Governance for
Local Economic Development
& Tourism
Dr. Randi A. Alampay
Program Manager for LED
Local Governance Support ...
Governance for LED & Tourism
• Introduction/overview

of our Program
• Approach to Tourism

Governance
• Case study of an
...
Local
Governance
Support
Program for
Local
Economic
Development
(LGSP-LED)

Metro Naga
Development Council
(MNDC)

Legaspi...
The Program’s Approach to Governance &
Local Economic Development
Improved LOCAL conditions for
economic development, i.e....
Photo by: Gerry Ruiz

Our approach to local economic
development (LED) through tourism is
based on DESTINATION DEVELOPMENT
We understand destination development
to involve:
1) Preparation for market-readiness
2) Tourism industry development
BATANGAS

Visitor markets (and the tourism industry
that serves them) define the destination.
Our
approach to
destination
development
is based on
TOURISM
CIRCUITS
Tourism Governance
UNDP
Governance is “the
exercise of
economic, political, and
administrative authority to
manage a count...
Our approach to destination development is
based on governance that enables the private
sector and communities to develop
...
Case Study:
the Allah Valley
Landscape
Development Alliance
Esperanza Hot
and Cold Springs
Baras Bird
Sanctuary
Provincial Capitol
Building

The AVLDA
Tourism Circuits
Lake Sebu, 7 F...
Tourism
governance in
the Allah Valley,
to enable the
private sector in
developing
competitive
tourism
products
Facilitating Market Access &
Awareness

Destination branding &
marketing

Tourism road infrastructure
(LGU and National
Go...
Conducive environment for
tourism and investments

Tourist Police in key sites:
Lake Sebu and Tacurong City

LGU capacity ...
Quality human resources

Housekeeping

Mountain
ecoguides
Food service
Investment Promotion
Very preliminary results 2011
• Increased number of

trained frontliners
• Cooperative

destination marketing
activities b...
LOCAL GOVERNANCE AND TOURISM
RECOVERY IN BOHOL
Double-whammy:
7.2 Earthquake
followed by
supertyphoon in
Leyte

• Decreasi...
Enabling the private sector for tourism
industry recovery
• LGU focuses on restoring

the enabling infrastructure
(e.g. po...
Key Principles
• Destination (tourism circuit)

approach not by individual
LGU
• Governance to enable

sustainable local e...
Maraming salamat po.
Madamo gid nga salamat.
Daghang salamat.

Photo by: Jose Edang
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Tourism governance for local economic development in the Philippines

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Presented at the 1st National Conference on Tourism Governance. November 25, 2013. SMX Convention Center. This is an introduction to our program's private sector-oriented theory of tourism governance, wherein government resources, policies, and powers are mobilized to enable the entrepreneurs and enterprises (who make up the tourism industry) to build a competitive tourism sector for a market-ready destination.

