Economic Sector Study

Comprehensive Land Use Plan

Presented by: Cherry Belle Ontoy-

Milagrosa , CPA

The study of Economic Sector

- involves the assessment of the current state and growth pattern of local economy with the end view of building and strengthening the economic

activities in a sustainable manner.

Key areas/parameters for this study include:• Employment and workforce development• Volume and value of production• Land utilization• Investments in the form of policies• Infrastructure and• Marketing facilities, etc.

Economic sub-sectors:1. Agriculture2. Commerce and Trade3. Industry, and4. Tourism

A detailed analysis of each sub-sector shall be undertaken using the steps and consistent with the parameters.

Results of the sub-sector analysis shall be cross-checked and validated through a participatory process to come up with an integrated economic sector analysis.

Economic Sub-Sector: AgricultureSteps:

I. Data Gathering and ProcessingA. Generate the following data/information and present in table format:

1. Existing Major Agricultural Crops by Area and Production, Year ___ (refer to Table EC- 2)

2. Comparative Agricultural Crop Areas and Production, Y1 – Y2 (refer to Table EC- 3)

3. Existing Livestock and Poultry Farms, Year ___ (refer to Table EC- 4) 4. Existing Fishing Grounds and Aquaculture Production, Year ___ (refer to Table

EC- 5) 5. Area and Location of Forestlands by Sub-Category and Primary Use, Year ___

(refer to Table EC- 6)6. Volume of Production by Forest Concessionaire, Year ___ (refer to Table EC- 7)7. Existing Agricultural Support Facilities and Services, Year ___ (refer to Table EC-

8)8. Major and Minor Agricultural Occupations/Groups in Urban and Rural Areas, Year

___, (refer to Table EC- 9)9. Agrarian Related Concerns, Year ___ (refer to Table EC- 10)10. Comparative Area Utilization of Significant Agricultural Activities, Year ___ (refer

to Table EC- 11)11. Agriculture Related Projects, Approved/Funded for Implementation, Year ___

(refer to Table EC- 12)

B. Determine the felt needs, aspirations and issues of the community relative to agriculture through consultations.

such as: 1. general assembly, 2. focus group discussion, 3. barangay consultation, or 4. other consultative meetings with identified stakeholders.

C. Gather additional information if warranted by the results of the consultations/ meetings conducted.

.

II. Data AnalysisAssess the existing situation of the agriculture sector covering

the following:

A. Agricultural Production Historical utilization of city/municipal land for agriculture and

forest related activities for the past 3 years (Comparative Area Utilization of Significant Agricultural Activities – Table EC- 3)

1. Crop Production i. Location and area of lands devoted to agricultural crop production (refer

to Table EC- 2) ii. Percentage of the municipality‘s land area devoted to agricultural crop

production iii. Area devoted to each crop and percentage of agricultural land planted

to each crop. iv. Comparative area and volume of production per major crop (refer to

Table EC- 3) v. Average production per hectare for irrigated agricultural land and those

under private irrigation (refer to Table EC- 2)vi. Total production and the value of production per major crop (refer to

Table EC- 2) vii. Discuss the agricultural/market distribution per crop and determine the

volume of product for local and other consumptions (refer to Table EC- 2)

2. Livestock and Poultryi.  Location, volume and value of livestock and poultry production.

Refer to Table EC- 4. ii. Percentage of production value with that of total agricultural

production valueiii. Livestock and poultry market distribution and volume of product

for local and other consumptions 3. Fisheries and Aquaculture

Location and description of the Fishery Strategic Development Zones (FSDZs), if any. The FSDZs shall likewise be delineated on the map.

i. Area and location of the existing fishing grounds/ aquaculture areas in the city/municipality. Refer to Table EC- 5.

ii. Types of marine, aquatic and inland fishing resources by volume and value of production. Include such other activities like seaweed culture, etc.

iii. Types of fishing activities, whether commercial fishing, municipal fishing or both.

iv. The production value compared with the total agricultural production value

v. Availability and adequacy of existing storage/processing facilities vi. Degree and source of pollution/degradation of marine and aquaculture

resource areas, if any.

