CHAPTER II

REVIEW OF RELATED LITERATURE

Agritourism Market Rising Trends, Scope and Growth Analysis 2019-2025

The Agritourism Market report provides a unique tool for evaluating the Market, highlighting

opportunities, and supporting strategic and tactical decision-making. This report recognizes that in this

rapidly-evolving and competitive environment, up-to-date marketing information is essential to monitor

performance and make critical decisions for growth and profitability. It provides information on trends

and developments, and focuses on markets capacities and on the changing structure of the Agritourism.

The Agritourism market size will grow by almost USD 54.63 billion during 2019-2023, at a CAGR of

nearly 18%.

Agritourism or agrotourism, as it is defined most broadly, involves any agriculturally based

operation or activity that brings visitors to a farm or ranch. Agritourism has different definitions in

different parts of the world, and sometimes refers specifically to farm stays, as in Italy. Elsewhere,

agritourism includes a wide variety of activities, including buying produce direct from a farm stand,

navigating a corn maze, slopping hogs, picking fruit, feeding animals, or staying at a bed and breakfast

(B&B) on a farm.

Agritourism are mainly classified into the following types: Direct-market Agritourism,

Experience and Education Agritourism and Event and Recreation Agritourism. Event and Recreation

Agritourism is the most widely type which takes up about 57.62 % of the total in 2018 in Global.

(Retrievd from https://www.marketinsightsreports.com on ____________)

DOT launches farm tourism promoting "Made in PH" experiences

MANILA -- To introduce new experiences to domestic and international visitors that can be

branded "Made in the Philippines", the Department of Tourism (DOT) on Monday launched its Farm

Tourism program in Makati City, offering the best farm destinations throughout the country. 


According to DOT Assistant Secretary Frederick Alegre, "It's More Fun in Philippine Farms", is offering

34 farm destinations as of the moment.



"Once we start accreditation, there will be more," he said.



DOT Secretary Wanda Tulfo-Teo said that a series of activities will be held throughout the country

including consultative assemblies of farm tourism stakeholders and exhibits on diverse farm tourism

destinations, farm produce, and pasalubong specialty items.



"It's about time that we take steps to put farm tourism at center stage, as the country teems with rich

agricultural destinations nurtured by our hard-working farmers, who we now recognize as major

stakeholders in an inclusive and sustainable tourism industry," she said. 



DOT said nearly 50 percent of the Philippines' total land area is devoted to agriculture that employs over

17 million Filipinos or 25 percent of the country's total workforce. 



Farm tourism underscores the benefits farmers and the local community may gain from the latest

program. 



DOT Undersecretary for Farm Tourism, Silvino Tejada, said the "It's More Fun in Philippine Farms" will

provide potential for creating and expanding small and medium enterprises related to promoting rural

lifestyle that is "culture-based."



With collated efforts of the DOT, Department of Agriculture (DA), Department of Trade and Industry

(DTI), and stakeholders, Tejada believes the farm tourism with a "made in the Philippines" identity

known worldwide will be made. 



In an interview, Erlinda Tan, president of National Association of Independent Travel Agencies

(NAITAS), said the country has an "advantage" from other Association of Southeast Asian Nations

(ASEAN) member states promoting the same tourism product since the Philippines is already an

agricultural country.



"We cannot say the percentage now but it will definitely boom once it gets introduced to the market

because we're just starting. Tourists interested will increase," she told reporters. 


 There are more than 5,000 tour operators nationwide but Tan assured NAITAS, which is also

operating all over the country, will fully support the Farm Tourism. 



For 2018, Alegre confirmed that there will be a "big agenda" line-up for the farm tourism. 



He said DOT will be holding three major promotional activities: the cluster forums and national

summit, the cluster fair and national fair, and the search for Farm Tourism Ambassadors among kids and

young adults. 



"It's More Fun in Philippine Farms" will be spearheaded by an interim Farm Tourism

Development Board that includes representatives from the DOT, DA, DTI and private sector. 



The Board will formulate the National Farm Tourism Strategyic Action Plan, which will be assisted by a

technical working group from the Agricultural Training Institute, Department of Science and Technology

(DOST), Technical Education and Skills Development Authority (TESDA), and financial insitutions like

Landbank of the Philippines and the Development Bank of the Philippines.



