WOW PHILIPPINES
Where’s Our Wealth?
A Look at Tourism and Poverty
Alleviation in the Walled City
REIL G. CRUZ
UP Asian Institute of Tourism
Tourism and Poverty
Alleviation

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Paradigm shift from boosterism and
economic development to sustainable
tourism
Sustainable Tourism as a Tool for the
Elimination of Poverty (ST-EP)
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)
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)
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_pap
ers)
What is extreme Poverty?

Less than one US dollar a day (World
Bank, in UNESCAP 1999, p. 24)
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.
Philippines: Indicators of
Poverty
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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)
Rationale for Tourism
Development
The objectives of the Philippine Tourism
Master Plan (1991-2011) include


maximizing local ownership, livelihood
opportunities, individual initiative and selfreliance
encouraging regional dispersal of
development and domestic tourism
as a means to improve the people’s quality
of life.
The Case of Intramuros
Methodology

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Part of a larger study
Survey of 100 residents of Intramuros
between May and June 2004
Questionnaire
Interview
Limitation

Small sample size

Cannot make generalizations

Not able to get side of Intramuros
Administration
Background

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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.
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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).
WOW PhilippinesThe 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.

Intramuros is under the jurisdiction of
the Intramuros Administration, a
government agency within the
umbrella of the DOT
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.
LOCATION
NATURE
JOBS
TOTAL SALES
(PHP)
AVE MO. SALES
(PHP)
Clamshell Exhibitors
Retail
1,920
22,154,865
4,028,157
Pook Alitaptap
Restaurant
63
10,560,000
240,000 per stall
PC Barracks
Restaurant
26
4,950,000
900,000
Plano Luneta de
Sta. Isabel
Restaurant
12
2,475,000
450,000
Sta. Lucia Gardens
Restaurant
10
875,000
250,000
Sta. Lucia "Tiangge"
Retail
60
720,000
12,000 per stall
Tapas Row
Restaurant
15
550,000
100,000 per restaurant
Roaming Vendors
Retail
20
540,000
9,000 per vendor
Artists Row
Art
8
445,000
10,114 per artist
Calesa Tours
Tours
30
360,000
9,000 per calesa
Duty Free Stall
Retail
12
315,000
21,000 per stall
Blind Masseuse
Massage
12
22,500
4,500 per masseuse
2,188
43,967,365
6,033,771
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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.
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Types of jobs
–
–
–
–
–
–
Regular Performers
Barangay Tanods
Street Sweepers
Parking Attendants
Security Guards
Janitorial Services
Source: DOT
100
70
50
30
25
10
285
Perceived Economic
Impacts of Tourism
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Investors from outside
Increased Inflation
Stall rent increased
Income increased
Jobs
Better quality of life
Became poorer
Own business
PERCEIVED EFFECT ON INVESTMENTS
FROM OUTSIDE
Tourism did not increase
investments from outside
10.1
Tourism increased investments
from outside
75.8
Percent
“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
Even the ambulant vendors were
being charged P1,500 for permit to sell
in the WOW area.
PERCEIVED EFFECT ON PRICES
Tourism did not
result to inflation
21.2
Tourism resulted
to inflation
61.6
Percent
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
PERCEIVED EFFECT ON
BUSINESS GENERATION
Tourism did not make me have my
own business
Tourism made me have my own
business
61.6
4
Percent
PERCEIVED EFFECT ON
POVERTY AGGRAVATION
Tourism did not make me
poorer
Tourism made me a poorer
person
68.7
8.1
Percent
“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
PERCEIVED EFFECT ON
QUALITY OF LIFE
Tourism did not improve the
quality of my life
Tourism improved the quality of
my life
33.3
11.1
Percent
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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.
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On balance, residents of Intramuros
perceive the negative impacts of
tourism more than the positive ones.
Why tourism has failed to
create perceived advantages
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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
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Lacks distinctive appeal
– Competition from other venues (Baywalk)
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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
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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.
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.
Recommendations

Make a thorough redevelopment plan
for Intramuros.
– Complement low-end activities with highend shopping and entertainment activities
to attract higher-spending tourists.
– The supply components must be put in
place.
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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.

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.

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.

Build the capacity of local residents to
establish and manage their own business
cooperatives
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Train local residents in creative productions
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Train residents in the provision of other high
value services (e.g. guiding, massage)
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Create a local festival