Chapter 2 ENVIRONMENT FOR TOURISM

2.1 Physical Characteristics of the Region

2.1.1 Location

Central Luzon or Region III lies between coordinates 120°45' to 121'21'E longitude and 14°23' to 16°10'N latitude. It is bounded in the north by the provinces of Pangasinan and Nueva Vizcaya; in the south by Manila Bay and the province of Rizal; in the east by the provinces of Aurora and Quirino; and in the west by the China sea. Central Luzon is composed of six provinces, namely: Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales. Also, it has five (5) cities: Angeles, Cabanatuan, San Jose, Palayan and Olongapo and two (2) special economic zones: Clark and Subic.

2.1.2 Soils and Land Characteristics

Central Luzon has a total land area of 1,823,082 hectares. Nueva Ecija has the biggest land area comprising 528,433 ha. or 28.99%, followed by Zambales with 371,440 ha. (20.37%), Tarlac with 305,345 ha. (16.75%), Bulacan with 262,500 ha. (14.4%), Pampanga with 218,068 ha. (11.96%) and the smallest province is Bataan with 137,296 ha. (7.53%).1/

According to origin and formation, the soil resources of Region III are divided into three (3) groupings:

a) Alluvial soils of the floodplains of Pampanga, especially the Candaba Swamp; part of Bulacan and Nueva Ecija.

b) Volcanic soils of the piemont and upland areas of Zambales, west and southwestern part of Tarlac around the vicinity of Mt. Arayat in Pampanga, and eastern part of Bulacan and Nueva Ecija.

c) Residual soils derived from sedimentary rocks in the mountains and upland areas of Lake Uacon of Zambales, Pantabangan of Nueva Ecija and AngatDam

______1/ Source: Bureau of Soils ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) of Bulacan, major and minor rivers of Region III, and the wetlands along the coastal plains of Pampanga and Bulacan.

Of the total land area of the Region, 58% is classified as Alienable and Disposable (A&D) lands while the rest are either public or forest lands. The following table shows the distributions of A&D lands by province in hectares.

Agricultural Province Total A&D Built-up Areas Other Uses Land Bataan 69,325 22,937 4,152 42,236 Bulacan 185,333 82,973 24,021 78,339 Nueva Ecija 330,985 243,620 19,158 68,207 Pampanga 164,912 106,170 29,123 29,619 Tarlac 184,975 136,841 21,049 27,085 Zambales 116,378 43,245 4,059 69,074 Region 1,051,908 635,786 101,562 314,560 Percentage 100.00 60.44 9.66 29.90

2.1.3 Topography

a. Slope

As indicated in Table 2.1, close to 810,555 ha. or 44.46% are level land and about 159,114 ha. (8.73%) of the region's total area have gently sloping to undulating topography. These areas are suitable for irrigation and other agricultural activities. These are also good for urban, industrial and other uses.

Also, around 263,434 ha. or 14.45% land area are moderately sloping to rolling which are good for annual and permanent crops. Another 203,820 ha. (11.18%) are classified as rolling to steep; 234,577 ha. (12.87%) classified as steep; and 151,582 ha. (8.31%) are very steep. These areas are rough hilly and dissected by mountains.

b. Elevation

About 893,838 ha. or 49.03%, are within the elevation of 100 meters above sea level (masl); 358,145 ha. (19.64%) are within elevation between 100 to 300 masl; 264,543 ha. (14.51%) with elevation between 300 to 500 masl; 250,226 ha. (13.73%) between 500 to 1000 mast; and 56,330 ha. (3.09%) above 1,000 masl.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 2.1.4 Seismicity

a. Earthquake Zones/Faults

Central Luzon is situated on the circum-Pacific earthquake belt. For the last 40 years (1949 to 1990), about 23 earthquake occurrences with magnitude of more than 5.0 of the Richter scale had been observed within 300 km. radius of Mt. Arayat (Table 2.2).

Active faults found in Nueva Ecija (Dingalan Fault) are mainly high angle slope with strike-slip movement and are part of the so-called Philippine Fault. Probable active faults are found in Bulacan, Bataan and Zambales. A long fault extends from northern portion of Central Luzon cutting across the western side of Tarlac and passing through the plains of Pampanga and southern portion of Bulacan.

b. Volcano

There are eight (8) volcanoes found in the region; seven of these are active and one is inactive. Mt. Natib, Mt. Samat and Mt. Mariveles are situated in Bataan-, Mt. Arayat in Pampanga; Mt. Bongcay and Mt. Munos in Nueva Ecija; and Mt. Cuadrado (inactive) in Zambales. Mt. Pinatubo in Botolan, Zambales is 1,780 masl and listed as a solfataric volcano. Steam springs coming from this volcano are rich in hydrogen sulfide which reacts with oxygen and turn into sulfur.

2.1.5 Climate

The climate of Central Luzon is generally influenced by three predominant air streams, namely: the northeast monsoon (Amihan) common from November to February, which is relatively cool and less humid; the tradewinds common during late March and early May, which is very warm and humid; and the southwest monsoon (Habagat) common from June to October. The climate of the Philippines is generally described in terms of the distribution of rainfall received in a locality during the different months. Based on the Corona classification of climate types, most of Central Luzon is described as Type I, with two pronounced seasons: typically dry from December to May and wet during the rest of the year.

a. Rainfall

For the period observed (1969-1995), the average annual precipitation ranges from a low 1036.7 mm to a high 3857 millimeters. The maximum rainfall was

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) observed at Cabangan (Zambales) station during the month of August at 2712.1 mm. Rainfall is relatively heavier along the peripheries of the region bounded by water than its inner areas which are generally lowland areas.

b. Temperature

The average normal maximum and minimum temperatures for the region are 32°C and 22°C, respectively. The coldest period is from December to February. Tarlac and Nueva Ecija being an interior provinces have higher temperatures than the other provinces in the region.

c. Typhoons and Storm Surge

During the past 40 years (1946-1985), the region was visited by typhoon with an average of 22 surges annually.

2.1.6 Water Resources

Heavy precipitation occurs generally from June to October, the period of southwest monsoons. More than 90% of the annual rainfall concentrates in this period with August experiencing the heaviest downpour. The annual amounts range from 1036 mm in the central portion of Central Luzon to 3,856 mm along the western coasts.

a. Surface Water

The biggest source of surface water for Central Luzon is the Pampanga River.It has a drainage area of 9,759 sq. km. and occupies the eastern half of Central Luzon. It originates from the Caraballo mountain generally flowing southward and finally draining at Manila Bay. Other known rivers are Angat River and Chico River. Between Angat River and Pampanga River, there is the Candaba Swamp occupying some 250 sq. km. area; and between Rio Chico River and Pampanga River is the San Antonio Swamp with 120 sq. km. area.

Contributing water on the east side of Pampanga River are the rivers of Angat, Penaranda, Coronel, Digmala and Pantabangan and on the westside are Rio Chico, Talavera and Carranglan.

Other known rivers with drainage area greater than 500 sq. km. include Tarlac, O'Donnel and Camiling. Tarlac River is a major tributary of Agno River flowing from the northern portion and draining into Lingayen Gulf. The O'Donnel and the Camiling Rivers are tributaries of Tarlac River. In Zambales, known rivers are Bucac, Pantawan, Sto. Tomas,.Anonang and Lawis; in Pampanga are Pasig ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Potrero, Porac, Gumain, Canlaman and Colo Rivers; and in Bataan, the river with the largest basin, is Pilar River

b. Groundwater . Generally, the central plain is good for shallow wells, and the mountain areas in the east and the west are difficult areas for groundwater utilization as indicated in the report of National Water Resources Council (NWRC) in 1992 popularly known as the "Rapid Assessment of Water Supply".

Deep wells are found generally in transitional areas between the mountains and the central plain. In particular, a large deep well area extends along the lower foothills of the Sierra Madre Mountain and the eastern margin of the central plain, where limestone beds outcrop. Another large deepwell area is located in the northern part of Tarlac at the foot of the Zambales mountains.

2.2 Demographic Situation and Socio-Economic Profile

2.2.1 Population

In 1995, the population of Central Luzon or Region III was 6.933M, accounting for 10.10% of the total population of 68.614 M of the country. Among the provinces comprising the region, Bulacan posted the highest population with 1.784 M followed by Pampanga with 1.636 M, and Nueva Ecija with 1.506 million.

As noted in Table 2.3, population growth rate of the region was estimated at 2.12% for the period 1990 to 1995, representing a decrease of 0.46% over the growth rate of 2.58% exhibited during the period 1980 to 1990. In terms of population density, as shown in Table 2.4, Pampanga exhibited the highest population density of 750.1 persons per sq. km., Bulacan with 679.8 persons/sq.km.. These ratios are much higher than the region's figure of 380.3 persons/sq.km. (Table 2.4).

Among the provinces, Bulacan posted the highest number of households with 359,613, followed by Pampanga with 302,155 and Nueva Ecija with 300,345.

In terms of average household size, the region registered the same average household size as the country at 5.07. Among the provinces, Pampanga exhibited a higher average than the region with 5.41 persons. However, it only ranked fourth in terms of growth rate. Bulacan, on the other hand, had the highest growth rate with 3.24%, a level significantly higher than the region's 2.12%. Bataan and Nueva Ecija ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) followed with 2.72% and 2.61%, respectively. Zambales showed the lowest household size with 474 persons and the lowest growth rate with 0.21 %.

Of the various provinces, Bulacan has the highest urban population ratio with 79.9%, Bataan with 74.5%, Pampanga with 68.7% and Zambales with 65%. On the other hand, the preponderance of the rural populace is noted in Tarlac with 70.4% of its residents living in rural areas and Nueva Ecija with a rural population ratio of 60.9%.

2.2.2 Ethnic Characteristics

Central Luzon hosts four ethnolinguistic groups which are indigenous to the region. These are the Aetas, Sambals, Kapampangans and Tagalogs. The Aetas are the principal sub-group of Negritos who live in the mountain areas of Zambales, Bataan, Tarlac and Nueva Ecija. The Aetas are semi-nomadic people that subsist in hunting and gathering. They live in lean-to shelters made of two forked sticks driven to the ground and covered with palm or banana leaves.

The Aetas were known to be the earliest inhabitants in the Philippines. They are distinguished by their small structure, kinky hair, flat nose, thick lips and black skin. Despite being semi-nomadic, some have begun more permanent residence after the Mt. Pinatubo eruption in 1991. Many of the Aetas were resettled in various resettlement areas in Central Luzon like in Porac, Pampanga, in San Clemente, Tarlac and in Palayan City of Nueva Ecija.

