WOW PHILIPPINES Where

1
WOW PHILIPPINESWheres Our Wealth?

• A Look at Tourism and Poverty Alleviation in the
  Walled City

REIL G. CRUZUP Asian Institute of Tourism
2
Tourism and Poverty Alleviation

• Paradigm shift from boosterism and economic
  development to sustainable tourism
• Sustainable Tourism as a Tool for the Elimination
  of Poverty (ST-EP)

3
ST-EP

• One of the strands of sustainable tourism WTO is
  promoting to achieve the international goal of
  halving the number of people living in extreme
  poverty by 2015.Also called pro-poor tourism.
• Framework set up by the WTO and UNCTAD in June
  2002(WTO 2002 p. 87)

4
What is poverty?

• the deprivation of essential assets and
  opportunities to which every human is
  entitled.These entitlements include access to
  basic education, primary health care, just
  employment, and protection from external shocks,
  which could be man-made or natural hazards.
  Asian Development Bank (1999 in UNESCAP 2003,
  p. 23-24)

5
Poverty

• the lack of human, physical and financial
  capital needed to sustain livelihoods, and from
  inequality of access to political, social or
  economic resources(CIDA in Jamieson, 2001 from
  www.tourismpoverty.com/seminar_papers)

6
What is extreme Poverty?

• Less than one US dollar a day (World Bank, in
  UNESCAP 1999, p. 24)

7
The Philippines Indicators of Poverty

• Poverty incidence 28 (UNICEF 1999 based on
  World Development Indices 1998)The Philippines
  is one of 13 countries where 80 of the worlds
  poorest can be found.

8
Philippines Indicators of Poverty

• Unemployment rate 13.7
• Underemployment rate 18.5
• Poverty incidence in rural areas 51
• Poverty incidence in urban areas 22
• No access to safe water 19
• (NSO 2004)
• 32 of preschool children are underweight
• 57 of infants have iron deficiency anemia
• (Henderson 2002)

9
Rationale for Tourism Development

• The objectives of the Philippine Tourism Master
  Plan (1991-2011) include
• maximizing local ownership, livelihood
  opportunities, individual initiative and
  self-reliance
• encouraging regional dispersal of development and
  domestic tourism
• as a means to improve the peoples quality of
  life.

10
The Case of Intramuros
11
Methodology

• Part of a larger study
• Survey of 100 residents of Intramuros between May
  and June 2004
• Questionnaire
• Interview

12
Limitation

• Small sample size
• Cannot make generalizations
• Not able to get side of Intramuros Administration

13
Background

• Intramuros is the name of the Walled City that
  was the original city of Manila.
• With its Spanish-built fortifications and several
  important churches, government buildings and
  universities, it is considered to be a 'must-see'
  attraction in the Philippines.

14

• Intramuros is also home to five barangays with a
  voting population of about 8,000 registered
  voters (barangay officials)
• According to a survey conducted in 1991, about
  75 of the residents are illegal settlers or
  squatters its daytime population was about
  60,000, of which only 9,890 were residents of the
  place. (Santiago, 2003).

15
WOW Philippines-The Best of the Regions

• In 2003, Intramuros became the site for WOW
  Philippines-The Best of the Regions, a signature
  project of then DOT Secretary Richard Gordon.
• The project involved the cleaning of the
  forgotten sections of Intramuros, and relocation
  of squatters to give way to structures (known as
  clamshells) for exhibition, night market stalls,
  sidewalk cafes, and entertainment plazas.

16

• Intramuros is under the jurisdiction of the
  Intramuros Administration, a government agency
  within the umbrella of the DOT

17
Economic Impact of WOW Philippines

• Jobs
• The number of new jobs generated by this project
  from February to July 2004 was 2188 (DOT).
• The major employers were the clamshell
  exhibitors, restaurants and calesa tours.

