Lourdes College

Higher Education Department

Capistrano Hayes Streets, Cagayan de Oro City

“ Managing Tourism: Socio- Economic Impact”

(SIARGAO Island, GENERAL LUNA, Surigao del Norte, Philippines)

In Partial Fulfillment
In the Requirement for the Course
Strategic Hospitality Management
HM106

Prepared by:

HANNAH REJOICE N. ERLINA

Student

Prepared to:

MS. MA. ELENA O. MANALO

Professor
Introduction

Tourism is considered as one of the largest and fastest developing sectors of the world and its

high growth and development rates, considerable volumes of foreign currency inflows, infrastructure

development, and introduction of new management and educational experience actively affect various

sectors of economy, which will be positively affect to the social and economic development of the

country (Mirbabayev & Sagazatova, 2005).

Tourism is the fastest growing industry in the world and plays a vital role in the economic

development of a country. Many countries of the world survive upon the tourism sector. In this

globalization era, third world countries started tourism to progress their economy, keep

contribution to world peace, reduce poverty level and develop human resource and culture.

Tourism business is the speediest business industry in the world. Tourism sector creates

employment prospects and grossing foreign exchange etc. that are very essential for the

economic development of a country. The tourism business should be planned in such a way that

it minimises the social and environmental impacts and provides full economic benefit for society.

It makes the economy growth in society. (Shapley & Telfer 2002.)

Sociology is the systematic study of social behavior and human groups. It focuses

primarily on the influence of social relationships upon people’s attitudes and behavior and on

how societies are established and change. As a field of study sociology has a very broad scope. It

deals with families, gangs, business firms, computer networks, political parties, schools,

religions, and labor unions. It is concerned with love, poverty, conformity, technology,

discrimination, illness, alienation, overpopulation and community. Economy is the wealth and

resources of a country or region, especially in terms of the production and consumption of goods

and services.
Social impacts of tourism refers to changes in the lives of people living in destination
communities.
Economic Impacts:
The economic impact of tourism is usually broken into three categories which are direct, indirect
and induced impacts:
 Direct impacts include monetary transactions from operations during tourist visitation.
This involves impacts on tourism businesses themselves. This category includes any
amount paid out including wages, taxes, supplies and services.
 Indirect impacts are changes in sales, income, or employment within the region of
industries that supply products and services to the tourism industry.
 Induced impacts are changes in economic activity resulting from household spending
of income earned directly or indirectly from the tourism industry (Sustainable Travel
International, 2005)

Content

Siargao now known as one of the top surfing destinations in the Philippines, Siargao
Island is found west of Surigao del Norte (800 km from Manila). It’s a paradise destination for
vacationers from all walks of life. Siargao is close to the Pacific Ocean and is the Philippines’
tourist alternative for Tahiti and Oahu. The history of Siargao is relatively short from a tourism
perspective, but the region is steeped in history.
Surfing is the main attraction in Siargao. It all started way back in 1980 when two
foreigners, Tony Arruza and Steve Jones, came to the island during their search for the “perfect
wave.” They apparently found it within the municipality of General Luna, and called it “Jacking
Horse.” Their perfect wave is actually what most people today know as Cloud 9. Until now,
Siargao was known for its waves that couldn’t be compared elsewhere.
Finally, it was in the year 1992 that Siargao hit the maps. A famous surfing photographer
named John Callahan took pictures which featured famous surfers John Slater, Taylor Knox, and
Kevin Davidson riding the huge waves in Cloud 9. The story was published in a magazine that
circulated all over the world.
 This turning point made Cloud 9 so famous that surfers from all over the world rushed to
the destination. Ever since then, the town of General Luna earned its place among the top surfing
destinations in the world.

Socio-economic Impact

According to Gemma Clarke, 2017 (Rappler):

When I first traveled to Siargao in August 2016, getting there wasn’t exactly easy. We could

either catch two flights from Manila, or jump on several planes and a ferry depending on the day

of the week. Fast forward just a few months and access to the island has become vastly simpler:

one direct flight from Manila and 3 from Cebu operate every day, a number shortly set to

increase to 6. Filling the seats are thousands of pleasure-seekers – both local and foreign –

responding to the government’s quest to promote Siargao as an eco-tourism destination and

prompt investment in the region, a campaign that has been underway since as early as 2004.
 In November last year, Governor Sol Matugas – who is in charge of Surigao del
Norte – announced that 1.2 billion pesos had been allocated to add and improve
infrastructure in the region, with special regard to tourism facilities in Siargao. Three
hundred million of this has gone towards the construction of a sports complex in Dapa,
and Matugas told the Manila Bulletin the rest would go towards the “construction of
more roads and bridges [and] seaports.” Additional funding has been secured for urban
planning, the 2017 World Surfing Cup, the World Game Fishing Tournament and the
improvement of Siargao’s airport. Investors in tourism-related businesses have also
shelled out more than a billion pesos annually for the last 3 years, which has seen resorts
and restaurants spread like wildfire.
Conclusion

Siargao is a step ahead of this, as the island is under the Siargao Island Protected

Landscape and Seascape (SIPLAS), a program of the Department of Environment and Natural

Resources (DENR). It was declared a protected area on October 10, 1996, by order of

Proclamation No. 902 by then Philippine President Fidel V. Ramos.

The partnership between the local government, NGOs and commercial entities in the island also

ensure that existing and up-and-coming businesses keep a close eye on sustainable tourism and

development in the island. Learning from the Boracay experience, a well-thought of and well-

planned development in Siargao, specific to sewage and waste management, urban planning, and

tourism regulation is being created. The development of Siargao is anchored on the conscious

effort of to fashion it into a paradise island, a relatively untouched region which has always been

part of its charm.

References

 Tourism, Leisure and Global Change, volume 2 (2015), p.TOC-57 Papers from the 7th
Tourism Outlook Conference/Tropical Tourism Outlook Conference, 8-10 August 2014,
Dambulla - Kandalama, Sri Lanka (Copyright: CC-BY-NC-ND) Socio-Economic
Impacts on Local Community through Tourism Development with Special Reference to
Heritance Kandalama Geethika Nayomia , W.K. Athula Gnanapalab

 M Rezaur Rhaman THE SOCIO-ECONOMIC IMPORTANCE OF TOURISM AND ITS

IMPACT ON THE LIVELIHOOD IN SOUTH ASIA Case Rangamati, Bangladesh
Bachelor`s Thesis CENTRIA UNIVERSITY OF APPLIED SCIENCES Degree
Programme in Tourism May 2016

 http://archive.mu.ac.in/myweb_test/F.YBA%20SOCIOLOGY.pdf

 https://www.collinsdictionary.com/dictionary/english/economy

 https://www.rappler.com/life-and-style/travel/ph-travel/183858-siargao-surfing-
vacation-tourist

 https://www.gmanetwork.com/news/news/regions/645399/siargao-to-improve-waste-
management-system-to-avoid-repeat-of-boracay-mess/story/

 http://www.pna.gov.ph/articles/1028087

 https://www.forbes.com/sites/christineamourlevar/2017/12/05/siargao-philippines-
can-asias-newest-resort-destination-develop-in-a-sustainable-way/#6100408a7eed