A.

Market Analysis

A.1. Tourism System

A.1.1 Brief Background on Demand-Supply Match for Tourism

A fully functioning tourism system (Figure 1) is based upon five (5) factors
namely: (a) Attractions: provides the major pull factor of travel, its function is vital to
entice, lure and stimulate interest in travel as well as provide visitor satisfactions; (b)
Promotion: composed of paid advertising, publicity (unpaid), public relations and
incentives; (c) Information: is usually confused with information, tourist information
refers to maps, guidebooks, tour guide narratives, videos, magazine articles, brochures,
Internet, and traveler anecdotes; (d) Transportation: provides the critical linkage between
market source and destination. The pedestrian movement is important in tourism wherein
tourist service businesses and attractions are accessed by foot and; (e) Services: is the
component of tourism supply with greatest economic impact. This refers to
accommodations, food service, transportation, travel agencies and other travel businesses.
And all these factors are linked in the process of tourism planning depending on the scale
and theme in relation to the physical characteristics of land and resources.

Figure 1 Functioning Tourism System Model

DEMAND

SUPPLY

Attractions

Transportation
Promotion

Information Services
 The supply side of tourism has to primarily match the market demand in order to
reach a correct tourism development. According to Taylor (1980 as cited by Gunn)
tourism has changing demands and that the present ability of a plant should be able to
adapt to these rapid changes. The government agencies also plays a role in administering
individual policies and practices in providing the opportunity for linking travel market
preferences with supply development.

A.2. Components of Tourism Demand and Analysis

A.2.1. Factors of Tourism Demand

There are four (4) major factors of tourism demand. According to Gunn (2002)
tourism demand is influenced by the following factors:

(a) Motivation to travel- which means the desire, interest and purpose for travel.

(b) Financial ability- enables the tourist to pay for services and facilities; the bulk
of the market demand is from the middle to higher socio-economic brackets.

(c) Time and physical ability- the elderly maybe restricted due to physical ability
but the younger brackets are restricted in their travel time due to work
schedules and physical disability.

(d) Forecasting of travel demand- or the predictions of travel is a complicated

process due to the variability of personal taste, environmental policies,
international currency exchange, and diversity of destinations. Projections are
deemed to be important in market evaluation and development of tourism
supply.
 A.2.2.Present Demand of Tourism Services

The most recent data on present and historical demand is unfortunately is only
between the years 2013-2016. The 2016 tourist arrival however, is component of data up
to the third quarter of the year only. Table 1 describes Cavinti’s major tourist attractions
and tourism service businesses namely the Cavinti Falls, Pueblo El Salvador, Bumbungan
Ecopark, CURCC and Hotel/Resorts. There is a fluctuating trend of tourist arrivals in
almost all of attractions although there is a 2.17% growth rate in this data set.

Table 1 Cavinti Tourist Arrivals 2013-2016

Growth
Tourism Sites/Accommodation 2013 2014 2015 2016
Rate
Cavinti Falls 139,178 114,951 115,585 7,396 -6.19%
Pueblo El Salvador 3,486 5,410 8,431 573 29.44%
Bumbungan Ecopark 7,916 14,746 12,707 612 15.78%
CURCC 0 1,787 1,788 81 0.03%
Hotel/Resorts 59,000 71,361 85,139 9,682 12.22%
TOTAL 209,580 208,255 223,650 18,344 2.17%
*Since the 2016 data is only up to the 3rd quarter of the year, the growth rate was from the extracted 2013-
2015, thus, t=3.
*For CURCC, growth rate is from 2014-2015 only where t=2.

Figure 2 Cavinti Tourist Arrival Trends

2013-2016 Cavinti Tourist Arrivals

160,000
140,000
120,000
Tourist Arrivals

100,000
80,000
60,000
40,000 2013
20,000 2014
0
2015

Tourism Sites and Accomodation

 Table 2 Cavinti Tourist Arrivals Percent Share
Tourism Sites/Accommodation 2015 % Share
Cavinti Falls 115,585 51.68%
Pueblo El Salvador 8,431 3.77%
Bumbungan Ecopark 12,707 5.68%
CURCC 1,788 0.80%
Hotel/Resorts 85,139 38.07%
TOTAL 223,650 100.00%

Table 2 is indicative of the bulk of tourists visiting the Cavinti Falls or what is
popularly known as the Pagsanjan Falls at 51.68%, next to the Cavinti Falls is their hotel
and resort accommodations at 38.07%. CURCC is a newly discovered attraction that’s
why it yields the lowest percent share among the attractions. Figure 3 indicates the pie
graph of the Cavinti Tourist Arrivals.

