Community Based Livelihood Program as Support to

Tourism in El Nido
Introduction
Abstract
The study is about the economic predicament of El Nido such as
inflation, the lack of economic growth and poverty despite the boom of the
tourism industry. El Nido, a land blessed with pristine beaches, fertile land
and skilled people, has been left behind dramatically.

Importance of the Topic

El Nido has been a tourist hotspot for a couple of decades, and is
continually

flooded

by

numerous

tourist

and

several

business

establishments. However, there was no significant improvement in terms of

life style of the communities, residing specifically, in the rural areas.
Out of 7,426 total households in the municipality, there are 5,014
households having an income that is below the poverty threshold. Poverty
Incidence in the municipality stood at 67.52% during the 2011 CBMS survey
in the area and upped by 0.76% compared to the 2008 CBMS survey result.
The municipality poverty incidence rate of 67.52% is way higher compared to
the 2011 provincial and national average of 57.95% and 22.30% respectively.
Despite the fact that El Nido has become a remarkable tourist
destination which paved way to business establishments, the mode of
lifestyle of the people are substandard.
In other words the development was centralized and condensed in
Poblacion, El Nido and those communities which have a remarkable distance
are deprived of such development. As a result of such economic transition,

the inflation rate skyrocketed which led the prices of basic commodities to be
burdensome for the residents as well as the tourists.
Thus, in order to provide remedy, there must be a sustainable
livelihood in which would create a bond of mutual cooperation between the
rural communities and the tourist hotspots. Aqua-Tourism and Agri-Tourism
seems to be the most befitting solution to the problem.

Definition of Terms
Aqua Tourism Aquatic livelihood ranging from aquatic recreational
activities to aquatic farming which co-exists and collaborates with tourism as
a means to an end.
Agritourism Involves any agriculturally based operation or activity that brings
visitors to a farm or ranch.

Agriculture The practice of cultivating the soil, producing crops and

raising livestock and varying degrees of preparation and marketing of the
resulting products.
Aqua Culture also known as aquafarming, is the farming of aquatic organisms
such as fish, crustaceans, molluscs and aquatic plants.
Community Based Livelihood Is the mode of livelihood reliant on cooperation
and hard work of the community.
Niche Tourism is the small scale and community based tourism.
Economic Growth an increase in the amount of goods and services produced per
head of the population over a period of time.

Inflation a continual increase in the price of goods and service.

Key Stake Holders

Stake Holders Analysis

The main benefactors of the community based livelihood in El Nido are

residents of the said municipality since they are the ones who are directly
affected by the economic structure of El Nido. Their lifestyle may
dramatically upgraded by the success of the proposed contract. Also in the
success of the said community based livelihood, the dramatic increase of
The key stake holders are the Government agencies with direct relation
such as the Office of the Municipal Government of El Nido and the Provincial
Government of Palawan since they are the ones who have the power to
implement policies and make decisions in the economic policies affecting El
Nido.

The Agri/Aqua based business investors are one of the key players in
the fulfillment of the proposed policy for they will serve as the back bone in
financing the livelihood program through the government.
Key Policy Areas
There are key policy areas that need to be analyzed and resolved. The
aforementioned are as follows:
First, the prices of commodities in El Nido is significantly higher than
the commodities in found in Puerto princesa, which is burdensome on the
part of the residents and tourists. It also discourages the local tourists from
going to El Nido and making them choose a cheaper alternative which
indirectly lessens the opportunities in increasing the profits from tourism.
Second, there is lack of economic growth despite the increase of
business establishments and various tourists. One of the things to be dealt
with in this policy proposal is the existing livelihood in El Nido. According to
the Community Based Monitoring System, 47.37 percent of households
engage in forestry as an entrepreneurial activity and only a roughly 30
percent participate in farming, poultry and livestock. Furthermore, the
agricultural produce in El Nido comprises of rice, cashew, coconut, and
mango production. With limited varieties of crop produced, El Nido imports
agricultural product from other places.
In terms of employment out of 21,392 persons in the productive age
(15 years old and over), only 11,820 are in the labor force and majority of
them (10,804) were either employed or self-employed. This 2011 figure of
10,804 indicates a significant employment proportion rate of 91.40%. This
2011 employment rate was slightly lower than the provincial and national
employment averages of 92.36% and 93.00% respectively.
With regards to the role of the government, there is a need for
synergetic cooperation between the aforementioned and the community of