B. Forestry i. Area coverage of forest lands (public lands) from the total city/municipal

area. Refer to Table EC- 6.ii. Assess the area and location of production and protection forests and

percent distribution from the total forest area iii. Discuss the existing economic activities of production forest including the

number of concessionaires, area covered, type, volume and value of production. Refer to Table EC- 7.

iv. Discuss any reforestation/conservation programs/activities and areas covered.

v. Discuss the distribution flow of forest products either as raw materials or as semi-processed products.

vi. Compare the forest production value with the total agricultural production value.

vii. Discuss environmental issues/concerns that need to be addressed

C.  Support Systems 1. Physical Infrastructure

i. Existing irrigation facilities in terms of location, condition, source of water supply, extent or coverage of service area.

ii. Existing condition of farm-to-market roads and the type and frequency of transportation used in transporting goods and services to and from the farm

iii. Availability of post-harvest facilities such as milling, warehouse, drying and processing facilities. Refer to Table EC- 5.

iv. Existing physical infrastructure within production v. Discuss environmental issues/concerns that need to be addressed

2. Credit and Financei. Existing agricultural support programs in terms of loans/credit facilities,

total or average amount of loan extended/awarded to farmers/farmers‘ cooperatives

ii. Existing market linkages for agricultural and forest products within and outside the LGU

iii. Discuss the available financing scheme/s extended to agriculture and forestry activities

 3. Agricultural and Forest Support Program and Technical Assistance  iv. Existing programs and projects provided by local, provincial, and

national agencies and those provided by NGOs and POs v. Service coverage and number of beneficiaries of these

programs/projects vi. Types of technical assistance and extension services available in the

locality  4. Employment and Income by Activity vii. Percentage distribution of agricultural and forestry employment by type

(owner-cultivator, share cropper, lessee, farm laborer) and other minor agricultural income groups (Table EC- 6)

viii. o Comparative analysis of LGU revenues derived from agriculture and forestry with other revenue

5. Areas Covered by National/Local Policies

a. Network of Protected Areas for Agricultural and Agro-Industrial Areas for Development (NPAAAD). The NPAAAD ensures the sustained production of the country’s basic agricultural and fisheries commodities through the stewardship and utilization of the most productive agricultural and fishery land resources for optimal production, processing, and marketing.

Area, location and impact of NPAAAD to the city/municipality

b. Strategic Agriculture and Fishery Development Zones (SAFDZs) - SAFDZ refers to the areas within the NPAAAD identified for production, agro processing and marketing activities to help develop and modernize, the support of government, the agriculture and fisheries sectors in an environmentally and socio-culturally sound manner. (RA 8435 or Agriculture and Fisheries Modernization Act of 1997)

c. CARPable Areas/Lands   - Location and area of lands covered by CARP and number of actual

beneficiaries (refer to Table EC- 7- Location and number of Agrarian Reform Communities (ARCs)

d. Conversion/Reclassification AreasThe LGU need to coordinate with the MAO and the Department of Agrarian Reform

(DAR) for information regarding the following: Total area of agricultural lands approved for conversion to non-agricultural uses Total area of lands which are no longer subject to reclassification such as:

Agricultural lands distributed to Agrarian Reform beneficiaries; Agricultural lands with a Notice of Acquisition already issued or voluntarily

offered for coverage under CARP; Agricultural lands covered by Office of the President Administrative Order No.

20, series of 1992, declaring these as non-negotiable for conversion.

 III. Current and Projected Needs

A. Identify and discuss the pressing development problems/issues, and constraints being experienced by the agriculture sector

B. Determine the need for agricultural products of the current and future population. All projected information/data arrived at should be examined in relation to other sectors.1. Production / Supply Projection

o Current production level of major agricultural cropso Projected volume of major agricultural crops.o Current and projected volume of other agricultural products.

2. Demand Projection for Agricultural Products - Determine the capacity of projected agricultural products to meet future demands by considering the volume of agricultural product consumed for human nutrition or actual demand.

o To arrive at the city/municipality‘s annual demand, multiply per capita consumption with projected population

o Compare potential or projected agricultural food production with the projected actual demand by the total population in terms of meeting the standard nutritional requirement level.

o Determine/identify the necessary inputs or support services to increase production at a level satisfying the target.

