TOURISM AS A VEHICLE

FOR LOCAL ECONOMIC

DEVELOPMENT

Roselyn B. Quintana
Division Chief, LGCDD
DILG R6
What is tourism?
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. (UNWTO) Tourism is different from
travel.
 Tourism Sites are the basic
development units of the National
Tourism Development Plan

“Tourism Sites are the

specific places which
tourists come to see and
experience.

A Tourism Site may be an

existing natural attraction
(volcano); an area of
natural scenic beauty
(national park); or man-
made attraction (heritage
structure, beach/golf
resort)”
• Tourism Development Area (TDA) – two
or more tourism sites that can be
grouped together for development
and/or marketing purposes because of
their geographical proximity or similar
product type
• Tourism Cluster Destination (TCD) – two
or more TDAs grouped together for their
regional proximity and access to a
common regional gateway.
• Gateway to Tourism Cluster - Regional
Airport that serves as the international
air transportation hub into a TCD.
 Investments,
jobs....
better lives
from tourism?
The Tourism Circuit framework helps LGUs and their private
sector partners identify – and locate -- the opportunities for
generating jobs and investments in their tourism sector.
 The Make the destination more attractive/competitive
Challenge for investors and the local business community

Convince investors and

Ensure necessary
Give visitors more local entrepreneurs that
infrastructure for
reasons to visit, stay the LGU is business-
accessibility and
longer, and spend more friendly and supportive
sustainable growth
of the sector

Infrastructure to reduce cost to LGU policies, programs, and

Tourism products, packages,
services, facilities, and amenities
for a growing visitor market
visit and cost of doing business in
the destination.
Infrastructure to protect natural
and cultural resources used by
industry.
offices that support investors and
local businesses in creating jobs:
• Development plans
• Investment incentives
• LEIPO, Planning, Tourism,
Agri, Employment offices, etc.
BUSINESS-FRIENDLY AND
COMPETITIVE
LOCAL GOVERNMENT
UNITS
…. towards local economic
development
 What is LED?
• Local Economic Development (LED) involves added micro-
economic measures at the local level to complement macro-
economic measures at the national level. LED encompasses a
range of disciplines including physical planning, economics
and marketing, all with the goal of building up the economic
capacity of a local area to improve its economic future and
the quality of life for all (ILO)

• Local Economic Development (LED) offers local government,

the private sector, the civil society and the local community
the opportunity to work together to improve the local
economy. It aims to enhance competitiveness and thus
encourage sustainable growth that is inclusive. (WB)
 What we need to
achieve……
Updated and approved CLUP/Zoning Ordinance as
well as CDPs/sector plans to guide location and focus
of investments

Structure leading to local economic investment

and incentive promotion (eg. LGU LEIPOs w/
capacity to perform LED roles)

Local policies and ordinances for

business and investment attraction
and retention consistent with national
investment policies (Local Investment
and Incentives Code, Local Revenue
Code, Local Tourism , etc)
 What we need to achieve…..
Streamlined transactional services (BPLS,
building/construction permits, occupancy permits,
sanitation and fire clearances)

LGU Roadmap to attract investments and generate

employment (ie LGU Business Plan)

Active partnership with business sector

(implementation of the LGUP4 project)

Basic Infrastructure to support local

businesses (roads, power, IT support)
 Implementation
Mechanisms in Promoting
LED
LAWS RELEVANT TO
TOURISM DEVELOPMENT
 LEGAL FRAMEWORK

