available Facilities Food Services, Catering
Services, Grill House -
Lechon Manok
Company Name Beads Café & Restaurant Company Name Peace & Joy Center
Address Milan St., Cabadbaran, Address 129 Cabiltes St.,
Agusan del Norte Cabadbaran, Agusan
Norte
Contact Person Paterno Hornido Contact Person Gemma P. Pagaran
Position Position Coordinator
Contact Numbers (085) 818-1138 Contact Numbers (085) 343-0235
Type of Business Restaurant Type of Business Function Hall
Available Facilities In-House Dining, Catering Available Facilities Air Condition Function Hall
Services, Conference Room
Company Name Calesa Pub & Restaurant Company Name

Address Port Area, Talisay, Nasipit, Address
Agusan del Norte
Year Started 2004 Year Started
Contact Person Virgie I. Co Contact Person
Position Position
Contact Numbers 085 283-4258 Contact Numbers
Type of Business Restaurant Type of Business
Form of Org. Single Proprietorship Form of Org.
Available Facilities Available Facilities
Butuan City
Company Name Almont Hotel Inland Resort Company Name Butuan Royal Plaza Hotel
Address J.C. Aquino Ave., Butuan Address Rhealizas Dev’t. Corp.
City
Contact Person Adelfa N. Dace Contact Person Jasmin Evelyn O. Burgos
Position Position Manager
Contact Numbers 341-2103 / 09194411461 Contact Numbers 085 341-5125
fax no. 342-5824
Type of Business Resort & Restaurant Type of Business Hotel & Restaurant
77
Available Facilities Pool, Tennis Court, Billiard, Available Facilities
Playground
Company Name Balanghai Hotel & Company Name Butuan Luxury Hotel
Convention Center
Address Bacolod St., Doongan, Address R. Calo Corner Villanueva
Butuan City Sts., Butuan City
Year Started 1996 Year Started March 1992
Contact Person Anselma P. Labicane Contact Person Julius Jellico Yu
Barroquillo
Position Officer-In-Charge Position Owner
Contact Numbers 342-3064 Contact Numbers 085 342-5366 / 341-6384 /
2252357 fax 815-1387
Type of Business Hotel & Restaurant Type of Business Hotel
Form of Org. Corporation Form of Org. Single Proprietorship
Available Facilities Coffee Shop, Fax Available Facilities
machine/internet,
swimming pool, function
rooms
Company Name Embassy Hotel Company Name Emerald Villa Hotel &
Restaurant
Address Montilla Blvd., Butuan City Address Villanueva St., Butuan City
Contact Person Marus B. Estacio Contact Person Marilou C. Gaspar
Position Proprietor Position Proprietor
Contact Numbers 085 342-5883 Contact Numbers 085 342-5376 to 78
Type of Business Hotel & Restaurant Type of Business Hotel & Restaurant
Form of Org. Single Proprietorship Form of Org. Corporation
Available Facilities Rooms, restaurant Available Facilities
Company Name Luciana Inn & Restaurant Company Name Tam’s Fortune Inn
Address Montalban Bldg., San Jose Address 047 Ester Luna corner P.
St., Butuan City Burgos Sts., Butuan City
Year Started Year Started 1988
Contact Person Araceli Galaura Contact Person Bonifacio B. Lim
Position Manager Position Manager
Contact Numbers 085 342-3293 to 96 Contact Numbers 085 342-5438, 225-3418
Type of Business Hotel & Restaurant Type of Business Inn/Lodging Services
Available Facilities Communication, vehicles, Available Facilities
laundry
Company Name Lucky Inn Company Name Majestic Pension House

Address 472 R. Calo St., Butuan City Address 173 Pili Drive Ext.,
Butuan City
Contact Person Angeles Y. Barcelon Contact Person Arsenio A. Empuerto
Position Proprietor Position Manager
Contact Numbers 085 342-7264 Contact Numbers 085 342-0525
Type of Business Lodging House Type of Business Pension House
Available Facilities Cable TV, Telephone set Available Facilities
78
Company Name Julian’s Inn & Garage Company Name Powerwide Real Estate,
Inc. (Caraga Ultimate
Apartelle)
Address 219 Nangka Road, Butuan Address San Francisco St., Butuan
City City
Contact Person Mario Yu Chu Jr. Contact Person Henry Yee
Position Owner Position Owner
Contact Numbers 085 341-3075, 342-5682, Contact Numbers 085 342-0200
342-1601, 225-7075,
2257682, 225-7601
Type of Business Hotel & Restaurant Type of Business Inn
Available Facilities Room Rental, generator set Available Facilities Parking space, main
kitchen
Company Name Beverly Inn Company Name Almont Hotel, Inc.

Address Montilla Blvd., Butuan City Address Butuan City
Contact Person Marilou C. Gaspar Contact Person Warlon Ebrado Sr.
Position Owner Position Hotel Supervisor
Contact Numbers 085 342-8082 Contact Numbers 085 342-5464,
fax 341-5010
Type of Business Inn Type of Business Hotel
Available Facilities Available Facilities Room Rental, Restaurant,
pasalubong counter
Company Name Uncle Sam’s Burger Company Name Tita’s Café

Address J.C. Aquino Ave., Butuan Address 625 P. Burgos St.,
City Butuan City
Contact Person Samuel Allan M. Amante Contact Person Cristeta / Val T. Santos
Position Proprietor Position
Contact Numbers 085 342-5350, 225-6527 Contact Numbers 085 342-3055, 342-6449
Available Facilities Aircon room, sound system Available Facilities
Company Name The Tree Garden Company Name Roldan’s Eat All U Can &
Seafoods Hauz
Address 07 P. Burgos St., Butuan City Address 625 South Montilla Blvd.,
Butuan City
Contact Person Delia D. Santos Contact Person Roldan P. Ajoc
Position Assistant Manager Position Manager / Owner
Contact Numbers 085 341-6395 Contact Numbers 085 341-1988, 225-7083
Available Facilities Available Facilities Sound system, air
condition room, electric
fans
79
Company Name La Cafiza Company Name Golden Roast Chicken,
Inc. (Jonie’s)
Address J.C. Aquino Ave., Butuan Address 441 Balbarino Subd.,
City Butuan City
Contact Person Joy Plaza or Leonides Contact Person Arlene N. Dorico
Thereze B. Plaza
Position Position Supervising Manager
Contact Numbers 085 225-7352 Contact Numbers 085 342-5110,
09192195448,
[email protected]
Company Name Jollibee Food Corporation Company Name Greenwich Pizza

Corporation
Address J.C. Aquino cor. Montilla Address A.D. Curato St., Butuan
Blvd., Butuan City City
Contact Person Dennis Culnimas Contact Person Evelyn Salubre
Position Proprietor Position Store Manager
[email protected]
Company Name Rio Grande Food Chain, Inc. Company Name Crossroads Café &
(Dunkin Donuts) Restobar
Address J.C. Aquino cor. R. Calo St., Address Gloria Bldg., Rosales St.,
Butuan City Butuan City
Year Started 1999 Year Started October 2004
Contact Person Sharon May J. Rodriguez Contact Person Cristy A. Divinagracia
Position Asst. OIC Position Manager
09176296933
Available Facilities Available Facilities Dining / Drinking Area,
Sound System
Company Name Big Joe Food & Company Name Jet’s Inn & Jet’s Sinugba
Entertainment Complex Restaurant
Address 174 J.C. Aquino Ave., Address 025 Villanueva St., Butuan
Butuan City City
Contact Person Melanie G. Manlunas Contact Person Hayden B. Luzon, Sr.
Position President Position Proprietor
09209074597
Type of Business Restaurant / Entertainment Type of Business Restaurant & Inn
Available Facilities Available Facilities Fully air-con room with
Hot/Cold showers
80
Company Name Purple Horizons Tours & Company Name Butuan Travel & Tours
Travel
Address A4/2F Dy Bldg., Del Pilar St., Address 54 San Francisco St.,
Butuan City Butuan City
Contact Person Vivian D. Otaza Contact Person Clemencia C. Del Rosario
Position Proprietor Position Proprietor
09209129221 [email protected]
purplehorizons986@yahoo
.com
Type of Business Travel Agency Type of Business Travel agency
Available Facilities Telephone, fax, computer Available Facilities Computer, telephone, fax
with internet connection machine, radio
Company Name Almont Tours & Travel Company Name

Address San Jose St., Butuan City Address
Contact Person Adelfa B. Pace Contact Person
Position General Manager Position
Contact Numbers 085 341-5010 Contact Numbers
09189202011 09194411461
Type of Business Travel Agency Type of Business
Form of Org. Corporation Form of Org.
Surigao del Norte
Company Name Mount Bagarabon Company Name

Address Mabua, Surigao del Norte Address
Contact Person Bebot Arriba Contact Person
Position Position
Contact Numbers 09178510978 Contact Numbers
Type of Business Hotel Type of Business
Available Facilities Suite & Double rooms Available Facilities
Company Name Company Name

Address Address
Contact Person Contact Person
Position Position
Contact Numbers Contact Numbers
Type of Business Type of Business
Form of Org. Form of Org.
Bislig City
Company Name Casa De Babano Company Name Paper Country Inn

Address Purok 4 Caramcam Dist., Address Post 1, Tabon, Bislig City
Mangagoy, Bislig City
Contact Person Aurora S. Babano, MD Contact Person Dolores Marcogos
81
Type of Business Hotel Type of Business Hotel
Available Facilities Aircon rooms Available Facilities Aircon rooms with cable
tv
Company Name Salud Villa Resort Company Name Mangagoy John Bosco
College Floating Resto
Address Purok 3 Brgy. Kahayag, Address John Bosco Distl,
Bislig City Mangagoy, Bislig City
Contact Person Sally Ann Pabiona Contact Person Margarito L. Lor
Position Manager Position
Contact Numbers 086 853-4449 09177032169 Contact Numbers 086 853-5235 / 853-3415
Type of Business Hotel Type of Business Single Proprietorship
Available Facilities Pools, restaurant Available Facilities
Company Name Sheilah’s Restaurant Company Name Paper Country Restaurant

Address Espirito St., Mangagoy, Bislig Address Post 1, Tabon, Bislig City,
City Surigao del Sur
Contact Person Margarita Garay Contact Person Dolores G. Marcojos
Contact Numbers 086 628-2196 / 628-2105 Contact Numbers 086 853-3079
Available Facilities telephone Available Facilities Function Hall w/ 200 pax
Company Name Sheilah’s Travel & Tours Company Name Lohpenchay Dimsum
House Catering Services
Address Ground Flr. Espiritu St., Address Espirito St., Mangagoy,
Mangagoy, Bislig City Bislig City
Contact Person Susan Jumagbas Contact Person Freddie A. Yu
Position Secretary Position Owner
Contact Numbers 086 853-2213 Contact Numbers 086 853-2067 09182037180
Type of Business Travel Agency/ Tour Type of Business Restaurant
Operator
Available Facilities Fax machine, copier, Available Facilities
computer, typewriter
Company Name Bislig Highland Function Company Name

Farm
Address Cosico Hill, John Bosco Address
District, Mangagoy, Bislig
City, Surigao del Sur
Contact Person Paulino G. Bernales Contact Person
Position Proprietor / Manager Position
Contact Numbers 086 853-3355 09195354136 Contact Numbers
Type of Business Restaurant Type of Business
Available Facilities Function all , Disco Available Facilities
82
2.0. LAWS AND POLICIES THAT HAS IMPACT UPON TOURISM DEVELOPMENT
1.1. The 1987 Constitution
The Constitution is the fundamental law of the land. As such, all laws, policies, issuances
and judicial decisions must conform with it. For purposes of this study, it would therefore
be necessary to elaborate the Constitutional framework for the management and
development of natural resources, because the tourism development in the region will
essentially be nature and natural resources based.
Constitutional provisions from which the framework for natural resources management
and development can be drawn are in the preamble and in Articles XII and XIV. These
are the provisions that (1) enunciate the concept of ownership of resources, including
the power to classify lands, and the power to alienate lands and other natural resource
and (2) those which provide the manner of utilization, exploitation and development of
natural resources, including provisions that mandate the state to protect the
environment and guarantee the equitable and sustainable use of natural resources by
the people.
The Preamble of the 1987 Constitution declares the fundamental objective of

establishing a government that shall conserve and develop the patrimony of the nation.
Pursuant to this, the Constitution proceeds to define and elaborate the manner by which
Government should pursue the objective of conserving and developing the country’s
natural resources.
2.1.1. Ownership of Land and Natural Resources
Constitutional provisions enunciating the concept of ownership of land and natural

resources generally follow the Regalian Doctrine, a legal concept which provide that all
lands of the public domains, waters, minerals, coal, petroleum and other mineral oils, all
sources of potential energy, fisheries, forests, timber, wildlife, flora and fauna, and other
natural resources are owned by the State, and therefore title to them can emanate only
from the State.
The 1987 Constitution also expressly recognizes the ownership by indigenous peoples of
their ancestral domains, which may be comprised of lands, forests, rivers, and other
natural resources, held and possessed by indigenous peoples in the concept of owners
since time immemorial. The recently enacted Indigenous Peoples’ Rights Act of 1997
makes this Constitutional Provision operational by recognizing the bundle of rights of
indigenous peoples over their ancestral lands and domains.
2.1.2. Utilization, Exploitation and Development of Natural Resources
According to the Constitution, the exploration, development and utilization of natural

resources shall be under the full control and supervision of the State. For purposes of
administration and disposition of natural resources, the President of the Philippines is
empowered “ to reserve alienable public lands for specific purpose or service and under
the Public Land Act; to release those reserved; to exercise exclusive prerogative to
classify and declassify public forest lands; to lease or grant to qualified persons under
specific conditions permits for the use of forest lands or vacant public lands; to exercise
control over the survey, classification, lease, sale, or any other form of public concession
or disposition and management of lands of the public domains; and to enter into
83
agreements with foreign owned corporations involving either technical or financial
assistance for large scale exploration, development and utilization of minerals petroleum,
and other mineral oils . . . , based on real contribution to the economic growth and
general welfare of the country, provided that such agreements shall promote the
development and use of local scientific technical resources and provided further that
the President shall notify the Congress of every contract entered into in accordance with
this provision within 30 days from its execution.
These above executive powers are delegated by the President to the Department of
Environment and Natural Resources by virtue of Executive Order No. 192.
The exploitation, development and utilization of natural resources may be directly

undertaken by the State, or it may enter into co-production, joint venture or production
sharing agreements with Filipino citizens, corporations, or associations at least 60% of
whose capital is owned by such citizens. Such agreements shall be for a period not
exceeding 25 years, renewable for not more than 25 years. . . ( Art. II, Sec. 2).
The State recognizes and promotes the rights of indigenous peoples (Art. II, Sec. 22).
Likewise, the State shall apply the principles of agrarian reform or stewardship. . . in the
disposition and utilization of other natural resources, including lands of the public domain
under lease or suitable to agriculture, subject to prior rights, homestead rights of small
settlers and rights of IPs to their ancestral lands/ domains.
2.1.3. Principles for the Development of Natural Resources
The Constitutional principles for the development of Natural Resources include the
principles of conservation, nationalism, social justice, sustainable development and
protection of Indigenous Peoples’ Rights.
Conservation
The parameter for conservation can be surmised from three salient constitutional
mandates. First, the declaration of National Parks as a separate category of public land
(Art. XII, Sec. 3); Second, the mandate that the establishment and disestablishment of
forestlands and national parks shall be solely by an act of Congress (Art. XII, Sec. 4); The
evident purpose of such declaration is to prevent uncontrolled conversion of forest areas
to other uses. Third, the mandate that explicitly enunciates, conservation, ecology,
development and agrarian reform as the principal consideration in the alienation of
public lands. (Art. XII, Sec. 3).
Nationalism
The Constitution distinctly and specifically espouses nationalism as one of the parameters
of economic development programs. Accordingly, the Constitution mandates that all
forms of disposition and utilization of natural resources should be reserved to Filipino
entities, majority ownership of which belong to Filipinos. The intent that the patrimony of
the nation be left for the benefit of its citizens is clearly discernible in Art. XII, Sections 2, 7,
10, 11, and 12 of the 1987 Constitution. Art. XIV, Section 16 of the Constitution likewise
provides that all the country’s artistic and historic wealth constitutes the cultural treasure
of the nation and shall be under the protection of the State, which may regulate its
disposition.
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Social Justice and Democratization of Access to Resources
The Constitution guarantees the right of direct users of natural resources, such as farmers,
forest dwellers, indigenous peoples, gold panners and marginal fisherfolk to continue
using the resource for their daily sustenance and survival in accordance with existing
laws. (Art. XIII, Sec. 7, Art. II, Sec. 22; Art. XIII, Sec. 6; Art. XII, Sec. 3, par. 3). The Constitution
introduces the concept of small-scale utilization of natural resources in order to
guarantee that these direct users and marginalized sectors could gain access and
participate in the utilization and management of resources. Reform in the use of
resources is urged through the introduction of stewardship concepts, whereby people
are granted rights to the use of land, though not necessarily the ownership or title. The
establishment of cooperatives to build the necessary capital for engagement in natural
resources development ( Art. XII, Sec. 2) is encouraged.
Social Justice is a clear mandate in the Constitution. Among the most important
provisions that limit the exercise of Government of its power of dominion over the
resource base is the fundamental guarantee that no one shall be deprived of life, liberty
or property without due process of law. The Constitution clearly provides that the use of
property bears a social function (Art. XII, Sec. 6) and all economic agents shall contribute
to the common good.
Sustainable Development
A development model that assures the posterity of the nation is mandated in the
Constitutional provision, “ the State shall protect and advance the right of the people to
a balanced and healthful ecology in accord with the rhythm and harmony of nature”
(Art. II, Sec. 15). To achieve this, the Constitution limits the modes by which utilization can
be undertaken, the area that can be utilized, and the duration and terms of the grants.
While the Constitution recognizes the need for foreign capital and technology to
develop the country’s resources, and allows executive prerogative to enter into Financial
and Technical Assistance Agreements (FTAAs), it enunciates safeguards that ensures that
in addressing these needs, the Government will not sacrifice sovereignty and control
over the resources. Thus, FTAAs may be entered into only in large-scale operations where
Filipino capital is deemed insufficient and should not include in its scope lands of the
public domains, timberlands, forests, marine resources, flora and fauna, wildlife and
national parks. The foreign entities with whom the Government enters into agreement
with, is merely a contractor and not beneficial owner of the resource base.
Protection of Indigenous Peoples’ Rights
The rights of indigenous peoples to their ancestral lands and domains, to cultural integrity
and governance, human rights and social services are protected in the Constitutional
contained in Art. XII, Sec. 5; Art. XII, Sec. 2; Art. II, Sec. 9; Art. XII, Sec. 6 and Art. XIII, Sec. 4.
2.2. National Development Plans, Policies And Strategies
National development plans, policies and strategies determine the development

paradigm of a country, direct the mobilization of human resources, guide the allocation
of natural resources and influences investment priorities. National development plans
and policies therefore form an important part of any policy framework. National
Development Plans and Policies that may impact on Tourism Development include the
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Medium Term Philippine Development Plan, the Tourism Master Plan of the Philippines,
Philippine Agenda 21 and the Social Reform Agenda.
2.2.1. Declaration of State Policy with Regard to Tourism
The Administrative Code of 1987 declares that the State shall promote, encourage and
develop tourism as a major national activity in which private sector investment, effort
and initiative are fostered and supported and through which socio-economic
development may be accelerated, foreign exchange earned, international visitors
offered the opportunity to travel to the Philippines and appreciate its natural beauty,
history and culture, and Filipinos themselves enabled to see more of their country and
imbued with greater pride and commitment to the nation.
The Code mandates the Department of Tourism to encourage, promote and develop
tourism as a major socio-economic activity to generate foreign currency and
employment and to spread the benefits of tourism to a wider segment of the population
with support, assistance and cooperation of both the private and public sectors, and to
assure the safe, convenient, enjoyable stay and travel of foreign and local tourists in the
country.
Accordingly, the Department of Tourism is vested with powers and functions, among
others, to formulate policies, plans, programs and projects for the development of
tourism industry, to advise the President on the promulgation of laws relative to policy,
plans, programs and projects designed to promote and develop the tourism industry,
provide the protection, maintenance and preservation of historical, cultural and natural
assets which are tourist attractions with the appropriate government agencies or with the
private sector or owners of said assets or attractions, arrange whenever deemed
appropriate, for the reclamation of any land adjacent to or adjoining a tourist zone in
coordination with appropriate government agencies.
2.2.2. Tourism Master Plan of the Philippines
The Tourism Master Plan of the Philippines is the country’s strategic framework for tourism
development. It encourages the expansion of existing resource base for tourism by
allowing the development of tourism estates and specific investment areas. It underlines
the crucial importance of proper utilization of nature-based tourism assets and resources
and the proper promotion and rational development of tourism spots. It seeks to realize a
tourism development plan where the needs of the people and environment are
addressed together with economic growth, considering that while tourism projects bring
economic benefits, they can also bring about adverse ecological and social
consequences. Tourism development can likewise greatly influence the alteration of
existing environment or resources relative thereto.
2.2.3. The Medium Term Philippine Development Plan
The vision of development as contained in the Medium Term Philippine Development