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  • The Local Governance Support Programfor Local Economic Development (LGSP-LED) is a program of the Department of the Interior and Local Government (DILG) that supports selected clusters or alliances of local government units (LGUs) in planning and implementing sustainable initiatives for local economic development. The Government of Canada provides financial assistance to LGSP-LED. At the national or central level, DILG works with other national government agencies (NGAs), such as the Department of Tourism (DOT) to develop policies, programs, and services to enable local governance for LEDI currently manage projects with 5 LGUs or alliances of LGUs in various parts of the country:Metro Naga Development Council (involving 16 LGUs, including Naga City) in Camarines Surthe Provincial Government of Leyte, with a focus on the Northwest Leyte Tourism Corridor (including Ormoc City)Metro Iloilo-Guimaras Economic Development Council, involving the 7 Iloilo LGUs, including Iloilo City, and the province of Guimarasthe Panglao-Dauis-Baclayon Bohol Marine Triangle in the province of Bohol, andthe Allah Valley Landscape Development Alliance or AVLDA in Region 12. All five of our current local projects involve tourism development for local economic development, or LED.
  • Our approach recognizes that it is the private sector, composed of micro, small, medium, and large enterprises, who invest in businesses that create jobs and buy from local suppliers. An economic sector or industry like tourism, represents a value chain of local businesses that must compete against industries in other parts of the country... And increasingly, against similar industry chains in other parts of the world. For example, Bohol is not just competing against Boracay for tourists. Much more significantly, both Bohol and Boracay are competing against Bali, Phuket, Hawaii, and similar destinations.In LGSP-LED, we believe that the role of the local government unit (LGU) is to enable the local private sector to compete in the national, regional, and global marketplace. The LGU does this by enacting local rules and policies that encourage and support business owners to invest in new businesses or upgrade/expand existing ones to meet the needs of ever-changing local and international markets. The LGU also implements programs to support local businesses such as marketing programs to promote the destination or the industry. An LGUs infrastructure development program, particularly on transportation, power, and water, is a critical factor for determining how competitive a local industry can become. The LGU can also establish offices (e.g. Tourism offices, investment promotion offices, etc.) that can help link local businesses to external markets and buyers, as well as lobby for national government support services and policy reforms to support local industries. More and more, LGUs are also engaging the private sector, through public-private partnerships, in many of these programs, from marketing to investment promotion, and even infrastructure development.National government’s role in all these is to enable LGUs to enable private businesses. Our program is called the Local Governance SUPPORT Program for Local Economic Development. There are many national government agencies such as DOT, DTI, DOST, Labor, Agriculture, etc. who are mandated to provide programs and services that support local economic development efforts by both LGUs and businesses. DILG, through LGSP-LED, is promoting a convergence approach that allows the various NGAs to coordinate and work together in “mobilizing their respective resources” in strengthening LGUs to better support and work with the private sector.
  • Our approach to local economic development (LED) through tourism is based on DESTINATION DEVELOPMENT.
  • In turn, we understand destination development to involve:Preparing a place to compete with other places in receiving and hosting visitors (competitiveness and market-readiness)Supporting tourism enterprises to ensure that travellers will have the necessary infrastructure, facilities, and services they need
  • The LGU can only suggest, but it is the visitor markets (and the tourism industry that serves them) whodefine the destination. Tourists, generally do not, care about political or administrative boundaries. With all due respect to the Province of Batangas -- when most visitors think of Tagaytay (which is in Cavite), they consider Taal Lake and Volcano as part of the whole Tagaytay experience.
  • This is why we describe the destinations we work with in terms of “tourism circuits”. And this is why we prefer to work with clusters of LGUs that, together, form one marketable tourism destination. In the case study I will present later, you will see that we included LGUs in our project, that were not officially part of the Alliance that we were working with.
  • According to the United Nations DevelopmentProgramme (UNDP), “governance” is the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels.We have operationalized this to mean:Mobilizing government (LGU and National Government) resources and powers to enable andempower enterprises and entrepreneurs in building competitive and sustainable economic sectors, such as tourism and agribusiness.I have tried to apply that concept to what we have learned from our projects. Given how strongly we focus on the private sector, I would suggest that tourism governance is about “mobilizing government resources, capabilities and powers to enable tourism entrepreneurs and enterprises to create jobs and wealth that benefit the members of the community, particularly the poor.”
  • Thus we can say that our approach to tourism governance is one that enables the private sector and communities to develop competitive and market-ready tourism circuits or destinations.This is a photo taken during the launching of a consortium of private sector players (tour operators, hotels, transportation services providers, guides, restaurants, etc.) in Metro Naga. Here, the LGUs making up the Metro Naga Development Council provided the political leadership and moral authority to encourage the various players to come together under one brand -- Naga Excursions, or Naga X. Please allow me now to introduce you to one of the Local Projects that LGSP-LED is supporting as a case study of how our partner LGUs are seeking to empower their tourism partners in the private sector.
