WOW PHILIPPINESWOW PHILIPPINESWhere’s Our Where’s Our Wealth?Wealth?

WOW PHILIPPINESWOW PHILIPPINESWhere’s Our Where’s Our Wealth?Wealth?A Look at Tourism and Poverty A Look at Tourism and Poverty Alleviation in the Walled CityAlleviation in the Walled City

REIL G. CRUZUP Asian Institute of Tourism

Tourism and Poverty Tourism and Poverty AlleviationAlleviation Paradigm shift from boosterism Paradigm shift from boosterism

and economic development to and economic development to sustainable tourismsustainable tourism

Sustainable Tourism as a Tool for Sustainable Tourism as a Tool for the Elimination of Poverty (ST-EP)the Elimination of Poverty (ST-EP)

ST-EPST-EP

One of the strands of sustainable One of the strands of sustainable tourism WTO is promoting to achieve tourism WTO is promoting to achieve the international goal of halving the the international goal of halving the number of people living in extreme number of people living in extreme poverty by 2015.poverty by 2015.

Also called pro-poor tourism.Also called pro-poor tourism.

Framework set up by the WTO and Framework set up by the WTO and UNCTAD in June 2002UNCTAD in June 2002(WTO 2002 p. 87)(WTO 2002 p. 87)

What is poverty?What is poverty?

“…“…the deprivation of essential assets and the deprivation of essential assets and opportunities to which every human is opportunities to which every human is entitled.”entitled.”

These entitlements include access to basic These entitlements include access to basic education, primary health care, just education, primary health care, just employment, and protection from external employment, and protection from external shocks, which could be man-made or natural shocks, which could be man-made or natural hazards. hazards.

Asian Development Bank (1999 in UNESCAP Asian Development Bank (1999 in UNESCAP 2003, p. 23-24)2003, p. 23-24)

PovertyPoverty

‘‘the lack of human, physical and the lack of human, physical and financial capital needed to sustain financial capital needed to sustain livelihoods, and from inequality of livelihoods, and from inequality of access to political, social or access to political, social or economic resources’economic resources’

(CIDA in Jamieson, 2001 from (CIDA in Jamieson, 2001 from www.tourismpoverty.com/seminawww.tourismpoverty.com/seminar_papers)r_papers)

What is extreme What is extreme Poverty?Poverty? Less than one US dollar a day Less than one US dollar a day

(World Bank, in UNESCAP 1999, p. (World Bank, in UNESCAP 1999, p. 24)24)

The Philippines: The Philippines: Indicators of PovertyIndicators of Poverty Poverty incidence: 28% Poverty incidence: 28%

(UNICEF 1999 based on World Development Indices 1998)(UNICEF 1999 based on World Development Indices 1998)

The Philippines is one of 13 The Philippines is one of 13 countries where 80% of the countries where 80% of the world’s poorest can be found.world’s poorest can be found.

Philippines: Indicators Philippines: Indicators of Povertyof Poverty Unemployment rate: Unemployment rate: 13.7%13.7% Underemployment rate: 18.5%Underemployment rate: 18.5% Poverty incidence in rural areas: 51%Poverty incidence in rural areas: 51% Poverty incidence in urban areas: 22%Poverty incidence in urban areas: 22% No access to safe water:No access to safe water: 19% 19%

(NSO 2004)(NSO 2004)

32% of preschool children are underweight32% of preschool children are underweight 57% of infants have iron deficiency anemia57% of infants have iron deficiency anemia

(Henderson (Henderson 2002)2002)

Rationale for Tourism Rationale for Tourism DevelopmentDevelopment

The objectives of the Philippine Tourism The objectives of the Philippine Tourism Master Plan (1991-2011) includeMaster Plan (1991-2011) include

maximizing local ownership, livelihood maximizing local ownership, livelihood opportunities, individual initiative and opportunities, individual initiative and self-relianceself-reliance

encouraging regional dispersal of encouraging regional dispersal of development and domestic tourism development and domestic tourism

as a means to improve the people’s as a means to improve the people’s quality of life.quality of life.