Plan (MTPDP) is for the Philippines to become a newly industrializing country by the turn of
the century. The goal under the Plan is to attain an improved quality of life for all Filipinos
through the twin objectives of world competitiveness and people empowerment.
The Plan takes a holistic and integrated view of development. It recognizes that the
different factors of development are interdependent; hence, the Plan is divided into five
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closely related clusters of development factors, instead of individual sectors. These are:
agri-industrial development, development administration, human, Infrastructure
development, and macro-economy.
To ensure that particular solutions to particular problems or needs of people in different

areas will be addressed, the Plan identifies specific geographic areas where major
programs of government will be implemented.
Consistent with the adoption of a location-specific and ecosystem-based approach to

agri-industrial development, tourism is expected to play a greater role in spurring
economic growth and regional development. New tourism destination clusters will be
developed. Destination planning will be undertaken with a view to balancing the issues
for a tourism industry that will be sustainable over the long term.
2.2.4. Philippine Strategy for Sustainable Development/ Agenda 21
On June 6, 1988, a formal resolution was passed urging the President of the Philippines to
adopt and implement a Philippine Strategy for Sustainable Development (PSSD). The
PSSD stressed that the only rational way of planning the country’s national progress was
through sustainable development; meeting the needs of citizens today without limiting
the option of future generations to fulfill their needs; development without destruction;
achievement of material progress without compromising the life support functions of
natural systems; pursuit of higher levels of quality of life while preserving or even
enhancing environmental quality.
To maintain economic growth without depleting the stock of natural resources and
degrading environmental quality, the PSSD determined that goals pertaining to
biodiversity should be set together with other essential and strategic objectives. These
goals were to maintain the country’s species and genetic diversity and to ensure the
integrity of essential ecological processes and the life-support systems.
The PSSD established two important strategic interventions with regard to these goals,
these are (1) conservation of biodiversity and rehabilitation of degraded ecosystems;
and (2) property rights reform by assigning secure access rights perhaps even private
ownership of resources to responsible individuals and communities.
The importance of the preservation of wild species and genetic diversity to meet the
food and medical requirements of the population was stressed. PSSD emphasized that
biodiversity conservation increased the capacities of peoples to deal with questions of
survival and development. The PSSD therefore proposed the establishment of protected
areas for the conservation of wildlife and unique ecosystems with the end in view of
conserving genetic resources for scientific, educational, cultural and historical values. It
proposed the establishment of protected areas after a reassessment of the status of
parks and equivalent reserves in order to form a basis for developing strategies to
rehabilitate degraded parks and at the same time identify new areas where
conservation of genetic resources and preservation of biodiversity can be pursued.
The PSSD noted that the sheer number of rural people already in place right on or beside
fragile ecosystems make them a formidable force either for environmental destruction or
protection. It recommended therefore that attention be given to rural development, as it
has already been established that poverty forces the poor to be destroyers rather than
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caring stewards of the very resources that can liberate them from poverty. The PSSD
proposed a rural development strategy characterized by empowerment of the poor
through greater participation in policy making processes and project implementation;
accelerated land reform; equitable access to natural resources use and benefit;
removal of policy and public investment biases against the rural sector; provision of
infrastructure and support services and strengthening social services.
The Philippine Agenda 21 (A National Agenda for Sustainable Development) formulated

in fulfillment of the country’s commitments to the Earth Summit in Rio de Janeiro in 1992
was subsequently adopted and approved. It is anchored on a framework that places
people and nature at the center of development initiatives hence its implementation is
on an area- and ecosystem-based approach. The action agenda of PA21 elaborates a
mix of strategies that integrate sustainable development parameters in the country’s
overall development strategy. Concrete policy statements as well as appropriate
implementation strategies on the critical issues that will affect sustainable development
activities in the Philippines in the next 30 years, including financing and localization
mechanisms, are outlined.
The Travel and Tourism Industry has adopted its own Agenda 21. The guiding principles of
this agenda is outlined in an Article entitled “Striving for Sustainable Tourism” by Emilio
Antonio, Jr., as follows:
Travel and Tourism should assist people in leading healthy and productive
lives in harmony with nature.
Travel and Tourism should be based upon sustainable patterns of
production and consumption.
Nations should cooperate to promote an open economic system, in
which international trade in Travel and Tourism services can take place on
a sustainable basis.
Travel and Tourism, peace, development, and environmental protection
are interdependent.
Protectionism in trade in Travel and Tourism should be halted or reversed.
Tourism development issues should be handled with the participation of
concerned citizens, with planning decisions being adopted at local levels.
Nations shall warn one another of natural disasters that could affect tourist
areas.
Tourism development should recognize and support the identity, culture
and interests of the indigenous peoples.
International laws protecting the environment should be respected by the
Tourism and Travel Industry.
The Agenda 21 declaration addresses two levels of development agents. First, those in
the public sector (i.e., government departments, national tourism administration, and
representative trade organizations) are encouraged to establish systems and procedures
to incorporate sustainable development considerations at the core of the decision
making process and to identify actions necessary to bring about sustainable tourism
development. The priority areas include assessing the capacity of the existing regulatory,
economic and voluntary framework to bring about sustainable tourism; training,
education and public awareness, facilitating and exchanging information, skills and
technology related to sustainable tourism between developed and developing countries,
measuring progress in achieving sustainable development at local level, and designing
new tourism products with sustainability at the core.
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Second, for those directly involved in tourism, that is, Travel and Tourism companies, the
priority areas for action are: waste minimization, reuse and recycling; energy efficiency,
conservation, and management; management of fresh water resources; transport; land-
use planning and management; and partnerships for sustainable development.
2.2.5. The Social Reform Agenda
Under the Social Reform Agenda, adopted by the President of the Philippines in 1995, the
Human Development goal of government is averred to be economic growth and social
reform. Philippines 2000, a blueprint for National Economic Recovery seeks to balance
global competitiveness and people empowerment through support for two sets of target
groups: sectoral groups, including farmers, fisherfolk, indigenous peoples, urban poor and
workers in the informal sector and other disadvantaged groups including women,
differently abled persons, youth, students, the elderly, victims of disasters in 25 poorest
provinces in the Philippines.
The SRA adopts a three-point agenda including (1) access to quality basic services, (2)
asset reform and sustainable development of productive resources and access to
economic opportunities to widen the citizens’ share to resources both natural and man-
made, from which they can earn a living or increase the fruits of their labor, address
inequalities in ownership, distribution, management and control over resources, and (3)
institution building and participation in governance towards self-governance.
2.3. Philippines Laws and Statutes
2.3.1. Laws on National Parks and Protected Areas
One of the most important laws that will impact on tourism development in the CARAGA
Region will be the National Integrated Protected Areas Act and relevant provision of the
Forestry Code on National Parks and Protected Areas. This is because the tourism assets
of the region is predominantly nature based and three of its most promising assets are
covered by the NIPAS Act, these are Agusan Marsh, Siargao Island and Dinagat Island.
Other tourism assets in the Region covered by the NIPAS Act are shown on Table 2.
Table 2: Tourism Assets in the CARAGA Region Covered by the NIPAS Act
Asset and Location NIPAS Category

Mangrove Wilderness Area -16 Islands and Islets in SDN, 4,194.60 Wilderness Area, 1993\
ha.
Mangrove Wilderness Labigan, Valencia, Mahaba Island, SDS- Wilderness Area, 1993
878 Ha,
Surigao WFR, Sison, Malinao, San Francisco, SDN- 987 ha. Proc. Proclaimed Watershed
635, 1990
Andanan River WFR, Sibagat, &Bayugan, ADS, 15,097 ha. Proc. Proclaimed Watershed
734, 1991
Mt. Magdiwata WFR, San Francisco, ADS, 1,658 ha., Proc. Proclaimed Watershed
282,1993.
Adlay WFR, Carrascal, SDS, Proc. 291, 1993 comprised of 27 Proclaimed Watershed
hectares
Cabadbaran WFR,Cabadbaran,ADN, Proc. 834, 1991 16, 205 Proclaimed Watershed
hectares
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Provident Tree Farm, Inc., Mini Zoo in Zillovia, Talacogon, ADS Zoological Garden
Hinuphupan Cave, Loreto, Surigao del Norte Cave
Suy-anogn Cave, Libjo, Surigao del Norte Cave
Big Lanao Cave, Basilica, SDN Cave
Lower Babag Buaya, Basilica, SDN Cave
Baluarte Cave, San Benito, SDN Cave
Inocensio Cave, San Benito, SDN Cave
Lahos A and B, Pilar, SDN Cave
Sayog Cave, Pilar, SDN Cave
Consuelo Cave, Gen. Luna, SDN Cave
Sohoton Gamay Cave, Socorro, SDN Cave
Guyangan Cave, Soccoro, SDN Cave
Parola Cave, Soccoro, SDN Cave
Look Cave, Soccoro, SDN Cave
Silop Cave 1 to 5, Silop, SDN Cave
Hubasan Cave, Placer, SDN Cave
Danao Cave, Taganaan, SDN Cave
Buhong-baho Cave, Tubod, SDN Cave
Sudlon Cave, Soccoro, SDN Cave
Bayagnan Cave, Alegria, SDN Cave
Kapanagdan Cave, Claver, SDN Cave
Kuyapnit Cave, Gicaquit, SDN Cave
Punta Diwata Cave, Vinapor, Carmen, A.D.N. Cave
Buenavista Cave, Hikdok Island, Surigao City Cave
Humilog Cave, Agusan del Norte Cave
Vinapor Cave, Agusan del Norte Cave
Mapawa Cave, Surigao City Cave
Agapito Cave 1 and 2, Taganaan, SDN Cave
National Integrated Protected Areas Act (RA 7586, 1992 June)
Republic Act No. 7586 of 1992, otherwise known as the National Integrated Protected
Areas Systems Act (NIPAS Act) set the framework for the establishment and
management of Protected Areas. The NIPAS Act mandates that the use and enjoyment
of protected areas must be consistent with the principles of biological diversity and
sustainable development. NIPAS Act declares that it is the policy of the State to secure
for the Filipino people of present and future generations the perpetual existence of all
native plants and animals through the establishment of a comprehensive system of
integrated protected areas within the classification of national park, and to recognize
that the effective administration of these areas is possible only through cooperation
among the national government, local government units, concerned private
organizations and peoples’ organizations.
The NIPAS Act defines eight categories of protected areas, namely:
Strict Nature Reserve- an area possessing some outstanding ecosystem

feature and/or species of flora and fauna of national scientific
importance maintained to protect nature and maintain processes in an
undisturbed state in order to have ecologically representative examples
of the natural environment available for scientific study, environmental
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monitoring, education and for the maintenance of genetic resources ina
dynamic and evolutionary state.
Natural Park – is a relatively large area not materially altered by human
activity whereextractive resource users are not allowed and maintained
to protect outstanding natural and scenic areas of national or
international significance for scientific, educational and recreational use.
Natural Monument – is a relatively small area focused on protection of
small features to protect or preserve nationally significant natural features
on account of their special interest or unique characteristics.
Wildlife Sanctuary – comprises an area, which assures the natural
conditions necessary to protect nationally significant species, groups of
species, biotic communities or physical features of the environment where
these may require specific human manipulation for their perpetuation.
Protected Landscapes and Seascapes – are areas of national
significance, which are characterized by the harmonious interaction of
man and land while providing opportunities for public enjoyment through
recreation and tourism within the normal lifestyle and economic activity of
these areas.
Resource Reserve – is an extensive and relatively isolated and uninhabited
area normally with difficult access designated as such to protect natural
resources of the area for future use and prevent or contain development
activities that could affect the resource pending the establishment of
objectives which are based upon appropriate knowledge and planning.
Natural Biotic Area – are areas set aside to allow the way of life of
societies living in harmony with the environment to adopt to modern
technology at their pace.
Other categories established by law, conventions or international
agreements to which the Philippine Government is a signatory.
Table 3: Protected Area Categorization Matrix DENR MC 93-25 showing allowable human
activity per category
Category Natural Feature Cultural Mgt. Allowable Human

Feature Objectives Activity
Strict Pristine natural IPs science and Limited scientific

Nature environment of wilderness research,
Reserve unusual protection. measurement, counts,
species diversity observations,
behavioral studies of
primates, and
migratory wildlife.
Natural An ecological IPs Ecosystem Regulated recreation
Park community conservation sight seeing, bird
with minimum and watching, trekking,
disturbance recreation. limited scientific
significantly research activity,
illustrating the measurements, counts
process of and observations.
succession and
restoration
to natural conditions
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following disruptive
change.
Natural Unique geological IPs Conservation Regulated recreation,

Monuments feature of e.g. controlled
Landmarks of aesthetic or specific seasonal hunting and
scientific natural fishing.
values. features.
Wildlife Important wildlife IPs Conservation Scientific research,

Sanctuary species, unique, of small scale
rare, wildlife. manipulation
threatened and experiments, habitat and
endangered. population
management, creation
of artificial waterhole,
and controlled
recreation.
Protected Multiple use IPs Landscape Socio-economic
Landscape character or activities,
Seascape (harmonious seascape development of
interaction conservation compatible sustainable
of man, land and and practices, Controlled
sea) recreation. collection of
deadwood, wildfruits,
honey minor forest
products, traditional
hunting and fishing.
Regulated recreation
such as bird watching,
trekking, sight seeing
etc.
Resource Extensive and IPs Protection of Scientific research

Reserve relatively natural involving only
isolated uninhabited resources for measurements, counts
and future use. and observations.
inaccessible.
Natural Ancestral domains IPs Preservation Resource extraction in

Biotic and of traditional manner –
Area cultural sites IPs’ Culture Gathering food crops,
and medicines, dyes,
Traditions. fodder, hunting and
fishing.
The initial components of the NIPAS extends to all areas and islands in the Philippines,
designated or set aside pursuant to a law, presidential decree, proclamation or
executive order as a national park, game refuge, bird and wildlife sanctuary, wilderness
area, strict nature reserve, watershed, mangrove reserve, fish sanctuary, natural and
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historical landmark, protected and managed landscape/seascape as well as identified
virgin forests before June 1992 or before the effectivity of the NIPAS Act. Later
components may be proposed by the Secretary of DENR and may be comprised of
areas with outstanding physical features, anthropological significance and biodiveristy.
Protected areas extend to their buffer zones or peripheral areas around the PA that is
subject to special development control in order to avoid or minimize harm to the
protected area.
The NIPAS Act provides the general directions for the management of protected areas
through a General Management Planing Strategy (GMPS), which incorporates the
recognition of Indigenous Peoples Rights over their Ancestral Domains and the rights of
tenured migrants and settlers. Section 13 of the Act specifically states “ Ancestral lands
and customary rights and interest arising therein shall be accorded due recognition.
DENR shall have no power to evicts indigenous communities from their present
occupancy nor resettle them to another area without their consent. No rules and
regulations whether adversely affecting said communities or not shall be passed except
when subjected to notice and hearing to be participated by members of concerned
indigenous communities. With regard to tenured migrants the law mandates that they
shall be afforded tenurial rights to their present occupation. Tenured Migrants are those
who have possessed areas within the protected area for at least five years before the
passage of NIPAS Act in 1992 or five years before the proclamation of a protected area
as such.
The NIPAS act outlines the directions for Administration of the areas, creating a Protected
Areas Management Board for each Protected Area and establishing a Protected Areas
Fund to be used for the maintenance of the PA.
Except as may be allowed by the nature of their categories and pursuant to rules and
regulations governing the same, the following acts are prohibited within protected areas:
Hunting, destroying, disturbing, or mere possession of any plants or animals or

products derived there from without a permit from the Management Board.
Dumping of any waste products detrimental to the protected area, or to the
plants and animals or inhabitants therein;
Use any motorized equipment without a permit from the Management Board.
Mutilating, defacing or destroying objects of natural beauty, or objects of interest
to the indigenous cultural communities or of scenic value;
Damaging or leaving roads and trails in a damaged condition.
Squatting, mineral locating, or otherwise occupying any land;
Constructing or maintaining any kind of structure, fence or enclosures,
conducting any business without a permit;
Leaving in exposed or unsanitary conditions refuse or debris, or depositing in
ground or in bodies of water, and;
Altering, removing, destroying or defacing boundary marks or signs.
Numerous issuances stipulate procedures for the preparation, approval and adoption of
management plans for protected areas and for the conduct of activities in selected
national parks. Memorandum Circular No. 93-4 stipulate the Guidelines for the Adoption
of IPAS General Management Strategy, Memorandum Circular 93-3 specifies the general
outline for the formulation of Specific Management Manual and Management Plan for
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Protected Areas, and DAO 94-34 sets the general outline for the formulation of initial
Protected Area Plan.
There are four areas of concern in the NIPAS that have a bearing on Tourism
Development. These are the NIPAS Categories and Management Zones, the rights of
indigenous peoples and tenured migrants within protected areas, the Protected Areas
Management Board, Protected Areas Planning Strategies and Prohibited Acts under
NIPAS.
NIPAS Categories and Management Zones
NIPAS categories and management zones are important considerations in tourism

development planning because of the curtailment of human activity in some categories
and zones. The Protected Area Categorization Matrix in Table 3, above specifies
regulated recreation activities such as sight seeing, bird watching and trekking only in
Natural Parks, Natural Monuments, Wildlife Sanctuary, Protected Landscapes and
Seascapes. Occupancy, use and exploitation of resources, when allowed should be in
conformity with an approved management plan. Forest reservations essentially of a
natural wilderness character will be set aside exclusively to conserve the area or preserve
the scenery, the national and historic objects, wild animals and plants therein.
It is also important to tourism development planning to consider that NIPAS areas are
covered by Protected Areas Management Plans and all activities that may be carried
out within the PA should be specified in such plan. To ensure that no activities outside
those specified in the management plan are carried out, Section 12 of the law provides
that the proposals for activities outside the scope of the management plan for the
protected areas shall be subject to environmental impact assessment as required by law
before they are adopted, and the results thereof shall be taken into consideration in the
actual decision making process. No actual implementation of such activities shall be
allowed without the required Environmental Compliance Certificate (ECC) under the
Philippine Environmental Impact Assessment System (EIA). In instances where such
activities are allowed to be undertaken, the proponent shall plan and carry them out in
such a manner as will minimize any adverse effect and take preventive and remedial
action when appropriate. The proponent shall be liable for any damage due to lack of
caution or indiscretion.
Rights of Indigenous Peoples and Tenured Migrants
Tourism development planning should likewise consider the importance placed by NIPAS
upon the recognition of the rights of indigenous peoples to their ancestral domains. The
manner by which the rights of indigenous peoples shall be recognized no longer remains
with the DENR as provided by the NIPAS act but shall be in accordance with the
provisions of the new Indigenous Peoples Rights Act of 1997, the provisions of which
supercedes those provisions in the NIPAS which are contrary to the provisions of IPRA.
The rights of tenured migrants or those settlers who have occupied and possessed
portions of the protected area for at least five years before the designation of the area
as such are also protected in that they shall be given the appropriate tenurial instrument
over their current occupation.
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Any tourism plan should not only take into consideration the categories of protected
areas and their management zones, but more importantly, that indigenous peoples and
tenured migrants have vested rights over the areas they claim, occupy and/or possess.
Planning and Management Strategies
Tourism development planning should further consider that the NIPAS strictly mandates
adherence to a set of Planning and Management Strategies to carry out the intent of
the law. Section 9 of the act underscores the requirement for a General Management
Planning Strategy (GMPS). It states, “there shall be a general management planning
strategy to serve as a guide in formulating individual plans for each protected area. The
Management planning strategy shall at the minimum, promote the adoption and
implementation of innovative management techniques including, if necessary, the
concept of zoning, buffer zone management for multiple use and protection, habitat
conservation and rehabilitation, diversity management, community organizing, socio-
economic and scientific researches, site specific policy development, pest management
and fire control… “each component area of the System shall be planned and
administered to further protect and enhance the permanent preservation of its natural
conditions. A management manual shall be formulated and developed which must
contain the following: an individual management plan prepared by three (3) experts,
basic background information, field inventory of the resources within the area, an
assessment of assets and limitations, regional interrelationships, particular objectives for
managing the area, appropriate division of the area into management zones, a review
of the boundaries of the area, and a design of the management programs.
To provide flexibility in the management, each protected area and its attached buffer
zones shall be divided into one or more categories listed below. Cultural Communities,
tenured migrants, other existing protected area users and local governments shall take
part in the decision making process in zone establishment and management planning.
Management objectives and strategies shall be developed for each zone and specific
approaches and technologies identified and implemented in accordance with the
strategy to meet those objectives. The zoning of protected areas and their buffer zones
and management prescription within those zones shall not restrict the rights of indigenous
peoples to pursue traditional and sustainable means of livelihood within their ancestral
domain unless they so concur.
Protected Area Management Board
It will be worthwhile for tourism development projects to take into consideration that the
management and administration of protected areas is placed under a Protected Areas
Management Board (PAMB). The PAMB shall be composed of the Regional Executive
Director of DENR under whose jurisdiction the protected area is located or under whose
jurisdiction a greater portion of the area is located, a representative from the municipal
government/s involved, a representative from each barangay covering the protected
area, one representative from each tribal community, if applicable, at least three
representatives from non-government organizations/ local community organizations and
if necessary, one from other departments or national government agencies involved in
the protected area management. The PAMB shall decide allocations for budget,
approval of proposals for funding, decide matters relating to planning, peripheral
protection and general administration of the area in accordance with the GMPS.
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Table 4: Protected Area Management Zones
Management Description of Zone and Activities Allowed

