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CHAPTER I

SOCIO-ECONOMIC FEASIBILITY

I. INTRODUCTION

In this chapter, the varying impact of the proposed project, El

Grande Waterpark Resort, to the socio-economy will be thoroughly

discussed as an important consideration to enhance its credibility and

effectiveness.

The socio-economic desirability of the project is measured in terms

of the number of workers that shall be paid by the project and the

approximate annual amount of taxes to be paid by the project and the

workers of the government. In addition, it is measured by the economic

benefits that will accrue to the people living in the community and its

vicinities.

The objectives of this study then are to evaluate net contribution

and to improve the standard way of living in the locale considering

community development and socio-economic welfare.

II. EMPLOYMENT AND INCOME


Taking in consideration employment and income is important

because it ensures that the right number of people are performing tasks

to meet the objectives of the company without compromising their rights.

(https://www.reference.com/business-finance/manpower-planning-

important-43a59079e0a7167d)

The proposed project will generate employment from the province

of La Union which has an unemployment rate of 60.7% in the 2015

Philippine Statistics Authority census to satisfy the manpower

requirement of the project. Job opportunities will be opened for skilled

and unskilled labourers to render services during the construction and

operational phase of the proposed project. Appropriate salary would then

be generated for the labourer with duly incentives and benefits,

improving their standard of living, such as:

1st degree family members of employee will be free of charge

in entrance fee;
The company will provide rice subsidy to all eligible

associates in cash which shall be incorporated in the payroll,

tax fee every month;


An employee who have rendered the minimum number of

hours will get a full meal;


Employees who are recognized for their loyal and dedicated

service to company to continuous service of five years will

receive a gift check, token, and a plaque of appreciation

during the service award ceremony; and


The company grants bonus equivalent to a half month pay.

All probationary and regular employees are eligible to

bonuses.

The proposed project, through the abovementioned, will then

promote economic growth (e.g. livelihood and tourism) and also raise the

revenue of the chosen locale and nearby areas.

III. TAXES

Taxes are collected accordingly by the Local Government Unit of

Agoo to raise local revenue for future expenditure on current operating

expenditures, general services, economic services, capital outlay, and

debt servicing.

The proposed project will have an exemption from Percentage and

Income tax as stated in the Republic Act 9593 since El Granded


Waterpark Resort will be funded by the partnership of the Local

Government Unit of Agoo and Tourism Infrastructure and Enterprise

Zone Authority.

The respective employees of El Grande Waterpark Resort will pay

the mandatory and necessary Taxable Income taxes, as stated in the

Republic Act 8424, depending on their salary.

The minimum Taxable Income (PhP) Tax Rate is 5% for employees

with a salary ranging from Php 0 10,000; while the maximum is 10%

for employees with a salary ranging from Php 10,000 30,000.

IV. SUPPLY OF COMMODITIES

Price of a commodity is determined by the demand for and supply

of a commodity. The law of demand according to which the demand for a

commodity is inversely related to its price. Supply of a commodity

depends upon how the physical returns and costs change as more output

of a commodity is produced.

(http://www.yourarticlelibrary.com/economics/elasticity-of-

supply/supply-of-a-commodity-meaning-function-law-assumptions-and-

other-details/37041/)
El Grande Waterpark Resort will mainly provide lodging, dining,

and entertaining experience. The lodging and entertaining experience is

expected to be in a fixed supply unless an amenity depreciates over time.

With that said the current capacity of bedrooms and entertainment

amenities will remain unaffected, unlike perishable goods. The proposed

project can still generate an expected fixed revenue from the lodging and

entertainment even if the dining remain a variable.

The proposed project will feature unique amenities such as the

swimming pool on the roof deck and a canoeing area while keeping the

fee economical and fair. Thus, providing customers the desired ambiance

without mispricing the commodities.

The supply of perishable goods such as foods and drinks is

dependent on several variables: the price of the commodity, sellers

expectation about the future price, nature of goods, natural conditions,

transport conditions, cost of production, the state of technology,

competition, prices of alternatives and substitutes, and governments

policy. (http://www.economicsdiscussion.net/law-of-supply/supply-of-a-

commodity-meaning-factors-affecting-and-types/13695)
V. ENVIRONMENT CONSIDERATIONS

Conservation of natural habitats and ecological services are

invariably affected by the expansion of human society. By considering

the environment early in the planning process, it is often possible to

reduce the negative impact on the environment in a cost-effective way. If

environmental consideration is not taken early in the planning of a

project, it is often very expensive to do something about it when the

damage is already done.