Republic Act 7160 or When exercising

the Local Government Governmental governmental
powers and
Functions of
Code (LGC) of 1991, LGUs: performing
governmental duties,
“defines a local health, safety an LGU is an agency
government unit as a and the of the national
advancement of the government.
body politic and public good or
welfare as affecting
corporate endowed the public generally
with powers to be Proprietary
Functions of
exercised by it in LGUs:
conformity with When engaged in obtain special
corporate activities, corporate benefits or
law”. it acts as an agent earn pecuniary profit
of the community and intended for
in the private advantage
administration of and benefit
local affairs.
 Legal Framework
• In 1995, DILG issued Memorandum Circular MC No.
95-162, encouraging Local Chief Executives (LCEs) to
organize Tourism Councils in their jurisdictions,
composed of government and private sector
representatives to:
 formulate programs and recommendations to
develop local tourism facilities and attractions;
 assist in the regulation and supervision of
tourism-oriented establishments thereby ensuring
wholesome and clean tourism activities;
 assist in monitoring the implementation of the LGC
on the matter of licensing of tourism establishments
in the locality to ascertain safe and enjoyable stay of
travelers; and
 strictly enforce sanitary standards in public restrooms
frequented by public utility vehicles and tourist
transport services, i.e. gasoline stations, restaurants
along main highways and bus stops.
• Republic Act 9593 The Tourism Act of 2009
Acknowledged tourism as an “indispensable element of national
economy and an industry of national interest and importance”

• The Philippine National Tourism Development Plan (NTDP)

2011-2016 set the medium-term framework for enhancing
the competitiveness of the Philippine tourism sector by
focusing on marketing diverse and high quality destinations
and products, improving international and domestic access
and connectivity and destination infrastructure, and
addressing policy and institutional reforms, and improving
tourism HR skills and capabilities.
 Convergence Program for Tourism

Working for a convergence approach to deliver

National Government programs and services in
support of LGUs efforts in tourism:
– DOT-DILG Joint Memorandum Circular No. 2014-
001 “Adopting A Convergence Program on
Tourism as a Vehicle Towards Local Economic
Development”

– National Economic Transformation Teams (NETT)

for Tourism as well as regional or provincial
counterparts of these convergence mechanisms are
necessary for the actual delivery of the programs and
services on the ground

– Tourism Planning Guidebook for LGUs - Tourism

Development Plans are required for LGUs to receive DOT
technical assistance
 DILGs Support to LGUs on Tourism
Development
1. Encourages LGUs to be Business-Friendly and
Competitive
2. Supports LGU Alliance on Tourism Development
under the program on Local Economic
Development
3. Facilitates Convergence Program for Tourism
4. Promotes programs to ensure tourism safety
and security
5. Encourages enabling environment to support
sustainable tourism
 LGUs Role in Tourism
Development
a) Develop and implement a tourism development plan
b) Implement the mandatory accreditation of primary
tourism enterprises pursuant to standards prescribed by
DOT
c) Provide a permanent position for a tourism officer who
shall be responsible for preparing, implementing and
updating local tourism development plans, and enforcing
tourism laws, rules and regulations in coordination with
DOT
d) Establish a tourist information and assistance center to
assist tourists and tourism enterprises
e) Generate tourism statistics on tourist arrivals, tourism
facilities, services and other resources that relate to
tourism
f) Maintenance of access roads leading to tourism sites
 LGUs Role in Tourism
Development
a) Develop and implement a tourism development plan
b) Implement the mandatory accreditation of primary tourism
enterprises pursuant to standards prescribed by DOT
c) Provide a permanent position for a tourism officer who shall
be responsible for preparing, implementing and updating
local tourism development plans, and enforcing tourism
laws, rules and regulations in coordination with DOT
d) Establish a tourist information and assistance center to
assist tourists and tourism enterprises
e) Generate tourism statistics on tourist arrivals, tourism
facilities, services and other resources that relate to
tourism
f) Maintenance of access roads leading to tourism sites
 LGUs are KEY to LED
• LGUs are increasingly being called to play
a larger and more pro-active role in
driving the country’s sustainable and
inclusive economic development.
• NGAs should enable LGUs to efficiently
and effectively access national resources
in order to perform their role as economic
managers (rather than their traditional
service delivery roles)
• Tourism is one of the major sectors that
contributes to LED.
THANK YOU AND
MERRY CHRISTMAS!