Figure 3 Cavinti Tourist Arrivals Pie Graph

2015 Percent Share of Tourist Arrivals

Cavinti Falls
38% Pueblo El Salvador
51%
Bumbungan Ecopark
CURCC
1% Hotel/Resorts
6% 4%
 A.2.3.Tourism Receipts/Income and Projection

Table 3 illustrates the recent data on Cavinti’s tourism receipts from 2014-2015.
There is an overall growth rate of 5.24% in a year. According to this data the Pueblo El
Salvador site has the highest growth rate in terms of income at 24.05% and CURCC
having the lowest at -8.18%. Figure 4 illustrates the slight increase in their tourism
receipts.

Table 3 Cavinti Tourism Receipts/Income 2014-2015

Growth
Tourism Sites/Accommodation 2014 2015
Rate
Cavinti Falls 17,553,767 19,092,850 4.20%
Pueblo El Salvador 1,128,644 1,825,930 24.05%
Bumbungan Ecopark 184,764 204,777 5.14%
CURCC 655,495 556,600 -8.18%
Hotel Resorts 0 0 0.00%
TOTAL 19,522,670 21,680,157 5.24%

Figure 4 Cavinti Tourism Receipts/Income Trend 2014-2015

Cavinti Tourism Income 2014-2015

25,000,000
20,000,000
In million pesos

15,000,000
10,000,000
5,000,000
2014
0
2015

Tourism Sites
 Table 4 shows the share of income for the year 2014 and 2015. In here, Cavinti
Falls garnered the highest tourism receipts at 90 % and 88% percent share next to Pueblo
El Salvador with 6% and 8% respectively. Figure 5 and 6 illustrates the percent share of
the tourism sites wherein Pueblo El Salvador had a 2% increase in 2015.

Table 4 Cavinti Tourism Receipt/Income

2014 2015
Tourism Sites/Accommodation % Share % Share
Income Income
Cavinti Falls 17,553,767 90% 19,092,850 88%
Pueblo El Salvador 1,128,644 6% 1,825,930 8%
Bumbungan Ecopark 184,764 1% 204,777 1%
CURCC 655,495 3% 556,600 3%
Hotel Resorts 0 0% 0 0%
TOTAL 19,522,670 100% 21,680,157 100%

Figure 5 and 6 Percent Share of Tourism Income 2014-2015

2014 Percent Share of Tourism Income

6%1% 3%0%

Cavinti Falls
Pueblo El Salvador
Bumbungan Ecopark
CURCC
90%
Hotel Resorts

2015 Percent Share of Tourism Income

1% 3%0%
8%
Cavinti Falls
Pueblo El Salvador
Bumbungan Ecopark
CURCC
88%
Hotel Resorts
 Table 5 presents the 25-year tourism demand projections. The baseline data used
is from the year 2013-2015 since the data by 2016 only includes up to the 3rd quarter of
this year. The growth rate of 2.17% was derived using the exponential growth model. The
annual average growth of 6,444 was also derived based from the 2040 projection. By the
year 2040, the tourist arrival in Cavinti will rise to 384,786 or 72% increase (Figure 7).
 A.2.4. Demand Projections

Table 5 Cavinti Tourism Demand Projections 2015-2040

Tourism Sites/Accomodation 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 AAG
Cavinti Falls 115,585 118,915 122,245 125,576 128,906 132,236 135,566 138,897 142,227 145,557 148,887 152,218 155,548 158,878 162,208 165,539 168,869 172,199 175,529 178,860 182,190 185,520 188,850 192,181 195,511 198,841 3,330
Pueblo El Salvador 8,431 8,674 8,917 9,160 9,403 9,646 9,888 10,131 10,374 10,617 10,860 11,103 11,346 11,589 11,832 12,075 12,318 12,561 12,803 13,046 13,289 13,532 13,775 14,018 14,261 14,504 243
Bumbungan Ecopark 12,707 13,073 13,439 13,805 14,171 14,538 14,904 15,270 15,636 16,002 16,368 16,734 17,100 17,466 17,833 18,199 18,565 18,931 19,297 19,663 20,029 20,395 20,762 21,128 21,494 21,860 366
CURCC 1,788 1,840 1,891 1,943 1,994 2,046 2,097 2,149 2,200 2,252 2,303 2,355 2,406 2,458 2,509 2,561 2,612 2,664 2,715 2,767 2,818 2,870 2,921 2,973 3,024 3,076 52
Hotel/Resorts 85,139 87,592 90,045 92,498 94,951 97,404 99,857 102,310 104,763 107,216 109,669 112,122 114,575 117,028 119,481 121,934 124,388 126,841 129,294 131,747 134,200 136,653 139,106 141,559 144,012 146,465 2,453
TOTAL 223,650 230,094 236,538 242,981 249,425 255,869 262,313 268,757 275,201 281,644 288,088 294,532 300,976 307,420 313,864 320,307 326,751 333,195 339,639 346,083 352,526 358,970 365,414 371,858 378,302 384,746 6,444

Figure 7 Cavinti Tourist Arrival Projections 2015-2040

Tourist Arrival Projection (2015-2040)

250,000
No.of Tourists

200,000
150,000
100,000
50,000
0 2015
2040

Touirsm Sites and Accomodation

 A.4. Components of Tourism Supply and Analysis

A.4.1. Inventory of Tourism Assets and Products

Its tourism potential is recognized as a priority Tourism Development Area

(TDA), specifically the world famous Pagsanjan Falls and Lake Caliraya indicated in the
Regional Tourism Master Plan.