  • The Allah Valley Landscape Development Alliance (AVLDA) is an alliance of 13 LGUs, including 2 provincial governments as well as 6 municipalities in South Cotabato, and 5 municipalities plus the city of Tacurong in Sultan Kudarat. Koronadal City (still popularly recognized by its old name of Marbel) is not a member of the LGU Alliance. The map on the slide show the general location of AVLDA in the central part of southern Mindanao. It belongs to Region 12, also known as SOCSKSARGEN.
  • A Tourism Circuit shows the location of atttraction sites, tourism service centers, and the transportation connections into and within the area.The main domestic airport or gateway to the region is in General Santos City, which is about an hour away from the AVLDA area. Visitors can also use the international airport in Davao City, which is about 2 hours by land from General Santos City.The slide shows two interconnected tourism circuits identified by the AVLDA stakeholders. The blue circuit is in Sultan Kudarat, and here are the key attractions of that circuit:the Baras Bird Sanctuary in Tacurongthe Provincial Capitol in Isulan, andthe hot and cold springs of Esperanza For the South Cotabato circuit, the main attractions are the natural and cultural heritage of Lake Sebu and T’boli.Tourism service centers are the areas (usually in the urbanized areas) where there is a concentration of hotels, restaurants, and other basic facilities and services tourists will need. For AVLDA, the main service centers are Koronadal City, Tacurong City, and Lake Sebu. From the perspective of tourist markets, General Santos City – even though it is not part of either South Cotabato or Sultan Kudarat, is also a major service center for the tourism circuit.Koronadal City in South Cotabato is also NOT a member of the alliance. However, the majority of visitors to Lake Sebu and other sites in the tourism circuits will be staying in hotels and depending on transportation and other services based in Koronadal City. In addition, Koronadal represents a major local market for day and overnight tours to AVLDA from residents, VFR, and MICE. Thus, Koronadal had to be included in the planning and development of the circuit.Tourism Circuits provide the geographic focal points for the local economic development (LED) activities and initiatives of public and private stakeholders. Tourism circuits:Give tour operators the basis for developing tour packages. Can guide private investors on the sites within the destination where there is likely demand for hotels, restaurants, souvenir shops, convention facilities, etc. and other tourist enterprises.Shows the current and potential locations of various tourism enterprises in the area which, in turn, helps to identify the human resource development needs and priorities of the sector.Directs LGUs and National Government agencies to specific sites, communities and routes where their programs and services are most needed – and can be most effective.Identifies development priorities for ensuring that the local industry has the necessary roads, ports, power, water, and other infrastructure requirements.Facilitates the identification of sites that are vulnerable to disaster and climate change.Helps identify and map out the opportunities and constraints on women and the poor to participate in tourism employment, entrepreneurship, and governance.
  • Now, let me give you some concrete examples of activities that the LGUs of the Allah Valley have undertaken, as an Alliance, to respond to the needs of the local tourism sector to develop competitive tourism products.
  • Tourism marketing activities by the LGUs are meant to create and stimulate markets for the enterprises and communities within the destination. (tourism circuits)Access infratructure is meant to ensure that visitors are able to travel to and within the destination. Without access, there is no tourism industry to speak of, because the enterprises will have no clients. The AVLDA LGUs identified the critical roads in the circuit and nominated these to the DOT-DPWH Convergence for Tourism Infrastructure. This has led to the inclusion of PhP 143M for tourism roads in the 2014 budget, principally covering the Lake Sebu circumferential road and access to the Baras Bird Sanctuary.
  • The hotels, resorts, tour operators and transport providers of AVLDA need quality human resources to meet the standards of DOT, and more importantly, to meet the expectations of visitors. Thus AVLDA has conducted various training and coaching programs, in partnership with DOT, TESDA, DOLE and other agencies to prepare local workers for employment in the tourism industry. This is an approach that we advocate in all our sites. The programs are specified by the private sector so that the LGUs can increase the chances that the training leads to actual employment.
  • With support from LGSP-LED, AVLDA hosted the 1st South Mindanao Tourism Investment Conference on October 24-26, 2013 in partnership with the Mindanao Business Club. DOT, DTI, DILG, the Mindanao Development Authority all provided support to AVLDA and MinBC in matching priority projects with prospective foreign and local investors. The Consul-Generals of Indonesia and Malaysia, based in Davao, both attended and promised to promote investment opportunities in AVLDA and Region 12 to their countrymen.
  • There is still a lot of work to do in AVLDA. It is still very early in the process, but just to give you an idea, here are some preliminary results that they have achieved since the start of our project in 2011: 1 full-time tour guide  30 additional eco-guides trainedPrivate sector investments in expansion or upgrade of facilities:Zorb ball at 7 Falls ParkLake cruise in Lake SebuExpansion/upgrade of guest and function rooms in 3 Lake Sebu resortsMajor renovation of 3 hotels in Koronadal1 new hotel in Tacurong, 1 scheduled to open in Koronadal
  • Tourism development is about developing destinations. A tourism circuit helps define these destinations from a market- , rather than LGU perspective.Tourism governance is about mobilizing LGU (and national government) resources and powers to enable the private sector and communities to create wealth and jobs for people of the community, in a sustainable manner.There is a need for convergence among national government agencies for more effective and efficient support to LGU tourism development efforts that are, in turn, meant to support the private sector
  • Tourism governance for local economic development in the Philippines