El Nido. The government ought to act as a catalyst in upgrading the lifestyle

of the constituents, thus there must be close and active participation
between the two. The government is not solidary responsible for feeding the
people, but it is responsible for mobilizing and paving a pathway towards
development. There must be vigilance and zeal on the part of the legislators
in pursuing the interest of society, as for the executive department, there
must be a steadfast and practical implementation on its part.
Another key policy area that needs to be dealt with would pertain to
the role of the investors and business enterprise in relation to the pursuit of
the best interest for the communities in El Nido. The investors are the key
players in order to render the efficacy of the proposed policy of integrating a
community based livelihood as support to tourism in the Municipality of El
Nido. It would be in the best interest of the community of El Nido to
maximize the use of investors and would result to a win-win situation. The
community is satisfied with their means for living, on the other hand, the
investors are satisfied with the profit that they receive on their end. Albeit, it
is up to the government to entice the said investors and mobilize the
communities.
As for the environment, it must be insured that the means and result of
the policy would cause no or minimal the harm to the environment. Palawan
was branded as the last frontier and is widely known for its greenery, wildlife
and most importantly paradisiac beaches. Beneath the aesthetic value of the
environment, whats also to be protected is the right of the people to a
healthful ecology as provided by the 1987 Philippine Constitution.
Overview
El Nido is one of the municipalities of the Province of Palawan. It is
located at the northernmost part of the province rich with natural resources.
It is famous for its towering marble cliffs, white beaches, crystal-clear waters

and diverse marine life. Despite its exquisite beauty, it has many struggles
with its journey towards economic development.
One of which is inflation or the abnormal increase of the price
commodities. The price of basic commodities is twice or thrice as higher than
that which came from other municipalities and Puerto Princesa City. Also, the
fact that El Nido imports majority of its supply from other cities such as
Puerto Princesa City, Iloilo and Manila is contributory for the increase of said
prices.
Furthermore, the economic activities are heavily centralized and
limited to tourism related activities, exclusively in Poblacion. Consequently,
the small and distant communities are deprived of opportunities in pursuing
economic growth.
In order to provide a remedy for such predicament, a suitable plan
would be to create a community based livelihood as support to tourism in El
Nido, particularly a livelihood based on agricultural and aqua tourism.
Both Agri and Aqua Tourism are branches of niche tourism, the type of
tourism which focuses on small scale community based activities and caters
to a smaller audience as distinguished from mass tourism. Unlike fancy
hotels and theme parks as afforded by mass tourism, niche tourism provides
a more specific approach which seeks to mobilize the community. Also, mass
tourism is often cited to have negative impacts in relation to environmental
degradation and socio-cultural disturbance, which is contrary to what niche
tourism

offers.

The

niche

tourism

approach

appear

to

offer

great

opportunities and a tourism that is more sustainable and damaging. (Elsevier

Butterworth-Heinemann, 2006)
As for Agri-tourism, it is a commercial enterprise at a working farm,
ranch, or agricultural plant conducted for the enjoyment of visitors that
generates supplemental income for the owner. Agritourism is a subset of a
larger industry called rural tourism that includes resorts, off-site farmers' markets,

non-profit agricultural tours, and other leisure and hospitality businesses that
attract visitors to the countryside.

Aside from the fact that there is agricultural products being generated
for the market, there is also a market advantage arising from the tourists
that would find such enterprise to be appealing. The targeted consumers are
vaster due to the implications brought by tourism, which would equate to
more profit.
In Negros Occidental there has been a boost of agricultural tourism in
2009, and has the highest number of agri-tourists. A total of 78 agri-tours to
various organic farms were coordinated by the Farmers Information and
Technology Services (FITS) Center of the Office of the Provincial Agriculturist
(OPA) Negros Occidental, accounting for 1,027 visitors including farmers,
students, academicians, local officials, and entrepreneurs listed in the OPA
FITS

logbook.