IV.Sector Analysis MatrixA. Consolidate and validate the findings of the previous

steps with the result of the consultation/s.List the key issues, problems, and concerns of the agriculture sector. Determine the possible implications/impacts of the key issues, problems, and concerns

B. Recommend interventions such as:1. Realistic policy options and appropriate strategies2. Programs and projects for implementation with due

consideration of current and pipeline projectsC. Prioritize, tabulate and present the results in matrix

form as follows: (See Table EC- 1. Sample Agriculture Analysis Matrix)

V. Tables (see tables EC-2 to 11)

Criteria for Suitability of Agricultural Land Uses1. The site for agricultural purposes should be plains and plateaus

and areas of moderate slopes so that modern farm machinery can be used effectively. Moderate slopes (15% maximum for cultivation) favor good drainage, which is required by most crops.

2. Agricultural lands should be of soil type A, B, and C as defined by the Bureau of Soils and Water Management (BSWM). These types are pliable and relatively easy to work with. They are fertile, rich in minerals and other plant nutrients required by most crops. Impervious subsoil that holds water is excellent for paddy rice culture.

3. It should have favorable temperature conditions for various crops. The cold limit of rice is from 28-29ºC; of commercial corn production is a mean summer isotherm of 19ºC; of cotton, 25ºC; of coffee, 15.55-25.55ºC. The site meets the moisture requirements of plants.

4. It is accessible to irrigation, transport and electricity. 5. Lands to be devoted as grazing lands are those that have a

topography not suited for cropland purposes. The slope ranges from 25% - 50%.

6. Areas covered by the CARP and those considered as prime agricultural lands.

Fishing Area and Fishing Facilities1. Fishing areas should be preferably have types I and II climate.

o Type I climate – have two pronounced seasons, wet from May to October, dry the rest of the year.

o Type II climate – No dry season, very pronounced maximum rain period from November to January.

2. It should have clay and loam or loam type of soil. 3. Fish collection centers should be located in commercial fish landing ports to maximize use

of facilities. 4. Where landing ports are non-existent or could not be built, inland fish collection centers

should be located in a locality with the largest production potential or in place around which the fishing areas are more or less clustered.

 Grazing Lands 5. At least seventy five percent (75%) of the area must have a slope of not more than fifty

percent (50%). 6. The area should be predominantly covered by herbaceous species well distributed

throughout the area and producing at least 500 kilograms air dry weight or 1,000 kilograms green weight per hectare, preferably taken during the first 60 days of the rainy season.

7. The area should be contiguous and not less than 1,000 hectare for economical management.

8. Soil should be stable, medium to heavy texture and erosion resistant. Erosion, if any, must be moderate to slight and can be easily controlled.

9. There must be accessible, continuous and adequate supply of water. 10. The land shall not prevent any restriction in the form of cliffs, ravines, swamps, thick

brushes and other similar barriers in the movement of livestock, men, and equipment.

Economic Sub-Sector: Commerce and Trade

Steps:

I. Data Gathering and ProcessingA. Generate the following

data/information and present in table format:1. Inventory of Commercial Areas by Type of Activity, Year ___ (refer to

Table EC- 14)2. Historical Data on Commercial Areas, Y1 – Y2 (refer to Table EC- 15)3. Number of Business Permits Issued by Type, Y1 – Y2 (refer to Table EC-

16)4. Inventory of Commercial Establishment by Economic Activities,Y1–Y2

(refer to Table EC- 17) 5. Employment by Type/Classification/ Type of Business and Trade, Y ___

(refer to Table EC- 18) 6. Existing Programs and Plans for Commerce and Trade, Y ___ (refer to

Table EC- 19)

II. Data AnalysisAssess the existing situation of commerce and trade

in the city/municipality covering the following aspects:1. Types of commercial activities, location, and areas

occupied (mall, CBD, Commercial strip, neighborhood center, etc.). Include also other areas being served (refer to Table EC- 14)

Reflect all commercial areas on a map.

2.  Growth of commercial activities, in terms of rate of increase in number of establishments, increase in area, and direction of growth (refer to Table EC- 15 and Table EC- 17)

3. Other factors affecting the sector such as:o Presence of infrastructure support facilities (water, power, roads,

transportation, terminal/parking space, etc.) o Production index of the province. This has influence on the emergence

and number of specialization shops, and the nature of goods sold. o Private sector investmentso Shopping trends within the municipality as a result of changes in fashion, o New inventions/technologies or new manufacturing methods brought

about by improvements in the standard of living.o Employment status of persons 15 years old and over by major occupation

group and major industry group (refer to Table EC- 18)o Average family income and sources of income.