    1. 1. Governance for Local Economic Development & Tourism Dr. Randi A. Alampay Program Manager for LED Local Governance Support Program for Local Economic Development (LGSP-LED) Department of the Interior and Local Government
    2. 2. Governance for LED & Tourism • Introduction/overview of our Program • Approach to Tourism Governance • Case study of an LGSP-LED Local Project in tourism
    3. 3. Local Governance Support Program for Local Economic Development (LGSP-LED) Metro Naga Development Council (MNDC) Legaspi Iloilo/Ka libo Mactan Panglao-DauisBaclayon Bohol Marine Triangle Allah Valley Landscape Development Alliance (AVLDA) Metro Iloilo-Guimaras Economic Development Council (MIGEDC) Davao Department of the Interior and Local Government Province of Leyte
    4. 4. The Program’s Approach to Governance & Local Economic Development Improved LOCAL conditions for economic development, i.e. more investments, more jobs created Competitive Sectors/Enterprise s Enterprises and entrepreneurs invest in businesses that employ local workers and buy from local suppliers Business Friendly and Competitive LGUs Establish policies, support services (inc. Infrastructure), progra ms, and LGU offices that create an enabling environment for sustainable and competitive local industries NGAs as Enablers of LED Convergence to support LGUs through: • Consistent policies • Coordinated delivery of supservices and programs • Capacitydevelopment • LED information
    5. 5. Photo by: Gerry Ruiz Our approach to local economic development (LED) through tourism is based on DESTINATION DEVELOPMENT
    6. 6. We understand destination development to involve: 1) Preparation for market-readiness 2) Tourism industry development
    7. 7. BATANGAS Visitor markets (and the tourism industry that serves them) define the destination.
    8. 8. Our approach to destination development is based on TOURISM CIRCUITS
    9. 9. Tourism Governance UNDP Governance is “the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels” Our take... Tourism governance is “mobilizing government resources, capabilities and powers to enable tourism entrepreneurs and enterprises to create jobs and wealth that benefit the members of the community, particularly the poor.”
    10. 10. Our approach to destination development is based on governance that enables the private sector and communities to develop competitive and market-ready tourism circuits
    11. 11. Case Study: the Allah Valley Landscape Development Alliance
    12. 12. Esperanza Hot and Cold Springs Baras Bird Sanctuary Provincial Capitol Building The AVLDA Tourism Circuits Lake Sebu, 7 Falls Park, T’boli cultural heritage Lake Holon (Maughan), Mt. Melibingoy SERVICE CENTERS
    13. 13. Tourism governance in the Allah Valley, to enable the private sector in developing competitive tourism products
    14. 14. Facilitating Market Access & Awareness Destination branding & marketing Tourism road infrastructure (LGU and National Government investments)
    15. 15. Conducive environment for tourism and investments Tourist Police in key sites: Lake Sebu and Tacurong City LGU capacity development on risk and vulnerability assessment of tourism sites.
    16. 16. Quality human resources Housekeeping Mountain ecoguides Food service
    17. 17. Investment Promotion
    18. 18. Very preliminary results 2011 • Increased number of trained frontliners • Cooperative destination marketing activities by LGUs and private sector • Increased investments in tourism facilities and infrastructure.
    19. 19. LOCAL GOVERNANCE AND TOURISM RECOVERY IN BOHOL Double-whammy: 7.2 Earthquake followed by supertyphoon in Leyte • Decreasing tourist arrivals • Power and water problems • Lay-offs and closure of hotels
    20. 20. Enabling the private sector for tourism industry recovery • LGU focuses on restoring the enabling infrastructure (e.g. power, water, roads) • Private sector focuses on adaptive strategies to revive, rebuild, and prepare tourism products, activities, and services • Public-private sector partnerships on marketing and visitor information • Convergence of NGAs and donor agencies • DOT, DILG, DTI, DOLE. etc. • LGSP-LED, USAID, GIZ, etc.
    21. 21. Key Principles • Destination (tourism circuit) approach not by individual LGU • Governance to enable sustainable local economic development through the private sector and communities • Convergence among national government agencies to support LGUs to support private sector Photo by: Dante Maquiling
    22. 22. Maraming salamat po. Madamo gid nga salamat. Daghang salamat. Photo by: Jose Edang
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