Estimates of the overall national Negrito population widely vary. In a 1975 census, the Negrito population throughout the archipelago was roughly estimated at 200,000. However, recent census done by various concerned groups may reflect a more accurate census of the upland, semi-nomadic Negrito population. The Tribal Forum (1985) place the total Philippine Negrito population at 378,000; Episcopal Council for Tribal Filipinos (1983) placed it at 344,000; while the Office of the Southern Cultural Communities (OSCC) projection for this year was less than 300,000. The decline in the population can be partly attributed to the devastating effects of the Mt. Pinatubo eruption in 1991.

The Sambals are the ethnolinguistic group that are found in the northern and central part of Zambales. It has distinct linguistic characteristics different from the Kapampangans of Pampanga and Tarlac and the Tagalogs of Bulacan, Bataan and Nueva Ecija. The Sambals are also previously known for their headhunting past and were formerly sheltered in the thickly forested areas of Zambales mountains.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 2.2.3 Labor Force and Employment

Out of the 3.36 M people with age 15 years and above as reported in October 1995, the region's total available labor force was estimated to be 2.03 million. The labor participation rate of 60 . 40% represents a 2.56% increase over 1994, a figure lower than the 65.60% rate of the country.

Among the provinces comprising Central Luzon, Bulacan registered the highest labor participation rate with 61.60% and Pampanqa posting the lowest at 57.08%

From Table 2.5, it can be gleaned that the 94.78% employment rate as of the third quarter of 1995 indicated a 2.05% increase over the 1994 rate of 92.73%. Among the provinces, Nueva Ecija reported the highest employment rate with 97.70%, followed by Bulacan with 96.70%. Expectedly, Pampanga, which continues to suffer the ravages of the lahar flow, posted the lowest employment rate with 88.10%. This figure, however, still reflects a decrease of 3.57%, over the 1994 rate of 91.67%.

The non-agricultural sector accounted for the larger share among those employed, registering 62.98% as of October 1995, a 2.91% decline compared to October 1994. On the other hand, those employed in the agricultural sector showed an increase of 2.91 from 34.11% in October 1994 to 37.02% in October 1995. Except for Bulacan where there was hardly any change in the number of persons employed in the agricultural and non-agricultural sector, Nueva Ecija and Bataan displayed a similar trend with the percentage share of those employed in agriculture declining by about 2% and the percentage share of those employed in the non-agricultural sector increasing by 2%. This may be attributable to the timing of the survey which may have coincided with the drought in the production cycle occurring in a predominantly agricultural area.

2.2.4 Annual Family Income and Expenditure

Of the 1.195 Million families reported in the region in 1991, the median income of the family stood at P56,120, which is 36.74% higher than the Philippines median family income of P41,040. In 1994, median average income rose by 30.4% to P73,195 compared to the national median income of P55,019. During the same period, average expenditure of families in Region 3 was estimated to be P61,554 or 29.9% higher than the country's figure of P47,378 up by 29.5% from the 1991 level of P47,523. By geographical base, those families in urban areas earned an average of P31,234 while those in rural areas earned an average of P16,437. Noted in Table 2.6 is that urban families spent, on the average, P28,953 compared to the rural families average annual expenditure of P15,322 ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 2.2.5 Incidence of Poverty and Subsistent Poverty

Median income increased by 61 % in 1991 (at current price) while expenditure went up by 49.40%. If gauged in terms of real prices (1988), percentage increases are 6.50% and negative 1.10% for median income and median expenditures, respectively.

On the average, poorer households have larger family sizes. Thus, the incidence of poverty vis-a-vis total population is higher than the incidence of families in terms of total number of families (44.5 % vs. 39.2% in 1991, 45.5% vs. 40.2% in 1988). 2/ In Region 3, as shown in Table 2.7, the incidence of poverty worsened compared to the other regions of the country, notably Metro Manila and Visayas. In 1988, rate was 29.3%, increasing further to 31.1% in 1991. This decline was also seen in Northern Luzon. Notwithstanding the proximity of Central Luzon to the NCR, the gap between the two geometrically progressed, from 4.7% in 1985 to 7.7% in 1988 and 17.9% in 1991. Although the variance between the two regions is not as large as that of NCR and Bicol, this widening gap is indicative of the wide disparity in income opportunities. The persistence of this gap over the years likewise shows structural problems in the economy and the effects of a development strategy that engenders a highly unequal distribution of income (growth) opportunities across the regions. While Northern Luzon's situation may be attributable to the lack of "safety nets" received from government during the economic adjustments of 1985-91, the setback in poverty reduction in Central Luzon stems from the loss of jobs due to the departure of the American troops from Subic Naval Base and Clark Air Base and from the devastation wrought by the Mt. Pinatubo eruption.

An indicator of the economic recovery and the limitations of the impact to the various beneficiary regions can be gleaned from the deterioration of the country's income distribution between the period 1985 to 1991. As noted in Table 2.8, the Gini Coefficient (a measure of income inequality) increased for most of the regions and in the country as a whole. Deterioration occurred in 1988-91 period which was characterized by low growth and rising inflation rate compared to 1985-88 period which was a period of low prices and accelerating growth. Between 1985-1988, the income shares of the lowest six deciles did not change while there was a slight redistribution in income shares from the 10th decile to the 7th up to the 9th decile. In contrast, between 1988 to 1991, all the bottom 8 deciles declined in income shares, while the share of the 10th decile (the richest), increased substantially. ______2/ Source of Data:Ponciano S. Intal, Jr., "The State of Poverty in the Philippines: An Overview Understanding Poverty and Inequity in the Philippines. A Compendium of Policy and Methodological Researches, National Economic Development Authority, Pasig. Metro Manila 1994. ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Poverty threshold in Region 3 as shown in Table 2.9 is placed at P5,242 in 1988 increasing by 55.91% to P8,173 in 1991 to P8,757 in 1994. The country's poverty threshold, on the other hand, was pegged at P4,777 in 1988, P7,212 in 1991 and P8,885 in 1994. This deterioration in poverty incidence arises from the significantly higher rate of increase of poverty line which was not counteracted by a substantial increase in nominal family income. Between 1988 to 1991, the national incidence of poverty declined from 45.4% to 44.5%. However, in Region 3, the reverse situation occurred with incidence of poverty increased from 33.8% in 1988 to 35.5% in 1991.

Deprivation becomes more pronounced if one were to apply the Minimum Basic Indicators (MBI) which add to the incidence of poverty other indicators such as population, illiteracy rate, infant mortality rate, malnutrition rate, education cohort dropout rate, percentage of households without access to safe water and percentage of households without sanitary toilets.

2.2.6 Regional Economy

a. Agricultural Development Performance

In 1995, rice yield of the region fell by 6.85% against the 1994 level. Total production of both irrigated and rainfed areas was 1.76 M metric tons in 1995 compared to the 1.887 M metric tons harvested in 1994. Yield per hectare declined by 9.25%. The primary reason cited is the insufficient irrigation water supply.

Harvest for corn, on the other hand, significantly improved. Per hectare yield appreciated by about 11% from 1.92 MT/Hectare in 1994 to 2.13 MT/hectare in 1995.

Other crops produced in the region include low elevation vegetables and rootcrops (cassava, sweet potato, onion, garlic and peanuts), fruit trees (mango, citrus and cacao), coconut, banana and sugarcane.

This remarkable performance of the agricultural sector is attributable to the implementation and/or enhancement of innovative programs to improve productivity through varied policies and strategies relative to sustainable agriculture and fishing; provision of support services and facilities, agriculture insurance, credit and guarantee program improvements, market assistance/ linkaging and institutional development and cooperative development, active participation of NGOs and POs in the industry and the accelerated agrarian reform program implementation..

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) b. Commerce

A review of the 1989 Census of Establishments showed that economic activities which would be related to the development of tourism are located in various parts of the region. In Pampanga are found industries such as wood and rattan furniture, metalcraft, china and earthenware, lanterns, GTH, processed foods and lahar-based products. Bulacan, on the other hand, has the leathercraft, jewelry and marble processing, pyrotechnics and garments. Bataan's predominant produce includes wearing apparel, knit wear, leather goods and sporting goods.

Tourist and recreation-related establishments total to 8,358 which is broken down as follows:

Hotels, motels and other lodging places 121 Restaurants and hotels 3,781 Restaurants, cafes and other drinking/eating places 3,660 Amusement and recreational services 283 Recreational and cultural services 513

The establishment of the Philippine Jewelry Center, spearheaded by the Department of Science and Technology with the Meycauayan Jewelry Industry Association as the adopter augurs well for the development of an industry for which the region enjoys comparative advantage. This program together with technology assistance being extended to wood-based manufacturing firms, to mango producers and processors, and pottery production are among those being pursued by DOST along the area of technology transfer and commercialization. Other areas identified for development are the metal industry, cutflower production, food processing and leather craft.

c. Industry

The NSO Census of Establishments showed that there were more than 7800 manufacturing firms in the region. Of this, more than 85% employed less than 10 workers. Major industrial outputs include garment, paper and paper products, cement and textiles, electrical machinery, rubber products and processed food.

Investment performance of firms registered with the Board of Investment (BOI) showed that in 1993, the region posted an investment of P4.443 Billion. While this figure represented an increase of 60.49% from 1992's investment level of P2.768 Billion, this represented a significant decline of P1.716 B compared to the 1991 level (see Table 2.11). ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) A review of the proposed industrial developments in Central Luzon would show that:

 Existing Major Industrial Developments

1. The Economic Processing Zone (EPZ) of Bataan covers an area of 1600 hectares of which 30% or 480.7 hectares have already been developed. A major export earner, the sixty five (65) Industry locators within the EPZ contribute about 30% to 50% of the regional export sales and employs about 20,000 workers. The Petrochemical Industrial Estate in Limay and Mariveles, on the other hand, occupying an area of 500 hectares, is host to Petron Bataan Refinery and a propylene plant.

2. Bulacan has 6 industrial estates scattered in BOCaUe, Calumpit, Meycauayan, Malolos and San Jose del Monte with an aggregate area of 207.8 hectares.

3. Pampanga has three industrial estates, two of which are in Angeles City and one in Bacolor. Total area covered is 5,250 hectares. Of this area, 4,440 or 84.57% is accounted for by the Clark Special Economic Zone.

4. Tarlac's Luisita Industrial Park covers an area of 120 hectares of which 52.5% has been developed.

5. The Subic Bay Metropolitan Area (SBMA) in Olongapo City, Zambales, covers an area of 6,650 hectares of which 14.73% has been developed. The PHILSECO also in Subic accounts for another 77 hectares.

 Proposed Major Industrial Developments

Bataan has proposed the establishment of three industrial estates, one in Hermosa with an area of 116 hectares in Pandatungan and Culis (Hermosa Agro-Industrial Estate) identified as site for light and agro-industries as food processing, packaging, animal feeds processing, gifts, toys and housewares (GTH), electronics. The Petrochemical Industrial Estate owned and operated by the PNOC Petrochemical Development Corporation is proposed to house a naptha cracker plant and a polyvinyl chloride (PVC) plant. The former Philippine Refugee Processing Center located in Sabang, Morong, Bataan and covering an area of 380 hectares, is likewise recommended for redevelopment into the Bataan Technology Park, where world-class facilities shall be constructed to support knowledge-based, high technology and skills intensive economic activities. This is envisioned to form part of the declared

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Morong Special Economic Zone composed of approximately 800 hectares to include surrounding private lands.