 Present at the Teaser Launch were Senator Cynthia Villar, author of the Farm Tourism

Development Law or the RA 10816, and its House bill sponsor, Congresswoman Sharon

Garin. (PNA) (By Joyce Ann L. Rocamora)

ONE TOWN, ONE PRODUCT (OTOP) PHILIPPINES

ONE TOWN, ONE PRODUCT (OTOP) PHILIPPINES is a priority stimulus program for Micro,

Small and Medium-scale enterprises (MSMEs) as government’s customized intervention to drive

inclusive local economic growth. The program enables localities and communities to determine,

develop, support, and promote products or services that are rooted in its local culture, community

resource, creativity, connection, and competitive advantage. As their own ‘pride-of-place,’ these are

offerings where they can be the best at or best renowned for. It endeavors to capacitate our

‘OTOPreneurs’ to innovate and produce market-ready products and services.

OTOP is an international program that originated from Japan’s One Village, One Product. Its various

versions and iterations in numerous countries are proofs that it is a viable branding and stimulus program
for MSMEs. Here in the Philippines, it has been in existence since 2002. This was further powered

through the promulgation of Executive Order 176 by then President Gloria Macapagal-Arroyo in

February 2003. After a decade and a half of combined gains and challenges, OTOP remains to be a

strategic tool that provides an ecosystem of assistance from local government units, national government

agencies, and the private sector. It is now transitioning to a convergent effort to its next phase of

execution in the form of OTOP Next Gen.

PROGRAM COMPONENTS

The program has two major components and are generally defined below:

1. OTOP Next Gen – as the SUPPLY side of the program, it refers to the package of assistance

provided to capacitate the MSMEs. This component is primarily the product development

initiatives, training, referral, and others with the goal of leveling up the products in the areas of

design, quality, volume, among others. This component addresses MINDSET CHANGE and

MASTERY of entrepreneurship.

2. OTOP.PH or OTOP Philippines Hub – as the DEMAND side of the program, this provides the

physical and online channels and market access platform where OTOP products – especially

those which has been assisted via product development – are showcased on a day-to-day basis.

This addresses the MARKETS side of entrepreneurship.

OTOP NEXT GEN

OTOP Next Gen is DTI’s program to LEVEL UP these products and services. Building from the gains of

OTOP first generation, this initiative aims to offer a package of public-private assistance in order for

MSMEs with minimum viable products to come up with new or better offerings with significant

improvement and innovation in the areas of quality, product development, design, packaging, standards

compliance, marketability, production capability, brand development, among others.

The reboot in 2017 allows communities to have more than one OTOP offering and has transitioned to

being more market-oriented and innovation-driven. Market preference ultimately dictates the OTOP

offerings and the business direction that OTOPreneurs should take.

In its relaunch in 2017, the program was able to assist 6,519 MSMEs and developed or improved a total

of 4,960 products and prototypes. Several of these products are now found on supermarkets, weekend

bazaars, Go Lokal! outlets, and other market platforms including soon-to-open OTOP.PH or OTOP

Philippines Hub.

PRODUCTS COVERED

OTOP covers only tangible products and skills-based services. Experiences, tourism activities, festivals

are not covered. OTOP includes the following:

Processed Food : processed fruits and nuts, delicacies and ‘kakanins’. juices and beverage, pastries and

bakery goods, preserved food, sauces, cakes and desserts, wine, tea, food supplements, culinary-based

specialty products

Agri-based Products: coffee, cacao, agricultural produce, agri-processing (processed meats, coconut oil,

etc), seafood (preserved and processed)

Arts and Crafts : coco coir, weaves, bamboo, paper artistry, wood

Home & Fashion/ Creative Artisanal : gifts, souvenir items, furniture, décor, houseware, fabrics,

garments, toys, textiles

Services (skills-based) and Others: hilot, sculpting, wellness products (essential oils, etc), industrial

products, personal care (soaps, etc), cosmetics

PROGRAM PHASES

The program is composed of four phases: ACT Sessions , Service, Showcase, and Sell, Sell, Sell.
ASSISTANCE ECOSYSTEM

