WOW PHILIPPINES Where’s Our Wealth?

1. WOW PHILIPPINESWhere’s Our Wealth? A Look at Tourism and Poverty Alleviation in the Walled City REIL G. CRUZUP Asian Institute of Tourism

2. Tourism and Poverty Alleviation • Paradigm shift from boosterism and economic development to sustainable tourism • Sustainable Tourism as a Tool for the Elimination of Poverty (ST-EP)

3. ST-EP • One of the strands of sustainable tourism WTO is promoting to achieve the international goal of halving the number of people living in extreme poverty by 2015.Also called pro-poor tourism. • Framework set up by the WTO and UNCTAD in June 2002(WTO 2002 p. 87)

4. What is poverty? “…the deprivation of essential assets and opportunities to which every human is entitled.”These entitlements include access to basic education, primary health care, just employment, and protection from external shocks, which could be man-made or natural hazards. Asian Development Bank (1999 in UNESCAP 2003, p. 23-24)

5. Poverty ‘the lack of human, physical and financial capital needed to sustain livelihoods, and from inequality of access to political, social or economic resources’(CIDA in Jamieson, 2001 from www.tourismpoverty.com/seminar_papers)

6. What is extreme Poverty? • Less than one US dollar a day (World Bank, in UNESCAP 1999, p. 24)

7. The Philippines: Indicators of Poverty • Poverty incidence: 28% (UNICEF 1999 based on World Development Indices 1998)The Philippines is one of 13 countries where 80% of the world’s poorest can be found.

8. Philippines: Indicators of Poverty • Unemployment rate: 13.7% • Underemployment rate: 18.5% • Poverty incidence in rural areas: 51% • Poverty incidence in urban areas: 22% • No access to safe water: 19% (NSO 2004) • 32% of preschool children are underweight • 57% of infants have iron deficiency anemia (Henderson 2002)

9. Rationale for Tourism Development The objectives of the Philippine Tourism Master Plan (1991-2011) include • maximizing local ownership, livelihood opportunities, individual initiative and self-reliance • encouraging regional dispersal of development and domestic tourism as a means to improve the people’s quality of life.

10. The Case of Intramuros

11. Methodology • Part of a larger study • Survey of 100 residents of Intramuros between May and June 2004 • Questionnaire • Interview

12. Limitation • Small sample size • Cannot make generalizations • Not able to get side of Intramuros Administration

13. Background • Intramuros is the name of the Walled City that was the original city of Manila. • With its Spanish-built fortifications and several important churches, government buildings and universities, it is considered to be a 'must-see' attraction in the Philippines.

14. Intramuros is also home to five barangays with a voting population of about 8,000 registered voters (barangay officials) • According to a survey conducted in 1991, about 75% of the residents are illegal settlers or squatters; its daytime population was about 60,000, of which only 9,890 were residents of the place. (Santiago, 2003).

15. WOW Philippines-The Best of the Regions • In 2003, Intramuros became the site for WOW Philippines-The Best of the Regions, a signature project of then DOT Secretary Richard Gordon. • The project involved the cleaning of the forgotten sections of Intramuros, and relocation of squatters to give way to structures (known as clamshells) for exhibition, night market stalls, sidewalk cafes, and entertainment plazas.

16. Intramuros is under the jurisdiction of the Intramuros Administration, a government agency within the umbrella of the DOT

17. Economic Impact of WOW Philippines • Jobs • The number of new jobs generated by this project from February to July 2004 was 2188 (DOT). • The major employers were the clamshell exhibitors, restaurants and calesa tours.

19. Extra income • According to the DOT, total revenues earned for six months (Feb-July 2004) was P50 million • According to Boy Abne, a barangay tanod, he was paid P100 extra for rendering services at night, plus food rations. • Pedicab drivers increased daily income 10% to 150% (up to P300 pesos) per day during the height of the project's popularity.

21. Types of jobs • Regular Performers 100 • Barangay Tanods 70 • Street Sweepers 50 • Parking Attendants 30 • Security Guards 25 • Janitorial Services 10 285 Source: DOT

24. Perceived Economic Impacts of Tourism • Investors from outside • Increased Inflation • Stall rent increased • Income increased • Jobs • Better quality of life • Became poorer • Own business

26. “I used to have three stalls at the night market. Now that rent for a 2x2 sqm stall has gone up to P15,000 (US$268) per month, I am gradually pulling out my merchandise.” • Gladys de Jesus, a local businesswoman and resident of the place since the 1950s

29. Even the ambulant vendors were being charged P1,500 for permit to sell in the WOW area.

31. Most residents felt that greater tourism volume to Intramuros led to inflation or increase of price of goods sold in the area. Visitors remarked "Wow mahal!" (Wow, how expensive!) during shopping. - de Jesus

34. “Why is it that they only think of building promenades and cafes for tourists and ignore our plight? Tourism must take into account the welfare of the residents!" -a barangay leader

36. Only 11% perceived having better quality of life as a result of the WOW Philippines project. • The supplemental incomes generated by tourism are too little to improve their perceived quality of life.

37. On balance, residents of Intramuros perceive the negative impacts of tourism more than the positive ones.

38. Why tourism has failed to create perceived advantages • Lack of capital • Nature of tourism businesses established • Type of markets drawn to the area • Unsustainable tourism events (dependence on outside entities for events) • Plight of the poor not integrated into the tourism development plan of Intramuros

39. Lacks distinctive appeal • Competition from other venues (Baywalk) • Lack of activities, attractions and accommodation, access and connectivity to major tourist zones • Changed priority of the DOT • Lack of funds to underwrite the events

40. Poor market • They come to Intramuros mainly to see the exhibits or to while away their time during their off days. • The low quality, low priced items sold in the night markets attest to the kind of markets being served. • Many who go to the night markets simply ogle without buying anything.

41. Conclusion It can be said that tourism (specifically, WOW Philippines) in Intramuros has not been able to ameliorate the condition of the urban poor in a sustainable manner.

42. Recommendations • Make a thorough redevelopment plan for Intramuros. • Complement low-end activities with high-end shopping and entertainment activities to attract higher-spending tourists. • The supply components must be put in place.

43. IA should prioritize local residents so that the residents do not have to compete with outsiders. • For livelihoods to be sustainable, the number of players should also be controlled. • This will enable the residents to realize better incomes that can trigger demand for other forms of services in the community.

44. The IA and the DOT should study other uses for the existing facilities in order to extend their life cycles. • The clamshells are now being rented out to religious groups on specific days. • They can also be offered as venues for weddings, graduation, conferences or concerts.

46. Involve the residents in making the development plans. • The IA may be able to use the residents as volunteers or partners in making the place safer and cleaner in exchange for some concessions for the poor, such as allocating certain areas for their residence.

47. Build the capacity of local residents to establish and manage their own business cooperatives • Train local residents in creative productions • Train residents in the provision of other high value services (e.g. guiding, massage) • Create a local festival