Zone
Strict Protection Areas with high biodiversity value which shall be closed to all human
Zone activity except for scientific studies and/ or ceremonial or religious
use by
indigenous communities.
Sustainable Use Natural areas where habitat and its associated biodiversity shall be
Zone conserved but where, consistent with the management plan and
with
PAMB approval, (1) indigenous community members and/or tenured
migrants and/or buffer zone residents may be allowed to collect and
utilize natural resources using traditional sustainable methods that are
not
in conflict with bio-diversity conservation requirements, (2) research,
including the reintroduction of indigenous species, may be
undertaken,
and (3) park visitors may be allowed limited use. Provided that no
clearing, farming, settlement, commercial utilization or other activities
detrimental to biodiversity conservation shall be undertaken.
Restoration Zone Areas of degraded habitat where the long-term goal will be to
restore
natural habitat with its associated biodiversity and to rezone the area
to a
more strict protection level. Initially, natural regeneration will be
assisted
through such human interventions as fire control, cogon suppression
and
planting of native species including indigenous pioneer tree species
as
well as climax species. Exotic species (not native to the site) shall not
be
used in the restoration process. Existing houses and agricultural
developments may be allowed to remain initially but would be
phased out
eventually.
Habitat Areas with significant habitat and species values where

Management management
Zone practices are required periodically to maintain specific non-climax
habitat
types or conditions required by rare, threatened or endangered
species.
Examples would be forest openings for the tamaraw or brushy forest
for
the Philippine tarsier. Human habitation and sustainable use may be
allowed if they play a habitat management role.
Multiple-Use Areas where settlement, traditional and/or sustainable land use,
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Zones including
agriculture, agroforestry, extraction activities and other income
generating or livelihood activities, may be allowed to the extent
prescribed in the management plan. Land tenure may be granted to
tenured migrants and indigenous peoples.
Buffer zones Areas outside the protected area but adjoining it that are
established by
law and under the control of the DENR through the Protected Area
Management Board. These are effectively multiple use zones that are
to
be managed to provide a social fence to prevent encroachment
into the
protected area by outsiders. Land tenure may be granted to
occupants
who qualify. Bufferzones should be treated as an integral part of the
protected area in management planning.
Cultural Zones Areas with significant cultural, religious, spiritual or anthropological

values where traditional rights exist and ceremonies and/or other
cultural
practices take place.
Recreational Areas of high recreational tourism, educational and environmental

Zones awareness values where sustainable eco-tourism, recreational,
conservation education or public awareness activities may be
allowed as
prescribed in the management plan.
Special Use Zone Areas containing existing installations of national significance such as
telecommunication facilities, irrigation canals or electric power lines.
Such installations may be retained subject to mutual agreements
among
the concerned parties, provided such installations will not violate any
of
the prohibitions contained in Sec. 20 of the NIPAS Act.
Other Areas that may be used in the Management plan subject to the
Management approval of
Zone the Secretary of DENR.
DENR DAO 94-04 and Proposed Bills on Cave Management
DENR DAO 94-04 dated 19 January 1994 establishes a Cave Management and
Conservation program to operationalize the DENR’s mandate to conserve, manage,
develop and properly use the country’s environment and natural resources. This is
undertaken also in pursuance of the State’s policy to ensure the sustainable, use,
development, management, renewal and conservation of resources including the
enhancement of the quality of the environment and equitable access of the different
segments of the population to the development and use of the country’s natural
resources not only for the present generation but for future generations as well.
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As its legal basis, the Program enumerates the Constitution, the Philippine Strategy for
Sustainable Development, the actions and agreements reached by the Philippine
Council for Sustainable Development, objectives of Agenda 21 of the UNCED and such
other international protocols and treaties to which the Philippines has committed to
abide.
The Program seeks to ensure the sustainable use, management, protection,

development and conservation as well as ensure the equitable access of the different
segments of society to the benefits offered by caves and cave resources. It also seeks to
promote the widest participation of the different sectors in society in planning,
implementing, monitoring and evaluating the Cave Management and Conservation
Program.
Caves are defined in the Issuance as any naturally occurring void, cavity, recess or
system of interconnected passages, which are found beneath the surface of the earth or
within a cliff or ledge, which is large enough to permit an individual to enter, whether or
not the entrance is naturally found or man-made. Such term shall include any natural pit,
sinkhole, or other feature, which is an extension of the entrance.
Cave resources include any material or substance occurring naturally in caves, such as
animal life, plant life, paleontological deposits, sediments, mineral, speleogens and
speleothems. Speleogens are relief features on the walls, ceilings, and floor or any cave
or lava tube which are part of the surrounding bedrock, including but not limited to
Anastomoses, Scallops, Meander Niches, Petromorphs and Rock Pendants in solution
caves and similar features unique to volcanic caves, while Speleothem are natural
mineral formation or deposit occurring in a cave or lava tube, including, but not limited
to, stalactite, stalagmite, helicite, cave flower, flowstone, concretion, drapery, rimstone
or formation of clay or mud.
The Cave Management and Conservation Program shall include all present programs,
projects and initiatives of DENR related and involving the cave ecosystem. It will also
include all projects jointly undertaken by DENR with other government agencies, NGOs
and International entities or instrumentalities.
The objectives of the program are as follows:
1. Develop and implement a human resource development program for

cave conservation and management.
2. Develop and implement a research and development program on
the different components of the cave ecosystem.
3. Formulate and implement policies to support the management and
conservation of caves and cave resources.
4. Formulate and implement plans and programs which will promote
wise use of and equitable access to caves and cave resources.
5. Promote participation of the different sectors of society in the
formulation and implementation of policies, plans and programs of
the Cave Management and Conservation Program.
6. Develop and implement an information, education and
communication campaign for cave conservation and management.
7. Use community organizing as a strategy to ensure people’s
participation in planning and implementation of the CMCP.
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8. Facilitate the development and implementation of management
plans for individual caves which are identified for proclamation as part
of the national heritage on the basis of their cultural, scientific,
aesthetic and archeological value.
The Cave Management and Conservation Program has nine different components
including:
1. Rapid Cave Resource Assessment

2. Biodiversity Assessment
3. Assessment of Geological, Paleotological and Speleological Resources
4. Cultural and Archeological Resources
5. Management of Resource Utilization
6. Visitor Management
7. Information, Education and Communications Campaign
8. Human Resource Development
9. Research
Management of the Program shall be vested in a National Cave Management and

Conservation Committee which shall be composed of representatives from the DENR
Protected Areas and Wildlife Bureau, Mines and Geosciences Bureau, Ecosystems
Research and Development Bureau, Office of the USEC for Environment and Research,
USEC for Field Operations, USEC for Natural Resources, Foreign Assisted and Special
Projects Office, Human Resource Development Service. Representatives from other
government agencies will include those coming from the Department of Education,
Culture and Sports, Department of Interior and Local Governments, Department of
Tourism, Philippine Information Agency, Philippine Tourism Authority, Philippine National
Museum, Presidential Management Staff, UP Institute of Geological Science, NGOs, POs
and Academic Institutions.
A Regional Cave Management and Conservation Committee shall be created in every

Region to be composed of the RTD for Environment and Protected Areas, RTD for Mines
and Geosciences, RTD for Research, Regional Public Affairs Office, Representative from
the Regional Office of the Philippine Tourism Authority, Representative from the Regional
Office of the Department of Tourism, Representative from the Local Government Unit
concerned, Regional Philippine National Police Command and representatives from
locally based NGO.
The PAWB shall serve as the Secretariat for the National Cave Management and
Conservation Committee, while the Protected Areas and Wildlife Division of DENR
Regional Offices shall serve as the Secretariat for the Regional Cave Management and
Conservation Committee.
Bills are pending in the Senate (SB 97 introduced by Sen. Angara) and House of
Representatives (introduced by Venice Borja-Agana and Socorro O. Acosta) that seek to
provide safeguards against possible recreational abuse and commercial exploitation of
caves and cultural resources found in them.
Under these bills, the DENR Secretary is mandated to formulate rules and regulations for
protection of caves and cave resources, and to identify within one year from the
enactment of the law the criteria for identification of significant caves. Disclosure of
information on significant caves shall be upon the discretion of the Secretary of DENR.
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The Secretary of DENR will likewise have the jurisdiction to issue permits for the collection
and removal of cave resources and to revoke them at any time he determines that the
permittee has failed to comply or violated the terms of the permit. Penalties are imposed
upon any person who knowingly destroys, disturbs, defaces, mars, alters, removes or
harms any significant cave or alters the free movement of any animal or plant life into or
out of any significant cave, or any person who discloses without authority any
information concerning significant caves.
DENR DAO 90-15 On Mangroves and Wilderness Areas
Mangroves are areas found along the seacoast and estuaries whether sparsely or thickly
vegetated with true and/or associated mangrove species, or open swampy areas,
including brackish fishponds, extending along stream where the water is brackish.
Wilderness areas refer to Mangrove areas, which have been declared as such by the
President of the Philippines under Presidential Proclamation for the preservation of flora
and faunal species found therein to prevent their extinction and serve as a gene pool for
the proliferation of said species.
Mangroves have multi-uses, and to sustain its optimum productivity, the government
through DENR and the Department of Agriculture are tasked to stop wanton exploitation
of mangrove resources; and to enhance the replenishment of the denuded areas
through natural or artificial means. Letter of Instruction No. 917, series of 1979 provides
that all areas declared as wilderness or green belts shall be closed to any form of
exploitation.
Proclamation 2152, administered by the DENR declares all mangrove swamps as forest
reserves. Other legislation under the DA makes its illegal to convert mangrove into
fishponds.
DENR Administrative Order No. 15, series of 1990 provides the rules governing the
utilization, development and management of mangrove resources. Among its salient
provisions, which should be taken into consideration in tourism development planning
are the following:
a. The conversion of thickly vegetated mangrove areas into fishponds shall no

longer be allowed. All Mangrove swamps released to the Bureau of Fisheries
and Aquatic Resources, which are not utilized, or which have been
abandoned for five (5) years from date of such release shall revert to the
category of forestland in accordance with existing laws and regulations.
b. In accordance with national policy, fishponds will not be allowed within
mangrove forest reserves and wilderness areas, and in cases where legally
acquired productive fishponds are found within such areas, and the
government opts to revert them to the category of forest lands and if the
public interest so dictates, the operator would be justly compensated.
c. 3. Fishpond development shall only be allowed in denuded areas, which
have been zonified as suited for such activity. Estuarine mangroves, which are
predominantly, if not totally vegetated with shrubs shall not be disposed for
fishpond development as such areas still contribute to the productivity of the
nearby marine ecosystem, hence should also be extensively rehabilitated.
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2.3.2. Laws on Forestry Resources
Forestry Reform Code (PD 705) and Related Issuances
The Forestry Reform Code is the primary legal instrument governing the utilization and
development of the country’s land and natural resources. The manner of utilization and
development of natural resources may be summarized in direct provisions of the law or in
its various amendatory acts and their interpretations and construction.
In 1966, the Supreme Court of the Philippines, in the case of Extensive Enterprise
Corporation v. Sabro and Company Inc., summarized the fundamental policy of
government with regard to the utilization of forest resources. It stated: “ The fundamental
policy of government is that our natural resources should be opened to exploitation by
as many qualified applicants as possible to disperse in the most equitable manner the
rich bounties of our natural resources and thereby prevent the concentration of wealth in
the hands of a few.
In 1975, when the Forestry Reform Code came into force, it provided as basic policies the
reorientation of action from mere utilization to protection, rehabilitation and
development of forest lands to ensure the continuity of their productive conditions. It
provided for the reassessment of the multiple uses of forest lands and resources before
allowing any utilization thereof to optimize the benefits that can be derived from the
proper classification, management and utilization of lands of the public domain to
maximize their productivity to meet the demands of the country’s increasing population.
Accordingly, specific provisions enunciated in the Code provide for multiple use and
sustained yield concepts in forest management. It provides:
1. Beneficial uses of timber, land, soil, water, wildlife, grass, recreation or aesthetic
value of forest lands and grazing lands shall be evaluated and weighted before
allowing their utilization, exploitation, occupation and possession.
2. Only those uses, which will produce the optimum benefits to the development
and progress of the country and public welfare, without impairment or with least
injury to the resource will be allowed.
3. No land of the public domain 18% in slope or over shall be classified as alienable
and disposable, or any forest land 50% in slope or over as grazing land. On the
other hand, areas below 18% in slope may be declared as forestlands when
needed.
4. Titled lands should be kept in vegetative condition sufficient to prevent erosion
and adverse effects on the lowland and streams.
5. When public interest so requires, steps shall be taken to expropriate or cancel
defective titles, reject public land applications or eject occupants. Amnesty is
granted kaingineros who entered forestlands before 1975, provided they do not
increase their clearings.
6. No person shall utilize, exploit, occupy, possess or conduct any activity within any
forest and grazing lands, or establish, install, add, and operate any wood or forest
products processing plant, unless he has been authorized to do so under a
license agreement, lease, license or permits.
In keeping with these mandates and faced by threats of an increasing pressure from
lowland migration into the uplands, PD 1159, was enacted in 1978. This amendment to
the Forestry Code emphasized the relocation of kaingineros and other forest occupants,
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whenever the best land use of the areas so demand, to the nearest and accessible
government resettlement areas.
The Code affirms the Presidential prerogative to proclaim portions of the public domains
as forests. The President may establish within any land of the public domain, forest
reserve and forest reservation for national park systems, for preservation as critical
watershed, or for any other purpose and modify boundaries of existing ones.
Pursuant to the mandates of the 1987 Constitution, the amendatory provisions to the
Code provide for policies and strategies for natural resources management including the
following:
1. Efficient and judicious use of natural resources.

2. Ensure the productive capacities of natural resources.
3. Expand and implement community based management of resources.
4. Equitable sharing of benefits derived from the development of resources.
5. Increase the sector’s contribution to the national efforts directed towards poverty
alleviation and enhance welfare of small farmers and landless workers.
6. Promote and maintain ecological balance.
These strategies support a shift from a more regulatory framework for forest resource
management to a more developmental one involving people and communities who
have a stake in the condition and status of the resource base.
In 1996, Executive Order no. 263 declared Community Based Forest Management
Strategy as the national strategy for the development of forest resources. Accordingly,
DENR has integrated all its Community-Based Forest Management Programs and People
Oriented Forestry Programs. Under this concept only the following tenurial instruments
shall be issued by DENR:
Community Based Forest Management Agreement, a production sharing agreement in

which the government shares in the benefits of development through increase natural
resources protection and rehabilitation, forest charges, fees and /or taxes as determined
and agreed upon by the participants.
Certificates of Stewardship Contracts, issued to individuals and families actually

occupying or tilling portions of forest lands pursuant to LOI 1260, subject to the allocation
and endorsement of the Peoples’ Organization granted the management of the CBFM
area.
The CBFM shall be awarded in place of the CSC issued under the ISF Program, the
Mangrove Stewardship Agreement, Community Forest Management Agreements, Forest
Land Management Agreements. CBFMA may also be awarded to qualified POs in
allowable zones of protected areas. Certificates of Ancestral Domain Claims (CADCs)
and Certificates of Ancestral Land Claims (CALCs) will continue to be issued pursuant to
DAO93-02.
Socialized Industrial Forest Management Agreements (SIFMA) may also be awarded to

natural or juridical persons for them to develop, utilize and manage a small tract of forest
land called SIFP which is planted primarily to trees and other tree products to support the
manufacturing and processing facilities and/ or to supply wood and energy
requirements.
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The Coastal Environment Program (CEP) is also now integrated into the CBFM. The CEP is
a program to implement projects on conservation and management of the coastal
environment. The CEP encompasses all concerns over habitat and ecological support
systems of communities and fisheries specifically pertaining to their productivity,
biodiversity, integrity, sustainability and equitability of use and access.
The adoption of the CBFM as the national strategy for forest management impacts upon
tourism development, in that, any tourism development project that is introduced into
forested areas must necessarily pursue a community based management approach.
Another concern that must be considered by tourism development is the emphasis on
local government participation in the empowerment of communities under the CBFM.
Perhaps, it would not be amiss to herein suggest a review of devolved functions to local
governments pertaining to tourism and the environment in order to reconcile objectives
and focus on a common agenda.
DAO 95-15, Revised Guidelines for the Sub-classification of Forest Lands
DENR DAO 95-15 seeks to implement a system of land classification that will promote the
optimum, equitable and just utilization of inalienable public lands. The DAO aims to
determine the most suitable and rational use and proper allocation of lands with due
consideration to bio-physical, economic, socio-cultural and ecological factors; provide a
basic reference in planning development activities, provide a comprehensive data-base
for land resource managers and users on the best use of forestlands and other public
forest lands considering local, regional and national needs and priorities; provide basis
for decisions about multiple or competing uses of forestlands, national parks and mineral
lands and other public lands thereby minimizing, if not altogether solving land use
conflicts, and specifically sub-classifying approximately 1.5 million hectares of forestlands
and lands of the public domains.
The sub-classification categories for forestlands include Agricultural, Industrial or

Commercial, Residential, Ancestral Lands, Grazing Lands, Protection Forests, Production
Forests, Agro-forestry areas, Fishfarms and Fishponds.
Pending Bill on Total Commercial Logging Ban
SB 2015 consolidates various recent bills on forestry and is entitled Total Commercial
Logging Ban Act of 1998. The proposed legislation enunciates as basic policies the
conservation and development of natural resources to prevent environmental
degradation and disaster and sustain for the succeeding generations the natural wealth
of the nation; maintenance, protection, conservation and development of sufficient
forestlands, and the promotion to the highest degree possible the involvement of all
sectors of society in forest conservation and protection; attainment of sound ecological
balance and preservation of the country’s viable ecosystems through the adoption of a
policy of self-reliance and self sustained management in the conservation, utilization and
development of forests.
The bill make it illegal and unlawful for any person to cut, fell or destroy any tree, or
engage primarily in commercial logging operations in all types of forests. The ban will last
for at least thirty years from the effectivity of the Act. The issuance of TLA shall be
prohibited and all existing TLAs shall be deemed automatically terminated upon
effectivity of the Act. Industrial Forest Plantation will be allowed provided they are within
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old growth and residual forests. Upon expiration of 30 years, commercial utilization of
forestlands may be allowed through production sharing, joint venture or coproduction
agreements with government.
Areas/projects exempted from the ban are tree farms, nipa and bacauan plantations,
communal forests, and other agro-forest farms planted to plantation species.
Government projects and those of public utilities where tree cutting cannot be avoided,
such as construction of road-right of way, the development of mineral reservations and
energy sources shall be allowed only with an Environmental Clearance Certificate which
shall be concurred by the Office of the President.
DENR shall deputize law enforcement agencies and instrumentalities of government

including the Philippine National Police (PNP), Armed Forces of the Philippines (AFP) and
the National Bureau of Investigation (NBI) for the enforcement of the ban and for the
conservation and protection of forests. The DENR may also request the assistance of
NGOs, Cooperatives, Citizen Groups and Community Organizations in the enforcement
of the ban.
LGUs, NGOs, and DENR shall jointly engage in forest protection, rehabilitation,
development and conservation activities. They shall be involved in planning, monitoring
and implementation of all programs and projects within their locality in order to ensure
the overall objective of maintaining the productivity of the country’s forestlands are
effectively realized.
LGUs shall establish mini-parks, nature parks and greenbelts, by lining roads and bodies of
water with trees or other similar projects and the private sector will likewise encouraged
to do the same.
2.3.3. Laws on Land Resources
Land is normally defined as a physical entity in terms of its topography and spatial nature;
a broader integrative view also includes natural resources: the soils, minerals, water and
biota that the land comprises. These components are organized in ecosystems, which
provide a variety of services essential to the maintenance of the integrity of life support
systems and the productive capacity of the environment. Land resources are used in
ways that take advantage of all these characteristics. Land is a finite resource, while the
natural resources it supports can vary over time and according to management
condition and uses. Expanding human requirements and economic activities are placing
ever increasing pressures on land resources, creating competition and conflicts resulting
in sub-optimal use of both land and land resources.
Tourism development actions can greatly influence the alternation of existing