OTOP Philippines is part of an ecosystem of current entrepreneurship programs

intended as a branding and marketing platform and with product development as its primary instrument of

assistance. It offers a comprehensive assistance package through a convergence of services from local

government units (LGUs), national government agencies (NGAs), and the private sector with the end of

mind of alleviating poverty and promoting profitable goods and services thereby developing MSMEs,

creating jobs, and stimulating both local and international trade. This includes: Product Development,

Design Services and Intervention, Packaging and Labeling, FDA, Nutrifacts, and Testing Assistance,

Technology Updating, Capacity-Building, Brand Equity and Development, Intellectual Property

Assistance, Access to Finance and Marketing Platforms and Promotion

OTOP PHILIPPINES HUB (OTOP.PH)

OTOP Philippines Hub or OTOP.PH is a retail store or spaces where products from One Town One

Product offerings can be found. Catering to the general mainstream market of both local buyers and

tourists, these one-stop shops offer a general outlet for quality OTOP merchandise before they level up to

the premium market catered to by Go Lokal and other high-end market platforms.

As a one-stop shot, the OTOP Philippines Hub can be a redesigned pasalubong center showcasing mostly

OTOP products including OTOP from other regions. The hub can be found in mostly in airports,

terminals, pasalubong centers, tourist spots, Negosyo Centers, public markets, and other consumer-

frequented locations including malls. As another flagship market access program by the Department of
Trade and Industry, this serves as a marketing vehicle and incubation platform to promote and champion

OTOP products.

WHAT IS OTOP?

One Town One Product (OTOP) Philippines aims to promote entrepreneurship and create jobs. Through

OTOP, local chief executives of each city and municipality take the lead in identifying, developing and

promoting a specific product or service, which has a competitive advantage.

OTOP Philippines supports micro, small and medium enterprises (MSMEs) to manufacture, offer and

market distinctive products or services through the use of indigenous raw materials and local skills and

talents.

PASALUBONG

Pasalubong (Tagalog, "[something] for when you welcome me") is the Filipino tradition of

travellers bringing gifts from their destination to people back home. Pasalubong can be any gift or

souvenir brought for family or friends after being away for a period of time. It can also be any gift given

by someone arriving from a distant place.

Pasalubong are also associated with the balikbayan, Overseas Filipinos returning to the

Philippines, and may refer to items that migrant workers bring home to their families, friends, relatives or

even non-relatives that they feel especially close with.

The tradition of giving a pasalubong is of great cultural importance for Filipinos as it strengthens

the bond with the immediate family, relatives, and friends. In rarer instances, it can even be used to forge

stronger relationships with someone you may not know that well, as with someone you may be meeting

for the first time.

The gesture of handing out pasalubong emphasizes the gladness at reuniting with one's loved

ones and the relief at being back home safe. It is also a sign of thoughtfulness. While pasalubong are not

compulsory or even expected, failing to bring pasalubong for someone can sometimes be perceived
negatively. Particular importance is given to gifts for children, and the anticipation of getting pasalubong

from a parent coming home is often a cherished childhood memory for most Filipinos.

By bringing gifts with regional significance (e.g. things that cannot be acquired locally), the

person coming home can also share part of his travels. It similar to the western concept of souvenirs

except that it is not meant for personal remembrance but for sharing the experience with others,[16]

especially as the different islands and regions of the Philippines can have different languages, local

customs, and cuisine specialties. The pasalubong serves as a 'sample' of another region's specialty,

bringing different Filipino cultures closer together. They can also simply be gifts likely to be appreciated.

Unlike western gifts, pasalubong are not wrapped, but are given as is. The person who gives the

pasalubong can also freely partake of the gift. (Retrieved from www._______on _____________)

THE PASALUBONG CENTER

The Pasalubong Center is a city government owned building, which hosts shops selling souvenir

items and homemade commodities.

THE city-run Pasalubong Center has been a home to a number of indigenous products such as

handicrafts, fashion accessories, souvenir items, processed foods, and home decors for more than a year

now since it opened in December 2011.

Now, it only takes a little effort to find where the locally-produced products of the Davao City's

small and medium enterprises (SMEs) and that of the other regions in Mindanao are sold, unlike in the

past where they can be bought only in the trade fairs.

Putting all together the products under one roof is now very convenient for the buyers who have

to wait no more for bazaars with a little to no chance of finding what they really want to buy.

