10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

CHAPTER 3

The Economic Sector

1.0

KEY ISSUES AND CHALLENGES

1.1

Limited Economic Base

The economy of the city is largely dependent on agriculture and the services
sector. Moreover, agriculture is largely limited to palay production. Enhancing
the economic base poses the challenge of diversifying the economic activities in
the city while at the same time strengthening its position as a major palay
producer in the region. Enhancing the citys agricultural base in turn implies
increasing productivity, promoting the production of high value crops as well as
value adding activities such as processing, or increasing its supply base and
linking it to processing activities outside the city, such as Batangas.
Another challenge is to harness the informal sector, facilitate its transition to the
formal sector, and assist in developing small and medium enterprises. The
promotion of small and medium industries will require less land requirements,
enhance the entrepreneurial skills of the residents, and broaden the economic
base. However, small and medium enterprises need to be assisted in the areas
of credit, product development, and marketing, among others.
1.2

Inadequate and Poor Support Facilities

Despite its being a leading rice-producing area in the province, there is a lack of
postharvest facilities in the city such as dryers and warehouses. Further, it lacks
cold storage facilities particularly for its fish catch. Other support facilities are
also wanting, as evidenced by poor farm-to-market roads, poor condition of the
slaughterhouse and public market.
1.3

Lack of Viable Farmers and Fishermen Associations

Despite the presence of a number of farmers and fishermens associations, most

of these have no access to formal credit facilities, which indicates that they are
yet to become viable. This stresses the need for institutional strengthening
measures.

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1.4

THE ECONOMIC SECTOR

Untapped Tourist Potentials and Inadequate Tourist Facilities

The tourism subsector presents enormous potentials for the city to capture
different tourism market segments and thus increase tourism receipts in the city.
The city offers varied tourist attractions such as beach resorts, nature
sightseeing tours, cultural and religious festivals, and special interests, such as
scuba diving, snorkeling, and boating.
Calapan may be packaged as a natures paradise catering to diverse clientele.
Eco-tourism particularly holds promise for Calapan as it conforms to several of
the criteria set by the Department of Tourism in declaring an area as an ecotourism destination, such as: a) rich in natural attractions and conducive to
adventure travel; b) environmentally rich in flora and fauna; c) native and tribal
traditions of the people in the destination are almost untouched by modern
influences (e.g., Mangyans); and d) area is not frequented by commercial
tourists. Eco-tourism will necessitate a type of tourism that is environmentally,
culturally, and socially aware. This will further enhance the natural and cultural
diversity of the city.
The challenge is to integrate the tourism development efforts of the city with
other tourism clusters such as the Mindoro Oriental Tourist Destination Circuit
which includes Puerto Galera/San Teodoro, Baco-Calapan, Naujan, Bulalacao,
and Pinamalayan. Another challenge is to tap the active participation of the
private sector in tourism development efforts.
2.0

OVERALL ECONOMIC DEVELOPMENT STRATEGY

In view of the foregoing issues and challenges, the city of Calapan will adopt an
overall economic development strategy anchored on the diversification of the
economic base, promotion of small and medium enterprises, and harnessing of
tourism potentials.
3.0

THE ECONOMIC SECTOR PLAN

3.1

Agriculture and Fisheries Subsector

3.1.1 Goals

To develop self-reliant farming and fishing communities; and

To increase agricultural
development.

productivity

through sustainable agricultural

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THE ECONOMIC SECTOR

3.1.2 Objectives

To increase the income levels of farmers and fisherfolks;

To enhance and diversify the agricultural base;

To increase value added from agriculture, marine and aquaculture; and

To improve the knowledge and skills of farmers and fisherfolks on sustainable

and modern production methods.
3.1.3 Targets

To provide support services to 2,319 farmers and 853 fisherfolks by 2008;

and

To increase the productivity of palay from 4 tons per hectare to 5 tons per
hectare by 2008.
3.1.4 Development Strategies

Promotion of high value crop production;

Promotion of marine/inland fisheries;

Promotion of sustainable farming and fishery production technologies;

Strengthening of farmers and fishermens associations; and

Provision of support services to farmers and fisherfolks.

3.1.5 Programs/Projects

Agriculture and fisheries sub-sector sector programs and projects, their

locations, fund sources, total cost and city government counterpart are shown in
Table 3.1.