18
LOCATION NATURE JOBS TOTAL SALES (PHP) AVE MO. SALES(PHP)
Clamshell Exhibitors Retail 1,920 22,154,865 4,028,157
Pook Alitaptap Restaurant 63 10,560,000 240,000 per stall
PC Barracks Restaurant 26 4,950,000 900,000
Plano Luneta de Sta. Isabel Restaurant 12 2,475,000 450,000
Sta. Lucia Gardens Restaurant 10 875,000 250,000
Sta. Lucia "Tiangge" Retail 60 720,000 12,000 per stall
Tapas Row Restaurant 15 550,000 100,000 per restaurant
Roaming Vendors Retail 20 540,000 9,000 per vendor
Artists Row Art 8 445,000 10,114 per artist
Calesa Tours Tours 30 360,000 9,000 per calesa
Duty Free Stall Retail 12 315,000 21,000 per stall
Blind Masseuse Massage 12 22,500 4,500 per masseuse
2,188 43,967,365 6,033,771
19

• Extra income
• According to the DOT, total revenues earned for
  six months (Feb-July 2004) was P50 million
• According to Boy Abne, a barangay tanod, he was
  paid P100 extra for rendering services at night,
  plus food rations.
• Pedicab drivers increased daily income 10 to
  150 (up to P300 pesos) per day during the height
  of the project's popularity.

20
(No Transcript)
21

• Types of jobs
• Regular Performers 100
• Barangay Tanods 70
• Street Sweepers 50
• Parking Attendants 30
• Security Guards 25
• Janitorial Services 10
• 285
• Source DOT

22
(No Transcript)
23
(No Transcript)
24
Perceived Economic Impacts of Tourism

• Investors from outside
• Increased Inflation
• Stall rent increased
• Income increased
• Jobs
• Better quality of life
• Became poorer
• Own business

25
(No Transcript)
26

• I used to have three stalls at the night
  market. Now that rent for a 2x2 sqm stall has
  gone up to P15,000 (US268) per month, I am
  gradually pulling out my merchandise.
• Gladys de Jesus, a local businesswoman and
  resident of the place since the 1950s

27
(No Transcript)
28
(No Transcript)
29

• Even the ambulant vendors were being charged
  P1,500 for permit to sell in the WOW area.

30
(No Transcript)
31

• Most residents felt that greater tourism volume
  to Intramuros led to inflation or increase of
  price of goods sold in the area. Visitors
  remarked "Wow mahal!" (Wow, how expensive!)
  during shopping. - de Jesus

32
(No Transcript)
33
(No Transcript)
34

• Why is it that they only think of building
  promenades and cafes for tourists and ignore our
  plight? Tourism must take into account the
  welfare of the residents!"
• -a barangay leader

35
(No Transcript)
36

• Only 11 perceived having better quality of life
  as a result of the WOW Philippines project.
• The supplemental incomes generated by tourism are
  too little to improve their perceived quality of
  life.

37

• On balance, residents of Intramuros perceive the
  negative impacts of tourism more than the
  positive ones.

38
Why tourism has failed to create perceived
advantages

• Lack of capital
• Nature of tourism businesses established
• Type of markets drawn to the area
• Unsustainable tourism events (dependence on
  outside entities for events)
• Plight of the poor not integrated into the
  tourism development plan of Intramuros

39

• Lacks distinctive appeal
• Competition from other venues (Baywalk)
• Lack of activities, attractions and
  accommodation, access and connectivity to major
  tourist zones
• Changed priority of the DOT
• Lack of funds to underwrite the events

40

• Poor market
• They come to Intramuros mainly to see the
  exhibits or to while away their time during their
  off days.
• The low quality, low priced items sold in the
  night markets attest to the kind of markets being
  served.
• Many who go to the night markets simply ogle
  without buying anything.

41
Conclusion

• It can be said that tourism (specifically, WOW
  Philippines) in Intramuros has not been able to
  ameliorate the condition of the urban poor in a
  sustainable manner.

42
Recommendations

• Make a thorough redevelopment plan for
  Intramuros.
• Complement low-end activities with high-end
  shopping and entertainment activities to attract
  higher-spending tourists.
• The supply components must be put in place.

43

• IA should prioritize local residents so that the
  residents do not have to compete with outsiders.
  
• For livelihoods to be sustainable, the number of
  players should also be controlled.
• This will enable the residents to realize better
  incomes that can trigger demand for other forms
  of services in the community.

44

• The IA and the DOT should study other uses for
  the existing facilities in order to extend their
  life cycles.
• The clamshells are now being rented out to
  religious groups on specific days.
• They can also be offered as venues for weddings,
  graduation, conferences or concerts.

45
(No Transcript)
46

• Involve the residents in making the development
  plans.
• The IA may be able to use the residents as
  volunteers or partners in making the place safer
  and cleaner in exchange for some concessions for
  the poor, such as allocating certain areas for
  their residence.

47

• Build the capacity of local residents to
  establish and manage their own business
  cooperatives
• Train local residents in creative productions
• Train residents in the provision of other high
  value services (e.g. guiding, massage)
• Create a local festival