In Pampanga, three other sites have been proposed for development into industrial complexes. These are in Angeles City (700 hectares) and two in San Fernando (221 hectares).

All in all, the total area either developed or proposed to be developed as Export Processing Zones (EPZs), General Industrial Estates (GIEs) and Special Export Processing Zones (SEPZs) is 14,093.8 hectares. Out of this total area 6,277 hectares or 44.54% have already been developed, 753 hectares occupied and 5,231.5 hectares available.3/ Complementing the industrial estates are 26 People's Industrial Enterprises (PIE) and Productivity Centers (PC) envisioned to house cottage, small and medium scale enterprises.

d. Services

There are at least 250 private and government banks in the region. Other than the rural banks found in almost all the municipalities, other institutions providing alternative funding are pawnshops, credit cooperatives, financing companies and small lending firms.

2.2.7 Selected Economic Indicators Affecting Tourism

a. Economic Growth in Visitors Home Countries

As total income of the household rises, it allows them to spend for recreational purposes. This is notable when tourism growth was robust until the world recessions which occurred in the 1980's when tourist flow plummeted and stagnation occurred in the industry.

Phenomenal growth of East Asian countries should be looked into more closely, since lately, increasing tourist flow are coming from these areas.

b. Increased Income of Filipinos

As the country positions itself for economic take-off, the number of domestic tourist is expected to grow. More so, if income growth is accompanied by income ______3/ Source: Department of Trade and Industry and the JICA Study Team Report

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) redistribution, so that leisure-seeking individuals are not limited to the upper strata.

Vis-à-vis the various expenditure items, it would be noted that the over-all percentage spent for recreation slightly declined between the period 1988 to 1991, from 0.5% to 0.4% but remained unchanged among urban families, at a constant share of 0.5%. Expenditure for food and housing comprise the larger percentage of expenditure accounting for 62% of the family's total income.

c. Gross Regional Product

In 1995, tourism as an industry is estimated to have made a significant contribution to the Philippine economy:

 Contributed a gross revenue of about P60.0 Billion (US 52.454 Billion);  Accounted for 3.31% of the gross domestic product;  Employed 1.2 million people, benefiting a total of 3.60M people (at a 1:3 dependency ratio); and  P12.89 billion worth of investments endorsed to BOI.

In 1994, the region's gross regional domestic product (GRDP) was P142.272 billion (at current price) representing 8.43% of the national total of P1687.704 Billion. Among the various regions, Region 3 ranked as the third major contributor following NCR's P544.161 billion and Region IV's P252.817 billion.

Between the period 1987 to 1994, the region's GRDP (at constant price) grew by an average of 3.70%, exceeding NCR's average growth rate of 3.25%, but lower than Region IV's 4.22%, the two regions with the highest reported GRDP.

d. Gross Value Added

From 1990 to 1994, the industrial sector remained to be the major contributor to the region's Gross Domestic Product vis-à-vis the country's GDP, as it accounted for an average of 11.64% during the period. Agriculture's. GVA, on the other hand averaged 10.24 %, trade sector 9.11 % and the service sector 7.71 %.

e. Inflation/Consumer Price Index

Prices of basic commodities in the region did not increase as much as those in other regions. While the country posted an 8.07% inflation rate in 1995, Region

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 3's inflation rate was placed at 6.62%. This rate represents a 33.8% decrease over the 1994 inflation rate of 10%. As shown in Table 2.13, Zambales and Nueva Ecija experienced the highest inflation rate, with rates of 7.8% and 7.2%, respectively while Bulacan and Pampanga registered the lowest inflation rate with 6.3% and 5.8%, respectively.

f. Visitor Expenditure

The period from 1973 to 1978 was the halcyon of the tourism industry, with growth rates averaging 33%, peaking in 1980 at 1.01 million. However, with the instability engendered by the increasing opposition to the Marcos regime, together with the global downturn in tourism in the early 1980s, visitor numbers continued to decline up to 1987, when tourist arrivals reached only 794,700. The year 1988 was marked by an upturn with visitor arrivals reaching the 1.043 million level.

In terms of tourist receipts, it was only in 1987 when earnings reached the US $1.0 million mark. Commencing in 1987, tourist receipts progressively increased with 1994 posting US $ 2.283 million.

In the 1995 visitors' survey undertaken by DOT, it was reported that the average daily expenditure for all visitors to the Philippines is US 5150.35. The overseas Filipinos, on the other hand accounted for a lower average expenditure because over 90% stay with families or friends and due to the proportionately large "balikbayan" component.

Indicators/Profile of Visitors Visiting Region III

In the 1993 regional tourism study on the domestic tourist, the following indicators had surfaced:

 Average length of stay is 2.3 nights  Average daily expenditure is P925; largest expenditure item of which is for accommodation  Age grouping below 30 years old (90% of respondents)  Educational level (mode) below high school, primarily (80%) students  3 top recreational activities are water sports, shopping and sightseeing  Growth rate is estimated to follow GDP growth rate  Based on regional visitor survey, 51% visited Luzon (respondents those using commercial accommodation) and 55% (estimate for those not using commercial accommodations)

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 1993 Regional Statistics on Foreign Arrivals

 Average stay is 14.1 nights  Average daily expenditure during stay is P1,070 or US $39.50  Dominant markets are Americans followed by Australians and Japanese  Purpose of travel indicates 71.4% for vacation/pleasure and 14.3% for VFRs  Educational level (mode), 45% are university/college graduate  Preponderance of businessmen  Purpose primarily for pleasure/holiday  Top three motives for travel: have friends/relatives, shopping opportunities, previous visit experience  Top three recreational activities: sightseeing, water sports, shopping  Average foreign arrival using tourist accommodations in the Philippines generated around 2.7 separate visits during their stay

g. Visitors Expenditure Pattern

Travelers on package tours understandably spent less than the independent travelers, inasmuch as cost of accommodations have already been paid in advance. The latter spent, an average of P925 per day, while FIT travelers spent an average of P1070. Among the various expenditure items, shopping accounted for the largest expense of the tourist.

h. Employment Generation

The employment generating capacity of the tourism industry is of particular significance. In 1991, it was estimated that 630,000 persons were employed in tourism-related establishments. In 1992, this figure increased by 8%, with an estimated 680,000 jobs generated. 4/

______

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 4/ International Tourism Reports, No. 3 1994

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) i. Minimum Wage

As shown in Table 2.15, NSO statistics indicate that in 1994, the daily minimum wage for those employed in the non-agricultural sector ranged from P115 to P127, depending on the number of employees and asset size of the establishment. In terms of real wage, this translates to about P63 to P70. To be able to maintain the 1994 real wage rate level, nominal wage rates in December 1995 is estimated to be from P134 to P148. However, real wage rates as of December 1995 stood between P54 to P60.

Agricultural workers received daily wages of P90 for non-plantation and P105 for those in plantations. Adjusting these figures for inflation, real wage rates therefore was only P49 for non-plantation workers and P58 for plantation workers.

Rates received by those working in retail, and service establishments and in private hospitals ranged from P108 to P117 or in terms of real wage, these would be approximately P59 to P64.

Viewed vis-a-vis the per capita food cost per day, even if 1991 figure of P16.28 were utilized, a family of 5, would spend P81.40 for food alone. Thus, the agricultural worker would only have P8.60 to P 23.60 remaining to defray expenses for non-food items.

j. Foreign Exchange Rate

Average rate of peso to the US dollar fluctuated between the period of 1990 to the first half of 1996 from a high of P27.48 in 1991 to a low of P25.51 in 1992. Over the last six years, the mean annual average exchange rate gravitated within the P26.10 = $1.00 level.

k. Investments and Exports

Utilizing figures of projects approved by the Board of Investments (BOI) as indicator of investments made in the region, it would be noted that in 1995, about P53.697 billion worth of projects were approved by BOI. This represents a 31.45% increase over the 1994 figure of P40.849B. Exports, on the other hand posted a 29.04% increase from the US $526.05 Million level in 1994 to US S 678.79 Million as shown in Table 2.16. Among the top three exports were garments (US $ 179.03M), Gifts, Toys and Houseware (US $127.35M) and semiconductors/electronics (US $110.45M).

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) As indicated in Table 2.17, the export performance of the Region has been consistently high from 1992 to 1995. Among the provinces, Bataan posted the highest level of exports primarily due to the presence of the Subic Economic Zone. With the conversion of Clark Air Base into an economic zone, Pampanga has increasingly taken a larger share of the region's total exports.

A review of the performance of industries in the region would show that a major problem confronting the region is the lack of intermediate production to supply finished export industries. It would be noted that a substantial percentage of inputs used in the export industry are imported on consignment due to lack of intermediate goods locally processed. The poor quality and high cost of local intermediate goods constrain manufacturers from readily utilizing these products. On the other hand, investors hesitate to invest in the production of some intermediate goods such as steel and resin due to limited market.