environment, land uses and management of resources therein. As such, it is important for
any tourism plan to consider the following laws related to the utilization of land resources.
Public Land Act and Related Laws
The “Land to the Tiller” or “ Land for the Landless” policy is the underlying principle of
public land laws. Other intents of public land laws are to promote the distribution of
agricultural lands of the public domains to landless tenants and farm workers, to
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encourage migration to sparsely populated regions, promote the level of production,
employment and living standards of the people.
Public land laws are premised on the belief that “ security of tenure is a legal concession
to agricultural grantees which they value as life itself and deprivation of their land
holdings is tantamount to deprivation of their only means of livelihood” (Bernardo v. CA,
14 SCRA 439). As such, restrictions and limitations are imposed upon the grantee,
particularly on the alienation of the land received by public grant. Some of the these
conditions include, the prohibition to sell the land without the approval of DENR, the right
of the tiller to redeem land foreclosed within a period of five years from foreclosure.
The Public Land Act or Commonwealth Act 141 is the law that applies to all lands of the
public domains, except timber and mineral lands, which shall be governed by special
laws. Likewise excluded from the application are friar lands and private lands which
have been reserved to or become the property of the Republic of the Philippine, which
lands shall be administered and disposed of in accordance with the other pertinent laws.
Under the law, lands which have been officially delimited and classified as alienable and
disposable may declared by the President of the Philippines as open to disposition or
concession. However, alienable and disposable lands which have been reserved for
public or quasi-public uses, lands appropriated by the government, private lands on
which private rights authorized and recognized under valid laws and land that have
been reserved or appropriated but have ceased to be so may not be declared as open
to disposition or concession.
The Public Land Act provides for five basic modes by which a grant of public land
suitable for agriculture can be made. These are, (1) homestead settlement, (2) sale, (3)
lease, (4) confirmation of imperfect or incomplete title either by judicial or administrative
legalization, and (5) free title or free patent. Public lands acquired those any of the
above modes are subject to the following conditions:
1. Land will not be granted when it will affect injuriously the use of adjoining land or
of waters, rivers or roads.
2. Minerals are excluded from the grant.
3. Grants of land are subject to public servitude
4. Lands subject to right of way for certain purposes, not exceeding 20 meters width
for public highways, railroads, irrigation, ditches, telephone and telegraph.
5. Reservation of the right to regulate the use of waters.
6. Reservation for power purposes of flow of water
7. Prohibitions against conveyance, alienation or encumbrance except to qualified
persons.
8. Land must conform to legal subdivisions.
If at any time after the approval of the application and before the issuance of a patent
or of a final concession of the land, or during the life of the lease, or at any time when
the applicant or grantee still has obligations pending with Government, it appears that
the land applied for is necessary, in the public interest, for the protection of any source of
water or for any work for the public benefit that the Government wishes to undertake,
the Secretary of DENR may order the cancellation of the application or the non-issuance
of the patent or concession or the exclusion from the land applied for of such portion as
may be required, upon payment of the value of the improvements if any.
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As to the issuance of Free Patents, the Public Land Act provides that free patents
covering not more than 12 hectares of public land may be awarded to any natural born
citizen of the Philippines who is not an owner or more than 12 hectares of land, has
continuously occupied and cultivated tract/tracts of agricultural public lands for 30 years
prior to March 28, 1990, the date of effectivity of the amendatory act RA 6940, and who
has paid real taxes thereon while the same has not been occupied by any person.
Deadline for the application of free patents has been extended to December 31, 2000.
The President may set a longer period of specifically designated provinces.
BP 223, an act to hasten titling of residential lands of the public domains, grants any
citizen of the Philippines who is not a registered owner of residential land in the same
municipality and who since June 12, 1945, or prior thereto, either by himself or through his
bona-fide predecessors in interest, has been residing on and continuously possessing and
occupying, under a bona fide claim of acquisition of ownership, a parcel of residential
land of the public domain which is alienable and disposable and has paid all the real
estate taxes thereon shall upon application be provided a free patent subject to the
following conditions:
1. That the land applied for is not needed for public service or use.
2. That the land is not within cities, capitals of provinces, first, second, third or fourth
class municipalities, nor in townsite reservations
3. None of the provisions of the forestry code is violated by the issuance of such
patent.
Free Titles are issued under Commonwealth Act 691to any citizen of the Philippines who is
more than 18 years of age and who does not own 24 hectares of land or has not availed
of any free disposition of public lands. Grantee may be provided up to 24 ha. Of
agricultural land or up to 1,600 sq. meters of residential land.
DENR DAO-93-37 provides guidelines for the issuance of titles under the Handog Titulo
Program. The guidelines provides process for the application and grant of free patents
pursuant to the objective of the CARP to distribute 4.5 million hectares of alienable and
disposable lands of the public domains suitable to agriculture.
Comprehensive Agrarian Reform Law
RA 6657 or the Comprehensive Agrarian Reform Law of 1988 has been amended by RA
7881 (1995) and RA 7950 (1995). The following is a summary of these amendatory laws
to the CARL:
1. The principles of agrarian reform including those on subsistence fishermen are

now embodied in the CARL.
2. The CARL now covers all public and private agricultural lands as provided
inProclamation 131 and Executive Order 229 regardless of tenurial arrangements
andcommodity produced inlcuding, all alienable and disposable public lands
devoted to or suitable for agriculture, all lands of the public domains in excess of
the limits to be determined by Congress, all lands owned by the Government
devoted to or suitable for agriculture and all public lands devoted to or suitable
for agriculture regardless of the agricultural products raised or that can be raised
thereon.
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3. Lands exempted from the coverage of CARP includes: lands actually, directly
and exclusively used for parks, wildlife, forest reserves, reforestation, fish
sanctuaries and breeding grounds, watersheds and mangroves; private lands
actually, directly and exclusively used for prawn farms and fishponds except
those already distributed; lands actually, directly and exclusively used and found
necessary for national defense, school sites and convents appurtenant thereto,
mosque sites and Islamic centers appurtenant thereto, communal burial grounds
and cemeteries, penal colonies and penal farms actually worked by the inmate,
government and private research and quarantine centers and all lands with 18%
in slope and over except those already developed; ancestral lands/ domains of
indigenous peoples, defined as all lands in the actual, continuous and open
possession and occupation of the community and its members.
4. Lands covered by CARP shall be distributed as much as possible to landless
residents of the same barangay, or in the absence thereof, landless residents in
the same municipality in the following order of priority: agricultural lessees and
share tenants; regular farmworkers; seasonal farmworkers; other farmworkers,
actual tillers or occupants of public lands, collectives or cooperatives of the
above beneficiaries, other directly working on the land.
5. Commercial farms, which are private agricultural lands devoted to saltbeds, fruit
farms, orchards, vegetable and cut-flower farms, and cacao, coffee and rubber
plantations shall be subject to immediate compulsory acquisition and distribution
after ten years from the effectivity of the Act.
6. The rights of indigenous peoples to their ancestral lands shall be protected to
ensure their economic, social and cultural well-being. In line with the principles of
self determination and autonomy, the systems of land ownership, land use, and
the modes of settling land disputes of all these communities must be recognized
and respected.
State policies as enunciated in the CARL include the following:
1. Utmost consideration for the welfare of the landless farmers and farmworkers in
the promotion of social justice and in programs and projects moving the nation
towards sound rural development and industrialization.
2. Establishment of owner-cultivatorship of economic sized farms as the basis of
Philippine agriculture.
3. More equitable distribution and ownership of land with due regard to the rights of
landowners to just compensation and to the ecological needs of the nation;
4. Just distribution of all agricultural lands subject to the priorities and retention limits
provided in the Act and considering ecological, developmental and equity
considerations;
5. Recognition of the rights of farmers, farmworkers and independent farmers
organizations to participate in the planning, organization and management of
CARP, and to support agriculture through appropriate technology and research,
adequate financial, production, marketing and other support services;
6. Application of the principles of agrarian reform or stewardship in the disposition
and utilization of other natural resources including lands of the public domains
under lease or concession, suitable to agriculture, subject to prior rights of
homestead rights of small settlers and the rights to indigenous communities to
their ancestral lands.
7. Resettlement of landless farmers in government owned agricultural estates;
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8. Protection of the rights of subsistence fishermen especially of local communities,
to the preferential use of communal marine and fishing resources both inland and
offshore;
9. Adherence to the principle that land has a social function and land ownership
bears with it social responsibilities.
One of the salient provisions of CARL which bear upon Tourism development planning is
the provision that no reclassification of forest of mineral lands to agricultural lands shall
be undertaken until Congress, taking into account ecological, developmental and
equity considerations shall have determined by law the specific limits of the public
domains. This provision have given rise to situations of de facto ownership by settlers in
public domains, suitable for agriculture, who are still hoping to receive title to their
occupation once the final forest line is settled. In fact other provisions of the CARL
support the right of these settlers to claim land, among others:
1. The CARL provides that subsistence fishing-small fisherfolk, including seaweed

farmers, shall be assured of greater access to the utilization of water resources.
2. Logging and mining concessions, subject to the requirement of a balanced
ecology and conservation of water resources, suitable areas, as determined by
DENR in logging, mining and pasture areas, must be opened up for agrarian
settlements whose beneficiaries will be required to undertake reforestation and
conservation production methods. Subject to existing laws, rules and regulations,
settlers and Indigenous peoples must be allowed to enjoy and exploit the
products of the forests other than timber within the logging concession.
3. Sparsely occupied agricultural lands of the public domains will be surveyed,
proclaimed and developed as farm settlements for qualified landless people
based on an organized program to ensure their orderly and early development.
Uncultivated lands of the public domain shall be made available on lease basis
to interested and qualified parties. Parties who will engage in development of
capital intensive, traditional or pioneering crops will be given priority. The lease
period, which shall not be more than 50 years, shall be proportionate to the
amount of investment and production goals of the lessee. A system of evaluation
and audit will be instituted.
4. Idle, abandoned, foreclosed and sequestered land shall be planned for
distribution as home lots and family sized farmlots to actual occupants.
5. Rural women must be assured equal rights to ownership of land, equal shares of
farm’s produce and representation in advisory or appropriate decision-making
bodies.
The CARL protects agricultural lands from being converted into fishponds and prawn
farms. It provides that no conversion of public lands into fishponds and prawn farms shall
be made except in situations where the provincial government with the concurrence of
BFAR declares a coastal zone as suitable for fishpond development. In such case, the
DENR shall allow the lease and development of such areas provided that the declaration
shall not apply to environmentally critical projects and areas as enumerated in the
Philippine Environmental Impact Assessment System, to ensure the protection of river
systems, aquifers and mangrove vegetation from pollution and environmental
degradation.
The sustainable management and utilization of prawn farms and fishponds shall be in
accordance with effluent standards, pollution charges and other pollution control
measures such as, but not limited to, the quality of fertilizers, pesticides and other
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chemical used, that may be established by the Fertilizers and Pesticides Authority,
Environment Management Bureau and other appropriate government regulatory bodies
and existing regulations governing water utilization. Portions of fishponds fronting the sea,
sufficient to protect the environment shall be established as a buffer zone and shall be
planted to specified mangrove species to be determined in consultation with the
Regional Office of DENR.
Negating the gains of protecting forestal lands and other lands suitable for agriculture, is
the provision in the CARL and in the Local Government Code allowing conversion of
agricultural lands into non-agricultural uses. The Code provides, after the lapse of five
years from its award, when the land ceases to be economically feasible and sound for
agricultural purposes, or the locality has become urbanized and the land will have a
greater economic value for residential, commercial and industrial purposes, the DAR
upon application of the beneficiary or landowner, with due notice to the affected
parties, and subject to existing laws, may authorize the reclassification or conversion of
the land and its disposition, provide the beneficiary shall have fully paid his obligation.
Land Conversion has become a crucial issue in the implementation of the Agrarian
Reform Program. It has been noted that the tremendous increase in conversion of
agricultural lands in the last five years has been due to the competing demands for the
use of available lands. Because lands available for CARP are also the same lands that
are open to conversion for industrial or urban usage, the existing policies on land
conversion threatens food sufficiency and environmental quality, besides being in
controversy with the intentions of land reform.
Irrigation Act of 1997
Like the Comprehensive Agrarian Reform Law, the Irrigation Act of 1997, seeks to enable
those who belong to the agriculture and fishery sectors to participate and share in the
fruits of development and growth in a manner that utilizes the nation’s resources in the
most efficient and sustainable way possible.
The empowerment of the agriculture and fisheries sectors to develop and sustain
themselves through focused and rational delivery of support services are based on the
principles of:
1. Poverty Alleviation - create adequate opportunities for poorer sectors to have

access to resources and gain better income opportunities especially in areas
where productivity is low.
2. Food Sufficiency - assure the availability and affordability of food to all
particularly the poor citizens of the country. Rational Use of Resources - adopts a
rational approach in the allocation of public investments in agriculture and
fisheries in order to assure efficiency and effectiveness in the use of scarce
resources and thus obtain optimal returns on investments. Global
Competitiveness - enhance the comparative advantage of agribusiness and
fishery enterprises in both domestic and foreign markets.
3. Sustainable Development - promote development that is compatible with the
preservation of the ecosystem in areas where agriculture and fishery activities are
carried out; promote judicious use of the country’s natural resources in order to
attain long-term sustainability.
4. People Empowerment - provide the citizens through their elected representatives
the opportunity to participate in policy formulation and decision-making, by
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establishing appropriate consultation mechanisms and giving them access to
information.
One of the most salient provisions of the law that may have a bearing on tourism
development is the establishment of Strategic Agriculture and Fishery Development
Zones (SAFDZ). The law provides that the Department of Agriculture (DA), in consultation
with the local government units and appropriate government agencies, NGOs and
organized farmers and fisherfolk groups shall within six months from the approval of the
law, identify Strategic Agricultural and Fishery Development Zones, which shall comprise
the network of protected areas for agriculture and industrial development, to ensure that
lands are efficiently and sustainably utilized for food production and rural industrialization.
SAFDZs shall serve as centers where development in the agriculture and fishery sectors is
catalyzed in an environmentally and socio-culturally sound manner. An integrated
development plan including matters of production, investment, marketing, human
resources and environment protection shall be prepared for each SAFDZ that will be
identified.
Agricultural areas within SAFDZs will be classified as highly restricted from conversion
under the network of protected areas for agriculture and industrial development. It shall
include, all irrigated lands where water is available to support rice and other crop
production and all irrigated lands where water is not available for rice and other crop
production but are within areas programmed for irrigation facility rehabilitation by DA
and NIA; all irrigable lands already covered by irrigation projects with firm funding
commitments at the time of the application for land conversion, provided that the
conversion of such lands shall be subject to the prior approval of the Secretary of the DA
and the payment of conversion fees; all mangrove areas and the coastal public lands
around inland waters and bays which have been identified as prime municipal and/or
commercial fishing grounds by the DA. (This provision will have a major impact upon the
Surigao Tourism Cluster, where pristine mangrove areas are found).
Preparation of the Land Use and Zoning Ordinance shall be finalized within one year from
the finalization of the SAFDZ in every city and municipality, all cities and municipalities
shall have prepared their respective land use and zoning ordinance incorporating the
SAFDZ where applicable. Thereafter, all land use plans and zoning ordinances shall be
updated every three years or as often as may be deemed necessary and must be
completed on the first year of the term of office of the mayor. If the cities/ municipalities
fail to comply with the preparation of the zoning and land use plans, the DILG shall
impose penalty as provided by the Local Government Code. Farm-landowners whose
lands are located within these designated areas shall be given the option to enter into a
management agreement with corporate entities with proven competence in farm
operations management, high-end quality production and productivity through the use
of up-to-date technology and collateral resources such as skilled manpower, adequate
capital and credit and access to markets.
Another salient provision of the law that may affect tourism development is the
prohibition against the development of commercial, industrial, residential and golf
course facilities in all watershed areas as identified by DENR.
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National Land Use Bill
The proposed National Land Use Act of the Philippines declares it a policy of the state to
provide for a rational allocation, utilization, management and development of the
country’s land resources including air and water resources to ensure their optimum use
consistent with the principles of sustainable development.
Accordingly, the State shall adopt a land use and allocation pattern that ensures food
sufficiency and food security through efficient and sustainable use of land resources
consistent with the principles of sound agricultural development, natural resources
development and agrarian reform; rational population distribution and settlements
development, equitable and sustainable economic growth and balanced and
dispersed industrial and tourism development; sustainable management of natural
resources; maintenance and preservation of environmental integrity and stability;
harmony between the rights of the varied interests of every Filipino, within the framework
of people empowerment, decentralization, social justice and equity; protection of the
rights of indigenous peoples to their ancestral lands and recognition of the applicability
of customary laws and traditions governing property rights and resource use in ancestral
domains, and protection of the rights of vulnerable groups to ensure equitable access to
the country’s land and natural resources. The proposed law also enunciates as state
policy that of institutionalizing land use and physical planning as a mechanism for
identifying, determining and evaluating alternative land use patterns, which shall be
supported by a land use allocation system and a land resource information and
management system.
The law specifically provides that one of its objectives is to rationalize the allocation of
land for tourism development purposes with emphasis on the protection, preservation
and enhancement of natural and cultural character of the country and the promotion
of local community development.
Other objectives, which may impact upon tourism development includes the following:
1. Rationalize the allocation of land for priority infrastructure projects considering

factors as its economic feasibility, reduction of the vulnerability of land itself and
its occupants to natural and man made disasters;
2. Adopt multiple uses of natural resources through the identification and evaluation
of the primary and alternative uses of specified land resource prior to any
decision for the assignment of its use as multiple use zones wherein settlements,
tourism, agriculture, agroforestry and extraction activities and other income
generating or livelihood activities may be allowed.
3. Undertake an integrated approach to the utilization, allocation, development
and management of water as limited resource.
4. Protect foreshores, shorelines and river banks and establish a mechanism to revert
to the public domain private properties falling under such land categories.
5. Require buffer zones or areas in every land use planning activity to protect the
land from activities that will directly or indirectly harm it or cause harm to others.
6. Protect and rehabilitate mangrove areas, marshlands and rainforests whose
utilization and conversion into other land uses shall be prohibited and which
should be reverted to their original condition in every case where their conversion
has been illegal.
7. Identify and preserve areas and structures, which form part of our national and
local cultural heritage.
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8. Allocate and develop lands for urban forest and green space for community
health, scenic amenities and aesthetic purposes.
9. Respect the norms and practices and socio-economic activities of the
Indigenous Peoples.
The proposed National Land Use Act shall apply to all lands, including the water and air
therein, whether public, private or government owned, and/or in the possession of
individuals, communities or groups of people to guide and/or govern the use, allocation
and management of lands and other resources including such activities, which bear
impact on said resources.
The proposed law enumerates four categories of land uses including forest, agriculture,
built-up areas consisting of residential, commercial, industrial, parks and open spaces,
and unique land uses. Under these major categories, functional uses shall be classified as
protection, production, settlements development and infrastructure development.
The bill calls for the formulation of a National Physical Framework Plan, which shall define
the objectives, policies and strategies on the indicative uses of land and other physical
resources of the country to guide and support the implementation of the National
Development Plan, and shall guide the planning process at all levels of the country.
There shall be a hierarchy of plans from national to regional, provincial, city and
municipal levels.
The bill further provides that within one year from the effectivity of the Act, all cities and
municipalities shall allocate funds for the preparation of their respective land use and
zoning plans.
Land Resource Information and Management System will be established and will
integrate the information units of concerned national agencies, standardize information
inputs/outputs including scales and symbols in case of territorial and sectoral maps. A
National Mapping Program will also be implemented. All LGUs will be assisted in
preparing their respective territorial maps.
To oversee the implementation of the policies, principles, priorities and guidelines

enunciated in the law, a Land Use Policy Administration (LUPA) shall be created. It shall
be the highest policy making body on land use and shall perform the task of integration
of efforts, monitoring of development relating to land use, evolution of policies,
regulations and directions. LUPA shall replace the HLURB, which will be abolished.
To assist LUPA, various government agencies are required to provide reports periodically
to the authority. From the Department of Tourism is expected the formulation of a
National Plan, and Regional Tourism Plans and their periodic review and updating. DOT is
likewise mandated to continue to accredit tourism facilities as well as review, update
and prescribe national guidelines and standards for tourism development, which shall be
the basis for accreditation of tourism facilities.
Under the law, Local Government Units shall have the responsibility for the preparation of
a master plan for water, sanitation and sewerage development, integrated
management of coastal and marine resources which will take into consideration
concerns fisheries, industries, tourism, shipping, oil exploration and other economic
activities dependent on marine resources; protection and rehabilitation of mangrove
areas; establish a management and development system to ensure the sustainability of
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the quality and quantity of ground and surface waters and rehabilitate and protect
areas near freshwater bodies, identify and delineate watershed areas that need to be
reforested and/or withdrawn from other uses; designate and delineate settlement area
for the fishing community provided that such area is not detrimental to coastal and
adjacent ecosystems; regularly monitor the implementation of plans.
The proposed law provides for the designation of Tourism Development Areas, the
identification, selection and development of which areas shall be done in consultation
and coordination with concerned LGU, national government agencies, the private
sector and affected communities. These areas shall include those covered by legislation
and executive issuance, which designate specific sites as tourist spots and tourist zones
as well as those identified in the national and regional tourism master plans. Designated
areas for tourism development shall form part of the land use plan and zoning ordinance
of the city or municipality where it is located.
Other Agricultural Policies
Certain agricultural policies impact upon tourism development particularly on the

establishment of botanical and zoological gardens. One such policy is that concerning
Agro-biodiversity, which regulates the introduction of certain species of animals such as
horses, porcine, cattle, gamefowls and others. Another law is Presidential Decree 1433,
which regulates the introduction of plant species. Export of indigenous crops and animal
species is likewise regulated. The Seed Industry Development Act of 1992 is another law
that should be considered. This law seeks to promote and accelerate the development
of the seed industry and mandates the conservation, preservation and development of
plant genetic resources of the country.
2.3.4. Laws on Mineral Resources
Mining Act of 1997 and Its Implementing Rules
The Mining Act of 1997 governs the exploration, development, utilization and processing
of all mineral resources.
In its Declaration of State Policies, the Mining Code enunciates that all mineral resources
in public and private lands within the territory and exclusive economic zone of the
Philippines are owned by the State. It shall be the responsibility of the State to promote its
rational exploitation, development and utilization and conservation through combined
efforts of government and the private sector in order to enhance national growth in a
way that effectively safeguards the environment and protects the rights of affected
communities.
The Mining Act of 1997 recognizes the rights of indigenous cultural communities to their
ancestral lands as provided in the Constitution and provides that no ancestral lands shall
be opened for mining operation without the prior consent of the ICC/IP concerned. In
the event of an agreement, royalty payment upon the utilization of mineral shall be
entered into and the royalty shall form part of a trust fund for the socio economic well
being of the ICC/IP Community.
Subject to existing rights or reservations and prior agreements of all parties, all mineral
resources in public or private lands, including timber and forestlands are defined in
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existing laws, shall be open to mineral agreements or Financial or Technical Assistance
Agreements (FTAAs). However, these shall not be allowed in the following areas:
1. Military and other government reservations, except upon prior written clearance
by the government agency concerned.
2. Areas near or under public or private buildings, cemeteries, archaeological and
historic sites, bridges, highways, waterways, railroads, reservoirs, dams and other
infrastructure projects, public or private works including plantations or valuable
crops, except upon written consent of the government agency or private entity
concerned.
3. Areas covered by valid and existing mining claims.
4. Areas expressly prohibited by law.
5. Areas covered by small scale miners as defined by law unless with prior consent,
in which case royalty payment upon the utilization of minerals shall be agreed
upon by the parties.
6. Old growth forests, proclaimed watershed reserves, wilderness areas, mangrove
forests, mossy forests, national parks, provincial/ municipal forests, parks,
greenbelts, game refuge and bird sanctuaries as defined by law and areas
expressly prohibited under the NIPAS and other laws.
7. Other areas, which the DENR Secretary may exclude based on proper
assessment of their environmental impacts and implications on sustainable land
use.
Every contractor is required under the Act to undertake an environmental protection

and enhancement program covering the period of the mineral agreement or permit.
Except during the exploration period of the mineral agreement, an ECC shall be required
based on EIA and procedures under the Philippine EIA System. A complete ecological
profile of the proposed mining area shall be required. NGOS shall be encouraged to
monitor compliance of the contractor.
Contractors and permitees shall technically and biologically rehabilitate the excavated
mined out, tailing covered and disturbed areas to the condition of environmental safety.
A mine rehabilitation fund shall be created based on the contractor’s approved work
plan and shall be deposited in a trust fund to be used for physical and social
rehabilitation of the areas and communities affected by the mining activities and for
research on social, technical and preventive aspects of rehabilitation. Failure to comply
with this obligation shall mean immediate closure of the mining activities of the
contractor or permittee.
Provisions of the mining act relative to auxiliary rights of permitees and contractors, such
the right to cut trees or timber within his mining areas as may be necessary for his mining
operations and the right in accordance with existing water laws to water rights for mining
operations and the right to enter private property upon negotiations with owners have
an important bearing upon tourism development planning, or any type of development
planning altogether, because they should be seriously considered in deciding options
against various other competing uses of land /natural resource use.
2.3.5. Laws on Water Resources, Wetland Ecosystems, Coastal and Marine Resources
Water Code
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PD 1067 is the law governing the ownership, appropriation, utilization, exploitation,
development conservation and protection of water resources. It is premised on the
Constitutional provision that all waters of the Philippines belong to the State. This being
the case, the law seeks to establish the basic principles and framework relating to the
appropriation, control and conservation of water resources to achieve the optimum
development and rational utilization of these resources. The law likewise subjects the
utilization, exploitation, development, conservation and protection of water resources to
the control and regulation of the government through the National Water Resources
Board (NWRB).
The law allows the State to allow the use and development of waters by administrative
concession. The preference in use and development of waters shall consider current
usages and shall be responsive to changing needs of the country. When priority in time of
appropriation from a certain source of supply cannot be determined, the order of
preference in the use of waters shall be:
1. Domestic and municipal use