The Case of The Case of Intramuros Intramuros

MethodologyMethodology

Part of a larger studyPart of a larger study Survey of 100 residents of Survey of 100 residents of

Intramuros between May and June Intramuros between May and June 20042004

QuestionnaireQuestionnaire InterviewInterview

LimitationLimitation

Small sample sizeSmall sample size

Cannot make generalizationsCannot make generalizations

Not able to get side of Intramuros Not able to get side of Intramuros AdministrationAdministration

BackgroundBackground

Intramuros is the name of the Walled Intramuros is the name of the Walled City that was the original city of Manila. City that was the original city of Manila.

With its Spanish-built fortifications and With its Spanish-built fortifications and several important churches, government several important churches, government buildings and universities, it is buildings and universities, it is considered to be a 'must-see' attraction considered to be a 'must-see' attraction in the Philippines. in the Philippines.

Intramuros is also home to five barangays Intramuros is also home to five barangays with a voting population of about 8,000 with a voting population of about 8,000 registered voters (barangay officials)registered voters (barangay officials)

According to a survey conducted in 1991, According to a survey conducted in 1991, about 75% of the residents are illegal about 75% of the residents are illegal settlers or squatters; its daytime settlers or squatters; its daytime population was about 60,000, of which population was about 60,000, of which only 9,890 were residents of the place. only 9,890 were residents of the place. (Santiago, 2003). (Santiago, 2003).

WOW Philippines-WOW Philippines-The Best of the The Best of the Regions Regions In 2003, Intramuros became the site In 2003, Intramuros became the site

for WOW Philippines-The Best of the for WOW Philippines-The Best of the Regions, a signature project of then Regions, a signature project of then DOT Secretary Richard Gordon. DOT Secretary Richard Gordon.

– The project involved the cleaning of the The project involved the cleaning of the forgotten sections of Intramuros, and forgotten sections of Intramuros, and relocation of squatters to give way to relocation of squatters to give way to structures (known as clamshells) for structures (known as clamshells) for exhibition, night market stalls, sidewalk exhibition, night market stalls, sidewalk cafes, and entertainment plazas. cafes, and entertainment plazas.

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

Economic Impact of Economic Impact of WOW PhilippinesWOW Philippines JobsJobs

– The number of new jobs generated The number of new jobs generated by this project from February to July by this project from February to July 2004 was 2188 (DOT).2004 was 2188 (DOT).

– The major employers were the The major employers were the clamshell exhibitors, restaurants and clamshell exhibitors, restaurants and calesa tours.calesa tours.

LOCATION NATURE JOBSTOTAL 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

Extra incomeExtra income– According to the DOT, total revenues According to the DOT, total revenues

earned for six months (Feb-July 2004) was earned for six months (Feb-July 2004) was P50 millionP50 million

– According to Boy Abne, a According to Boy Abne, a barangay tanod, barangay tanod, he was paid P100 extra for rendering he was paid P100 extra for rendering services at night, plus food rations. services at night, plus food rations.

– Pedicab drivers increased daily income 10% Pedicab drivers increased daily income 10% to 150% (up to P300 pesos) per day during to 150% (up to P300 pesos) per day during the height of the project's popularity. the height of the project's popularity.

Types of jobsTypes of jobs

– Regular Performers 100 – Barangay Tanods 70 – Street Sweepers 50 – Parking Attendants 30 – Security Guards 25 – Janitorial Services 10

285

Source: DOT

Perceived Economic Perceived Economic Impacts of TourismImpacts of Tourism Investors from outsideInvestors from outside Increased InflationIncreased Inflation Stall rent increasedStall rent increased Income increasedIncome increased Jobs Jobs Better quality of lifeBetter quality of life Became poorerBecame poorer Own businessOwn business

PERCEIVED EFFECT ON INVESTMENTS FROM OUTSIDE

75.8

10.1

Tourism increased investmentsfrom outside

Tourism did not increaseinvestments from outside

Percent

““I used to have three stalls at the I used to have three stalls at the night market. Now that rent for a night market. Now that rent for a 2x2 sqm stall has gone up to 2x2 sqm stall has gone up to P15,000 (US$268) per month, I P15,000 (US$268) per month, I am gradually pulling out my am gradually pulling out my merchandise.” merchandise.”