3.1.5.1

Establishment of Market/Slaughterhouse Complex

A new public market will be set up in view of the poor condition of the existing
market. Within the complex will be located a city abattoir to support livestock
production efforts. It is expected that as livestock production intensifies, the
demand for meat slaughtering services will increase.
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10-Year Plan (1999 2008)

3.1.5.2

THE ECONOMIC SECTOR

Expansion of City Level Grains Center

The existing city level grains center in Biga will be expanded to serve as a
complete agricultural center with a nursery, greenhouse, mechanical dryer,
warehouse, demonstration farm showing appropriate technologies and organic
farming techniques, and a farmers training center. Moreover, aside from grains,
the center will demonstrate appropriate production techniques of vegetables and
fruit production. Focus will be on sustainable production methods to help
maintain ecological balance while increasing agricultural productivity. Integrated
pest management and use of organic wastes are examples of such environment
friendly technologies.
3.1.5.3

Livestock Production and Protection Program

This program will promote livestock production and protection, and will include
training programs on livestock production and management as well as provision
of vaccination services.
3.1.5.4

Establishment
Center

of

Agricultural

Wholesale

Trade

Since Calapan is an assembly area for agricultural produce, it is appropriate that

a wholesale trading center be established to serve as an assembly area for farm
products. This will enable the farmers to link directly with buyers. The trading
center will feature a loading/unloading area for vehicles and a communal
weighing scale.
3.1.5.5

Establishment of Fish Trading and Cold Storage

Facilities

Fish trading and cold storage facilities will be established in Lazareto to support
fishery production in nearby areas. This will enable fishermen to store their fish
catch in the short to medium term and promote value adding activities such as
fish processing in the long term.
3.1.5.6

Farm Mechanization
Cooperatives

Assistance

Program

for

The Farm Mechanization Program will provide credit assistance to farmers

cooperatives that wish to acquire sprayers, tillers, and fertilizers. This will assist
in building the capability of the cooperatives as well as in increasing agricultural
productivity.

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10-Year Plan (1999 2008)

3.1.5.7

THE ECONOMIC SECTOR

Artificial Reef Installation

Old tires and vehicle frames will be collected in designated centers in the
poblacion and in coastal barangays. These will then be submerged in the sea to
serve as homes to fish in view of the steady decline in coral reefs due to
destructive fishing methods such as dynamite fishing. This will hopefully lead to
increased fish population.
3.1.5.8

Strengthening of Bantay Dagat

The Bantay Dagat program will be strengthened in order to effectively guard the
bodies of water against destructive fishing methods. This will include the
acquisition of speedboats and communication facilities as well as an information
awareness program.
3.1.5.9

Marine/Inland Fishery Development

In view of the abundant water resources of the city, marine/inland fishery

production will be promoted vigorously. This will include technical assistance as
well as dispersal of fingerlings to selected project cooperators.
3.1.5.10 Social Infrastructure Program for Agrarian Reform
Beneficiaries
This will involve institutional building activities for agrarian reform associations.
The program will include training programs on basic management, marketing,
and bookkeeping. The acquisition of new knowledge and skills will help the
agrarian reform beneficiaries manage their productive activities effectively.
3.1.5.11 Capability Building Program
Fisherfolks Cooperatives

for

Farmers

and

Cooperatives and associations will be strengthened in view of their role as

channels for public and private sector assistance to farmers and fisherfolks.
These groups will be provided trainings on organizational and business
management.
3.1.5.12 Livelihood Assistance Program for Farmers and
Fisherfolks
This will provide credit assistance to farmers and fisherfolks to assist them in
their crop/fish production activities and help increase rural incomes. Priority will
be given to viable rural-based cooperatives and associations.
3.2

Trade and Industry Subsector

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10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

3.2.1 Goal

To establish an attractive and sustainable business environment that will

create and develop competitive enterprises.
3.2.2 Objectives

To generate adequate employment opportunities in trade and industry;

To promote and develop small and medium scale industries;

To strengthen the capabilities of small and medium entrepreneurs; and

To develop and sustain private sector participation in trade and industry

development.
3.2.3 Target

To provide employment to 33,842 persons by 2005.

3.2.4 Development Strategies

Provision of support services to small and medium enterprises;

Intensification of investment promotion efforts for preferred industries;

Provision of human resource development for priority industries; and

Formation and strengthening of trade and industry sectoral associations.