2. Irrigation
3. Power Generation
4. Fisheries
5. Livestock raising
6. Industrial Use
7. Other Uses
Among the salient provisions of the Water Code, which must be considered in tourism
evelopment are the following:
1. Peference in the development of water resources shall consider security of the

State, ltiple use, beneficial effects, adverse effects and costs of development.
2. Works for the storage, diversion, distribution and utilization of water resources shall
ontain adequate provision for the prevention and control of diseases that may
be induced or spread by such works.
3. When the reuse of waste water is feasible, it shall be limited as much as possible
to such uses other than direct human consumption. No person or agency shall
distribute such water for public consumption until it is demonstrated that such
consumption will not adversely affect the health and safety of the public.
4. Authority to construct dams, bridges and other structures, which may interfere
with the flow of navigable or floatable waterways shall first be secured from the
Department of Public Works and Highways and Department of Transportation
and Communication.
5. No excavation for the purpose of emission of a hotspring or for the enlargement
of an existing opening thereof shall be made without prior permit. Any person
who intents to develop a hot spring for human consumption must first obtain a
permit from the Department of Health.
6. No person shall develop a stream, lake or spring for recreation purposes without
first securing a permit from the NWRB.
7. No person shall raise or lower the water level of a river, stream, lake, lagoon, or
marsh or drain the same without a permit.
8. Any watershed or any area of land adjacent to any surface water or overlying
any ground water may be declared by DENR as a protected area. Rules and
Regulations may be promulgated by DENR to prohibit or control such activities by
owners or occupants thereof within the protected area, which may damage or
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cause the deterioration of the surface or ground water or interfere with the
investigation, use, control, protection, management or administration of such
waters.
9. Drainage systems shall be so constructed that their outlets are rivers, lakes, the
sea, natural bodies of water, or such other water course as may be approved by
proper government authority.
10. In consideration of a proposed water resource project, due regard shall be given
to ecological changes resulting from the construction of the project in order to
balance the needs for development and protection of the environment.
11. The conservation of fish and wildlife shall receive proper consideration and shall
be coordinated with other features of water resource development programs to
ensure that fish and wildlife values receive equal attention with other project
purposes.
12. Swamps and marshes which are owned by the State and which have a primary
value for waterfowl propagation or other wildlife purposes may be reserved and
protected from drainage operation and development.
13. No person shall, without prior permission from the Environment Management
Bureau (EMB) of the DENR, build any works that may produce dangerous or
noxious substances of perform any such act, which may result in the introduction
of sewage, industrial waste, or any pollutant into any source of water supply.
14. Except when the appropriation is for family domestic purpose or when the
quantity of water appropriated for agricultural use is not more than 5 liters per
second, all appropriators shall pay to the NWRB an annual water charge for the
use of water when diverted/extracted from the natural source; and the use of
water at its natural location for fish culture. The NWRB may revise the charges or
impose special water rates from time to time, based on intended use of water,
quality/ rate of water withdrawal vis-a-vis other users taking into account the
water bearing potential of the source, environmental effects, extent to which
water withdrawal will affect the source, and development cost of bringing water
from the source.
RA 8041- National Water Crisis Act of 1995 and EO 374 Creating the Presidential Task
Force on Water Resources Development and Management
RA 8041, enacted in 1995, provides for the adoption of urgent and effective measures to
address issues relevant to the water crisis, including supply, distribution, finance,
privatization of state-run water facilities, protection and conservation of watersheds, and
the waste and pilferage of water, including graft and corruption in all water agencies.
The law likewise creates a Joint Executive-Legislative Water Crisis Commission.
In 1996, a Presidential Task Force on Water Resources Development and Management

was created by virtue of EO 374. The Task Force is to serve as an oversight body for
ensuring the efficient souring and use of water resources, in particular the provision of
policy and program recommendations on the following:
Water supply planning and coordination, including efficient allocation of water

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

kilometer from the boundaries of reservoirs established for public water supply
and any public or private work structures, unless prior clearance from DENR is
obtained.
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2. The permit shall be valid for a period of one year or until such time, as the total
volume specified therein have been extracted, whichever comes first. The permit
may be renewed for similar period or until such time, which may be determined
by the DENR Regional Director, based from field evaluation/ assessment on the
availability of pebble deposits along beaches/ shorelines and on the feasibility of
allowing the continuity of pebble picking operations in the area.
3. The permitee shall assume full responsibility and shall be liable to damages or to
rights or properties, which may be occasioned by its pebble picking activities
under the permits.
Coral Reefs
Tourism activities such as snorkeling and scuba diving have coral reefs as one of their
attractions. Healthy coral reefs are important not only ecologically but also economically.
Potential damaging tourism-related activities of coastal development on coral reefs
include, increase in siltation and sedimentation from dredging, filing, or coastal
construction, pollutants and excess nutrients from waste disposal and sewage disposal;
discharge of large volumes of fresh water from storm water outfalls, increase surface
runoff from surface paving or vegetation removal, and coral breakage from guests
exploring the reed, anchor damage or collection of organisms for sale or souvenirs or for
recreation such as by spear fishing.
Realizing the importance of coral resources known to exist beneath territorial waters of
the Philippines, PD 1219 dated 14 October 1977 as amended by PD 1698 dated 22 May
1990 were promulgated to govern the exploration, exploitation, utilization and
conservation of coastal resources.
The laws are premised on the assumptions that the conservation of coral resources will
ensure the preservation of the country’s marine environment, that is necessary for the
preservation of the natural breeding ground, habitat or abode of fish and other marine
organism and that they are important as natural protection of the shore and adjacent
infrastructures against the destructive effects of wave erosion. It is thus the avowed
policy of the State to promote and regulate the exploration, exploitation, utilization and
conservation of coral resources, whether existing beneath territorial waters or in the
marine economic zone of the Philippines to ensure protection of these resources.
Of importance to tourism development planning are the following provisions of PD 1219:
1. The Bureau of Fisheries and Aquatic Resources shall implement the law.
2. Utilization is though a permit system which include a gratuitous permit for
educational and research institutions to gather in limited quantities any coral for
scientific or educational purposes only, or a special permit to only one
person/corporation for a limited issue to conduct experimental collection of
precious and semi-precious corals.
3. The applicant must be a Filipino citizen or corporation, 70% of whose capital stock
is owned by Filipinos.
4. The exploration of precious and semi-precious coral gathered is prohibited unless
such corals are first processed and manufactured as finished products in the
Philippines.
5. Fines and penalties for persons gathering precious and semi-precious corals
without any permit, shall upon conviction be punished with imprisonment of not
less than 60 days or more than six years or a fine of not less than P6,000.00 or both
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at the discretion of the court. This is without prejudice to confiscation by the
government of the corals gathered including the vessel, gear and paraphernalia
used therein.
Pollution
The marine environment and the living organisms, which it supports are of vital
importance to humanity and all people have an interest in assuring that it is managed
and protected and its quality not impaired. It is therefore the policy of the State to
prevent and control pollution of seas by dumping of wastes and other matter which
create hazards to human health, harm living resources and marine life, damage
amenities, or interfere with the legitimate uses of the sea within the territorial jurisdiction of
the Philippines.
To safeguard the seas from marine pollution, Presidential Decree 979 was enacted on 18
August 1976. Salient provisions of the law relevant to tourism development include the
following:
1. The Philippine Coast Guard shall have the primary responsibility of enforcing the
laws, rules and regulations governing marine pollution. However, it shall be the
joint responsibility of the Philippine Coast Guard and the EMB to coordinate and
cooperate with each other in the enforcement of the provisions of the law and
may call upon any other government office to extend assistance in this respect.
2. Except in cases of emergency imperiling life or property, it shall be unlawful for
any person to:
a. discharge, dump, or suffer, permit the discharge of oil, noxious gaseous

and liquid substances and other harmful substances from or out of any
ship, vessel, barge, or any other floating craft, or other man-man
structures at sea, by any method, means or manner, into or upon the
territorial and inland navigable waters of the Philippines.
b. throw, discharge or deposit, dump, or cause, suffer or procure to be
thrown, discharged, or deposited either from or out of any ship, barge, or
other floating establishment, or mill of any kind, any refuse matter of any
kind or description whatever other than the flowing from streets and
sewers and passing there from in a liquid state into tributary or any
navigable water form which the same shall float or be washed into such
navigable water, and
c. deposit or cause, suffer or procure to be deposited materials of any kind
in any place on the bank of any navigable waters, or on the bank of any
tributary of any navigable water, where the same shall be liable to be
washed into such navigable water, either by ordinary or high tides, or by
storms or floods, or otherwise, whereby navigation shall or may be
impeded or obstructed or increase the level of pollution of such waters.
2.3.6. Environmental Laws and Policies
Environmental laws and policies that may affect tourism development include PD 1152 or
the Philippine Environmental Code, PD 1151 or the Philippine Environmental Policy, PD
1586 or the Philippine Environmental Impact Statement System, Proclamation 2146, DENR
DAO 96-37 and DAO 97-13.
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The Philippine Environmental Policy or PD 1151, aims to encourage the widest exploitation
of the environment without degrading it, or endangering human life, health and safety or
creating conditions adverse to agriculture, commerce and industry; preserve important
historic and cultural aspects of the Philippine heritage; attain a rational and orderly
balance between population and resource use and improve the utilization of renewable
and non-renewable resources.
The law mandates that all agencies of government, including government owned and
controlled corporations, as well a private corporations and firms shall prepare, file and
include in every action, project or undertaking which significantly affects the quality of
the environment, a detailed statement on the environmental impact of the proposed
action, any adverse effect that cannot be avoided, alternatives if any, short term uses of
resources is consistent with the enhancement of its long term productivity and finally that
the use of the depletable resources are warranted. This Environmental Impact Statement
shall be submitted to appropriate government agency that shall make its comments
within 30 days from receipt of the same.
The Philippine Environmental Impact Statement System (PD 1586) enunciates as its basic
policy the attainment and maintenance of a rational and orderly balance between
socioeconomic growth and environmental protection.
The law calls for the establishment of an Environmental Impact Statement System (EIS) in
all agencies and instrumentalities of the national government, including government
owned or controlled corporations as well as private corporations, firms and entities for
every proposed project or undertaking which significantly affects the quality of the
environment.
The law gives the President of the Philippine to declare certain projects, undertakings or
areas in the country as environmentally critical where no entity shall undertake or
operate any project without first securing an Environmental Compliance Certificate (ECC)
issued by the President or his authorized representative. At present the DENR through its
Environmental Management Bureau (EMB) is mandated to prepare the proper land or
water use pattern for such critical area, establish ambient environment quality standards,
develop a program of environmental enhancement or protective measures against
calamitous factors such as earthquakes, floods, water erosion and others.
Proclamation 2146 proclaims certain areas and types of projects as environmentally

critical areas within the scope of the EIS. Included among environmentally critical areas
are:
1. All areas declared by law as national parks, watershed reserves, wildlife preserves
and sanctuaries.
2. Areas set aside as aesthetic potential tourist spots.
3. Areas, which constitute the habitat of any endangered species of indigenous
Philippine wildlife.
4. Areas of unique, historic, archeological, or scientific interest.
5. Areas, which are traditionally occupied by cultural communities or tribes.
6. Areas frequently visited and/or hard hit by natural calamities (geologic hazards,
flood, typhoons, volcanic activity etc.)
7. Areas with critical slope
8. Areas classified as prime agricultural lands
9. Recharge areas of aquifers
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10. Water bodies characterized by one or any combination of the following
conditions, tapped for domestic purposes, within the controlled and/or protected
area, supports wildlife and fishery activities.
11. Mangrove areas characterized by one or any combination of the following: with
primary pristine and dense young growth; adjoining mouth of major river system;
near or adjacent to traditional productive fry or fishing ground; acts as natural
buffers against shore erosion, strong winds and storm floods, on which people
depend for a livelihood.
12. Coral reefs characterized by one or a combination of the following conditions;
within 50% and above live coastline cover; spawning and nursery grounds for fish,
acts as natural breakwater of coastlines.
DENR DAO 96-37 provides the guidelines for the implementation of the EIS system. The
guidelines identify the coverage and scope of the system. In addition to projects
enumerated under Proclamation 2146, projects involving golf courses are now included
in the coverage of the system. The guidelines underscore the importance of public
participation and social acceptability is one of the important considerations of any
environmental project. Factors to evaluate in determining social acceptability are the
ecological soundness of the project, implementation of an effective public participation
process, resolution of conflicts, promotion of social and intergenerational equity and
poverty alleviation, effective environmental monitoring and evaluation and proposed
mitigation and enhancement measures.
The Guidelines provide that public hearings on a project or activity shall be constituted
where the magnitude of the project is such that a great number of people are affected,
there is mounting public opposition against the proposed project, or there is a written
request for the conduct of such public hearing from the stakeholders.
DAO 97-13 of the DENR prescribes new EIS guidelines on Forestry Projects. It provides that
all forestry projects shall undergo EIA. A Handbook on Environmental Assessment of
Forestry Projects accompanies the guidelines.
The Philippine Environmental Code or PD 1152
PD 1152 or the Philippine Environmental Code is comprised of four main parts: Air Quality
Management, Water Quality Management, Land Use Management and Natural
Resources Management. Natural Resources Management is further subdivided into
Fisheries and Aquatic Resources, Wildlife, Forestry and Soil Conservation, Flood Control
and Natural Calamities, Energy Development, Conservation and utilization of surface
and ground water and mineral resources.
Among its salient provisions that may affect tourism developments are:
1. In order to achieve a rational and orderly balance between man and his
environment, the effect of the project upon the population should be one of the
major criteria in assessing development projects.
2. It shall be the responsibility of local governments as well as private individuals to
actively participate in the environmental management and protection programs
of the government.
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3. It shall be the duty of every person to help preserve historic and cultural resources
of the country such as sites, structures, artifacts, documents, objects, memorials
and priceless trees.
4. Measures for national exploitation of fisheries and other aquatic resources shall
include undertaking manpower and expertise development, acquiring the
necessary facilities and equipment, regulating the marketing of threatened
species of fish or other aquatic resources, reviewing all existing rules and
regulations on the exploitation of fisheries and aquatic resources and conserving
the vanishing species of fish and aquatic resources such as turtles, sea snakes,
crocodiles, corals, as well as maintenance of mangrove areas, marshes and
inland waters, coral reef-areas and islands serving as sanctuaries for fish and
other aquatic life forms.
5. In addition to pertinent provisions of existing laws, the following shall be included
in a soil erosion, sediment and flood control program: control of erosion on the
banks of rivers, the shores of lakes and the seashores; control of flow and flooding
in and from rivers and lakes, conservation of water which for purposes of this law
shall mean forms of water, but shall not include captive water, the needs of
fisheries and wildlife and all other recreational uses of natural water, measures to
control damming, diversion, taking, and use of natural water, so far as any such
act may affect the quality and availability of natural water for other purposes
and measures to stimulate research in matters relating to water and soil
conservation and the application of knowledge thereby acquired.
6. Measures for rational exploitation of forestry resources shall include regulating the
marketing of threatened forest resources, reviewing all existing rules and
regulations on the exploitation of forest resources with a view of formulating
guidelines for the systematic and efficient enforcement thereof, conserving
threatened species of flora as well as increasing their rate of propagation; the
banning of destructive modes of exploitation, shifting cultivation, indiscriminate
harvesting of minor forest products and the recycling methods of water materials,
continuing rehabilitation and reforestation.
7. The formulation of a land use scheme including a science-based and technology
oriented land inventory and classification system, determination of the present
land uses, the extent to which they are utilized, under utilized, rendered idle or
abandoned; comprehensive and accurate determination of the adaptability of
the land for community development, agriculture, industry, commerce and other
fields of endeavor; identification of areas where uncontrolled development could
result to irreparable damage to important historic, cultural or aesthetic values, or
natural systems or processes of national significance; a method for exercising
control over the use of land in areas of critical environmental concern and areas
impacted by public facilities including but not limited to airports, highways,
bridges, ports and wharves, buildings and other infrastructure projects.
2.3.7. Indigenous Peoples’ Rights Act of 1997
RA 8371 or IPRA, the Indigenous Peoples’ Rights of Act of 1997 was signed into law on 29
October 1997 and took effect on 22 November 1997. The law has been acclaimed as a
landmark legislation, which recognizes, protects and promotes the rights of indigenous
peoples to their ancestral lands and domains, cultural integrity, self governance and
empowerment, and to human rights and basic social services. The law creates a
Commission on Indigenous Peoples to oversee the proper implementation of the law.
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Ancestral lands are defined in the law as lands occupied, possessed and utilized by
individuals, families and clans who are members of the ICC/ IPs since time immemorial,
by themselves or through their predecessors in interest, under claims of individual or
traditional group ownership, continuously to the present except when interrupted by war,
force majeure or displacement by force, deceit, stealth or as a consequence of
government projects and other voluntary dealings entered into by government and
private individuals/corporations, including but not limited to residential lots, rice terraces
or paddies, private forests, swidden farms and tree lots.
Ancestral lands are differentiated from ancestral domains in terms of ownership. While
ancestral domains belong collectively to the concerned indigenous peoples, ancestral
lands are owned individually. Likewise, ancestral domains are larger in areas and
comprises ancestral lands, forests, pasture, residential, agricultural, and other lands
individually owned whether alienable and disposable or otherwise, hunting grounds,
burial grounds, worship areas, bodies of water, mineral and other resources, and land
which may no longer be exclusively occupied by ICCs/Ips but from which they
traditionally had access to for their subsistence and traditional activities, particularly the
home ranges of ICCs/IPs who are still nomadic and/or are shifting cultivators. The rights of
indigenous peoples to their ancestral lands and domains by virtue of Native Title shall be
recognized and respected. Formal recognition when solicited shall be embodied in a
Certificate of Ancestral Domain Title (CADT)/ Certificate of Ancestral Land Title (CADT),
as the case may be, which shall recognize the title of the concerned IPs over the
territories identified therein. The concept of Native Title holds that when as far back as
testimony or memory goes, the land has been held by IPs under claims of private
ownership, it will be presumed to have been held that way since before the Spanish
conquest and never to have been public lands.
The rights of Indigenous Peoples are provided in the IPRA upholds the Constitutional
Mandates on Indigenous Peoples. These rights include:
Rights to Ancestral Lands and Domains
1. Right to claim ownership over land, bodies of water traditionally and actually
occupied, sacred places, traditional hunting and fishing grounds and all improvements
made by them at any time within the domains.
2. Right to develop land and natural resources, control and use land and territories,
manage and conserve natural resources within the territories, benefit and share the
profits from allocation and utilization of natural resources, negotiate the terms and
conditions for their exploitation, right to informed and intelligent participation in the
formulation of any project, government or private, that will affect or impact upon the
ancestral domains and to receive just and fair compensation for any damages which
they may sustain as a result of the project and the right to effective measures by
government to prevent any interference with, alientation and encroachment upon
these rights.
3. Right to stay in the territories and not be removed therefrom. Where relocation is
considered necessary as an exceptional measure, relocation shall take place only with
the free and prior informed consent of the IPs and whenever possible they shall be
guaranteed the right to return to their ancestral domains as soon as the grounds for
relocation cease to exist.
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4. In case of displacement as a result of natural catastrophes the right to return to the
lands when normalcy and safety can be assured or when no longer possible to enjoy
security of tenure over lands to which they have been resettled.
5. Right to regulate entry of migrant settlers and organizations into the domains.
Unauthorized and unlawful intrusion shall be dealt with by the law.
6. Right to have access to integrated system for the management of inland waters and
airspace.
7. Right to claim parts of the ancestral domain, which have been reserved for various
purposes, except those intended for common and public welfare and service.
8. Right to resolve conflict in accordance with customary laws of the area where the
land is located.
9. In case of ancestral lands, the right to transfer rights subject to customary laws, right to
redeem, within fifteen years from transfer, land and property rights transferred to non-IPs
in cases where vitiated consent of the IP is established.
10. In case of ancestral lands, right to apply for title under Commonwealth Act No. 141.
For this purpose, individually owned ancestral lands which are agricultural in character
and are actually used for agriculture, residential, pasture and tree farming purposes,
including those with a slope of 18% or more are classified as alienable and disposable
public lands.
Rights to Self Governance and Social Justice, Human Rights and Cultural Integrity
1. Right to participate fully, if they so chose, at all levels of decision making in matters
which may affect their rights, lives and destinies, through procedures determined by
them, to maintain and develop their own indigenous political structures and to be given
mandatory representation in policy making bodies and other local legislative councils.
2. Recognition of full ownership and control and protection of their cultural and
intellectual rights; right to special measures to control, develop and protect their
sciences, technologies and cultural manifestations, including human and other genetic
resources and their derivatives, consequently, access to indigenous knowledge related
to conservation, utilization and enhancement of these resources shall be allowed only
with the free and prior informed consent of such communities, obtained in accordance
with customary law of the concerned community.
Environmental considerations in the management of ancestral domains worthwhile to