It has also benefited the 32 local SMEs who are housed at the one-stop shop, since they get the

promotion they wanted for their products to both foreign and domestic tourists out of the partnership

between the City Tourism Office (CTO) and the tour operators in Davao City.
 "PasalubongCenter is part of the itinerary of the tourists for the city tour." (Retrieved from

www._______________on October 31, 2019)

Pasalubong Center Davao

The Pasalubong Center is a one-stop-shop for proudly Davao-made quality products such as handicrafts,

processed food, fashion accessories, souvenir and gift items, home decors, indigenous costumes and

native accessories, fruits and flowers, etc., at very affordable rates using locally or internationally sourced

materials as well as indigenous and recyclable materials. It is conveniently located along Palma Gil Street

in downtown Davao City beside the People’s Park.

The Center initially opened to the public on December 12, 2011 during the Pasko Fiesta sa Dabaw 2011

and just had its grand opening last March 15, 2012 in time for the 75th Araw ng Dabaw celebration.

Patterned after the Bacolod City's Association of Negros Producers facility, the Pasalubong Center was

established by the Davao City government through the initiative of Mayor Sara Duterte whose primary

objective is to create more opportunities for exposure to Davao City-based entrepreneurs and

manufacturers in the production and marketing of Davao-made quality and unique products to a wider

market of foreign and domestic tourists and local consumers. This project is supported by the Department

of Tourism (DOT), Department of Trade and Industry (DTI), as well as the tourism sector and various

private organizations.

The two-storey Center is divided into sections of fruits, flowers, processed foods, and

housewares. It also has an allotted space for quality products made by women groups from the Davao

City Jail. These women are often assisted by the local government for the marketing of their products

such as mats and printed mugs, etc. The second floor houses fast food restaurants that serve authentic

Davao food and delicacies. The Pasalubong Center Davao is open daily for business from 9AM to 6PM.

(Retrieved from pasalubongcenterdvo.multiply.com on November 1, 2019)

One Town One Product – La Union

The province of La Union adopts the One Town One Product Philippines aims to promote

entrepreneurship, to create jobs and to support micro to medium enterprises. Since the province is rich in

different raw materials that they can turn into products, the local government take the lead in identifying,

developing and promoting a specific product or service, which has a competitive advantage.

For all pasalubong buyers, San Fernando city has a PasalubongCenter where you can buy

different products from different municipalites of la union. The center offers dry goods such as soft

broom from San Fernando City, Bagulin, Burgos and San Gabriel; handloom weaving from Bangar; Basi

from Naguilian; Dried Fish from Sto. Tomas, Bamboo Basket from Sudipen, painting and sculptures from

local artist and other newly develop products. You may not see some products at the Pasalubong center

but you can still have them by simply visiting the towns and look for their specialty products that they

offer like, Rice-based Products from Agoo; mushroom from Bacnotan; Guapple from Bauang; Yellow

Corn from San juan; Green Corn from Tubao; Tiger Grass from Santol; Milkfish from Aringay; Sea-

Urchin from Balaoan; Pebble from Luna; Bamboo Craft Industry from Caba;Home Furnishing from Pugo

and Rosario.

These are just some town products that they offer, but once you visit every town of La Union they

have lots to offer, you just need to visit and explore. After all, OTOP is not just for the materials it is also

for the talents and skills of the locals that needs to be discovered and be supported.

La Union weaves together a tapestry of everything fun from sights to food. The province is

endowed with rich culture and beauty – it’s hard not to fall in love with it. After enjoying the waves of the

beaches, and the mouthwatering dishes, the next question is inevitable – what pasalubong to buy in La

Union.

Pasalubong is a popular Filipino tradition of giving gift after coming home from a travel. It can be

anything and it often ranges from food to random household stuff. Like other tourist spots in the

Philippines, La Union pasalubong features a unique characteristic of the place. Some of the best
pasalubong in La Union is reminiscent of the sea, the humble life of the locals, and the province’s love for

excellent cooking. Here are top 5 La Union products not to miss in your next La Union trip.

Garlic

What’s special about La Union garlic, and why should you buy this pasalubong? One you can

easily find in every talipapa (small market) and grocery store? La Union garlic is a league of its own – it’s

fresh and it comes in different varieties. There’s something about the province’s garlic – they smell

sweeter, and they come in cute arrangements. La Union province made its mark in the country as one of

the top producers of garlic – it’s always worth it to give their special garlic produce a try.