4. Percentage of commercial areas against the total built-up area. Compare the land ratio of the commercial area with the total built up area or the total area of lands devoted to urban uses.

5. Service area of the existing commercial centers • Identify other areas or clienteles outside the town/city being served by these

centers. • Unique or specialized commercial products or services offered in the

town/city.  6. Percentage share to total city/municipal income of business

activities in terms of business licenses /permits issued.

III. Current and Projected Needs - Assess and discuss the pressing needs of the sector in relation to:

1. Factors/constraints that inhibit the growth of commerce and trade in the locality such as the following:• Adequacy of the existing commercial service centers.• Efficiency of support facilities such as garbage collection/solid waste

management in all commercial establishments • Adequacy of power/water requirements. • Efficiency of infrastructure and traffic problems within the vicinity of the

public market and commercial establishments. • Needs of the population for certain facilities/services. • Need for financing source for commercial development • Need for a particular manpower skill and the corresponding training

2. Specific type of commercial activities/services which would require future expansion/ development, considering the current trends and needs in commercial activities, as well as its role in achieving the municipal/city‘s vision.

3. Future space requirement for commercial purposes.4. Possible location/site for future commercial

development/expansion, if any. Present proposed location/s in map form. (Refer to Table EC- 19 for Site Selection Criteria for Commercial Area).

IV. Sectoral Analysis MatrixA. Consolidate and validate the findings of the

above steps with the result of the consultation/s.1. List the key issues, problems, and concerns of the

commerce and trade sector.2. Determine the possible implications/impacts of the

key issues, problems, and concerns.B. Recommend interventions such as:

1. Realistic policy options and appropriate strategies 2. Programs and projects for implementation with due

consideration of current and pipeline projects (Refer to Table EC- 19).

C. Prioritize, tabulate, and present the results in matrix form. (Table EC- 13. Sample Commerce and Trade Analysis Matrix)

V. Tables (See Table EC-14 to 19)

Site Selection Criteria for Commercial Areas1. The site must be located in the most desirable general area as established by the economic survey; 2. The site must be owned or controlled by the developer, or offers the possibility of acquisition; 3. Land cost must be in keeping with overall economic consideration; 4. Existing zoning must permit shopping center development or reasonable likelihood of rezoning must exist; 5. The site must contain sufficient land to permit construction facilities to meet the sales potential; 6. The land must be in one piece, free of intervening roadways, right-of-way, easements, major waterways, or other obstacles that would force development in separated portions; 7. The topography and shape of the site must permit advantageous planning and reasonable construction; 8. The surrounding road pattern and accessibility must allow full utilization of the business potential; 9. The structure must be visible from major thoroughfares; 10. The surrounding areas should be safeguarded against blight; 11. Retail facilities should be exposed to maximize foot traffic; 12. Various mechanized traffic types and foot traffic be separated and distinct from one another; 13. Maximum comfort and convenience for shoppers and merchants should be provided for; and 14. Orderliness, unity and beauty should be achieved.

Site Selection Criteria for Market/Trading Sites or Trading Centers 1. It should be in urbanized area; 2. There should be relatively developed economic and servicing activity, as well as an established link

with other key areas of the municipality; 3. It should be in strategic and convenient locations preferably along existing and proposed land and

other modes of transportation to facilitate communication and distribution of goods to other areas dependent on this center for their shopping needs;

4. On the basis of market potentials, it should be along major arteries and with more than one line of access.

Parking and Loading Space Requirements 5. Provision on parking and loading requirements shall conform to RULE XIX (Parking and Loading Space

Requirements) of the National Building Code. Recommended Distances Expressed in Travel Time on Foot or Kilometers: 1. From residential zones to:

a. Neighborhood center – 750 meters or 15 minute travel on foot (maximum); b. Minor CBD – 12 kms.; maximum walking distance, 15-30 minute travel time by public transport

service; c. Major CBD – 45 minutes to one hour travel time from the farthest areas served by the center by

public or private transport.2. From the education center (schools) – a minimum travel time of 15 minutes by public transport.3. From the health center (hospital) – a minimum of 300 meters or 10 to 20 minutes travel time. 4. From the police station – 5 minutes travel time. 5. From the fire station – 3 to 5 minutes travel time. 6. From the garbage or disposal area – 5 to 10 kms. Or 15 to 20 minutes travel time of garbage truck