According to the municipal government of Cavinti, its top three (3) local income
comes from: (a) Tourism: P5.3M or 46.75%; (b) Business Taxes: P3.99M (35.05%); and
(c) Waterworks System P0.82M (7.17%). (Data has no date)

Its tourism assets include twenty-one (21) tourist attractions of which fifteen (15)
are natural tourist attractions and nine (9) of them are waterfalls. Table 6 summarizes the
tourism assets from most of the barangays.

Table 6 Inventory of Tourism Sites, Municipality of Cavinti, 2013

Source: CLUP 2013-2023

At present, its existing tourism circuit showcases the man-made lakes of Caliraya
and Lumot due to their unique scenic lakefronts, Cavinti Falls (a.k.a. Pagsanjan Falls),
and Shooting the Rapids. It has identified new sites for future tourism development
namely Cavinti Underground River and Cave Complex (CURCC), the unique long trail
going to CURCC, El Pueblo, Bumbungan Eco-Park, Bayakan Falls, Japanese Garden,
and Twin Falls. According to the LGU there has been a 69.5% (n.d.) increase in tourist
arrivals in Cavinti due to its promotional activities in the form of videos, social media
postings, television coverage and more importantly, the hosting of five (5) annual
festivals in the municipality. In essence, Cavinti’s tourism is nature-based and in
particular caters adventure and extractive tourism.

These festivals serve as an entry point/strategy to attract and increase tourist

arrivals in their integrated tourism plan according to their recent CLUP. To illustrate it
further, the festivals highlights the nature-based tourism activities:

1.) Cavinti Watersports Fest

Cavinti Watersports Fest was first launched on 7-9 February

2014 by the current administration. This festival promotes fresh water-
based adventure and festivity. It was emphasized that this is the first-
ever watersports fest in the region and can be featured as the new
“product” of the Philippine Tourism according to DOT Region 4.

Activities include:
• Bass Fishing Competition
• Dragon Boat Racing
• Canoe Racing
• Kayak Racing
• Open Water Swimming Competition
• Kite Boarding Exhibition
• Carabao Swim Racing
• Underwater Fish Hunting
• Munting Dampa sa Lawa and Trade Fair

2.) Mayflower Festival

This festival is more commonly known as Flores de Mayo, a

traditional catholic custom of offering flowers before the image of the
Mother of God, praying the rosary and holding a procession in her
honor. In Cavinti, this tradition is considered a grand occasion where
hermanos and hermanas are chosen to lead this month-long
celebration. The main event of which is the traditional Santacruzan: a
pageant on the last day of Flores de Mayo, held in honour of Helena
(known as Reyna Elena) and Constantine finding the True Cross in
Jerusalem.
 3.) Sambalilo1 Festival

The creation of the Sambalilo Festival was first initiated by the

Association of Barangay Captains (ABC) and Magdapio Club in order
to boost Cavinti’s tourism in 2003. The giant pandan (Pandanus
utilissimus) used for sambalilo making is indigenous and abundant in
the municipality. This festival was held in conjunction with the
Mayflower Festival, on May 16-25, 2003, for the purpose of targeting
domestic and foreign tourist during the peak season of April and May.
But in 2013, it was celebrated again during the foundation day of
Cavinti and became a separate celebration from the annual Mayflower
Festival. The Mayflower Festival and the Sambalilo Festival are
considered as the two (2) major festivals in Cavinti. This festival
highlights the unique way of crafting a Sambalilo and its various style
and quality. Its festival activities include a sectoral parade and house
decoration showing beautiful hats and colorful costumes made of
pandan.

4.) Cavinti Harvest Festival

The Cavinti Harvest Festival is the municipality’s version of a

harvest festival celebrated during peak harvest season of Cavinti in the
first week of October. The said festival was uniquely designed not just
to celebrate thanksgiving but also to encourage people to plant more
organic agricultural crops in support for local food security and
promote local agricultural products. It also aims to establish an
“agricultural product identity” for each of the barangays that is
envisioned to be recognized not only in the province and in the rest of
the country as well.