Dried Fish

Dried fish – also known as “daing” – is a big hit to La Union tourists. Is there anything more

heavenly than enjoying fresh dried pusit and fish paired with steaming white rice by the gorgeous beaches

of La Union? Bring this delicious experience home – buy dried seafood products from the locals. Visit

Santo Tomas, Damortis and prepare to be impressed by the seemingly endless lines of dried fish vendors

on the streets.

Bagoong

The people of the north love bagoong, and this is evident in every pasalubongcenters in La Union

– there’s always bagoong on their racks. Its smell and its looks are not always pleasing, but there’s no

denying bagoong brings deeper, unique flavors to local delicacies. Bring that extra punch to the dishes

you cook at home – get some bottles of bagoong on your way home.

Bagi AKA Rice Wine

Bagi – also known as rice wine – is La Union’s take on China’s maotai, and Japan’s sake. These

rice wines are fermented for six months to two years to achieve that indescribable punch that made the

bagi famous. Wine tasting in La Union is an experience you shouldn’t miss. These rice wines come in

varieties of strengths and flavors. Bring something new in your happy hour with friends – avail of this

rice wine to culminate your La Union trip.

Brooms

Some of the best brooms in the Philippines are produced in La Union. Soft and sturdy, these

brooms are best sellers especially in local stores along the streets.

Ube Yam

While in San Juan, La Union, don’t miss the famous ube yam. La Union local dessert makers

make their yams extra creamy, extra delicious. Whether you enjoy it with bread and pastries, or you eat it

on its own, La Union’s ube yam will sure to make you come back for more. Come early to beat the lines –

huge groups of tourists would sometimes hoard this irresistible desserts by boxes!

Leaving La Union without their best products would be such a shame. Buying local pasalubong is a great

way to support local tourism and local trade – it’s like giving back to the province. In your next trip to La

Union, don’t forget to stop in one of its local street stores and fall in love with their pasalubong choices.

La Union set on Becoming the Agri-Tourism Center in Northern Luzon by 2025

At present, La Union capitalizes on the great potential of both its agriculture and tourism.

At present, the province confidently occupies its place as the “Surfing Capital of the North” as it draws an

increasing number of tourists every year.

In 2015, tourist arrival posted 392, 477 persons who stayed for an average of 1.3 days and an occupancy

rate of 31.46 percent.

In the agriculture sector, on the other hand, there is a stable and secure supply of food specifically

meeting self-sufficiency levels on rice, corn, fish, livestock, fruits and fruit vegetables, root crops, and

legumes.

Other municipalities also have their unique agricultural products like sugar cane wine and vinegar, rice

wine, native rice cakes, dried fish, honey and mushroom to tobacco, soft brooms, baskets, and wood

crafts.
During the first 100 Days Report of Governor Francisco Emmanuel “Pacoy” Ortega III, he recognized the

potential of agriculture and tourism “to bring about sustained economic growth in the province which will

contribute largely in the development of rural areas.”

He is likewise “determined to optimize its contribution for inclusive growth and to bring real change in

the province.”

With this, Ortega laid his vision for the province to become “the Heart of Agri-Tourism in Northern

Luzon by 2025.”

According to their vision roadmap dubbed Transformative Governance Scorecard, several existing

community-based and potential agri-tourism sites will be improved and clustered around tourism circuits

(central, north and south).

Marketing of investment potentials or opportunities for agri-tourism to attract investors will be intensified

to enable the job generation and livelihood for self-reliance of the different sectors.

Agri-prenuers and Micro, Small and Medium Enterprises (MSMEs) will be capacitated while critical

tourism and agricultural infrastructure in the identified tourism circuits will be given priority.

Among the existing agriculture-related-tourism sites in the province include the grape-picking in Bauang,

the Halo-Halo de Iloko in San Fernando City for agri-gastronomy, the Pugo Adventure Trail for agri-

recreation, San Juan Surfing for agri-sports, and Baluarte in Luna for ethnography.