(http://www.enviroplanning.se/en/services/environmental-consideration-

planning)

Facing the West Philippine Sea, the proposed project location

has preserve ecological amenities. Also the previous Agoo Eco-Fun World,

it is already filled with flora, fauna, and various resources. It is just and

necessary to create and adjust any road or structure to protect valuable

habitats and allow the safe passage of wildlife. The construction of the El

Grande Waterpark Resort will take into consideration sustainable

development.
Proper right of way will be constructed to keep vehicles on

specified path and to minimise the quantity of soil lost due to land-

clearing. Grass seeds will be planted to rehabilitate soil ruined during

construction.

To minimize the generation of contaminated storm water

intercept drains based on the history of soil and rainfall will be

established across the project location, especially on concreted areas.

Porous soil that allows seepage will also serve as a countermeasure.

The designed septic tank will accommodate all liquid wastes

coming from any amenities offered in the vicinity of the proposed project.

A high quality of housekeeping will be maintained by the

employees. Trash bins will provided in every room of the hotel and a set

of recycling bins along the passages. Non-biodegradable wastes will be

brought to the Materials Recovery Facility (MRF); while biodegradable

wastes will either be placed in a compost pit or disposed to a nearby

licensed sanitary landfill. The collection of disposable waste for delivery

to the sanitary landfill will be every day at 6 am and 6 pm.


A MRF will be constructed in the proposed project location to serve

as a specialized plant that receives, separates, and prepares recyclable

materials for sale to end-user manufacturers.

(http://www.fairfaxcounty.gov/dpwes/recycling/mrfintro.htm) The employees

will undergo a seminar on the proper segregation and disposal of waste

to maximize the benefits of a MRF. Awareness with staff on the need to

maximize waste reduction will be regularly conducted.

There will be a regular cleaning of pool every Monday and

Thursday to maintain the proper sanitation of the pools. And the

management will plant more pine tree at the pine tree area at the

entrance corner which will give more fresh air to the customer.

Conforming to state laws, there will be a ban on smoking in the

premises of the proposed project.

An inspection, monitoring, and auditing program will be prepared

even before the construction commences to ensure that environmental

risks are adequately manages and control systems are operating

effectively. Remedial action will be ensured to be taken promptly when


monitoring, inspection, and audit results reveal a problem in

environment management.

VI. DEMAND AND SUPPLIERS OF THE MATERIALS

During the construction and operation of the proposed project, raw

materials will be greatly in demand and needed to initiate any work.

Suppliers of these materials will be chosen, bearing in mind agreement

on price, availability, and delivery. The most convenient and cost-effective

alternative will be chosen.

The primary resource of the proposed project is electricity and

water. La Union Electric Company, Inc. will be the sole electricity supplier

for the proposed project. Payments will be done through the Agoo

branch. The water to be used, especially for filling in swimming pools,

will be delivered by the Agoo Water District located in Fangonil Road, Sta.

Barbara, Agoo, 2504, La Union.

During the construction phase of the proposed project, materials

such as but not limited steel bars, Portland cement, aggregates, and bolt

will be needed. These materials will be procured through a bidding with

local hardware shops in and around La Union. The chosen supplier and
contractor then of the proposed project will be benefited by means of

revenue and may have the opportunity to be a future partner during the

maintenance phase of the building.

Furniture and decorations will be bought through the One Town,

One Product program of the Department of Trade and Industry. Through

OTOP, the proposed project can aid in identifying, developing, and

promoting products and services, which has a competitive advantage.

The proposed project will support micro, small, and medium enterprises

(MSMEs) to offer and market distinctive products and services made

through the use of indigenous raw materials and local skills and talents.

These products may include handmade rattan furnitures, walis tambo,

and silk ornaments.

Perishable goods such as food and drinks offered in the bar and

restaurant will all be prepared from locally produced goods in La Union.

Contracts on the quantity of crops will be settled among farm owners. In

doing so, the proposed project will generate revenue for the marginalized

agrarian by allowing an equal and open market, providing appropriate

payment, and not exploiting labour force.