5.) Cavinti Water Falls and Shooting the Rapids Fest

1
The term “Sambalilo” originated from the Spanish word “sombrero,” which means hat. It was used by
people of Cavinti to protect them from rain and sun during work in the farm since the local weather in the
municipality is unpredictable.
 This celebration is the newest addition to the roster of annual
festivals in Cavinti. It is a one day event that will showcase a tribute to
all Cavintinians who worked hard even without hazard pay and
recognition to the world-famous Cavinti Falls as one of the major
income generating tourist spot in Laguna. This event will take place as
soon as the new boating station of Cavinti in Barangay Anglas has
been established. Activities include a shooting the rapids race and
obstacles course going to the world-famous waterfalls.

A.4.2 External Factors of Tourism Supply

Figure 8 External Factors in a Functioning Tourism System

FINANCE LABOR

ENTREPRENEURSHIP
ORGANIZATION
LEADERSHIP

FUNCTIONING
CULTURAL TOURISM COMMUNITY
RESOURCES SYSTEM

NATURAL
COMPETITION
RESOURCES
GOVERNMENTAL
POLICIES

Figure 8 features externalities that greatly influence the supply side of tourism:
natural resources, cultural resources, organizations/leadership, finance, labor,
entrepreneurship, community, competition and governmental policies.

Natural Resources. Tourism development related to natural resources includes:

water, topography, vegetation, wildlife and climate. All of these natural attributes has
been promoted for health, social values and outdoor recreation. And the most popular and
developed natural resource is water in which tourism success can be gained through
water quality protection in all developmental sectors.
 Cultural Resources. In terms of cultural resources this resource includes:
prehistoric sites, historic sites, places of ethnicity, lore, education, industries, trade
centers, professional centers, places for performing arts, museums, galleries and sites
important for health, sports and religion. These cultural sites give visitors the opportunity
to experience a different time or place, experience learning and experience sharing of
knowledge.

Organizations/Leadership. In spite of having development plans for tourism most

of these plans lack the proper implementation due to lack of organization and leadership.

Finance. Tourism development requires financial backing from both the private
and public sector. The current trends for investors right now require projects with sound
feasibility.

Labor. Labor capacity is also crucial to tourism development. Tourism

development requires adequately trained workers in order to provide higher levels of
service in response to market demands.

Entrepreneurship. The culture of entrepreneurship is also a prerequisite to tourism

development. It is the ability to see an opportunity in obtaining proper financing,
conducive locations and sites, engaging designers for the physical settings as well as
organizing the labor force needed to support tourism development.

Community. The community sector also influences tourism development.

Communities will either support or oppose tourism development due to increased social,
environmental, and economic impacts.

Competition. In order to satisfy the market demand, an area must first dwell into
market research and acquire information about competing areas. For tourism expansion,
an area should be able to provide the same opportunities with less cost and greater ease.

Governmental Policies. A sound policy is key to the appropriate utilization of

human, physical and cultural resources. Local governing bodies are responsible with
administering laws and regulations vital to a quality tourism development.
 A.4.3. Identification of Supply Gap

According to the Municipal Tourism Office the tourism circuit is in need of more
tourist accommodations and dining establishments to accommodate the influx of tourist.
Although there is no data to support this, they are expecting the rise of tourist arrivals
due to their intensive marketing campaign such as events through festivals in which they
have an existing five (5) festivals in a year already. As of the moment, an established
tourism information center or hub will greatly maximize its existing tourism circuit as a
focal area that will provide more access to attractions and transport linkages. In general,
its tourism supply is not maximized. Only one out of the nine (9) waterfalls such as the
Cavinti Falls generates income. There is a need to dissipate the influx of tourist to
regulate the impact on the community and in its ecosystem as well.

Figure 9 Cavinti Tourism Circuit Indicative Map

A.5. Key Recommendations

1. There is a need for a holistic approach in tackling the development of

tourism in Cavinti. Cavinti compared to surrounding municipalities,
provinces, tourism sites in Laguna is a lagging area. Further studies would
require a more complete set of baseline data and/or tourism statistics as
well as tourism database management. In particular:

a) Capturing future tourism demand would require the local

government to consider the external factors affecting and/or
influencing a fully functioning tourism system in the area.
b) Marketing campaigns although has been made more intensive
should target the market segment that patronizes its attractions
more often. According to the Municipal Tourism Office, Korean
Nationals are patrons therefore should be effectively targeted and
make use of tourist information more comprehensively.

2. Dissipation of tourists among the other tourist attractions is key to

regulating tourism operations a tourism hub will facilitate this
strategy/goal in further developing the tourism sector. It is important to
note the transportation linkages play an important role in providing
access in each site. Nevertheless, it is still recommended visiting sites by
foot to minimize impact on the environment.

3. Projected tourism demand projections can now be used as a target to

measure the increase or decrease of tourism influx. It will be the
municipal government’s prerogative to adjust according to its tourism
carrying capacity in the economic, social, institutional and environmental
sectors.