Between the period January 1, 1990 to December 31, 1995, the Board of Investment approved two tourism-related projects/industrial estates in Region 3. These are the Montemar Resort and Development Corporation and the Sylvaco Inc., which are both located in Bataan- Total cost of both projects is P94.5 M with an expected employment generation capacity of 210 jobs.

l. Incentives

Among the incentives provided by the Philippine Economic Zone Authority (PEZA) to the various ecozone sectors are the following:

1.Incentives given to Export and Free Trade Enterprise:

 corporate income tax exemption for 4 years to a maximum of 8 years

 exemption from duties and taxes on imported capital equipment, spare parts, materials and supplies

 after lapse of the ITH, exemption from national and local taxes, in lieu thereof, special 5% tax rate

 tax credit for import substitution

 exemption from wharfage dues, export tax impost, fees

 tax credit on domestic capital equipment

 tax and duty free importation of breeding stocks and genetic materials

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  tax credit on domestic breeding stocks and genetic materials

 additional deduction for training expense (labor and management)

 permanent resident status for foreign investors and immediate members of the family

 employment of foreign nationals

 additional deduction for labor expense (50% of wages corresponding to increment in number of direct labor subject to certain conditions)

 exemption from SGS inspection

 simplified import-export procedures

2.Incentives for Ecozone Developers/Operators/Facilities, Utilities, Tourism and Domestic Market Enterprise

 exemption from national and local taxes, in lieu thereof, 5% gross income tax rate

 additional deduction for training expense (labor and management)

 permanent resident status for foreign investors and immediate members of the family

 incentives under the Build-Operate-Transfer Law

 other incentives available under EO 226 as maybe determined by the PEZA Board

2.3 Existing Land Use

Of the total land area of Region III, 40.43% is devoted to agricultural use, livestock production and pasture land. This is almost equal to forestry land which is 44.34% of the total land area. Fishponds, mangroves, island lake, swamps and rivers devoted to fish production composed of 3.75% of the area; rockland, grassland, beaches, canyon and creeks is 1.69% while built-up areas is 5.55%. The rest which is 4.24% of the total area is covered by lahar.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) The distribution by Province as a percentage of the Region's land area are as follows:

Classification Bataan Bulacan Nueva Ecija Tarlac Pampanga Zambales Total 3.00 5.06 14.55 7.33 6.24 1.91 38.09 1. Agriculture - 0.18 1.70 - - 0.46 2.34 2. Livestock 0.24 1.36 0.58 0.11 1.23 0.23 3.75 3. Fishery 4.04 6.41 10.83 6.40 1.48 15.18 44.34 4. Forestry 5. Rockland, Grassland, 0.03 0.20 0.23 0.33 0.33 0.57 1.69 Beaches, Canyons, and Creeks 0.23 1.32 1 . 05 1.14 1 59 0.22 5.55 6. Built-up areas 7. Lahar - - 0.08 1.18 1.22 1.76 4.24 Total 7.54 14.53 29.02 16.49 12.33 20.33 100%

The Bureau of Soils and Water Management of the Department of Agriculture has classified the following land use opportunity areas:

1. Agricultural Areas - Land actively utilized for various agricultural activities. These also include various development infrastructure like roads, bridges, irrigation and human settlement areas.

2. Expansion Areas - Idle, less utilized lands that have potential for various forms of well managed agricultural areas.

3. Rehabilitation Areas - Represents land within the critical watersheds subjected to various land use abuses where various forms of active and inactive erosional processes are very evident. For ecological reasons these areas are at the moment best used for commercial tree plantation. Reverting these areas into its former forest conditions is expensive in terms of time and labor.

4. Preservation Areas - These are areas primarily covered with trees or dominated by woody-type of vegetations. These represent areas that should be permanently retained as forest environment.

5. Wetland Areas - These are brackish and fresh water wetlands dominated either by grassy or wood vegetation. These includes lakes and viable fishponds and should be preserved as aqua-marine ecology.

6. Miscellaneous - rockland, grassland, beachland, river wash, canyon, river creek, terrace escarpment.

7. Built-up Areas - Where most populace are.

8. Pyroclastic Flow Deposit - Lahar.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Of these areas, existing tourism facilities are almost always located in the built-up areas. Potential tourist spots however, can be found in areas classified as preservation, wetland, miscellaneous, built-up and pyroclastic areas, while eco-tourism can be developed in the Mt. Pinatubo areas, preservation areas and wetland areas. Delineations of land use opportunity by province are shown in Figures 2-1, 2-2, 2-3, 2-4, 2-5,2-6.

2.4 ENVIRONMENTAL ATTRIBUTES OF THE REGION

Tourism resources can be categorized under natural systems, socio-economic systems, and others. In the region, the natural systems include; mangroves, seagrass systems, coral reef systems, sandy beach systems, watersheds, lagoon and estuaries, coastal seas, forests, caves, etc. Socio-economic systems include agricultural production systems and urban settlements. 'Other' resources would include human resources, constructed resources, cultural heritage/archeological values.

The natural environmental attributes of the region include:

 Gentle terrestrial relief characterized by low limestone promontories with aesthetically pleasing and colorful indigenous plants and fruit trees;

 Groves of natural vegetation and forests extending inland from the shoreline, in some places back dropped by slightly rugged limestone cliffs;

 Land areas adjoining the shoreline are highly positive for tourism development;

 Especially in Bataan and Zambales, clean, wide, white-sandy beaches with a gentle gradient towards the deeper parts, with crystal-clear waters most parts of the year; and

 Pleasant inhabitants and their characteristic lifestyles.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) On a per-province basis, the following account describes the environment at the region

2.4.1 Bataan

a. Environmental Setting

 majority of the province's municipalities are within the coastline - Manila Bay in the east and the China Sea in the south and inner portion is bounded by Pampanga and Zambales in the north,

 provincial land mass is dominated by mountainous area covering almost 81% of total land area of 1,373 sq km. lowlands and plains cover 19%,

 chained by numerous rivers and small streams radiating from two major mountain groups where Mt. Natib is located,

 the province's once thick timber stand is now mostly depleted thus its watersheds are generally running dry and soil erosion has become a usual occurrence,

 only 900 hectares of virgin forest remaining,

 two major rivers cut across the mountainous area supplying most of the agricultural sector's water requirements,

 soil type of Bataan, e.g. Antipolo clay, La Paz silt loam, etc. are suitable for the production of various crops,

 known mineral deposits are limited to non-metallic such as rock, gravel, sand and lime,

 rice remains the principal crop of the province with an average of 17,872 ha planted to rice between 1986-1991,

 other major crops cultivated are banana, mango, camote, coconut, corn, eggplant and citrus (calamansi), where the mango production is increasing and both the banana and coconut are decreasing,

 fishpond areas 3,380.37 ha of fishpond (private, government-leased) and freshwater; fishponds culture bangus, sugpo, tilapia,

 fish production during the period of 1986-1992 grew at an average annual rate of 2.2%; fish production was highest in 1988 and lowest in 1986,

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  livestock production included carabao, cattle, hog, goat, poultry (chicken and duck),

 considerable areas of mangrove growth and seagrass beds,

 where most of the remaining corals of Manila Bay are found especially in the waters of Corregidor island,

 most people are aware of illegal fishing but continue to resort to it as a matter of survival,

 around 9,168 municipal fishermen and 19 commercial fishing operators,

 fishing grounds are reached after traveling 30 minutes to 1 hour and covering a range of 300 meters to 32 kilometers (most common distance is = 2 kilometers),

During the peak season (May, April and December), they fish 7x a week but during the lean season (June, March and April), they fish only 3x a week. Problems encountered by fishermen: municipal fishermen, with low catch rates, blatant violation of fishery laws, use of dynamite, low selling price of fish; commercial fishermen, also with low catch rates, high cost of fishing inputs, use of fine-meshed nets and bag nets, low selling price of fish.

 perceptions on the condition of the bay:

1. major change in the conditions of the bay and its resources

- present scarcity of some species (ten-pounders, etc.)

- change in the sizes of fish caught which has become smaller

- volume of fish catch also declined - attributed to the increase in the number of fishing vessels and subsequently, the increase in the number of fishermen and unsound fishing methods

- conditions of fishing grounds have changed; some traditional fishing grounds are no longer productive and have become relatively farther (15-20 years ago, immediate coastline of the bay, now nearshore areas have almost zero productivity)

2. use of dynamite, cyanide, etc.. including the use of fine-meshed nets is an accepted problem

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 3. many are willing to stop or minimize fishing if there will be an assurance of an alternative livelihood program to support their families; if none will be available or provided, they will continue to fish as long as it can support their families

- fishermen have a very low awareness of fishery regulations (ineffective because of lack of resources and political will on part of law enforcers)

- majority of these commercial fishermen reportedly use medium-sized push-nets of 'sudsod' along the shallow portions of the coastal waters (species caught are 'sulib' which is used for feeds in fishponds and small shrimps or 'alamang' which is common material for processed goods such as 'bagoong')

other large and efficient fishing vessels such as purse seines and ring nets also operate in the coastal waters of the province

- illegal fishing methods being employed in the province are the use of explosives, the use of poison, and the use of fine-meshed fishing gear

- the use of dynamite is very common in the shores fronting the municipalities of Limay and Mariveles, the coastal areas of barangay Kitang II (Luz) and barangay Lamao in the municipality of Limay

- explosives are said to be obtained from salvaged ammunition off Corregidor Island, from explosive factories in the province, and derived from fertilizers which are readily available in agricultural supplies stores

- blast fishing is practiced within hearing range of Coast Guard stations e.g. in Lamao where a detachment is located

- the use of poison, e.g. cyanide, is usually practiced in the river systems of the municipality of Limay, Mariveles and Orion

4. there are many existing fishery laws and regulations that promote the implementation of Coastal Resources Management (CRM) at present but these are not strictly enforced. There are hindrances on its implementation at local level even (RA 7160) Local Government Code of 1991 places resource management at the hands of local government officials

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 5. information and communication channels seem to be blocked due to poverty, indifference, or simply disenchantment with government efforts

- more fishermen are beginning to appreciate the need for regulation due to the problem of congestion and overexploitation

 In relation to mangroves:

- there are considerable areas with mangroves;

- based on the Manila Bay Environmental Profile for Region III (1990), there were originally around 54,000 hectares of mangroves in the Manila Bay area, but at present, there are only about 2,000 hectares left

- there are only about 220 ha of mangroves remaining and these are distributed in Limay, Orion, Balanga, Samal and Orani

- Balanga has the biggest area of mangrove growth with 100 ha

- The mangrove areas are distributed as follows:

Limay scattered patches

Orion 70 ha

Balanga 100 ha

Samal 50 ha

Orani scattered patches

 In relation to coral reefs, the following account is worth noting:

- the mouth of Manila Bay fronting the South China Sea and containing the areas within the Corregidor Islands supports small communities of reef formations

- mostly soft and hard corals of different types and forms

- presence of 4 butterfly fishes indicate that the reef is still healthy

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  With sea grasses and sea-weeds,

- only province fronting Manila Bay has sea grass beds

- Halodule spp. and Halophila spp found in Pilar

- Enteromorpha intestinalis, Gracilaria spp. and Caulerpa spp. found in Orion

b. Priority Issues

All 12 municipalities are considered coastal towns, and nine coastal communities are fronting Manila Bay. Majority of the rural population of 70 coastal barangays derive their livelihood from fishing and/or fishing related activities. Commercial fishermen use resource-degrading fishing gear (dredging/scraping gears) such as trawls and push-nets which damage fish habitats in the bay floor itself and in the coral reef communities. Pollution of coastal waters is due to indiscriminate disposal of domestic wastes and garbage into the rivers and near-shore areas. As in other areas of the Bay experiencing garbage and waste disposal problems, it is the absence of appropriate human waste disposal facilities among the houses in the coastal communities and the lack of space for garbage disposal, and the absence of a garbage collection system, that are the main causes of such problems. Most of the coastal residents do not possess the appropriate environmental awareness and concern that would make them abstain from such unsound waste and garbage disposal practices and to find alternative means of waste and garbage disposal.