In addition, the influx of agritourists grows year by year. Agri-tourism is one

industry that could rake in big revenues to the province according to
Tabianan.
Organic farming initiatives in Negros have become popular since a
memorandum of agreement was signed between governors Joseph Maraon
of Negros Occidental and George Arnaiz of Negros Oriental in 2005. The
partnership has been geared toward sustainable agriculture and rural
development while seeking to make Negros Island theOrganic Food Basket
of Asia. (WESVARRDEC, 2010)
As for Aqua-tourism and Aqua Culture, it is understood to mean the
farming of aquatic organisms including fish, molluscs, crustaceans and
aquatic plants that would eventually be used as sustainable livelihood in
support to tourism. (FAO 2011)
Aquaculture might provide one avenue to mitigate the threats to the
worlds fisheries by taking at least some of the pressure off wild fish stocks

while supporting livelihoods and food production. Indeed, aquaculture

production has increased tremendously over the past few decades and today
accounts for almost a third of global production by weight while production
from wild fisheries has largely slowed or stagnated. Over 80 percent of
aquaculture is taking place in developing countries, highlighting the sectors
growing importance as a source of revenue and food security.
At the same, serious environmental concerns have been raised related
to aquaculture production, such as water pollution, increased salinity and
destruction of mangrove forests. Critics have also pointed to the sectors
continued reliance on fish meal as feed produced from wild-caught fish,
which is feared to further contribute to the depletion of fish stocks. Others
have highlighted potential socio-economic implications, resulting for instance
from increased market concentration at the expense of small-scale
aquaculture producers and processors. (Fahmida Khatun, Frank Asche 2006)

Existing Policies
So far, as the Municipality of El Nido is concerned, there has yet to be
extensive research with regards to existing policies which are correlated to
said proposals. But as for the existing policies of the Philippine Government,
it has been a State policy as afforded by Section 9 of Article II of the 1987
Constitution: The State shall promote a just and dynamic social order that
will ensure the prosperity and independence of the nation and free the
people from poverty through policies that provide adequate social services,
promote full employment, a rising standard of living, and an improved quality
of life for all.
The State also encourages private enterprise as stated in Article II,
Section 20 which states that: The State recognizes the indispensable role of
the private sector, encourages private enterprise, and provides incentives to
needed investments.

Key Issues
There is are several underlying assumptions that must be dealt with.
First, there is a premise that the resources are being mismanaged. El Nido
has been blessed with pristine beaches, stable weather and fertile land but
so much as so, there has been economic stagnation due to the said
mismanagement. Vast lands

being uncultivated, seas unutilized and

communities immobilized. Thus the full potential is yet to be harnessed.

Second, the existing livelihood in the communities are ineffective in
terms of giving a decent mode of living. The basis for that is the 2011 data
pertaining to the employment rate and the poverty incidence in El Nido. Out
of 21,392 persons in the productive age (15 years old and over), only 11,820
are in the labor force and majority of them (10,804) were either employed or
self-employed. But despite the fact that there is an employment rate of
91.40% in 2011, out of 7,426 total households in the municipality, there are
5,014 households having an income that is below the poverty threshold.
Poverty Incidence in the municipality stood at 67.52% during the 2011 CBMS
survey in the area and upped by 0.76% compared to the 2008 CBMS survey
result.
The municipality poverty incidence rate of 67.52% is way higher
compared to the 2011 provincial and national average of 57.95% and
22.30% respectively.
In conclusion, the problem lies not within the available resources but
within the method by which the resources are being utilized. That is why
there is a dire need for a program which would provide remedy for the
problems stipulated.
As to the effects on the roles of the key stake holders, they are divided
respectively according to the influence and interest that they will have
pertaining to the proposed policy at hand. The ones with the high interest
but have low influence are the residents and the small scale business owners