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

pavement, plaza, sports center, and other similar facilities, Information or reading center
and satellite or market place. For a Municipality, among others, Municipal buildings,
cultural centers, public parks including freedom parks, playgrounds, and sports facilities
and equipment, and other similar facilities; and tourism facilities and other tourist
attractions including the acquisition of equipment, regulation and supervision of business
concessions, and security services for such facilities.
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For a Province; tourism development and promotion programs. In August 1993, the
Department of Interior and Local Government (DILG) formulated a Community Tourism
Program (CTP) to operationalize and institutionalize effective implementation of
devolved tourism functions to Local Government Units (LGUs). Any community tourism
project or endeavor is one that is undertaken by the LGU or group of LGUs through
appropriate measures to consolidate or pool their efforts, services, and resources to
develop and establish tourism projects in conformity with the LGC. The CTP has identified
the following areas as having potential for the program: historical sites and shrines; eco-
tourism; spring and waterfalls development; livelihood projects, especially locally-
produced products complementing other tourism projects; local cultural festivals; fiestas
and other ethnic practices.
Other powers, rights and functions of LGUs related to tourism development under the
Local Government Code are the following:
1. To reclassify agricultural lands and provide for the manner of their utilization and
development.
2. To be consulted in the planning and implementation of all projects likely to cause

pollution, climatic change, depletion of non-renewable resources, loss of cropland,
rangeland or forest cover and the extraction of animal and plant species.
3. Implement community based forestry projects and enforce fishery laws.
4. Reject or approve the implementation of projects.
5. Consider the upliftment of their communities’ economic status and at the same time
the conservation of resources under their jurisdiction in balancing community interests.
6. Provide preferential treatment and protection to the marginalized sectors such as

fisherfolk communities, community based forestry communities and settlements and
agricultural workers and farmers.
7. Enforce forestry laws, community based forestry projects, pollution control law, small
scale mining and other laws on the protection of the environment and minihydroelectric
projects for local purposes.
3.0. LEGAL AND POLICY ISSUES AND CONCERNS SPECIFIC TO

PARTICULAR TOURISM CLUSTERS IN THE CARAGA REGION
3.1. South CARAGA Cluster
The South CARAGA Tourism Cluster is an inter-provincial cluster that spans the provinces
of Agusan del Sur and Surigao del Sur. It comprises two sub-clusters called the Agusan
Marsh Sub-zone encompassing 14 municipalities in Agusan del Sur and the Southeastern
Sub-zone encompassing 8 municipalities in Surigao del Sur. Tourism Assets in this cluster
include the following:
1. Agusan Marsh Wildlife Sanctuary
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2. Waterfalls and Rivers including Managong Falls, Tugonan Falls, Pangyan Falls,
Dumanon Falls, Motong Falls, Minting Kalong Falls, Bolong-bolongan Falls, Popag Falls,
Tinuy-an Borboanan Falls and Nyholm Falls and the Hinatuan Enchanted
River.
3. Caves including Tumuahon Cave and underground river, and Pamutuanan Cave.
4. Montane/ Forests Areas including Mt. Diwata, PICOP Plantation Forests, Bay View Hills,
and Los Arcos Forest Park.
5. Islands and Beaches including Hagonoy Island, and Turtle Island, Barcelona Beach
and Baucawe Beach.
6. Cultural Festivals including Annual Naliyagan (12-17 June), Santikan (12-15 June),
Kaamula Tribal Rituals (23 September) and Kilimunan Sinulog during the first week of
January.
Among the tourism assets in the cluster, the Agusan Marsh Wildlife Sanctuary will be
described more accurately and the legal issues and concerns related to the protected
area discussed.
Agusan Marsh-Description of Existing Conditionsiv
The Agusan March Wildlife Sanctuary is one of the ten priority sites under the on-going
Conservation of Priority Protected Areas Project funded by the Global Environment
Facility of the World Bank.
Agusan Marsh is the catch basin of the Agusan-Davao plain in eastern Mindanao. It
plays a vital role in the socio-economic development of the Provinces of Agusan del
Norte and Agusan del Sur as it is the holding pond for floodwaters that regularly inundate
the Agusan Valley during the northeast monsoon and regulates the flow of flood waters
to its only outlet the Agusan River. Agusan Marsh is a very important fresh water resource.
According to a water resources survey conducted in 1992, the area stores more than
15% of fresh water resources in the country today.
Agusan Marsh is considered as one of the ecologically significant wetland ecosystems in

the Philippines. The area harbors unique and pristine habitats like the Sago and Peat
swamp forests. It provides habitat to the rare and endangered soft-shelled fresh water
turtle, fresh water crocodile, oriental Darter, Purple Heron and other species. It serves as
the wintering ground of birds migrating from Japan, China, Russia and other Westerns
Countries during the Winter Season.
Agusan Marsh Wildlife Sanctuary is located in the middle of the Agusan River Basin. It falls
within the political jurisdiction of nineteen barangays in six municipalities of the Province
of Agusan del Sur, namely, Viruela, Loreto, Bunawan, La Paz, Rosario and San Francisco.
Only three of the 19 barangays are completely within the Marsh.
There are only two main entry points to the marsh. These are Bunawan and Talacogon.
Bunawan is located on the southeastern side of the marsh and can be reached by bus
either from Davao or Butuan City in three hours. From Bunawan, one embarks by
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motorized boat through the Simulao-Agusan-Umayam Rivers route to reach the interior of
Lake Dinagat of Brgy. Poblacion of Loreto. Travel time takes 3 to 4 hours.
The interior town of La Paz, located on the western portion of the marsh, can be reached
from Talacogon either by motorized boat in 3 to 4 hours via Agusan River or by land
travel through a 1 to 11/2 hour motorcycle ride during the dry season. Talacogon is
accessible through a concrete road running West from the Butuan-Davao Highway.
Agusan Marsh covers an area of 19,196.569 hectares. Swamp forest, the major habitat
type, covers 9,313.558 ha. or 49% of the area. The remaining portion consists of lothic and
riverine ecosystems.
The Marsh falls within the low risk area in terms of typhoon frequency. An average of one
typhoon per year hits the area mainly between the months of October and April. During
this time, the area experiences heavy rainfal (200-700 mm) that causes floodings within
the marsh area. Water level reaches to 4 meters above the minimum water level during
the period.
Agusan Marsh has a generally flat terrain with a slope gradient within 0-3% range. It
consists of extensive floodplains heavily dissected by numerous rivers and streams. Areas
of higher elevations are confined within the fringes and raised river banks formed by the
deposition of silt during flooding. Lakes, swamps, and swamp and peat forests form part
of the major features of the area.
Land use and livelihood sources in the marsh can be described as follows:
• Agriculture- mainly confined to the levees (elevated portions ranging from 100 to
200 meters away from the riverbanks.
• Fishing – Agusan Marsh is a major source of feshwater fish in the province, and
fishing is the main livelihood in the area.
• Navigation – the Agusan, Simulao, Gibong and Umayam Rivers are the main
arteries of transportation throughout the area. The Agusan River is also used for
transporting logs to Butuan City from the different log ponds of timber licensees in
Agusan Del Sur.
• Gathering of Minor Forest Products –particularly of Bamboo and leaves of sago
palm for construction purposes.
• Hunting/ Trapping –Trapping of crocodiles is an important activity with most the
catch sold to commercial farms. Other animal pouching activities include
wetland birds and birds of prey, which are either sold or consumed for food.
Agusan Marsh has a sparse population as frequent flooding deters permanent

settlement of people in the area. The 19 barangays have a total population of only 31,
289 consisting of about 5,394 households. Only 350 households can be found in the
interior barangays of Nueva Era, Sabang Adgaoan and Katipunan. Houses are mounted
on large logs and djuring the dry season are found either docked on riverbanks or found
floating in the river.
The marsh is considered home to indigenous peoples called Manobos they reside
permanently in the marsh and claim many areas in the marsh as part of their Ancestral
Domains. There are other people who live in the Marsh only during the dry period and
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others who come inside daily for livelihood purposes but do not reside within the marsh
area.
Issues and Concerns related to Tourism Development
There are at least four salient issues and concerns that should be taken into consideration
in the development of Agusan Marsh as a tourist destination. These are:
Ecological
Maintaining the integrity of the ecological processes in the sensitive environments within
the marsh would be a salient issue that should be taken into consideration in the
development of Agusan Marsh as a tourist attraction. One of the important issues to be
settled relate to population. Currently, the influx of migrants coming from Davao,
Zamboanga and the nearby places had already exacerbated human occupancy
problems that hamper the government’s conservation and protection of the area. This
being the case, it would be very important for a sustainable tourism development plan to
determine as accurately as possible the increase in population and the various pressures
it will have on the resource. A Carrying Capacity Assessment may be the basis for the
projection.
Another factor to consider is livelihood. The type of livelihood activities that will be
introduced as a result of tourist influx will have to be studied carefully. Currently, the
marsh is vulnerable to illegal extraction and trade of species found within it, particularly
since the termination of several logging licenses operating in areas adjacent to the
marsh have cause massive unemployment. The type of livelihood activities that will be
introduced as a result of the tourist influx must also be such that it will encourage the
enhancement not the depletion of resources in the marsh.
The last salient factor to consider is the management zones as proposed in the Plan. The
management plan identifies the following zone:
Sustainable Use Zone Areas located in the inner portions of the 6,975 ha
march where IPs shall continue top
collect and utilize natural resources in a
traditional manner. However,
clearings, farming, settlement and
commercial utilization detrimental to the
environment will not be allowed.
Multiple Use Zone Areas located along the river banks 2,054 ha
where settlement is present. These areas
a least susceptible to prolong floodings.
Traditional and/or sustainable uses
including agriculture, agroforestry and
extraction activities will be allowed in
the zone.
Habitat Management 3,824 ha.

Zone
Strict Protected Zones Areas that are ecologically sensitive and 1,934 ha.
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least disturbed areas and areas identified
as breeding places of rare and
endangered wildlife. Human activities
will be strictly prohibited in these areas
except for scientific research and/or
ceremonial or religious rites of IPs.
Cultural Zone Comprises the two ancestral domain 48.22 ha.

claims within the marsh.
Tourism activities (bird watching, spear fishing, trekking etc.) infrastructure (view decks)
services (motorized boats) must be compatible with those allowed in the various zones.
Tourism Planning should therefore be coordinated with the Management Board of the
Park and with the Indigenous Communities who claim parts of the marsh.
Cultural
Respect for the rights of indigenous peoples not only to their ancestral domains and
economic activities but also their culture, traditions and customs is a vital principle in the
development of a tourism plan for the area.
The Constitution and the IPRA explicitly provides that any government project that will be
introduced in an area owned by Indigenous Peoples as ancestral domains are to have
the free, prior and informed consent of the communities involved. The approval will have
to be a concensus among those affected. The process of consultation must use not only
the language of the IPs concerned likewise the decision-making processes of the
affected tribe. It is of note that according to the IPRA, the indigenous peoples have the
right to stop or suspend any project that does not conform with the requirement that the
free, prior and informed consent of the IPs must be taken.
Legal
It is important to create rules and regulations or even enact ordinances or policy

issuances that will promote an ecologically sound and sustainable nature-based tourism
in the area and will help in abating illegal extraction of natural resources therein. These
rules and regulations must have strict enforcement mechanisms. Agencies tasked with
the implementation and enforcement of the law must be adequately provided with
financial and technical requirement to enable them to effectively carry out the
protection of the marsh.
Institutional
Several institutional issues will have to be addressed. This will include Capability building
for Protected Area Management among the Local Government Units, PAMB Members,
Indigenous Peoples, NGOs and the other concerned agencies. Another institutional issue
would be the reconciliation of the various plan including the PA Plan, the Ancestral
Domain Management Plan and the tourism plan. Another issue would be networking
and coordination among all agencies and entities that will be involved in promoting and
maintaining the marsh as a tourist destination and lastly, the issue of jurisdiction over the
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development of the site as a tourist destination, which if the Local Government Code is
followed rests upon the concerned LGUs.
Proposed Action relative to Tourism Development
The Agusan Marsh Wildlife Sanctuary Management Plan aims to conserve and protect
the biological diversity in Agusan Marsh and support the sustainable development of the
provinces of Agusan del Norte and Agusan del Sur.
Among the many objectives enumerated in the Plan, one is the promotion of the
ecotourism potentials of the marsh.
The unique sceneries of the marsh (peat soil, swamp forest, abundance of birds, floating
houses, lakes etc.) offer limitless opportunities for nature based tourism. Among the
tourism activities planned for the marsh are bird watching, marsh trekking, lake hopping,
tour to Lanipao, Narra, Lumbia and Mambog stands, tour to indigenous peoples’ floating
houses, research and studies or educational tours.
Other plans and activities for the promotion of Agusan Marsh as a tourism destination are
the construction of view decks and watch towers in Mambayugon and Casawangan
Lakes and Talacogon; Floating restaurants in Lake Dinagat, Broad walks from Maharlika
to Casawangan Lake, Interpretative Display Centers at the IPAS Building, in Sito Cabut,
Ticgon Lake and Dinagat Lake, Hanging Bridge along river banks of Lake Dinagat,
Construction of boat dock stations, putting up of camping grounds and historical replica
in Gibong, Bunawan.
The marsh will be promoted as a tourism destination in collaboration with the Tourism
Authority, Provincial Information Office, Department of Education, Culture and Sports
and other NGOs and conservation groups. The Department of Tourism will be consulted
regarding the development of the Agusan Marsh as a tourist destination.
Further policy and legal action for the conservation and development of Agusan Marsh
may include:
1. Immediate and urgent delineation of Ancestral Domains and Recognition of the Rights
of Indigenous Peoples to their Domains as provided in the IPRA and other laws and
issuances.
2. Strict protection of core areas of undisturbed swamp forest and herbaceous swamp.
3. Introduction of sustainable resource management projects for local communities

around the periphery to take the pressure off the marsh.
4. Rules and Regulations or Ordinances that protect the marsh and creation of
enforcement machineries.
3.2. Surigao Island Zone
The Surigao Island Cluster is composed of two sub-clusters called the Siargao Island Sub
Zone and the Dinagat Island Sub zone. The Siargao Island Sub-zone is comprised of 9
municipalities in Surigao del Norte, while the Dinagat Sub-zone consisting of 7
municipalities in Surigao del Norte.
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Tourism Assets in the cluster include Siargao Island in General Luna, the next surfing
paradise of the Asia Pacific Region, Bucas Grande Island where the famous Sohoton
Cave is located. Inside the cave is a secluded, amazing lagoon with countless islets,
Santa Monica Waterfall, Del Carmen’s Swamp, Sagisi Island, Lake Bababu, Aling Cayao
Iland, and Mini Dam Park in San Jose, Dinagat.
Siargao Island Protected Landscape and Seascape – Existing Conditionsv
The Siargao Island Protected Landscape and Seascape includes three major types of
ecoystems: (1) terrestrial, (2) wetland, an extensive expanse of mangroves totalling 8,692
hectares and (3) marine, all exhibiting extensive biological diversity. It is an island
endowed with white sand beaches, hidden lagoons, caves, deep water teeming with
marine life and islets with karst formations. Its mangroves, seagrass and mudflats are
habitats and feeding ground of migratory waders, water birds and mangrove associated
organisms. The coral reef, which is still intact, serves as spawning ground of diverse reef
associated fishes. Salt water crocodile, sea turtle and dugong (sea cow) can be found in
the waters of Siargao. The island is known to be the habitat of endangered wildlife
species like the Philippine crocodile, tarsier, Philippine cockatoo, marine turtle, Dugong
and other endemic species of flora, birds and mammals. It is one of the only two
remaining sites in the Philippines where the “ironwood” Mancono (Xanthosthemu
verdogonianus) still abounds.
The island has been categorized as a Protected Landscape and Seascape, meaning an
area of national significance characterized by harmonious interaction of man and land
while providing opportunities for public enjoyment through recreation and tourism within
the normal lifestyle and economic activity of these areas.
The island is geographically and politically under the jurisdiction of the province of
Surigao del Norte in the northeastern portion of Mindanao. It is bounded on the north by
the Dinagat Island, on the south by the mainland part of Surigao del Norte, on the east
by the Hinatuan Passage and on the west by Surigao Strait and the province of Southern
Leyte. The island is accessible through Surigao City from Manila, Cebu or other points of
Visayas and Mindanao. The city can be reached by regular commercial flights from
Manila and Cebu. Boat rides from Cebu to Surigao Cioty take about 6-9 hours and about
3 hours from Southern Leyte during good weather.
The various municipalities of the island can be reached by taking either commercial or
cargo inter-island vessels. Sea voyage normally take three hours and travellers can dock
at three possible major commercial trade centers of the island namely, Dapa, Del
Carmen and Santa Monica. Access to Siargao and Bucas Grande Islands is difficult
during rainy season because of the treacherous waves along Surigao Strait.
The Protected Area of Siargao consists of approximately 157,378 hectares including

67,000 ha. of terrestrial areas and 89,652 ha. of marine areas. The land area includes
Siargao and Bucas Grande Islands, a total of nine municipalities comprised of 131
barangays.
The coastal areas especially on the western and southern side of Siargao Island are
broad expanses of mangrove swamps. Cutting through the mangrove forest is a maze of
tidal rivers and channels leading to inner lagoons and bays. The northwestern section of
the island are fringed by broad reef flats. While the eastern side, being exposed to sever
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oceanographic conditions is dominated by sandy shorelines and some rocky headlands.
Narrow and sparing strands of fringing reef also lace the eastern shore. Another factor
that considerably affect the eastern coastline features is the proximity of Siargao to the
Philippine Deep. Because of these tectonic features, the eastern Philippines had a very
narrow shelf zone.
The most striking physiographic feature of Siargao is the limestone areas particularly in
Kanbangyo and Poneas Island. The presence of lagoons amid the hills and beaches
make them rather unique.
Siargao Island is endowed with many potential tourist attractions. Among these are the
white sand beaches and long stretches of surfing waves at General Luna and
Pansuquian, Hanoyoy, Daku and Guyam Islands. There is the Puyangui White Beach, the
enchanting Suhoton cove with its hidden blue lagoons and soothing waters of
Magkahuyog Falls at Socorro, the magnificent Magpopongko Rock Formation in Pilar;
the Poneas Island with its hilltop lakes; Pook Amoya white beaches at Burgos and the
Taktak Falls at Sta. Monica. Of these tourist spots, those in General Luna are well
developed and are frequented by foreign tourists.
Issues and Concerns Related to Tourism Development
Siargao Island provides resources to a large local community. Its population comprises
19.3%of the entire province of Surigao del Norte. Population is counted at 83,113
comprised of 14,849 households. It is not surprising therefore that local consumption and
utilization of mangrove, marine and forest resources as a source of livelihood and
subsistence pose a threat to the ecological balance and sustainability of the island.
Ecological threats is likewise posed by illegal cutting that reduces forest cover and in the
process damages critical watersheds, illegal fishing methods including dynamite fishing
that destroy marine sanctuaries, unregulated mangrove cutting that reduces the nursery
and feeding ground of fish, slash and burn farming that causes erosion and siltation
damaging coastal resources and illegal occupation or encroachment by local residents
of the uplands.
Frequent occurrence of typhoons, high cost of farm inputs, inaccessibility of credit

institutions and stringent loan conditions and scarce transportation facilities hinder the
growth of industry in the island and further drives the population to depend upon
extraction of natural resources as main economic activity.
Tourism Development Planning should consider three important factors that may
contribute to further degradation as a result of tourism activities.
1. Population pressure- Almost the entire population of the island depend upon the
natural resources found therein. The large population of nine municipalities largely
dependent on the resource already puts a strain on government’s conservation efforts.
The extent of the Increase in population must be warranted by a careful carrying
capacity assessment.
2. Livelihood and Resource Utilization – Fishing, harvesting of forest products for fuelwood
and lumber are the main livelihood activities in Siargao Island. The continuous harvesting
of limited resources without replenishment coupled with illegal gathering, timber
poaching and unregulated cutting of mangrove forests as well as illegal fishing activities
such as abalone shell collection, liba-liba (putting weights on fishing nets) and dynamite
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fishing create environmental damage that threaten the sustainability of the resources.
Care should be taken that livelihood activities (sale of turtle meat) introduced as a result
of tourism would not encourage further depletion of the resource.
3. Policy and Law Enforcement – Laxity in the implementation of laws is manifest in the
unbated illegal natural resource exploitation in the island. Conflicting development
priorities among government agencies and instrumentalities can be deduced from
competing natural resources utilization rights such as mining (iron and cobalt), forestry
(limestone forests), agriculture (pineapple plantation) and tourism (venue for
international competitions in surfing). A coherent development framework, compatible
with the goals of people development and natural resources conservation should be
developed and conflicting natural resource uses reconciled. It will be worthwhile for the
tourism plan to likewise investigate the legal feasibility of community managed tourism
estates.
4. Institutional – considering that the whole island is a protected area. LGU and PAMB
institutional relationships must be clarified. Noteworthy is the fact that the PAMB alone
comprises about 117 members. Interrelationships among the various municipalities should
likewise be studied specially since only a few municipalities are well endowed with
natural resources (Soccoro and General Luna) while the rest depend almost completely
for natural resources supply from these areas.
5. Management Zoning – Any land use planning should take into consideration the
management zoning agreed upon by the stakeholders as defined in the Initial Protected
Areas Plan. This plan indicates six categories of management zones including Habitat
Management Zone, Multiple Use Zone, Sustainable Use Zone, Recreational Zone,
Restoration Zone and Buffer Zone. The Plan proposes the following zoning. The zoning
proposal should be the guide to resolution of conflicting resource uses.
Management Zone Marine Terrestrial Total