Economic Sub-Sector: IndustrySteps:

I. Data Gathering and ProcessingA. Generate the following data/information and present

in table format:1. Historical data on industrial areas for the last 5 years (if applicable), (refer to

Table EC- 23)2. Inventory of Existing Industrial Establishments by Intensity, Capitalization, and

employment, Year ___ (refer to Table EC- 24) 3. Inventory of Existing Industrial Establishment By Manufacturing/ Industrial

Process; Raw Material Input; Production And Markets, Year ___ (refer to Table EC- 25)

4. Local Revenue and Industrial Establishment for the last 5 years, (refer to Table EC- 26)

5. Product flow6. Existing hazardous and/or pollutive industries 7. Natural resources with potential for industrial development: mining,

manufacturing, logging, etc. 8. National and local policies on industrial development to include incentives (e.g.

Regional Industry Center, RAICs, PIC, EPZA), Year ___ (refer to Table EC- 27)

B. Determine the felt needs, aspirations and issues of the community relative to industry through consultations such as general assembly, focus group discussion, barangay consultation or other consultative meetings with identified stakeholders.

Gathering of information on felt needs and aspirations of the population maybe facilitated by designing /structuring questions such as:

o What issues and concerns related to industry would you want to be addressed?

o In what ways can you (as a resident/community member, stakeholder) address/resolve these issues and concerns?

o In what ways can the government address/resolve these issues and concerns? o What are your aspirations to improve the industry sector in the locality?

The consultation shall also serve as venue for gathering feedback on or validate data/information on needs, issues and other concerns. Participation of the following key stakeholders is recommended: Industrial establishment owners/key officers or association of owners/officers Representatives of rank-in-file employees and skilled workers Selected residents in the immediate vicinity of the industry Disadvantaged men and women in the sector, e.g., handicapped Gather additional data/information if warranted by the results of the consultations/ meetings conducted

II. Data Analysis1. Present a brief situationer of industrial development in

the locality. All existing industries by type shall be depicted in a map.

2. Establish the trend of industrial development as well as the causes of such trends in terms of increase/decrease.

3. Assess the current support facilities, utilities and services4. Identify any existing hazardous and/or pollutive

industries, the location and areas occupied, as well as the type (land, air, water) and extent of pollution brought about by these industries.

5. Determine adequacy of any anti-pollution device/technology employed to mitigate pollution/degradation

6. Identify areas affected by air/water pollution due to industry and assess extent of degradation.

7. Identify emerging industrial activities and natural resources/areas with potential for industrial development. Match these with local policies and expressed ―wants‖ of stakeholders derived during the participatory assessment.

III. Current and Future Needs - Considering the current trends and needs in industrial activities assess and provide a report on the needs of the sector as to:1. Adequacy of the existing industrial establishments considering the

nature and distribution of industrial area, location criteria, etc. 2. Other needs and vital growth requirements:

a. Capital financing for industry generation and/or expansionb. Required manpower skill/s and the corresponding training for such.c. Marketing strategies and market for perceived surplus products or

goods.d. Power requirements of existing and projected industries.e. Infrastructure support facilitiesf. Anti-pollution devices for pollutive and hazardous industries and

economic activities.3. Future expansion/development of industries.4. Considering the potentials and limitations for industrial

development, determine the industry classification (refer to Annex EC-3. Industry Classification) and intensity suitable for the LGU.

5. Compute for the minimum and maximum allowable industrial allocation per industrial land intensity standard (See Table EC-20 to 21)

6. Identify possible site for future development/ expansion of industries and reflect on a map.The following location criteria and considerations shall guide the evaluation of sites for industrial development:

a. Impact on the environment;

b. Impact on the traffic and the provision of services and utilities like water and sewerage collection systems, telecommunications facilities, electric power, and service roads;

c. Proximity and access to transport nodes like ports, airports, bus terminals, and train stations.

d. Measures and safeguards against pollution and means to preserve its natural ecosystems as per approved standards on human settlement and environmental sanitation requirement of the Local Government Code (RA 7160)

IV. Sectoral Analysis MatrixA. Consolidate and validate the findings of the

above steps with the result of the consultation/s. 1. List the key issues, problems, and concerns of the

industry sector. 2. Determine the possible implications/impacts of the

key issues, problems, and concerns.B. Recommend interventions such as:

1. Realistic policy options and appropriate strategies2. Programs and projects for implementation with due

consideration of current and pipeline projects (Refer to Table EC- 27).