of El Nido. It is in their best interest that the policy be actualized since it

directly affects their mode of living, as well as their prospect with regards.
They must be mobilized to their full extent in order to protect such interest in
line with the efficacy of the proposed policy. There must also be a special
initiative on their part as well as major involvement in the process of the
implementation of the policy.
The key stake holders with low interest and low influence are the
residents and small scale business owners from the nearby municipalities
outside of El Nido. They may have involvement with regards to the
implementation of the policy but have the least priority. They may also
participate by being part of the broadening of the target market consumers
of the Agricultural and Aqua based livelihood. The neighboring municipalities
may serve as additional consumers and distributors of the products in the
expansion of such program.
The stake holders with the high interest and high influence are the
Local Government agencies with direct relation to either the Municipality of
El Nido or the Department of Tourism. The government agencies are the ones
that play an important role of using legislative and executory powers in
implementing the said program. They will be the one dealing with the legal
and formal aspect of the livelihood programs. Also, the government will have
the power to mitigate the flow of the said livelihood program and serve as a
vanguard of the interest of the people. In reeling the Aqua and Agriculture
based investors, the government play the role and responsibility.
As for the Aqua and Agriculture based investors, who also form part of
the high interest high influence stake holders group, they play a key role of
being the means by which the livelihood program runs on, they provide
majority the funding which the implementing government cannot. The said
investors have pecuniary interest in terms of business prospects arising from
El Nido. It would be beneficial to take advantage of the economic interest

and convert it into an agreement with the provincial and municipal

government of El Nido.
The stake holders with low interest but have high influence, are the
Local Government Units that have no relation to the Municipal Government
of El Nido and the tourism industry. They must be kept satisfied and ensure
that there would be no conflict between the implementing bodies of the said
proposal. If conflict would arise from the aforementioned, then various
complications would occur due to the influence brought by them. An example
would be, if the proposed livelihood program would cause harm to the
environment, then an environmental agency such as Department of
Environment and Natural Resource may uphold its power to intervene. Thus
it would be most beneficial for the said program to not act in excess of its
respective jurisdiction and must perform all the necessary compliance
therewith.
The same applies with the other investors which are not Agri and Aqua
based. They may not be the key with regards to the fulfillment but its best to
steer clear at the moment and in the long run, they may be of use. If the
proposed policy succeeds, other investors would be drawn, thus it would
result to the establishment of business enterprises, which would result to an
increase of economic activity. Eventually, in the long run, it would create an
effect that would not only result in the deflation of prices but also upgrades
the lives of every individual whether itd be direct or indirect.
Although, there are conflicts that may arise or may have already been
existinng between the key stake holders that sought to be avoided. As a
result there are proper precautions and remedy to be enforced. But first,
those conflicts must be identified.
One of those is the lack of coordination between the Municipal
Government and the normal individual. The government of El Nido for the
past decades have been focusing on its ministerial functions, such as the

operation of its day to day activity that which is required to any government
agency, rather than their discretionary function such as the formulation of
governmental schemes or policy which would be used to enhance the mode
of living of the residents. As a result people are not being utilized which in
the long run created a gap between the government and the residents which
the former serves.
Another conflict would be the skepticism of the large scale investors
regarding the existing bureaucratic system. Because of the bad reputation of
the government pertaining to the slow, ineffective and tedious system of
bureaucratic implementation, there would be difficulty in reeling other
investors and trust may be an issue. Also, the interest of the investors would
be heavily focused in the pecuniary benefit that may be accrued, and a noble
and moral interest is more often than not, incidental to the business venture.
While the government on the other hand would seek the possibility of closing
a deal with the bidder which cost less on the part of the government.
There is also the conflicts as to the utilization of the natural resources
in El Nido. First off, the business sector, as much as possible, would maximize
the exploitation of the said resources for income generating purposes on
their part. The government on the other hand has the responsibility of
monitoring and drawing the limit with regards to the exploitation of such
resources. The government then tries its best to make sure the business
sectors would not go out of bounds and while the latter grabs every
opportunity to maximize what may be taken advantage of.
As a result of the roles and conflicts, there are the implications as a
result. First, the economic inflation of prices, due to the importation of basic
commodities which are not found in El Nido, which is a result of an inexistent
livelihood program burdened with the boom of the tourism industry. Instead
of serving as a leverage towards economic growth, expansion of tourism
industry in El Nido has become a burden that the rural communities must
carry.