Habitat Management Zone 6,203 6,443 12,646
Recreational Zone 49,727 2,016 51,743
Sustainable Use Zone 17,443 6,535 23,978
Multiple Use Zone 14,779 51,172 65,951
Restoration Zone 1,500 1,560 3,060
Proposed Action on Siargao Island Relative to Tourism Development
The Initial Protected Areas Plan for Siargao Island Protected Landscape and Seascape
identifies an eco-tourism program to take advantage of Siargao Island’s many natural
scenic values. The eco-tourism program will be undertaken with the Department of
Tourism and will aim to protect the unique characteristics of the Island’s three ecosystems,
the species of special interest, value and rarity, geographical features of aesthetic and
scientific value and site of special interest for research. Tourism sites will be identified and
tourism facilities and infrastructure constructed.
The following are some recommendations on legal and policy measures that may be
taken to address the tourism development concerns of Siargao Island.
1. The Initial Protected Areas Plan proposes as one of its major site management activities,
the conduct of a resource inventory and assessment. A complete ecological profiling of
the island is necessary for preparing an ecologically sound tourism development plan.
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For purposes of tourism, the study should also include a carrying capacity assessment for
tourism.
2. The Initial Protected Areas Plan proposes a Resource Protection Program where the
community is actively involved. A law enforcement program will be designed in
partnership with communities, NGOs, Pos and other government agencies. Local
volunteers will be deputized as park wardens and will undergo special training for this job.
3. For promoting wise use of resources and avoiding its continued degradation, the Initial
Protected Areas Plan for the Island proposes the enactment of ordinances that would
penalize the following acts:
Marine and Wetland Resources
a. Catching small fry or “ ngisi-ngisi or agak”

b. Catching and transporting lobsters five grams and below
c. Fishing through muro-ami method, trawling, or purse seine, explosives, cyanide and
other poisonous substances or through any unlawful means such as electricity or
compressors.
d. Sale of turtle meat.
e. Commercial fishing using fishing vessels over 3 gross tons in areas/ zones not
specifically designated by any orders.
f. Catching and collecting fish for sport and recreation purposes using guns, harpoons,
spears, arrows and SCUBA.
g. Collecting and gathering corals, shells and other mollusks for commercial
purposes.
h. Catching or killing marine turtles and gathering their eggs and other protected
wildlife species including whales, crocodiles, game birds and other endangered
wild plants and animals unless otherwise granted a specific permit.
i. Hunting, killing, wounding, possessing, transporting and/or disposing of Dugong
or Sea Cow, dead or alive, its meat or any of its by-products.
Forestry and Protected Areas
a. Burning of vegetation (cogon and brushlands) within the buffer zone.

b. Cutting down trees without prior permit from DENR
c. Construction of structures not in accordance with management plans
d. Tampering with markers, interpretive and regulatory signs, mooring buoys,
scientific equipment and established park facilities.
Pollution and Waste Management
a. Indiscriminately disposing refuse such as trash, plastic, gasoline derivatives and

untreated wastes and any other forms of pollutants into any body of water.
4. In resolving competing land uses and resource utilization rights, there should an
integrated land use plan. Zoning plans should be enacted so that mangrove areas are
delineated as protected areas and allowed to recover from overexploitation. For
existing unresolved resource use rights such as mining reservation, action may be
taken to petition the Secretary of DENR to reassess the value of the mining
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reservation and its impact upon the whole ecological life support systems. If
warranted a modification of the boundaries of the reservation may be proposed by
petition from the community, LGU, NGOs and PO affected or concerned about the
issue.
5. In resolving institutional issues, the PAMB structural organization should be

reviewed. Because of the large number of PAMB members, it is worthwhile to
consider the creation of a PAMB Executive Committee. Roles and functions of the
various actors and stakeholders such as the Local Government Units, Communities,
NGOs and PAMBs should be agreed upon. While the NIPAS law clearly indicates
who the PAMB members should be, there is no limitation in the law that will prevent
the PAMB to create rules for its effective operation.
3.3. Surigao del Norte Zone
The Surigao del Norte Zone is comprised of two Sub-Zones, the Lake Mainit Sub zone
composed of 2 Municipalities in the province of Agusan del Norte and 4 in Surigao del
Norte; the North Mainland Subzone composed of 9 municipalities in the province of
Surigao del Norte.
Aside from the Lake Mainit Watershed and Aquaculture, tourism assets in the zone
include:
1. Beaches such as Looc and Mabua Pebble Beach Resorts, Basul and Pagkawasan
White Beach, Tanquility Bay, Cagbantoy, Lingongganan, Banbanon, Jubgan, Alegria,
Tubay Mountain, La Fraternidad, Binuwangan Beach.
2. Caves such as the Mapawa Cave, Kagalimpay and Payale Caves, Tinago, Buhong
Baho, Tabunan, Tagpantay Caves.
3. Waterfalls such as the Buyho and Sukailang, Little Baguio, Jubgan, Biyabid,
Budlingin, Taginis, Magdagooc, Mayugda, Tagbabaying, Bugsukan falls.
4. Lakes (Mahucdan), Islets (Puyo), Spring (Songkoy) and Mountane areas,Mt.

Maniayaw, Mt. Minaosog
5. Historical and Cultural Sites p Panhutongan and Amusngon Archeological Sites,

Colurum Shirne.
Issues and Concerns Pertaining to Tourism Development
The Surigao-Lake Mainit Cluster is fast emerging as a major tourism destination in the
CARAGA Region not only because of Surigao City which is currently popularized as an
international surfing site, and currently serves as the service center for Siargao and the
other islands, but also because of its varied and exotic nature based assets.
Nature based assets being its foremost attraction is the greatest challenge facing the
local communities in the zone is how to prepare to take the greatest advantage of
becoming an international tourism destination while avoiding the potential risks on its
environment.
This challenge is specially made more serious by the fact that there is a general
perception about the low priority being placed by the government (both local and
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national) on tourism in the area, the lack of political will and coordination to pursue
tourism development project.
One other area of concern again will be to resolve apparent conflicting land and
resources uses. It has been reported for example, that Lake Mainit is being earmarked a
source of water that will be channeled to Jabonga. If the proposed project continues, it
will be important to determine the extent that this tapping will impact upon the resource.
Proposed Action Relative to Tourism Development
It is worthwhile to consider the creation of an inter-agency, comprehensive and

integrated development plan for the zone. The plan should be taken not only in the
context of the CARAGA Region but of the whole nation. The plan should present a
coherent and integrative use of land and natural resources.
The ecological and economic feasibility of channel the waters of Lake Mainit should be
firmly established. Activities such as Environmental Impact Assessments, Economic
Feasibility Studies and Securing Social Acceptability should be done on an interagency
and transparent process. The financial and technical requirements to efficiently
undertake these activities should be provided. Considering the El Nino crisis, care should
be taken that in studying the feasibility of the plan, various laws, such as the Water Code
and the Water Crisis Act should be enforced.
3.4. Butuan Zone
The Butuan Zone is comprised of Butuan City and nine other muncipalities in the
province of Agusan del Norte including Buenavista, Cabadbaran, Carmen, Las Nieves,
Magallanes, Nasipit, RT Romuladez, Santiago and Tubay.
Tourism assets in the cluster include historical and archeological sites including the
Butuan Regional Museum, Balangay Shrine Museum, Historic Magallanes Marker,
Municipal Museum and Montane landscapes such as Mt. Hilong Hilong Range and Mt.
Mayapay.
Issues and Concerns Pertaining to Tourism Development
Among some of the important issues and concerns pertaining to tourism development
which were articulate in the consultations held among various affected stakeholders in
the city are: the need for investment incentives for tourism related activities, building of
stronger NGO-GO support for tourism development, improved networking among
agencies involved, need to intensify domestic tourism promotion.
Institutional Issues take a major importance in the development of tourism in the city.
Except for the need for ordinances on tax and investment incentives articulated by hotel
and resort operators, many is the issues relate to inter-agency collaboration and
cooperation.
To develop a strong network of collaborating NGOs and Government Agencies, a venue
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should be created where these various stakeholders can meet, discuss and agree on
common action. In many other places, the local government has taken the initiative to
create these inter-agency inter governmental councils and planning bodies. It will not be
amiss to try this strategy.
3.5. Northeastern Zone
The North-eastern Zone consists of 11 municipalities in the Province of Surigao del Sur.
Tourism assets in the cluster include exotic white sand beaches, waterfalls, caves, hot
and cold spring an iron mountain, islands and lakes. Some of the more popular tourism
assets are the Blue Lagoon, Cagwait White Beach, Busay Waterfall, Turtle Island,
Linugaw Island, Lake Bababu, Britania Island and Burboanan Falls.
Issues and Concern Pertaining to Tourism Development
The lack of political will to protect the environment and too much bureaucracy was
perceived by consulted stakeholders to be one of the major blocks for ecologically
sustainable and economically gainful tourism development in the region. One other
concern raised was the weak support given to the promotion and protection of
indigenous culture.
The promotion of indigenous culture is a very sensitive concern, particularly because of

the heighten awareness about indigenous rights as a result of the passage of the IPRA
and the popularization of International Covenants on Indigenous Peoples.
Cultural Integrity is an important principle enshrined in the Constitution and the IPRA.
The policies enshrined reflect the approach of respect for cultures, way of life, traditions
and customary laws of indigenous peoples. The principles/policies reflect the direction in
international law of granting indigenous peoples the right to self-determination as
opposed to the “zoo concept” where the idea is to expect indigenous peoples to stay in
reservations, frozen in time and confined to a particular lifestyle, the way of life they once
had. The policies call for respect for the right indigenous peoples to develop and change
like all other peoples if they wish to. It underscores the important principle that they
should have the right to choose. It maintains that indigenous peoples, in most cases will
have to adopt to changing national situation, to changing economy and to a changing
environment however, they should have the right to determine the pace of these
changes and of their own development in so far as possible.
The IPRA expressly provides that the State shall take action towards the promotion,
protection and recognition of the culture, traditions and institutions of the indigenous
peoples. Among the outstanding measures that the state vows to undertake towards the
recognition of cultural diversity are the incorporation of various indigenous cultures,
customs and traditions and histories into the educational system, public information and
cultural education exchange; enjoining the media in promoting cultural integrity and
diversity; and participation of indigenous leaders in schools, communities and
international cooperative activities like festivals, conferences, seminars and workshops.
IPRA recognizes the right of IPs to manifest, practice, develop and pass on their spiritual
and religious traditions, customs and ceremonies. The State shall ensure that indigenous
sacred objects and places like burial sites are protected and preserved. It makes it
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unlawful to explore, excavate, or dig archeological sites on indigenous lands for the
purpose of obtaining material and cultural values without the free, prior and informed
consent of the affected community/ies. It makes is unlawful and makes it punishable for
any one to deface, remove or destroy artifacts which are of great importance to the
preservation of cultural heritage. The indigenous peoples have the right to draw from
government funds to be used for the management and preservation of the
archeological and historical sites and artifacts in their ancestral domains.
IPRA recognizes the community intellectual rights of indigenous peoples. It
acknowledges the right of indigenous peoples to the full ownership and control of their
cultural manifestations and intellectual properties. The IP rights over their sciences,
technologies, and cultural manifestations including human and other genetic resources,
seeds and their derivatives, traditional medicine, health practices, vital medicinal plants,
animals and minerals, indigenous knowledge systems and practices, knowledge of the
properties of flora and fauna, oral traditions, literature, designs and visual and performing
arts. The IPRA expressly provides that the indigenous peoples’ free and prior informed
consent shall be taken before any of these cultural manifestations may be shared to
others.
4.0. RECOMMENDATIONS TO ENHANCE THE LEGAL AND POLICY

FRAMEWORK FOR TOURISM DEVELOPMENT IN THE CARAGA REGION
A review of the issues and concerns of all the tourism clusters discussed above, point out
to four major areas for policy interventions in order to strengthen tourism development in
the Region.
These area policy interventions with regards to the protection and conservation of the
environment, legal and policy interventions related to tenurial and resource use rights,
institutional and administrative interventions to clarify institutional roles, accountability,
jurisdiction and management strategies, and fiscal, physical and financial policies to
encourage investments in tourism.
4.1. Policy Interventions on Environmental Protection and Conservation
4.1.1. Wetlands
The CARAGA Region holds a diverse array of wetlands. These highly productive natural
ecosystems include coastal mangrove forests, coral reefs, freshwater marshes and
volcanic lakes among others.
Wetlands are important for biodiversity conservation and are significant sources of
natural products for rural populations providing the basis for livelihood of a consideration
number of people in the Region. Wetlands provide considerable ecological benefits by
absorbing floodwaters, providing clean water year round, absorbing pollution and
protecting property from erosion by sea or rivers.
The National Wetland Action Plan, states that the concept of tourism and recreation
(other than coral reef tourism and bird watching) as uses of wetlands is not well
understood in the Philippines. There is a general impression, among government staff
and the public in general that wetlands are not suitable for recreation and tourism.
Similarly there is a tendency to see recreation and tourism activities, which are not
compatible with other uses of wetland areas. This is inhibiting the realization of the
social and economic benefits, which can be derived from wetland recreation and
tourism.
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Despite the potential for tourism to contribute to the conservation of wetlands, there are
very real risks that tourism including ecotourism, will have deleterious impacts on
wetlands. The following guidelines to minimize adverse impacts legally binding permits
or licenses should form the basis for tourism operations in wetlands.
1. Tourism in wetlands should provide significant benefits to local residents, tourism

operators should have the commitment to train and employ local resident and to
purchase supplies locally whenever possible.
2. Tourism operators and responsible agencies should design, plan and consult with local
and indigenous communities to minimize negative impacts of the tourism policies on
the environment and indigenous people. There should be no reduction of the area of
important habitat in the locality and no diminution of the rights of local people to use
the area designed for tourism activities.
3. Tourism operators and responsible agencies should contribute to the sustainable

management of wetland resources. There should be no collection of plants and
animals in tourist spots.
4. Tourism operators and responsible agencies should incorporate environmental

education for tourists and residents. They should conduct seminars on the
appreciation and importance of a healthy environment, and the promotion of
environment friendly activities.
5. Concessions for certain tourism service in wetland areas inside or outside protected
areas system should be required to use the revenues generated to maintain the
integrity of wetlands. Guidelines and criteria for awarding concessions should be
formulated.
6. Responsible Government Agencies should ensure that environmental and social costs
of tourism (including increased water demand, pollution, displacement of local
wetland uses, etc.) are fully considered in environmental impact assessments and
designs of development plans. Measures to mitigate these environmental costs of
tourism should be incorporated into permits, licenses and environmental clearance for
tourism operations.
4.1.2. Mangroves
The most significant benefits provided by mangroves are nutrient export to adjacent
areas; breeding and nursery area for wide range of fish, mollusk, crustacean, many of
which are of economic importance; coastal protection (prevention of erosion); and
source of food, fuel, building materials, and other commodities for local communities.
Regrettably, mangrove areas in the Philippines have been reduced to about two thirds. It
has been estimated that less than 5% of the remaining mangrove area is old-growth
forest, which means that the major part of the remaining mangrove area is almost
certainly not yielding the full range of benefits that would be available to mature forests.
Mangrove areas have been destroyed or degraded by a variety of impacts, the most
significant of which has been conversion of brackish water fishponds. Other factors have
been: wood chipping, charcoal and firewood production; extraction of building and
construction materials; pollution from mining and industry; and changed hydrology due
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to earthworks behind mangroves. Over exploitation by local communities continue to
play a significant role in the destruction of mangrove areas.
Management of Mangrove areas in general and for tourism purposes in particular should
consider the following actions:
1. Review all laws, rules and regulations on mangrove areas including those converted
to other uses or abandoned in order to solve the issues with respect to administrative
jurisdiction caused by overlaps and conflicts, prohibit any action that destroy
mangrove areas, and ban all cutting of mangroves except when required in the
implementation of a management plan prepared by the community in accordance
with appropriate guidelines.
2. Bureau of Fisheries and Aquatic Resources should conduct an inventory of fishpond

holdings and review their legitimacy and compliance with fishery laws. Appropriate
action should be taken based on the inventory.
3. Develop a national policy on the utilization of brackish water ponds, especially in

establishing a ratio of domestically consumed protein crop to export crop based on
biological, socio-economic and ecological criteria.
4. Implement a policy on reverting alienable and disposable lands, which are released to
the BFAR but have not been developed within the 5 year period.
4.1.3. Caves
Among Nature’s many treasures and attractions, very few possess the combined allure of
majesty, beauty, serenity and mystery as caves do. Each of the Philippine’s 2000 known
caves holds a promise of thrill and excitement for exploration and discovery, spectacular
views of wonders patiently wrought through the centuries, or silent inspiring chronicles of
man and nature’s beautiful story of interdependence.
Caves are part of our natural heritage. They possess outstanding historical, educational,
cultural, scientific and aesthetic values. They are part of our ecosystem and habitat of
unique and diverse flora and fauna. Caves and their resources when properly conserved
and sustainably managed can aid in the social, cultural and economic upliftment of our
country and can provide livelihood opportunities to the Filipino people.
However, caves and cave resources are non-renewable wealth. As part of the country’s
heritage they demand of the present generation the proper management, protection
and conservation that would ensure their pristine existence as a legacy to the children of
the future. Vi
This studyvii recommends the following guidelines for the management of caves for
tourism purposes:
The Cave Management Plan should include the following:
1. A cave Map. In case of emergencies the map will be very useful. A cave map will
determine the routing of tour groups. The trail options will be indicated on the map
and copies to its distributed to tour leaders and tour participants.
2. A map of the surface topography. This map will indicate the road and areas where
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motor vehicles would park, walking trails and other features that would be tied up
with the cave map. The surface maps will likewise indicate areas in the surface,
which are off limits to visitors and tour participants.
3. A study of cave life. The impact of the succession of tour groups on the life in the
cave must be established. Under a permit system the number of permits to be issued
for a particular cave at any one time (season) must be set.
4. Fragile and Sensitive Features. Features of the cave that are fragile and sensitive to
tour groups must be identified and marked in the cave map. Dangerous areas must be
marked clearly to avoid accidents and to facilitate rescue operations if needed.
5. Permit to visit the cave. Permission to use private or public lands and caves is a must.
The authority charged with the management of the cave must know how many people
are transported to the cave in any given time. When considering the use of the cave
for tours, the owner and a speleologist should be certain the surface krast and the cave
environment would not be adversely affected.
When a cave is determined to be suitable as a show cave, cave owners or managers,

visitors and tour groups should be required to secure or have the following:
1. Accident Insurance. The cave owner must have liability insurance. So too the tour
company. Coverage by the owner’s insurance and the tour company’s must be very
specific.
2. Pre-exploration briefing. A pre-exploration briefing about the fragile nature of the

cave environment must be provided to all visitors. Details are provided to help the
visitors understand their responsibilities underground.
3. Proper equipment. Each of the visitors must be provided proper equipment and
should be shown how the various equipments are used.
4. Monitoring System. The Owner or Manager of the cave should have appropriate
monitoring systems to determine the effect of the cave visits.
5. Carrying Capacity. Cave owners and managers must determine the amount of traffic
and acceptable thresholds of the cave.
4.1.4. Land Resources
Land is a finite resource and decisions on the proper land use assume strategic
importance in development planning. Some general principles to consider in allocating
land for tourism purposes are the following:
1. Compatibility with Development Plans. A primary consideration of the rational

relationship and compatibility of the planned tourism development use to the national,
regional development plans’ land and resource use policy should be made. The
project should be compatible with surrounding land uses, zoning and land use pattern.
If any change in land use pattern will come about as a result of the project, the
probable social, environmental and economic effect of the change in land use should
be determined, the benefit on regional economy and the extent that the project will
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induce development in adjacent areas should also be considered.
2. Social Acceptability. The social impacts of the tourism project should be closely
studied. Crucial important should be laid on avoiding impacts related to dislocation
of peoples and villages. No less than the Constitution of the Philippines and enabling
legislations such as the NIPAS, Local Government Code and IPRA call for the
effective, prior and informed consent of the people before the introduction of any
project that will affect them. Issues related to demographic impact, community
identity, socio-cultural values, and health should be addressed.
3. Archeological and Historical Preservation. Historical and archeological sites should

be preserved for posterity. When historical, religious, geological or acheological sites
constitute part of the tourism assets, the technical and financial requirements to keep
the places properly managed should be addressed a foremost concern.
4. Ecological Considerations. Ecological considerations including the natural and

physical attributes of the tourism asset should be evaluated. This normally should
include the suitability of the site for development of building, sewers and
underground utility trenches, impact on topography; impact on hydrology and water
quality; impact on climate, meteorology, and air quality; impact on noise quality;
impact on energy utility services, including energy conservation, sanitary sewers,
solid waste, water supply, impact on vegetation, fauna and habitat, and impact upon
the unique features of the area.
4.1.5. Forests
Eco-tourism involves traveling to relatively undisturbed natural areas with the specific
objective of studying, admiring and enjoying the scenery and its wild plants and animals,
as well as any existing cultural manifestations. Eco-tourism aims to promote economic
development, environmental education and justify the protection of natural sites.
However, with the influx of tourists and stimulated economic activity, the industry could
contribute to environmental degradation such as pollution and soil erosion. In ill
managed sites, the disturbance of the ecology is inevitable.
Developing eco-tourism in forest areas therefore should consider the following policy
recommendations:
1. Plant introduction and domestication should be controlled. Plant domestication is the

process of harvesting wild plants, propagating them in plots and selecting favored
species. Not only will widespread plant domestication practice open wide range of
unutilized and underutilized forest species to economic exploitation. It may likewise
threaten bio-diversity conservation by negating goals of forest conservation once the
clamour for valued forest species mounts. Plant introduction should likewise be
regulated. It has been the experience in recent years that exotic species monoculture
has been plagued with pests and diseases. Exotic ornamental plants largely orchids,
have been introduced and continues to be introduced. One ill effect of the extensive
introduction of exotic species would be genetic dillution of native and endemic orchid
species as well as the introduction of pathogens that could cause large scale
epidemics.
2. Protection of wildlife and prevention of habitat degradation should be promoted.