Unsound upland agricultural practices, quarrying activities in the coastal zones, flushing of used fishpond water into the rivers and the coastal waters, and the accumulation of wastes and garbage in the rivers and the near shore waters, have in varying degrees, contributed considerably to the on-going siltation and shallowing of the coastal waters, especially in river mouths and the near shore areas. These practices are aggravated by the absence of vegetation in the uplands (due to slash-and-burn farming and unsustainable lumber production in the past) and in the shoreline areas, the absence or scarcity of mangrove stands local residents in some municipalities, e.g. in Orion and in Orani, dump their wastes and garbage in areas where mangroves are present.

Ten fish markets, 17 fish landings/ports, three ice plants/cold storage facilities, 82 fish processing plants and eight prawn hatcheries are present along the shores of Bataan.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) In relation to industries, pollution of coastal waters of the province is due to the indiscriminate disposal of industrial wastes and effluents from the coastal plants/factories and other industrial sites. Oil balls are observed along the coast of Bataan's large industrial sites such as the PETRON refinery located in the municipality of Limay. A recent oil spill (1992) from an oil tanker going to the refinery has caused the loss of the main, if not the only, source of income of many of the municipal fishermen in the area.

Another water polluting industry which is also located in Limay is the Bataan Thermal Power Plant (BTPP) of the National Power Corporation (NPC). The BTPP contributes to water pollution by releasing thermal water back into the coastal waters after it has been used by its boilers compared to the extent of contribution of domestic wastes and garbage to the pollution problem of the province, industrial wastes and effluents constitute the greater threat to the ecology of the coastal waters of the province such that greater focus must be given to the proper disposal of such industrial wastes and effluents.

Natural factors similarly contribute to the degradation of the habitats in Bataan. In the entire Manila Bay area, the red-tide manifestation generally begins in the Bataan area in waters where mussels and oysters are cultured or grow wild. Siltation/shallowing of the near-shore areas is most common in the first district of the province. Prior to the eruption of Mt. Pinatubo, siltation was already taking place (and still is) due to unsound resource-use practices inland and coastal land areas due to the absence of vegetative cover along the shoreline.

Garbage disposal is a serious concern of Bataan. Below is the classification of households by usual means of garbage disposal (1990)

 total household 81,343

 picked up by garbage truck 12,054

 dumping in individual pit (not burned) 9,969

 burning 46,948

 composting (later used as garbage) 846

 burying 2,210

 feeding to animals 2,175

 others 7,155

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 223 16 281

TOTAL 223 16 281

c. Impact Mitigation and Conservation Effort

DENR has made some initiatives to improve the environmental conditions in the region. Some of these include the completion of: five trail construction projects with a total length of 35 km; two small water impounding projects, and two soil conversion structures.

A proposal has been submitted by the Municipality of Morong, the "One Barangay, One Product Movement", which focuses on tourism development and promotion. Although environmental protection is implicit, the thrust of the project would in part ensure that the environment as this is used in tourism activities will be protected and managed.

Bataan was one of the four provinces included in the ADB funded Fishery Sector Program to undertake a comprehensive study of the fishery sector which had the following components: Fishery and Ecological Assessment; Coastal Zone Management; Research and Extension; Law Enforcement; Credit; and Infrastructure that started in 1990 and completed in 1994.

Other accomplishments are also worth noting:

 1.126 denuded forestlands were reforested from 1986-1991 (3 reforestation projects) in Mariveles, Morong and Mt. Sarnat Reforestation Projects

 watershed rehabilitation projects included the reconstruction of 1,240 cu. m. of checkdam and introduction of 938,000 sq. m. of vegetative measures introduced during the enrichment planting - Mariveles Watershed Rehabilitation Project

 public beaches, particularly in Panibutnan, were also improved through the construction of picnic sheds and better landscaping to attract more visitors to the area (about P860,000 was allocated for this)

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  there were efforts (1992) to plant mangrove trees in the coastal areas through the Mangrove Reforestation Program of DENR particularly in Orion, Pilar and Abucay

 programs implemented: Biyayang Dagat, Kilusang Kabuhayan at Kaunlaran - based on experiences from these programs, the upliftment of the lives of the fishermen does not solely rest on the provision of loans to buy modern fishing equipment

 coastal communities who have been introduced to the CRM program have learned to manage the resources that they exploit through schemes that they themselves implement (programs are implemented through a community- based management approach) and enforce

 government officers (GO's) and local government units (LGU's) have been involved in CRM related activities such as information dissemination, providing livelihood projects for small fishermen, establishment of coral reefs and mangrove planting

 only 6 (11 %) barangay captains cited involvement of their barangay units in undertakings which are CRM related:

Brgy. Kaparangan in Orani

Bgy. Calaylayan and Brgy. Omboy in Abucay

Bgy. Wawa and Bgy. Landing in Pilar

Activities cited are mainly mangrove reforestation and seminars on artificial reefs

2.4.2 Bulacan

a. Environmental Setting

 Manila Bay in the southwest

 the province lies tilted in the east and the rains caught in the flatlands, mountains and foothills make their way down to the west and Manila Bay  generally flat in terrain

 a dozen mountains situated near the boundaries of Nueva Ecija, Quezon and Rizal ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  from the elevated area flow numerous rivers which drain the province

 limited coastline with only five of its 24 municipalities touching Manila Bay ' (generally low and swampy)

 intersected by numerous esteros or tributaries of the Pampanga river

 western half is generally flat and is drained by Angat and Pampanga river

 part of western boundary touches Candaba swamps

 Status of Land Classification: 1986

Classification Area in Hectares

T O TA L 262,500

Certified alienable and disposable 180,525

Forest land 81,875

Unclassified -

Classified 81,875

Established forest reserve 8,805

Established timberland 9,158

National parks GRBS1/ 2,117

Military and naval reservation -

Civil reservation 59,413

Fishponds 2,382

 forest land comprises 31.2% of which civil reservation -59.4 thousand ha timberland - 9.2 thousand ha established forest reserve - 8.8 thousand hectares

 Bulacan has 14,800 ha of virgin forests and 13,700 ha of second growth forests

 22.4 thousand ha are fishponds ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 1/ Game Refuge and Bird Sanctuary Wilderness areas.

 2.1 thousand ha are national parks;

 reported aquafarms totaled 4,198: fishponds, 904; oyster farms, 291; frog farms, 3

 43 commercial fishing operators;

 in 1987, estimated fishpond area of 22,584 ha had total output of 37,684 metric tons;

 brackishwater fishponds had a production of 95.3% or 36,000 metric tons from an area of 22,000 ha which is 97.3% of the total inland area;

 production of freshwater fishponds amounted to 8,758 metric tons from an area of 611 hectares;

 the municipalities of Hagonoy, Bulacan, Malolos, San Miguel, and Obando had the biggest number of municipal fishing households;

 mineral production in 1986 was P640 Million;

 non-metallic mineral production was P640.301 Million,

 mineral production included: cement; limestone (for cement manufacture), sand, gravel, and salt,

 mining and quarrying establishments in 1983 totaled 53 and most of these establishments were located in Bulacan (14) followed by Malolos (13) establishments;

 Mangrove area of Manila Bay in Bulacan is only 294 hectares;

 Some of the fish resources are: anchovies, mullets, shrimps, acetes, threadfin, whiting, blue crab.

b. Priority lssues

Major domestic issues in Bulacan include: water pollution from solid waste, open dumps in and along rivers by residents; and domestic waste water. Commercial issues include: water pollution from piggeries and poultry farming, chemicals used in fishponds and agriculture. On the other hand, the industrial issues arise largely

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) from vehicles and cement factories ( three in Norzagaray and one in Akle) but due to their location on the hillside, effects of air pollution on local residents are limited. Major sources of water pollution are: industrial effluents from alcohol plants and tanneries. These tanneries in Bulacan discharge their wastewater into the Meycauayan and Marilao rivers. In a newspaper article (Philippine Daily Inquirer, 24 February 1997), Gregorio Nisperos, Environment Technical Director for Central Luzon, reported the findings of the Special Profiting Team organized by DENR to determine the level of pollution in major rivers in the region. Findings showed that these two river systems are biologically dead due to indiscriminate dumping of solid and liquid wastes by industrial firms and residents along the waterways. Around 165 industries, including canneries, poultry farms, piggeries and food processing factories are found in the area.

A natural source of environmental degradation in Bulacan is the present heavy siltation of tributaries which serve as outlets for rainwater. This results in yearly floods in the Central Plain of Luzon. A major source of water pollution is sedimentation caused by soil erosion.

As in the other provinces in the region, garbage disposal is a big problem in Bulacan. This is reflected in the data below:

Classification of Households by Usual Means of Garbage Disposal, 1990

 total household 287,890

 picked up by garbage truck 25,003

 dumping in individual pit (not burned) 22,030

 burning 219,839

 composting (later used as garbage) 3,362

 burying 7,114

 feeding to animals 4,049

 others 6,493

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 153

TOTAL 0 0 153

c. Impact Mitigation and Conservation Efforts

Efforts on the part of the government and the inhabitants to improve the environmental conditions in Bulacan include:

 the construction and use of Angat Hydroelectric Project which serve as power, water supply, irrigation and flood control

 a total of P51.1 M was incurred in aquafarm operation wherein 99.8% was incurred by fishponds and 0.2% by others (e.g. fingerlings, compensation, rental, fertilizer).

 the government implemented three forest tree projects in 1987 with an area of 6,180 ha where the area developed totaled 1,524.

 two pasture leases were issued every year since 1984 covering an area of 1.3 thousand hectares.

 Candaba swamp is a potential major asset for environmental education

La Mesa and Ipo River Dam provide the province's water supply.

Thus, some important aspects of the environment in Bulacan in relation to its use as a tourism resource would include:

Bocaue - noted for firecrackers and luces / Pagoda

Bustos - Bustos Dam, longest sector gate in the world; used as huge reservoir at Angat Hydroelectric Plant at Barrio Hill

Calumpit - noted for centuries old potteries, clay work, native foods like ulang (lobster)

Guiginto - noted for bamboo products and bihon factories

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Hagonoy - Aroma Beach Resorts, sandy beach with aroma plants

Marilao - noted for jewelry, Prenza Dam

Meycauayan - noted for tanneries, leather goods and leather crafts

Obando - fisheries

Paombong - producers of nipa, vinegar, alcohol, and wine

Pandi - noted for garments, embroideries and dairy products

San Ildefonso - Grotto Central Cement Marble Products

2.4.3 Nueva Ecija

Totally landlocked, Nueva Ecija's natural resources are the forests and their amenities. However, the major threats that challenge developmental effort in the province include: dwindling forest reserves due to illegal logging, some of the areas are flood-prone while others are within a fault line, and labor force migration and emigration to Metro Manila.