Meanwhile, other potential agri-tourism sites in La Union include mushroom culture and production in

Agoo, basi- processing center in Naguilian, bamboo industry in barangay Abut in San Fernando City, Red

Clay Pottery in San Juan, River Farm, Honeybee Center and the Sericulture Research and Developmnet

Institute in Don Mariano Marcos Memorial State University in Bacnotan.

With agri-tourism, La Union intends to provide visitors unique and pleasantly unforgettable experiences,

and consistently facilitate more job creation and economic growth. (JNPD/JDS/PIA-1, La Union)
La Union Province commits to real change through agritourism strategy

The Provincial Government of La Union’s commitment towards transformative governance is to

bring real change through good governance and revolutionizing public service delivery. Their

promise is manifested in their strategy to be The Heart of Agritourism in Northern Luzon by 2025.

The main thrust of the province’s strategy is to focus on destination development through tourism

circuits centered on community-based agritourism sites – in contrast to the conventional site

development approach. The principle behind tourism circuits is to systematically connect all the

different tourism and tourism-related attractions and services in a particular area with a major

tourist site acting as a centerpiece for the circuit. The Province’s strategy is based on the

advantages and opportunities present in their agriculture and tourism sectors. Accordingly in the

next nine years, from 2017 to 2025, the Province is committed to developing five tourism circuits

showcasing the different products, culture, and natural beauty of La Union. “The provincial

government is committed to grow the agri-tourism economy, to enhance visitor experiences, and to

strive for sustainability and good governance,” Provincial Governor Francisco Emmanuel “Pacoy”

Ortega III shared during their second public revalida for ISA’s Performance Governance System

(PGS) last June 21.

Ultimately, the Province of La Union aims to realize its vision by positioning itself as the preferred

agritourism destination in Northern Luzon. Through their strategy and commitment towards

transformative governance, the Province hopes to improve their competitiveness to uplift the

people of La Union’s quality of life. (Retrieved from http://isacenter.org on _____)

La Union fetes 18 years of OTOP, tourism expo

The province of La Union has long been known as the surfing capital of the north because of its inviting

beaches. But there are so much more to love and experience in the province especially its local products

and tourism.
From October 18 to 24, people and tourists in the metropolitan Manila will have an opportunity to have a

taste of La Union in terms of its homegrown products and tourism through the 18th La Union’s Fairest.

The week-long event is a one-town, one-product (OTOP ) and tourism expo to be held at the Robinson’s

Galleria Activity Center in Quezon City. It is led by the Department of Trade and Industry (DTI) La

Union, in close partnership with the Provincial Government of La Union and the Department of Tourism

Region 1.

Merlie Membrere, DTI La Union provincial director, said since the fair’s inception in 2001, it has become

a venue to promote the province’s products to the mainstream market.

“The event gives our local micro small and medium enterprises (MSMEs) a good opportunity to

showcase their ingenuity as seen in their products,” Membrere said.

During the fair, the best products of some 50 local entrepreneurs in La Union will be available such as

hand-crafted and bamboo products, furniture and home furnishings, crochet items, best tasting processed

and fresh foods, and organic and natural health and wellness products, among others.

Judith Maron, owner of the Familiar Table and one of the fair exhibitors, shares how the DTI has helped

her in the three-year old tablea and chocolate business.

She said, with the help of the DTI, she was able to transform her passion for tablea making into a

booming business.

“My business was conceived from my grandmother’s recipe which is tablea with sugar,” Maron shared.

She added that her usual buyers before were only her relatives but since she registered her business with

the DTI in 2016, her market has gone wider.

Further, she claimed that she started her enterprise with only one employee which grew in number to four

at present.

Her enticing items’ package and design is also a result of product development under the DTI.

Now, she manufactures different blends of tablea and tsokolate bites and is considered the first cacao

processor in the province.

Aside from local products, this year’s fair will feature the various tourism destinations in La Union.

Affordable travel packages to the province will be offered to visitors in time for the popular La Union

Surfing Break from October 25 to 27 and in the upcoming holiday season.

Meanwhile, the 1st La Union Investment and Business forum will be held today, October 18, which is

aimed to bring key buyers and potential investors under one roof and give them opportunity to be

informed of the latest product innovations, trends, agri-tourism and business prospects in the province.

(JCR/JNPD/PIA La Union)
 CHAPTER II

METHODOLOGY