Hunting wildlife should be strictly limited. Forest patrols should be engaged to guard
143
that these activities are perpetuated within forest areas.
3. Forest guides should be provided to all visitors. Tourist outposts should be

constructed in certain areas and should be equipped with effective fire fighting
equipment, as forest fires may be started from campfires and carelessness of visitors.
Protected Landscapes and Seascapes
Coastal tourism accounts for a significant portion of tourism in the CARAGA Region.
Sandy beaches, warm tropical waters, coral reefs, lush vegetation and interesting
coastal fishing culture are some of the primary natural and physical attractions in the
region. It is thus vital to have regulations on resources for coastal environment protection
in order to maximize the economic gains on tourism. The following policy
recommendations should be considered.
1. More complete, understandable scientific and technical information about the sea’s
value and its vulnerability should be publicly and widely disseminated and explained.
2. Care should be taken that human cultures adopt to live sustainably in coastal
ecosystems is replaced by consumer-oriented world culture.
3. Limit access to reefs and fishery resources. Many reefs have come devoid of many of
the economically important species due to overfishing and the use of destructive
fishing methods such as explosives, poisons and muro-ami fishing. There should be
an intensive public information or awareness of the damage done by these methods of
fishing. Also the adverse impact on the reefs caused by siltation brought about by
unsuitable agricultural practices, mine tailings and logging in water catchments which
are discharged unto rivers should be made known and understandable to the public.
4. Increase protection to the Dugong, Sea Turtles and other marine species. Protect the
sea grass beds found on shallow sediments, submerged reef flats and on the platforms
of fringing reefs. Aside from providing nursery areas, shelter and feeding sites of a
large number of invertebrates and fishes, many of which are of economic significance,
sea grass beds are important feeding areas for endangered vertebrates such as dugong
and marine turtles. Sea grasses have additional importance because a significant
portion of the nutrient produced by sea grass beds can be transferred to adjacent
ecosystems such as coral reefs.
5. Enhance institutional capacities of Government, Non-Government Organizations,

Peoples’ Organizations and Communities for coastal area management.
6. Institute and Financially support coast guards.
4.2. Policies on Institutional Roles and Responsibilities
Law enforcement, institutional coordination among government agencies, effective

public participation, training and development of human resources, financial and fiscal
allocation, regional and integrated planning are among the salient areas where policy
intervention might help protect the environment and maximize gains from tourism
development.
144
Law Enforcement
One of the major factors contributing to the destruction of our ecology is the low level of
law enforcement. These may be traced to factors such as shortage of manpower and
low
levels of logistical support, the reluctance to implement and enforce law may also be a
result of lack of protection and support of higher authorities on the law enforcers and/or
the payment and receipt of bribes. Arrests may sometime be made, but the litigious,
lengthy and expensive court process discourages the filing of appropriate complaints.
Unrealistically low penalties and fines likewise prove as non-deterrents to the destruction
of resources.
In some provinces, the creation of citizens’ brigades as law enforces have proven some
success. Citizen’s groups such as bantay-gubat, or bantay-dagat have proven to be
effective deterrents to continued degradation of the resource. However, these citizens’
groups must be backed with the appropriate court and justice systems that will bring an
expeditious and just prosecution of offenders.
Institutional Coordination and Networking
Several government agencies have responsibilities over common areas and natural
resources. Overlap of responsibilities as well as conflicting management objectives result
to confusion in the allocation and use of resources and results ultimately to faster and
more serious degradation of the resource.
The creation of multi-sectoral, inter-government agency and all stakeholders’ councils

are increasingly becoming the solution to the problem of conflicting decisions on natural
resource utilization. Integrated land use planning has likewise lessen the ill effects of the
confusion in some provinces that have ventured into this strategy.
Human Resource Development
It has been increasingly realized that the lack of information, knowledge and training
and the adequacy of human resources both in numbers and skill contribute much to the
mismanagement of our resources.
Institutional mechanisms for human resource development must be given priority in the
programs of government agencies. Citizen’s or public awareness and training through
participatory undertakings must also compliment the efforts because government will
never be able to hire the number of personnel needed to undertake all its functions.
Aware and pro-active, organized communities and citizenry are important in the
protection, development and conservation of our natural resources and the sustainable
development of the country.
Fiscal and Financial Stability
“Put your money where your mouth or heart is” is a common jargon. Laudable and noble
goals may be set, but without the appropriate financial and fiscal resources to enable
the activities to be undertaken, they will remain in the realm of dreams. Government
budgets and appropriations should be biased for activities and projects that support their
development goals and objectives.
145
4.3. Policies on Ownership, Tenure and Utilization Rights
Resolution of conflicting natural resources uses right would depend heavily on the speed
and manner by which the ownership and tenure is recognized and vested. This is
particularly true to the settlement of the claims of indigenous peoples to their ancestral
domains and to respecting the rights of settlers to the lands of the public domain, which
they have acquired by prescription. Secure tenure rights coupled with the right to
manage these areas are management prescriptions for rationalization of the use of
natural resources, which have been oft repeated.
The passage of the IPRA, the institution of Community Based Forestry as the national
strategy for forest development, Handog Titutlo Program and the Comprehensive
Agrarian Reform may contribute a lot to the resolution of the long standing and
sometime bloody land and natural resource use conflicts. Land use planning should be
able to determine this actual and legal land status. A process of consultation among
stakeholders would reduce the resistance against imposed zoning or zoning regulations.
4.4. Policies on Revenue and Investments
In the paper “ Striving for Sustainable Development”, the author cites the Villamoura
Declaration signed in Portugal in January 1997. It says, the Villamoura declaration
upholds (1) the role of tourism investment promotion and consumer spending as an
effective way of generating jobs at various levels; (2) the ability of travel and tourism to
provide opportunities to the youth, women, and part-time workers and to generate
employment in high unemployment areas in provincial city centers and rural
communities; (3) the creation of jobs in small and medium sized enterprises and in
export-related trade and (4) the need for an effective effort to liberalize trade,
particularly in aviation and telecommunications and thus, provide open competition
with sustainable development and infrastructure goals.
The declaration urges policy makers to integrate travel and tourism in strategies to
combat unemployment, reduce rigid practices in labor markets thus encouraging grater
staff mobility, productivity and innovation in a progressive employment environment,
with emphasis on a flexible market economy, invest in training and education to improve
skills and service quality and encourage partnerships between the public and private
sectors.
These goals were set in the tourism master plan, drafted a decade ago. Policy measures
to enable achievement of these objectives must be assessed and if need be enhanced
and strengthened.
8.4 Specific Government Policies/Programs Relevant to the Industry
Laws and policies have direct or indirect impact upon the state and condition of natural
resources as they often determine not only the nature and extent of natural resources
utilization but also the directions of development as a whole. On the other hand, laws
and policies should respond and should ideally be premised upon a sound assessment of
peoples’ needs and the resources’ ability to continually support development in
accordance with a chosen development paradigm. The determination of the legal and
policy framework for Tourism Development in the CARAGA Region should thus
necessarily include an overview of what natural and other resources are available in the
Region for utilization and development for tourism purposes, a review of the laws,
146
issuances and policies that guide the use and development of these resources, and an
assessment of how these laws and policies either fulfill or hinder development objectives.
This study will therefore (a) present a short overview of the tourism assets or resources and
Regional Development Plans of the CARAGA Region, (b) discuss the salient features of
various laws and policies that impact upon the tourism assets and other resources in the
region and (c) pinpoint some issues and areas of concerns that generally apply to the
whole region or to particular Tourism Clusters ( Butuan Zone, Surigao del Norte Zone,
Surigao Island Zone, South Caraga Zone, North Eastern Zone) that should be taken into
consideration towards either the formulation of new laws and policies that will guide
tourism development in the Region or the strengthening and further development
the existing laws and policies for tourism development.
1.0. OVERVIEW OF TOURISM ASSETS AND DEVELOPMENT PLANS IN THE

CARAGA REGION
1.1. Tourism Assets and Resources
The Preliminary Report on the Regional Tourism Master Plan for the CARAGA Region state
that “Caraga’s tourism assets are its own bountiful natural endowments, rich cultural
heritage and warm and hospitable people. An inventory of the regions’ tourism assets
showed a total of 301 sites and events, about 230 of which are nature based assets. The
other assets are grouped either as Archeological or Historical Resources, Events and
Festivals and Indigenous Peoples’ Arts and Culture.
Table 1: Number and Classification of Tourism Assets in the CARAGA Region
Province/ City Nature Based Archeological Cultural

Agusan del Norte –35 sites 30 3 2
Agusan del Sur-79 sites 76 0 3
Butuan City -26 sites/ events 10 7 9
Surigao City-28 sites/ events 24 1 3
Surigao del Norte-61 sites 51 5 5
Surigao del Sur-45 sites 39 0 6
1.1.1. Nature Based Tourism Assets
Nature based tourism assets and resources in the CARAGA Region include beautiful
beaches, islands and islets, most of which, particularly those of Siargao and Dinagat, are
rimmed with white sand beaches of world-class quality. There are Montane landscapes,
especially the Mt. Diwata Range and Central Mindanao Cordillera that are still generally
covered by the most extensive forest vegetation in the country. Within these landscapes
are found complex of caves, waterfalls, lakes and lagoons. The extensive basin bounded
by two mountain ranges is found the country’s richest wetland ecosystem, the Agusan
Marsh.
Nature based tourism assets in the Region, which are emerging to be of international
and scientific interests include the Siargao and Dinagat Islands and the Agusan Marsh.
147
Siargao Island contains the most extensive mangrove forest remaining in Mindanao and
perhaps in the Philippines, which provide support to a very large human population. Its
mangroves are seriously threatened by over-cutting, and other resource exploitation
activities that work against its conservation. The Island has been proclaimed among the
priority sites of the Integrated Protected Areas System (IPAS) and a zoning plan for the
mangrove areas will be implemented under phase II of IPAS. Environmental issues and
concerns and other matters that will impact on the development of tourism assets in the
province will be discussed in a later part of this report.
Agusan Marsh contains the largest and least disturbed freshwater wetland in the
Philippines. The only areas in the Philippines where swamp forest and peat swamp are
found. It holds the largest remaining population of Crododylus porosus and C.
mindorensis in the country. It performs essential flood control and sediment retention
functions. The marsh is not critical at present due to the low population density within the
marsh, but clearance of swamp forest has been reported around its periphery. It is
likewise included as one of the priority sites of IPAS. Management of the area is
envisioned to commence under Phase II of IPAS.
Dinagat Island has a high degree of biological endemicity. Of the 23 mammalian

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

spectrum of indigenous arts and crafts, especially those from the Indigenous Peoples (IPs)
called Manobos, Higaonons, Ata, Mananwa, Banwaon, Tigwahanon, Mandaya,
Talaandig and Bukidnons. These include art forms such as poetry, music, dances and
such as beadworks, musical instruments, basketry, mats, woven cloths and embroidered
garments.
1.2. Development Prospects
A shared practical vision on tourism for the CARAGA Region states “ By the year 2008,
CARAGA will be the major eco-tourism destination and investment haven, a show
window of culture and history in Mindanao, where people are empowered and
socioeconomically sound; and where the ecosystem is protected, sustainable and
accessible.
148
The potentials for the Region to realize this vision is both promising and challenging. The
Preliminary Report on the Tourism Master Plan for the CARAGA Region states that “like
the other resource-rich regions in Mindanao the CARAGA Region will be--and will always
be-- a resource base area for launching development activities, both agro-based and
agri-based... Tourism industry--especially components relating to historical/cultural,
ecological and sports/adventure type tourism--will be a sunrise economic sector in the
Region. Investing in CARAGA’s environment would mean facing the challenges of
implementing a development strategy that would be ecologically sound, equitable and
sustainable. It means meeting the needs for developing a rational development
framework, integrating environmental concerns in development efforts, pursuing local
autonomy and clarifying roles, responsibilities and accountabilities and developing local
capability to manage forest resources and protected areas.
1.2. Tourism Clusters
The Regional Tourism Master Plan classifies CARAGA’s Tourism assets into five
interprovincial clusters, including:
Butuan Zone comprised of the municipalities of Buenavista, Cabadbaran,

Carmen, Las Nieves, Magallanes, Nasipit, R.T. Romualdez, Santiago, Tubay,
Province of Agusan del Norte and Butuan City.
Surigao Del Norte Zone which is subdivided into two sub-clusters:
• Lake Mainit sub zone, consisting of the municipalities of Jabonga and

Kitcharao, Agusan del Norte and Alegria, Mainit, Malimono and Tubod in
the Province of Surigao del Norte.
North Mainland Sub-zone, consisting of the municipalities of Bacuag,

Claver, Gugaguit, Placer, San Francisco, Sison, Surigao City and
Tagana-an, all in the Provicne of Surigao del Norte.
Surigao Island Zone which is likewise subdivided into two sub-clusters including:
Siargao Island Sub-zone, consisting of the municipalities of Burgos, Dapa,

Del Carmen, General Luna, Pilar, San Benito, San Isidro, Socorro and Sta.
Monica, all in the Province of Surigao del Norte.
Dinagat Island Sub-zone including the municipalities of

Basilisa,Cagdianao,
Dinagat, Libjo, Loreto, San Jose and Tubajon, Hikap Island and Nonoc
Island in the Province of Surigao del Norte.
South Caraga Zone which is subdivided into two sub-zones including:
Agusan Marsh Sub-zone comprised of the municipalities of Bayugan,

Bunawan, Esperanza, La Paz, Loreto, Prosperidad, Rosario, San Francisco,
San Luis, Sibagat, Sta. Josefa, Talacogon, Trento and Veruela in the
Province of Agusan del Sur.
Southeastern Sub-zone including Barobo, Bislig, Hinatuan, Lianga, Lingig,
149
Marihatag, San Agustin and Tagbina in the Province of Surigao del Sur.
North Eastern Zone comprised of the municipalities of Bayabas, Cagwait,

Cantilan, Carmen, Carrascal, Cortes, Lanuza, Madrid, San Miguel, Tago and
Tandag in the Province of Surigao del Sur.
Each particular cluster or sub-cluster may have unique legal and policy issues that need
to be separately discussed. Thus, after the presentation of legal and policy issues
applicable to the whole region, this study, will also present some unique legal concerns
and problems pertaining to each of the tourism clusters identified in the Master plan.
9 References
- Local advocates claim that the First Mass in the Philippines was in Masawa. The search
for evidence 1
and advocacy for such claim continue to persist.
- 2cf: Participatory Planning Workshop on the Regional Tourism Master Plan
i UNCED, Agnda 21, Chapter 10, Integrated Approach to Planning and Management of
Land Resources.
ii White, Alan; Environmental Guidelines for Coastal Tourism Development in Tropical Asia
iii White, Alan, ibid.
iv Initial Protected Area Plan, Agusan Marsh Wildlife Sanctuary, DENR Environment
Management and
Protected Area Sector, Region XIII, CARAGA
v
Initial Protected Area Plan, Siargao Island Protected Landscape and Seascape, DENR-
PAWB
vi Cave Management Brochure, DENR-PAWB, 1997
vii CARAGA Tourism Master Plan Consultants’ Notes, December 199
150

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1

TOURISM INDUSTRY CLUSTER BACKGROUND PAPER

1.1. Definition of the Industry

Tourism is a multi-dimensional phenomenon. It involves collaborative relationships

It is said to be the mother of all industries because it comprises a composite of activities,

Burkart and Medik cited five main characteristics of tourism:

1. Because of its complexity, tourism is a combination of phenomena and

It is a purposeful travel to natural habitats to create an understanding of the cultural

Business Tourism – travel characterized by conventions, meetings, seminars which is

Cultural Tourism – travel to experience and, in some cases, participate in a vanishing

Environmental tourism – similar to ethnic tourism , also called nature tourism, it is

Recreation is the action and activities of people engaging in constructive and

1.2. Economic Importance of the Industry

The Department of Tourism however continuous its aggressive promotional efforts to

Job generation is an important indicator of tourism’s economic impact. Below is a table

EMPLOYMENT GENERATED IN TOURISM-RELATED ESTABLISHMENTS

Female Male Total

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

TOURISM-RELATED INVESTMENTS IN CARAGA REGION

CITY/PROVINCE TOTAL INVESTMENTS PERCENTAGE SHARE

1.3.1 Visitor Arrivals

1.3.1.1 Visitor Arrivals by Country of Residence

1.3.1.2 Visitor Arrivals by Port of Entry and Mode of Travel

Air transportation remained to be the principal mode of travel of incoming visitors

1.3.1.3 Visitor Arrivals to the Philippines by Nationality

1.3.2 Visitor Arrivals of Former Filipinos

1.3.3 Visitor Arrivals of Overseas Filipinos

1.3.4 Visitor Profile

1.3.4.1 Visitor Arrivals by Sex

1.3.4.2 Visitor Arrivals by Age Group

1.3.4.4 Visitor Arrivals by Civil Status

1.3.4.5 Visitor Arrivals by Highest Educational Attainment

University/College degree holders comprised an average of 72.58% share in the last

1.3.5 Travel Characteristics

1.3.5.1.1 Visitor Arrivals by Purpose of Visit

1.3.5.1.2 Visitor Arrivals by Travel Arrangement

1.3.5.1.3 Visitor Arrivals by Frequency of Visit

1.3.5.1.4 Visitor Arrivals by Type of Accommodation

1.3.5.1.5 Visitor Arrivals by Purpose of Visit and Sex

1.3.5.1.6 Visitor Arrivals by Sex and Travel Arrangement

1.3.5.1.7 Visitor Arrivals by Purpose of Visit and Travel Arrangement

1.3.5.1.8 Visitor Arrivals by Purpose and Frequency of Visit

1.3.5.1.9 Visitor Arrivals by Purpose of Visit and Age Group

1.3.5.1.10 Average Length of Stay (in nights)

1.3.5.1.11 Average Daily Expenditure on Major Items per Person

1.3.6 Visitor Receipts

1.3.6.1. Estimated Visitor Receipts

1.3.6.2. Overall Average Daily Expenditure of Visitors

1.3.6.3. Overall Average Length of Stay of Visitors (In nights)

1.3.6.4 Visitor Arrivals by Average Daily Expenditure

1.3.7 Preferences / Psychographic Profile

1.3.7.1 Motivating Factor in Choosing Philippines as a Place to Visit

1.3.7.2 Places Visited in the Philippines Outside Metro Manila

1.3.7.3 Shopping Places

1.3.7.5 Things Liked Most About the Visit to the Philippines

1.3.7.6 Things Disliked Most About the Visit to the Philippines

Country of Residence 1999 2000 2001 2002 2003

Sources of data: Arrival/Departure Cards and Shipping Manifests

2.0 Market Situation (Caraga Region)