In addition, economic growth has been centralized and Poblacion has

been the primary focus of it. Majority of economic activities take place in
Poblacion due to the influx of tourists and their demand for services. Thus
many residents grab the opportunity to take advantage of the growth of
tourism, in exchange other economic enterprises are being neglected
althogether.
There is also lack of diversity in terms of agricultural produce since the
crops are only limited to rice, cashew, coconut and mango plantations. The
aforementioned crops are insufficient to sustain the consumers, which by the
way are not only the residents but also the tourists who temporarily sojourn
the municipality of El Nido.
As a result, there is economic stagnation despite the increase of
tourists and business establishments such as resorts. Instead of upgrading as
a society and meeting the demands of the tourist influx, the misguided
municipality is taken aback.
In addition poverty and low standards of living remain rampant and
continues to be an unresolved predicament. A predicament by which, if went
unsettled, would turn into a social cancer that is worsened through time.

Conclusion and Recommendations

The befitting solution to such quandary would be a community based
livelihood that would result to a sustainable development. The focus of the
said community based livelihood would be in the agricultural and aquatic
utilization. In order to minimize the importation of basic commodities, there
must be an identification of what can be made available and sold locally. For
example, instead of importing vegetables that may easily grow in El Nido,
farmers in El Nido should produce those crops in particular instead. Instead
of purchasing livestock like chicken all the way from Iloilo, the communities

in cooperation with investors should raise the livestock themselves and have
the whole municipality as their targeted consumers.
In order for that to happen there must be a unified participation and
meeting of minds between the government, the business investors and the
residents of El Nido which must be spearheaded by the government itself.
In line with the implementation of the first solution, the tourism
industry must be amplified in order to broaden the target market, to the
extent that tourism will turn into a means to an end.

Rationale
The main reason for such recommendations is to empower the
community. Abraham Lincoln stated Government of the people, by the
people, for the people, shall not perish from the Earth and that is being
conformed to by most democratic countries, in which our country in not an
exemption. Also we adhere to the Latin maxim of Salus populi suprema lex
esto which means that the welfare of people is the supreme law. Thus it is the
welfare of the community is of primary concern.
Also, a community based agriculture and aquatic livelihood would lead to a
sustainable development since it provides remedy to one of the primordial concern
and that is the food supply as one of the most basic necessity. Once theres
sustainable source of food the deflation of prices happens as a result and there will
be an expansion of the tourism industry.
As for the natural resources, the untilled land would not go to waste as well
as the potential of the skilled individual whose abilities remain unused due to the
lack of initiative of the government as an intervener between the gap of the private
sectors and the private individual.
Implication and Possible Outcomes

The result of the success of such program would tantamount to economic

growth in which would create a domino effect of upgrading the life style of the
individual as well as multiple increase of opportunities given not only to residents
but also potential migrants. The resources would also maximized to its optimum use
rather than being unmanaged which would also in effect create progress, which of
course is subject to regulation.
Also due to the decentralization of economic activity, there will also be proper
distribution of monetary revenue, in which the rural communities are currently
deprived of. Furthermore, there would be the lowering of prices of basic
commodities which will accommodate more tourist, not only the ones who can
afford the expensive mode of travel but also the local tourist who are in pursuit of
cheap accommodation.
In conclusion, there would be plenty of benefits accrued through the
fulfillment of proposed policy. Not only is it a win-win situation for the rural
communities, tourists and the business sector, but also gives a huge leap for the
Provincial Government of Palawan and Municipal Government of El Nido.

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