C. Prioritize, tabulate, and present the results in matrix form. (See Table EC- 22. Sample Industry Analysis Matrix)

V. Tables (See Tables EC- 23 to 29)

Economic Sub-Sector: TourismSteps:

I. Data Gathering and ProcessingA. Generate the following data/information and

present in table format:1. Inventory of Tourism Establishments, Year ___ (refer to Table EC- 31)2. Accessibility of Existing Tourism Establishment and Tourist Attraction, Year

___ (refer to Table EC- 32)3. Facilities in Existing Tourism Establishments and Markets Catered, Year ___

(refer to Table EC- 33)4. Inventory of tourism Support Facilities and Services, Year ___ (refer to

Table EC- 34)5. Local Revenue and Employment by Tourism Activities, Year ___ - Year ___

(refer to Table EC- 35)6. Inventory of Tourists by Country of Origin, Year ___ - Year ___ (refer to

Table EC- 36)7. Cultural and Tourism Activities, Year ___ (refer to Table EC- 37)8. Potential Tourist Attractions in the Locality (refer to Table EC- 38)

B. Determine the felt needs, aspirations and issues of the community relative to tourism through consultations such as general assembly, focus group discussion, barangay consultation or other consultative meetings with identified stakeholders.

Gathering of information on felt needs and aspirations of the population may be facilitated by designing/structuring questions as follows:

1. What issues and concerns related to tourism would you want to be addressed?

2. In what ways can you (as a resident/community member, stakeholder) address/resolve these issues and concerns?

3. In what ways can the government address/resolve these issues and concerns?

4. What are your aspirations to improve tourism in your locality?

 C. Gather additional data/information if warranted by

the results of the consultations/ meetings conducted.

II. Data Analysis - Assess the state of tourism industry in the locality and present a brief situationer in terms of:

1. Nature, location, area of existing tourist spots/attractions. Include facilities, services, and attractions (e.g. white sand beach, boating, cottage, food, etc.) offered by tourist establishments.

2. Presence of cultural/traditional festivals/activities, description and calendar of activities.

3. Average number of visitors, tourists visiting the tourist attractions on a daily or monthly basis

4. Peak season of arrival of visitors, trend of arrival 5. Capacity of tourist establishments and facilities to

accommodate the influx of visitors to the area6. Accessibility of the tourist attractions, road conditions,

frequency of transport services, etc.7. Gross annual receipt or income derived from tourism related

establishments and rate of revenue compared to total city/municipal revenue

8. Number of employment generated by the tourism industry (% of labor force employed)

III. Current and Future Requirements1. Comparative standing of tourism facilities with the

requirements for specific types of resorts, restaurants, hotels, etc.

2. Based on the existing capacities determined in the inventory vis-à-vis the targeted/projected visitors establish the additional facilities and services required to handle additional volume of visitors.

3. Analysis of other potentials/possible sites for the establishment of tourist industry using the criteria set by the Philippine Tourism Authority (PTA) as listed in Annex EC-4. Criteria to Determine Attractiveness of an Area and Their Corresponding Weights.

4. Prepare map reflecting proposed/identified tourist spots/attractions.

IV.Sectoral Analysis MatrixA. Consolidate and validate the findings of the above steps with the result of the consultation/s.

1. List the key issues, problems, and concerns of the tourism sector.

2. Determine the possible implications/impacts of the key issues, problems, and concerns.

B. Recommend interventions such as: 1. Realistic policy options and appropriate strategies 2. Programs and projects for implementation with due consideration of current and pipeline projects.

C. Prioritize, tabulate, and present the results in matrix form. (See Table EC- 30. Sample Tourism Analysis Matrix)

V. Tables (See Table EC- 31 to 38)

Thank you.

God bless.