3.2.5 Programs/Projects
3.2.5.1

Investment Promotion Program

An investment promotion program will be developed to attract investments and

thus help ensure the economic sustainability of the city. This will involve the
development of appropriate incentives for investors and implementation of
aggressive investment promotion efforts. This will require the setting up of an
Investments Promotion Office within the City Hall premises. Moreover, the
presence of an investment program will help position the city vis--vis other cities
and municipalities in Southern Luzon.
3.2.5.2

Trade Promotions Center

A trade promotion center will be put up in the pier to promote the crafts and other
enterprises in the city. This will also house a souvenir shop to sell the products
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10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

of the city as well as an information desk which will contain a directory of

enterprises in the city.
3.2.5.3

Enterprise Development Project

Existing and potential entrepreneurs will be trained on how to access credit

facilities and market outlets as well as starting up and managing several types of
businesses. Training courses will include technical courses on various types of
enterprises, preparation of feasibility studies required by banking institutions,
organizational and financial management, negotiating, and marketing
management. This will also involve the establishment of a Multi-Purpose
Training Center to serve as the venue for training.
3.2.5.4

Conduct of Agro-Industrial Fairs

Agro-Industrial Fairs will be sponsored by the city government to showcase the

products of the city. The fairs will provide the venue for producers to meet
potential buyers.
3.2.5.5

Formation of
Associations

Trade

and

Industry

Sectoral

This project will encourage the formation of sectoral associations (e.g., furniture,
handicraft, construction) to help small businessmen belong to networks. By
joining networks, the businessmen will have better access to financial,
marketing, and training assistance.
3.2.5.6

Establishment of Credit Fund for Cooperatives/

Associations

Funds will be provided to selected cooperatives (e.g., garments, handicrafts,

etc.) to serve as seed money in their enterprises. A repayment mechanism will
be designed in support of the cooperatives drive towards financial viability and
self-reliance.
3.2.5.7

Productivity and Quality Information Drive

A quality/productivity information drive will be implemented to create awareness

for the need to become competitive, come up with quality products, and increase
productivity. This will be done through information and education campaigns.
3.2.5.8

Establishment of Eco-Zone for Light Industries

The establishment of a special development area, particularly an eco-zone for

light industries will be promoted in the city. This will serve as a growth area

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10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

which will generate employment opportunities for the city residents and spur
other economic opportunities.

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10-Year Plan (1999 2008)

3.3

THE ECONOMIC SECTOR

Tourism Subsector
3.3.1 Goal

To develop Calapan City as a tourist destination in the Southern Tagalog

Region.
3.3.2 Objectives

To increase the number of visitor arrivals and tourism receipts;

To develop new tourist sites and improve existing tourist attractions; and

To develop new and improve existing tourism facilities and support services.
3.3.3 Targets

To increase the number of tourist establishments to 41 by 2008.

3.3.4 Development Strategies

Development of tourism circuits within the city;

Integration of the citys tourism development efforts with the Mindoro Oriental
Tourist Destination Circuit;

Intensification of tourism promotion efforts; and

Strengthening of the institutional machinery which includes the City Tourism

Council and the City Tourism Office.
3.3.5 Programs/Projects
3.3.5.1

Island Development Program

This program will involve the development of islands into tourism sites, catering
to local tourists in the short term and to foreign tourists in the long term. This will
include the acquisition of sites, establishment and/or improvement of tourist
facilities, development of beach resorts, and training of front-line tourism
personnel. This will cover the areas from Wawa to Nag-iba including islands in
the city.

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10-Year Plan (1999 2008)

3.3.5.2

THE ECONOMIC SECTOR

Formulation of Tourism Investment Incentives Code

A Tourism Code governing tourism-related investments will be formulated to

vigorously promote tourism development in the city. This aims to provide an
attractive business environment to step up tourism investments. The code may
include among others, exemption from the mayors permit fees, building permit
fees, business sales taxes, and tax exemptions for a specified period of time.
3.3.5.3

Development of Cultural Attractions

In line with the overall tourism development plan, several cultural attractions will
be developed to enhance Calapan as a tourist destination and to ensure its
inclusion in the tourism activities calendar of the Department of Tourism.
Citywide celebrations will include Sanduguan and Mayuhan festivals, and other
religious, dance, and agricultural festivals.
3.3.5.4

Calapan City Museum

The old Calapan City Hall in the poblacion will be transformed into a museum to
showcase the arts, culture and traditions of the city of Calapan. This project will
be dependent on the establishment of a new city government center outside of
the poblacion.
3.3.5.5

Bulusan Nature Park

The Bulusan Nature Park will further be developed as a natures paradise and its
area for development expanded. Additional features will include picnic huts,
view decks, walkways, aviary, and rest areas, among others.
3.3.5.6

Mangyan Replica Village

A Mangyan Replica Village will be established to showcase the rich culture of the
Mangyans. This will include a tourist information center, a museum, a souvenir
shop, and a restaurant.