Garbage disposal and management is a major issue in Nueva Ecija. The data below show that burning as a means of disposing of wastes is the usual practice, making up 80% of the household. Garbage from only 5.2% of the households is being disposed of using dump trucks:

Classification of Households by Usual Means of Garbage Disposal, 1990

 total household 250,978  picked up by garbage truck 12,959  dumping in individual pit (not burned) 21,912  burning 199,526  composting (later used as garbage) 4,701  burying 8,862  feeding to animals 2,065  others 953

The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 41 2,054 4,405

miscellaneous 252

TOTAL 41 2,054 4,657

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) In the people's vision for development, preservation of the existing natural resources (forest, wildlife, flora and fauna) is high in the agenda. In the province, environmental management as a discrete sector of development is not perceived to be at par with economic and social components.

2.4.4 Pampanga

a. Environmental Setting and Priority lssues

With the exception of a small portion at its southern end which opens to Manila Bay, Pampanga is completely centrally landlocked in Region III. The devastation brought about by the eruption of Mt. Pinatubo is one of the main environmental concerns of the local government, in relation to its effort to develop economically. The phenomenon makes the province the most highly prone to siltation, with 18,630 ha of its land area likely to be affected by it. In terms of direct effect of lahar, it ranks second to Zambales, with 16,541 ha of its land seriously affected. Among the six provinces in Region III, it ranks third in the most highly prone to the effects of lahar.

The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 11,181 8,633 16,597

warm cool upland 1,156 75 9

warm cool hilly land 644 - -

cool highland 1,429 - -

miscellaneous 2,131 1,096 2,024

TOTAL 16,541 9,804 18,630

Taking a 'little of everything' from its neighboring provinces, Pampanga exhibits a mix of the environmental conditions as well as that of the prevailing practices in its management and protection. Hence, garbage disposal and pollution from domestic, industrial and commercial effluents affect the conditions of its environment, especially in the more urbanized sections:

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Classification of Households by Usual Means of Garbage Disposal, 1990

 total household 268,007

 picked up by garbage truck 39,590

 dumping in individual pit (not burned) 31,224

 burning 168,218

 composting (later used as garbage) 5,335

 burying 12,282

 feeding to animals 5,247

 others 6,111

The remaining forest cover is critically insufficient to sustain a viable watershed; while its wildlife (flora and fauna) is virtually unstudied. In relation to tourist interest, it is only the lahar area, Mt. Arayat, and Candaba Swamps that are of ecological value as special interest or rural tourism attractions.

b. Impact Mitigation and Conservation Efforts

Much like in the other provinces of the region, the normal activities and projects of the local government are the sole source of data and information being used in the improvement of the environmental conditions. It is worth noting, however, that Parnpanga has Mt. Arayat and Candaba Swamps which are legally declared as protected areas. The latter made the Philippines signatory to the Ramsar Convention which looks at the protection of endangered waterfowls, putting the country among those committed to the preservation of these important species.

2.4.5 Tarlac

a. Environmental Setting

The following account describes the environmental setting in Tarlac:

 The province is situated at the center of the Central Plains of Luzon Island, landlocked by the provinces of Nueva Ecija to the east, Pangasinan to the north, Pampanga to the south, and Zambales to the east.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  Geological formations in the province are composed mainly of igneous and sedimentary rocks. The province is bounded by volcanic hills in the south, a high mountain range composed of ultrabasic rocks in the west, and a wide broad and alluvial valley in the north and east. A total of 68% of the province's land area is composed of sedimentary rocks with the rest covered by igneous rocks.

 Hills bordering in the south are pyroclastics with intermediary low relief hills and sandstone sequences. The western part of the province is composed of andesitic and basaltic parent materials and intrusion of ultramatic igneous rocks which tends to divide the physiographic boundary between Zambales and Tarlac.

 Land classification:

Agricultural Area 137,400 has (45%)

Residential and Built-up Area 20,842 has (6.83%)

Grassland/Shrubland Area 84,723 has (27.75%)

Woodland Area 54,252 has (17.77%)

b. Priority Issue

A large portion of the province (68.42%) shows no apparent erosion.These are predominantly in the built-up areas in the north and eastern parts of the province. Of the 18 municipalities, four are noticeable for displaying varying degrees of erosion, these are: Tarlac, Mayantoc, Capas and Bamban. The western part of the province registers the biggest area with slight to moderate erosion, followed by Mayantoc, Capas and Bamban. Areas with severe erosion are scattered.

Because of increasing population and improvement in the economy, garbage disposal has likewise become a big problem in Tarlac. The data below reflects its status:

Classification of Households by Usual Means of Garbage Disposal, 1990

 total household 159,344

 picked up by garbage truck 8,606

 dumping in individual pit (not burned) 21,115 ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  burning 111,527

 composting (later used as garbage) 5,117

 burying 6,200

 feeding to animals 5,194

 others 1,585

Hence, only 5.4% of the households is being serviced by garbage trucks, while 70% still adheres to the traditional practice of burning the refuse as a means of waste disposal.

The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 6,660 18,410 74

warm cool upland 1,261 1,474

warm cool hilly land 585 377

cool highland 338 4

miscellaneous 2,706 1,366 100

TOTAL 11,550 21,631 174

c. Impact Mitigation and Conservation Efforts

With the development of the province geared toward agricultural modernization and agro-based industries, major development projects in the province are focused mainly on the provision of road networks, water based infrastructure facilities and productivity centers.

One such project is the Balog-Balog Multipurpose Project which consists of the Bulsa River Diversion Project involving the construction of a diversion dam, a six kilometer conveyance canal and a 440 m long canal section. Its aim is to provide irrigation water supply. Another project is the development of resettlement areas in the province aimed at accommodating displaced persons affected by the eruption of Mt. Pinatubo. ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) 2.4.6 Zambales

a. Environmental Setting

Below are some of the statements which describe the environment in Zambales:

 Located at the western coast of the Central Luzon Region, the province of Zambales is bounded by Pangasinan in the north, Olongapo City and Bataan in the south, and the China Sea in the west.

 The province has a total territorial area of 371,440 hectares averaging 30 kilometers in width and 110 kilometers in length.

 Terrain is very irregular with the eastern part of the main highway having mountain ranges, while the northern areas have swamps that have been converted into fish ponds.

 Typhoons do not frequent the Zambales area because mountain ranges in the east shield the province from north-easterly winds. However, the province is exposed to the southeast monsoon and cyclonic typhoons.

 The original inhabitants of Zambales come from the ethnic groups of the Zambales, Ilocanos and the Tagalogs.

 As of census year 1990, Olongapo City, the province's capital, had a total population of 562,992, with a density of 152 inhabitants per square kilometer.

 Zambales has six main rivers that drain into the South China Sea, these are: Bagsit, Bancal, Bucao, Maloma, Nacolcol, and Sto. Tomas.

 Zambales, with a total land area of 371,440 ha, has 157,256 ha of Delimited Public Forest land, 76,578 ha of Unclassified Public Forest land, and 137,397 ha of Disposable land.

 Shorelines are either composed of beach sand, fine sand, sandy loam, clay loam, clay, mountain soils, or swampy soils.

 Inland areas have undifferentiated mountain soils, sandy loam, clay, sandy and clay loam soils.

 There were 20 mines operating in the province as of 1990, with three of the mines producing non-metallic ores and the rest producing metallic ores.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  Strict fines and other legal penalties have left Zambales' beaches and forested areas relatively unspoiled. Tourist spots are located in the municipalities of Sta. Cruz, Candelaria, Masinloc, Palauig, Iba, Botolan, Cabangan, San Felipe, San Narciso, San Antonio, San Marcelino, Castillejos, and Subic Naval Base. The majority of tourist destinations are beach resorts where scuba diving and water skiing are offered.

 Zambales has 11 municipalities bordering the South China Sea, consequently, fisheries and aquatic resources are a main source of livelihood. Major fishing grounds include the South China Sea and inland waters.

 The majority of the fish catch in Zambales include: yellow fin tuna, mackerel, round scad, caesio, anchovies, parrot fish, sardines, groupers, flying fish, herring, surgeon fish, cavalla, sharks, slipmouth, goatfish, swordfish, snappers, barracuda, blue marlin, mullet, sweet lips and squid.

 Other aquatic species that can be found in the province include, milkfish, swappers, and seabass mullet. Green sea turtles are also endemic to the province.

 Fish production is expected to post a surplus of 4,605 metric tons in 1995 increasing to 9,975 by 2000, with a high growth rate of 19.03% over the five- year period.

 Prevalent fishing methods and equipment include hook and line, fish corral

 The province has 39,678 (10.68% of total area) of agricultural land, which is equivalent to 28.84% of its total alienable and disposable land.

 Environmental studies involving the 108 MW Subic Bay Power Project yielded a total of 157 plant species, including 46 herbs and grasses, 11 shrubs, 82 trees, 13 vine species and 5 sedges.

b. Priority Issues

 Downstream erosion and unchecked rainfall runoff caused by deforestation contribute to siltation causing recurring floods that reduce the productivity of the provinces water resources.

 Inadequate fishing/culturing methods have resulted in low yields of 350-400 kg/ per fish pond. ______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)  Damage to forest areas have caused moderate erosion resulting in the marine deposition of silt coming from the large rivers.

 Coral reefs have suffered some damage due to the coral cutting and export industry.

 Illegal fishing methods making use of explosives, cyanide and electricity have caused some damage to fishing areas.

 Damage to coastal mangrove areas have opened interior coastal areas to typhoons, resulting in increased erosion and marine siltation.

 Damage wrought by the eruption of Mt. Pinatubo include slight to moderate siltation of rivers and inland areas. Damage wrought to marine ecosystems have not been studied.