– Gladys de Jesus, a local businesswoman and Gladys de Jesus, a local businesswoman and resident of the place since the 1950sresident of the place since the 1950s

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

PERCEIVED EFFECT ON PRICES

61.6

21.2

Tourism resultedto inflation

Tourism did notresult to inflation

Percent

Most residents felt that greater Most residents felt that greater tourism volume to Intramuros led tourism volume to Intramuros led to inflation or increase of price of to inflation or increase of price of goods sold in the area. goods sold in the area.

Visitors remarked "Wow Visitors remarked "Wow mahalmahal!" !" (Wow, how expensive!) during (Wow, how expensive!) during shopping. - de Jesus shopping. - de Jesus

PERCEIVED EFFECT ON BUSINESS GENERATION

4

61.6

Tourism made me have my ownbusiness

Tourism did not make me have myown business

Percent

PERCEIVED EFFECT ON POVERTY AGGRAVATION

8.1

68.7

Tourism made me a poorerperson

Tourism did not make mepoorer

Percent

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

-a barangay -a barangay leaderleader

PERCEIVED EFFECT ON QUALITY OF LIFE

11.1

33.3

Tourism improved the quality ofmy life

Tourism did not improve thequality of my life

Percent

Only 11% perceived having better Only 11% perceived having better quality of life as a result of the WOW quality of life as a result of the WOW Philippines project. Philippines project.

The supplemental incomes generated The supplemental incomes generated by tourism are too little to improve by tourism are too little to improve their perceived quality of life.their perceived quality of life.

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

Why tourism has failed Why tourism has failed to create perceived to create perceived advantagesadvantages Lack of capitalLack of capital Nature of tourism businesses establishedNature of tourism businesses established Type of markets drawn to the areaType of markets drawn to the area Unsustainable tourism events Unsustainable tourism events

(dependence on outside entities for (dependence on outside entities for events)events)

Plight of the poor not integrated into the Plight of the poor not integrated into the tourism development plan of Intramuros tourism development plan of Intramuros

Lacks distinctive appealLacks distinctive appeal– Competition from other venues (Baywalk)Competition from other venues (Baywalk)

Lack of activities, attractions and Lack of activities, attractions and accommodation, access and accommodation, access and connectivity to major tourist zonesconnectivity to major tourist zones

Changed priority of the DOT Changed priority of the DOT Lack of funds to underwrite the eventsLack of funds to underwrite the events

Poor market Poor market

– They come to Intramuros mainly to see the They come to Intramuros mainly to see the exhibits or to while away their time during exhibits or to while away their time during their off days. their off days.

– The low quality, low priced items sold in The low quality, low priced items sold in the night markets attest to the kind of the night markets attest to the kind of markets being served. markets being served.

– Many who go to the night markets simply Many who go to the night markets simply ogle without buying anything. ogle without buying anything.

ConclusionConclusion

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

RecommendationsRecommendations

Make a thorough redevelopment Make a thorough redevelopment plan for Intramuros.plan for Intramuros.– Complement low-end activities with Complement low-end activities with

high-end shopping and high-end shopping and entertainment activities to attract entertainment activities to attract higher-spending tourists.higher-spending tourists.

– The supply components must be put The supply components must be put in place.in place.

IA should prioritize local residents so that IA should prioritize local residents so that the residents do not have to compete the residents do not have to compete with outsiders. with outsiders.

For livelihoods to be sustainable, the For livelihoods to be sustainable, the number of players should also be number of players should also be controlled. controlled. – This will enable the residents to realize better This will enable the residents to realize better

incomes that can trigger demand for other incomes that can trigger demand for other forms of services in the community.forms of services in the community.

The IA and the DOT should study The IA and the DOT should study other uses for the existing facilities other uses for the existing facilities in order to extend their life cycles. in order to extend their life cycles. – The clamshells are now being rented The clamshells are now being rented

out to religious groups on specific days. out to religious groups on specific days. – They can also be offered as venues for They can also be offered as venues for

weddings, graduation, conferences or weddings, graduation, conferences or concerts. concerts.

Involve the residents in making Involve the residents in making the development plans. the development plans.

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

Build the capacity of local residents to Build the capacity of local residents to establish and manage their own business establish and manage their own business cooperativescooperatives

Train local residents in creative Train local residents in creative productionsproductions

Train residents in the provision of other Train residents in the provision of other high value services (e.g. guiding, high value services (e.g. guiding, massage)massage)

Create a local festivalCreate a local festival