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10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

Table 3.1. Economic Sector Programs/Projects, 1999-2008

Description

Agriculture Subsector
1. Establishment of Market/Slaughterhouse Complex
2. Expansion of City Level Grains Center
3. Livestock Production and Protection Program
4. Establishment of Agricultural Wholesale Trade
Center
5. Establishment of Fish Trading and Cold Storage
Facilities
6. Farm Mechanization Assistance Program for
Cooperatives
7. Artificial Reef Installation
8. Strengthening of Bantay Dagat
9. Marine/Inland Fishery Development
10. Social Infrastructure Program for Agrarian Reform
Beneficiaries
11. Capability Building Program for
Farmers/Fishermens Cooperatives
12. Livelihood Assistance Program to
Farmers/Fisherfolks
Subtotal

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Location

Fund Source

Total Cost
(Php Million)

City Govt
Counterpart
(Php Million)

200.00
50.00
10.00
10.00

200.00
25.00
5.00
10.00

To be identified
Biga
Citywide
Sta. Isabel

CGC
CGC/ DA
CGC/ DA
CGC

Lazareto

CGC

15.00

15.00

Citywide

50.00

30.00

Coastal barangays
Coastal barangays
Citywide
Palhi, Guinobatan

CGC/DA/Foreign
donor/CDF
CGC
CGC
CGC
CGC

5.00
60.00
5.00
2.00

5.00
60.00
5.00
2.00

Citywide

CGC

10.00

10.00

Citywide

CGC

5.00

5.00

422.00

372.00

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10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

Table 3.1. Economic Sector Programs/Projects, 1999-2008 (continuation)

Description

Trade and Industry Subsector

1. Investment Promotions Program
2. Trade Promotion Center
3. Enterprise Development Program
4. Conduct of Agro-Industrial Fairs
5. Formation of Trade and Industry Sectoral
Associations
6. Creation of Credit Fund for
Cooperatives/Associations
7. Productivity and Quality Information Drive
8. Establishment of Eco-Zone for Light Industries

Location

Fund Source

City Hall
Pier

CGC
CGC/DTI/
Private Sector
Government Center CGC/DTI/
TESDA/CDF
Poblacion
CGC/Private
Sector
Citywide
CGC/DTI/
Private Sector
Palhi and urban CGC/DTI/
barangays
Private Sector
Citywide
CGC
Guinobatan
CGC/Private
Sector

Subtotal

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Total Cost
(Php Million)

City Govt
Counterpart
(Php Million)

5.00
10.00

5.00
5.00

60.00

20.00

10.00

5.00

5.00

5.00

5.00

3.00

20.00
50.00

20.00
15.00

165.00

78.00

10-Year Plan (1999 2008)

THE ECONOMIC SECTOR

Table 3.1. Economic Sector Programs/Projects, 1999-2008 (continuation)

Description

Tourism Subsector
1. Island Development Program
2.
3.
4.
5.

Formulation of Tourism Investment Incentives Code

Development of Cultural Attractions
Calapan City Museum
Bulusan Nature Park

6. Mangyan Replica Village

Location

Wawa to Nag-iba
Citywide
Old City Hall
Bulusan Park
To be identified

Fund Source

CGC/Private
Sector
CGC
CGC/DOT
CGC
CGC/CDF/DOT/
Private Sector
CGC/DOT,
Private Sector/
Funding Donors

Subtotal
TOTAL ECONOMIC SECTOR
CGC
CDF
DTI
TESDA
DOT

City Government of Calapan

Congressional Development Fund
Department of Trade and Industry
Technical Education and Skills Development Authority
Department of Tourism

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Total Cost
(Php Million)

City Govt
Counterpart
(Php Million)

500.00

50.00

1.00
5.00
20.00
100.00

1.00
2.50
20.00
40.00

100.00

30.00

726.00

143.50

1,313.00

593.50

10-Year Plan (1999 2008)

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