Data below add to our understanding of the environmental status of Zambales:

Classification of Households by Usual Means of Garbage Disposal, 1990

 total household 115,643

 picked up by garbage truck 35,990

 dumping in individual pit (not burned) 12,038

 burning 45,464

 composting (later used as garbage) 1,704

 burying 4,976

 feeding to animals 6,671

 others 800

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) The area of land covered by lahar, prone to lahar deposit and prone to siltation (in land management units, in ha) is given below:

Lahar Affected Lahar Prone Siltation Prone

warm lowland 6,686 10,032 8,577

warm cool upland 106 15 0

warm cool hilly land 6,293 1,352 1,097

cool highland 6,357

miscellaneous 4,522 2,720 1,487

TOTAL 23,964 14,119 11,161

c. Impact Mitigation and Conservation Efforts

One community-based initiative that addresses the environmental impacts and attempts to ensure the long-term sustainability of the natural resources in Region III is the establishment of protected areas. This effort dates back six decades ago and continues at present. Below are some of these areas legislated for protection. While most of them have the potentials as objects of tourism, their maintenance as such is open to question.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) NAME LEGAL SITE USES THREATS JURISDICTION BASIS

Roosevelt Pres. Proc. Tourism & human settle DENR-RED National Park No. 567 Bataan recreat'n ments; illegal San Fernando (1933) farming Pampanga Bataan National Pres. Proc. Bataan tourism, access, human DENR-RED Park No. 192 - research, settlements San Fernando (1987, latest) Zamba education Pampanga -les Minalungao R. A. 5100 Nueva tourism & encroachments DENR-RED National Park (1967) Ecija recreat'n San Fernando Pampanga Aurora Memorial Pres. Proc. Nueva tourism & poaching, DENR-RED National Park No. 220 Ecija recreat'n encroachment San Fernando (1937) Pampanga Capas Death R.A. 826 Tarlac tourism & poor main DENR-RED March Monument recreat'n tenance San Fernando Pampanga Mt. Arayat Nat E.0.192 Pampa recreat'n settlements CENRO, ional Park (1987) -nga illegal Angeles City; practices PENRO, Pampanga Olongapo Naval Pres. Proc. Zamba tourism & illegal CENRO Base Perimeter No. 478 -les recreat'n settlements Olongapo National Park (1968) Biak-na-bato Pres. Proc. Bulacan tourism & settlements DENR-RED National Park No. 401 recreat'n; illegal mining, San Fernando (1989) research forest Pampanga; degradat'n CENRO, Bali wag, Bulacan Masinloc-Oyon R. A. No. Zamba tourism, NPC power CENRO, Ma Protected Land- 7586 -les research plant sinloc scape/seascape (1994) Manila Bay (part) DENR AO Bataan recreat'n pollution, DENR-RED Seashore Park research, overpopulation Region IV fishing Candaba Swamp Pampa agricul flooding, -nga ture,fishing encroachment research San Salvador Mun. Resolu- Zamba recreat'n, NPC power Haribon-LTK Marine Conser tion No. 56 -les fishing, plant, illegal vation Project (1989) research fishing

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.3 Number of Households, Household Size & Growth Rate of Region 3

Household No. of Average Growth Region/Province Population Households Household Size Rate

Philippines 58,442,518 13,510,738 5.07 2.32

Region 3 6,932,137 1,365,990 5.07 2.12

Bataan 490,460 98,499 4,98 2.72 Bulacan 1,781,120 359,613 4.95 3.24 Nueva Ecija 1,503,448 300,345 5.01 2.61 Pampanga 1,634,770 302,155 5.41 1.23 Tarlac 945,258 185,4.77 5.10 1.80 Zambales 588,081 119,901 4.74 0.21

Source: NSO Central Office, September 1995

Table 2.4 Population and Population Density of Central Luzon by Province

Period Phils. Region 3 Bataan Bulacan Nueva Ecija Pampanga Tarlac Zambales

1970 36,684,486 3,615,496 216,210 737,975 851,294 907,275 559,708 343,034 Population" 122.3 198.3 157.5 281.1 161.1 416.0 18.3 92.4 Pop. Density

1975 42,070,660 4,210,136 263,269 899,529 947,995 1,042,529 640,899 416,280 Population 140.2 230.9 191.7 342.7 179.4 478.1 209.9 112.1 Pop. Density

1980 48,098,460 4,802,793 323,254 1,096,046 1,069,409 1,181,590 688,457 444,037 Population 160.3 263.4 235.4 417.5 202.4 541.8 225.5 119.5 Pop. Density

1990 60,703,206 6,199,017 425,803 1,505,219 1,312,680 1,532,615 859,708 562,992 Population 202.3 340.0 310.1 573.4 248.4 702.8 281.6 151.6 Pop. Density

1995 68,614,162 6,932,570 491,459 1,784,441 1,505,827 1,635,767 945,810 569,266 Population 228.7 380.3 357.9 679.8 285.0 750 309.8 153.3 Pop. Density . a/ Population Density is in persons/sq. km.. Source : NSO Central Office

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.5 Labor Force by Employment Status in Region Ill by Province and Major City

Labor Force Employed Unemployed Distribution of Employed Pop'n 15 QUARTER Agriculture Non-Agriculture PROVINCE yrs & over Persons Participation Persons Rate Persons Rate END '000 % '000 % ('000) ('000) Rate (%) ('000) (%) ('000) (%) Persons Share Persons Share

Region 3 October 1994. 4,350 2,516 57.84 2,333 92.73 183 7.27 796 34.11 1,537 65.89 1995* 3,364 2,032 60.40 1,926 94.78 106 5.22 713 37.02 1,213 62.98 Bataan October 1994. 325 188 57.85 169 89.89 19 10.11 52 30.77 117 69.23 1995. 337 199 59.05 184 92.46 15 7.54 53 28.80 131 71.20 Bulacan October 1994. 1,044 611 58.52 563 92.14 48 7.86 112 19.89 451 80.11 1995. 1,078 664 61.60 642 96.70 22 3.30 128 19.90 514 80.10 Nueva Ecija October 1994. 919 550 59.85 531 96.55 19 3.45 283 53.38 248 46.62 1995. 943 565 59.92 552 97.70 13 2.30 285 51.63 267 48.37 Pampanga October 1994. 904 516 57.08 472 91.67 44 8.53 101 21.35 371 78.65 1995* 864 479 55.44 422 88.10 57 11.90 102 24.17 320 75.83 Tarlac October 1994. 571 339 59.37 328 96.76 11 3.24 176 53.66 152 46.34 1995. 584 370 63.36 361 97.57 9 2.43 196 54.29 165 45.71 Zambales October 1994. 266 144 54.14 124 86.81 20 13.89 47 38.40 77 61.60 1995. 273 148 54.21 126 85.14 2 14.86 49 38.89 77 61.11

Angeles City October 1994. 173 97 56.07 84 86.60 13 13.40 1 1.20 81 98.80 1995*

Olongapo City October 1994. 146 73 50.00 60 82.19 13 17.81 3 5.00 57 95.00 1995. 149 86 57.72 61 70.93 25 29.07 2 3.28 59 96.72

Note: * Excludes Pampanga and Angeles City. ** LFS suspended due to calamity. Source : National Statistics Office (Region III)

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.6 Number of Families, Average Annual Income and Average Annual Expenditures in the Philippines and in Region III

Philippines Region III Total Urban Rural

1985 No. of Families 9,847,300 3,726,000 6,121,300 956,900 Median Income, P 20,480 31,243 16,437 28,029 Median Expenditures, P 18,988 28,953 15,322 27,679 Savings, P 1,492 2,290 1,115 350

1988 No. of Families 10,533,900 3,985,100 6,548,800 1,038,200 Median Income, P 26,694 41,960 21,142 34,867 Median Expenditures, P 23,431 35,598 18,750 31,813 Savings, P 3,263 6,362 2,392 3,054

1991 (at current prices) No. of Families 11,975,400 5,938,500 6,036,900 1,194,900 Median Income, P 41,040 59,270 30,330 56,120 Median Expenditures, P 35,140 50,790 26,503 47,523 Savings, P 5,900 8,480 3,827 8,597

1991 (at 1988 prices) Median Income, P 27,000 38,993 19,954 37,141 Median Expenditures, P 23,118 33,414 17,436 31,451 Savings, P 3,882 5,579 2,516 5,690

1944 (at current prices) No. of Families Median Income, P 55,019 31,234 16,437 73,195 Median Expenditures, P 47,378 28,953 15,322 61,554 Savings, P

Source : FIES, NSCB

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.7 Poverty and Subsistence Incidences by Region, 1985-1991

Area/ Poverty Incidence (%)1 Magnitude of Families Region 1985 1988 19913 19914 1985 1988 19913 19914

Philippines 44.2 40.2 40.7 39.2 4,355,052 4,230,484 4,879,620 4,690,614

NCR5 23.0 21.6 14.9 13.2 301,973 310,284 245,018 217,602 AONCR6 47.5 43.1 44.9 43.3 4,053,079 3,920,200 4,634.602 4,473.012

CAR7 - 41.9 37.6 36.3 - 89,572 85,666 82,627 Region 18 37.5 44.9 49.4 48.4 267,044 280,394 332,014 325,145 Region 28 37.8 40.4 43.1 43.3 174,844 177,072 210,977 211,839 Region 3 27.7 29.3 33.0 31.1 264,811 304,313 394,612 371,817 Region 499 40.3 41.1 38.0 37.9 524,839 527,360 613,452 612,213 Region 5 60.5 54.5 56.1 55.0 404,751 402,522 461,776 452,777 Region 6 59.9 49.4 46.7 45.3 528,098 472,909 499,975 484,505 Region 7 57.4 46.8 42.4 41.7 449,760 388,571 383,210 377,448 Region 8 59.0 48.9 40.7 40.1 334,751 292,953 269,471 264,906 Region 9 54.3 38.7 54.5 44.0 268,872 208,710 329,525 266,174 Region 10 53.1 46.1 55.2 53.0 300,266 279,900 378,170 363,231 Region 11 43.9 43.1 47.5 46.2 309,532 318,117 394,416 363,368 Region 12 51.7 36.1 51.0 50.2 225,551 117,807 281,339 276,965 Area/ Subsistence Incidence Magnitude of Families Region 1985 1988 19913 19914 1985 1988 19913 19914

Philippines 24.4 20.3 202 19.7 2,403,195 2,139,303 2,423,840 2,357,392

NCR5 6.0 5.0 2.5 2.1 78,150 71,807 40,439 33,804 AONCR6 27.2 22.7 23.1 22.8 2,325,045 2,067,496 2,383,401 2,323,589

CAR7 - 16.4 19.8 18.8 - 35,079 45,185 - 42,828 Region 18 15.5 19.6 24.7 24.6 110,554 122,478 165,598 165,179 Region 28 19.1 18.4 20.6 20.1 88,247 80,569 100,609 98,534 Region 3 11.6 10.2 12.7 11.1 111,239 106,316 151,528 132,374 Region 49 20.3 21.7 17.8 17.1 264,873 278,423 287,691 275,768 Region 5 37.4 31.5 31.2 31.6 250,147 232,615 256,697 260,086 Region 6 33.6 25.9 22.8 21.8 295,908 247,847 244,029 232,733 Region 7 39.6 27.6 23.3 23.3 210,264 229,264 210,353 211,173 Region 8 42.4 31.2 24.8 26.1 240,433 186,673 163,712 172,711 Region 9 34.6 22.8 24.8 23.3 171,205 122,714 150,156 140,934 Region 10 33.4 27.2 35.0 33.6 188,760 165,224 239,761 229,991 Region 11 23.3 24.0 27.2 26.2 164,580 177,303 225,617 217,132 Region 12 29.6 16.8 25.8 26.1 128,835 82,991 142,467 144,147 Notes : 1. The proportion of families whose annual per capita income fall below the annual per capita poverty threshold; 2. the proportion of families whose annual per capita income fall below the annual per capita food threshold; 3. estimates based on the preliminary 1991 Family Income and Expenditure Survey results, 4. estimates based on the final 1991 Family Income and Expenditure Survey results; 5. National Capital Region; 6. areas outside NCR, 7. Cordillera Autonomous Region; 8. In 1985, includes provinces of the CAR; and 9. in 1988, excludes the Rizal Province. Source : TWGPD, National Statistical Coordination Board (NSCB), and National Statistics Office (NSO).

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.8 Gini Ratio by Region (1985 to 1991)

GINI RATIO 1985 1988 19911 19912

Philippines 0.447 0.445 0.474 0.468 NCR 0.415 0.426 0.440 0.428 CAR - 0.374 0.437 0.437 Region 13 0.401 0.374 0.406 0.404 Region 23 0.386 0.396 0.421 0.417 Region 3 0.399 0.386 0.408 0.399 Region 44 0.406 0.403 0.428 0.424 Region 5 0.380 0.388 0.397 0.391 Region 6 0.450 0.408 0.404 0.403 Region 7 0.454 0.460 0.465 0.460 Region 8 0.390 0.404 0.442 0.415 Region 9 0.395 0.409 0.401 0.391 Region 10 0.454 0.442 0.448 0.438 Region 11 0.393 0.402 0.445 0.435 Region 12 0.371 0.358 0.395 0.376 Notes : 1. Estimated based on the preliminary 1991 FIES results; 2. estimates based on the final 1991 FIES results, 3. in 1985, includes provinces of the CAR, and 4. in 1988, excludes the Rizal province. Source : National Statistics Office (NSO).

Table 2.9 Annual Per Capita Poverty Thresholds and Incidences of Families & Population, Region III

Period Philippines Region 3 1988 P4,777 P5,242 Annual Per Capita Poverty Threshold1/ 25,005,345 1,835,976 Magnitude of Population2 Incidence3/ 45.5 33.8 Magnitude of Families2/ 4,230,484 304,313 Incidence3/ 40.2 29.3 1991 P8,173 P7,212 Annual Per Capita Poverty Threshold 2,239,856 27,600,505 Magnitude of Population 44.5 Incidence 35.5 4,780,865 Magnitude of Families2/ 371,817 39.9 Incidence 3/ 31.1 1994 8;757 P8,885 Annual Per Capita Poverty Threshold 2,046,167 27,274,205 Magnitude of Population 40.6 I Incidence3/ 29.2 4,531,170 Magnitude of Families2/ 321,212 35.5 Incidence3/ 25.2

Source: TWG, NSCB

______1 Annual per capita income required to satisfy nutritional requirements (2,000 calories) & other basic needs. 2 The no. of individuals in families whose annual per capita income fall below the annual per capita threshold. 3/ The proportion of population whose annual per capita income fall below the annual per capita poverty threshold.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.10 Poverty and Subsistence Thresholds by Region (9985 to 1999)

Poverty Incidence (%)1 Magnitude of Families Area/ % change % change Region 1985 1988 1991c 1985 1988 1991c 1985-1991 1985-1991

Philippines 3,744 4,777 7,350 96.3 2,609 3,188 4,865 86.5

NCR5 4.527 6,576 9,471 109.2 2,882 4,038 5;757 99.8 AONCR6 3,617 4,489 7,004 93.6 2,565 3,052 4,719 84.0

CAR7 - 5,116 6,574 115.2 - 3,349 4,324 - Region 18 3,775 4,934 8,123 105.1 2,614 3,334 5,311 103.2 Region 28 3,448 4,573 7,072 - 2,496 3,084 4,811 92.7 Region 3 3,895 5,242 8,293 112.9 2,753 3,432 5,402 96.2 Region 499 3,794 4,832 8,083 113.0 2,618 3,370 5,422 107.1 Region 5 3,434 4,144 6,476 88.6 2,401 2,926 4,433 84.6 Region 6 3,675 4,344 6,545 78.1 2,543 3,034 4,426 74.0 Region 7 3,305 3,711 5,650 71.0 2,429 2,677 3,988 64.2 Region 8 3,283 3,818 5,240 59.6 2,516 2,854 3,894 54.8 Region 9 3,521 3,793 6,957 97.6 2,551 2,791 4,270 67.4 Region 10 3,546 4,523 6,564 85.1 2,494 3,142 4,494 80.2 Region 11 3,645 4,876 6,529 79.1 2,617 3,449 4,660 78. 1 Region 12 3,673 4,147 6,913 88.2 2,602 2,949 4,499 72.9 Notes : a. The annual per capita income required or the amount to be spent to satisfy the basic food requirement and other basic needs; b. the annual per capita income required of the amount to be spent to satisfy the basic food requirement; c. estimates based on the preliminary 1991 FIES results, d. in 1985, includes provinces of the CAR; and e. in 1988, excludes the Rizal province. Source: TVVGPD, NSCB.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.11 Investment Performance of Region Ill (1986 to 1995)

PHILIPPINES REGION III YEAR INVESTMENT PERCENTAGE INVESTMENT PERCENTAGE (in P Million) CHANGE (in P Million) CHANGE 1986 3,811 -- 99.73 - 1987 12,354 224.16 1,376.81 1,280.54 1988 32,847 165.88 6,580.11 377.92 1989 70,779 115.48 4,974.42 (24.40) 1990 108,430 53.19 5,959.21 19.80 1991 83,377 (23.10) 6,159.39 3.36 1992 99,101 18.86 2,768.38 (55.05) 1993 95,911 (3.22) 4,443.01 60.49 1994 465,491 385.33 NDA NDA 1995 335,315 (27.96) NDA NDA

Source: Board of Investment (BOI) NDA - No Data Available

Table 2.12 Gross National Product-Gross Domestic Product, 1980-1995 (at current prices)

Tourist GOP at current GNP at current price Year Receipts price (in PM) ($'000) (in PM)

1980 319,740 243,270 243,749 1985 507,000 556,074 571,883 1990 466,000 1,082,557 1,077,237 1991 571,000 1,266,070 1,248,011 1992 842,000 1,370,379 1,338,421 1993 1,178,000 1,500,287 1,474,457 1994 973,000 1,736,728 1,693,278 1995 2,453,900 1,967,743 1,906,430

Source: NSCB DOT, Tourism Research & Statistics Division Bangko Sentral ng Pilipinas

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.13 Consumer Price Increases of Region III by Province, 1988 = 100 (Annual Average of 1994 and 1995)

ALL ITEMS INDEX % INCREASEf REGION/PROVINCE 1994 1995 DECREASE

PHILIPPINES 194.31 210.00 8.07 REGION III 187.40 199.80 6.62 BATAAN 167.40 178.60 6.69 BULACAN 206.50 219.60 6.34 NUEVA ECUA 201.80 216.30 7.19 PAMPANGA 173.90 184.00 5.81 TARLAC 184.60 197.70 7.10 ZAMBALES 162.80 175.50 7.80 Source: NSO Central Office.

Table 2.14 Tourist Arrivals and Tourist Receipts (1980 to 1995)

GROWTH RATE TOURIST RECEIPTS GROWTH RATE YEAR TOURIST ARRIVALS (in percent} (in US $ M) (in percent) 1980 1,008,158 4.27 319.74 34.34 1981 938,953 (6.86) 343.72 7.50 1982 890,807 (5.13) 450.14 30.96 1983 860,550 (3.40) 464.75 3.25 1984 816,712 (5.09) 366.25 (21.19) 1985 773,074 (5.34) 507.00 38.43 1986 781,517 1.09 647.06 27.63 1987 794,700 1.69 1,200.00 85.45 1988 1,043,114 31.26 1,300.97 8.33 1989 1,189,719 14.05 1,465.47 12.31 1990 1,024,520 (13.89) 1,306.00 (10.96) 1991 951,365 (7.14) 1,281.00 (1.54) 1992 1,152,952 21.19 1,673.83 30.67 1993 1,372,097 19.01 2,122.30 26.79 1994 1,573,821 14.70 2,282.89 7.57 1995 1,760,163 11.84 2,453.96 7.49

Sources: DOT Annual Reports, Department of Tourism Statistical Reports, DOT Accomplishment Report.

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.15 Real & Nominal Minimum Wage Rates, Region Ill, 1991-1996, P

SECTOR/ INDUSTRY 1991 1992 1993 1994 1995 1996

NOMINAL Non-Agricultural 106.50 to 110.00 to 110.00 to 112 to 127 110.00 to 136 to 147 107.50 112.00 127.00 * 127.00 Agricultural Plantation 96.50 to 105 105.00 115 97.50 Non-Plantation 76.00 to 79.50 to 79.50 to 90 90.00 100 77.00 81.50 81.50 REAL Non Agricultural 70.53 to 68.11 to 62.04 to 57.59 to 52.11 to 60.09 to 71.19 69.35 71.63 66.49 60.16 75.11 Agricultural Plantation 63.91 to 63.16 to 58.72 to 54.97 49.74 49.36 to 64.57 69.35 59.89 60.40 Non-Plantation 50.33 to 49.23 to 46.68 to 47.12 42.63 42.92 to 50.99 50.46 47.86 52.52

* Areas not affected by Mt. Pinatubo

Table 2.16 Value of Exports in Region lll (1990 to 1995)

VALUE OF EXPORTS PERCENTAGE YEAR (in P 'Millions) CHANGE

1990 497.60 - 1991 281.35 (43.46) 1992 348.71 23.94 1993 438.34 25.70 1994 526.05 20.00 1995 678.79 29.04 1st Q. 1996 232.73 -

Source: BOI

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP) Table 2.17 Value of New Investments and Exports in Region 111 (1995)

INDUSTRY/ 1995 1994 % CHANGE SECTOR REGION 3 '95/ BATAAN BULACAN N. ECIJAPAMPANGA TARLAC ZAMBALES REGION 3 -

NEW INVESTMENT 46,430.00 1,260.00 8.90 4,600.00 786.94 611.31 53,697.15 40,848.81 31.45 (P Million) (BOI - Approved) 284.57 187.19 6.65 103.63 67.85 28.89 678.79 29.04 TOTAL EXPORTS 526.05 (US$ Million) 25.91 118.75 1.48 21.90 0.90 10.11 179.03 28.20 Garments 139.65 28.17 50.37 1.60 30.01 1.06 16.13 127.35 (1.35) GTH 129.09 44.99 0.57 - - 64.03 0.86 110.45 - Semiconductors/Electronics - - 0.20 - - - - 0.20 (36.33) Processed Food 0.31 - 0.01 - 1.12 0.33 - 1.46 (45.48) Ceramics 2.68 - 16.83 - 31.37 0.57 0.03 48.80 26.75 Furniture 38.51 ------0.00 - Stonecraft - - - - - 0.37 - 0.37 412.50 Marine/Agriculture 0.07 185.50 0.47 3.57 19.23 0.59 1.76 211.12 26.90 Others 166.37

Source : Department of Trade and Industry (DTI) Region III

______Final Report for the Tourism Master Plan for Region III (Central Luzon) Engineering and Development Corporation of the Philippines (EDCOP)