1

SOCIO-ECONOMIC PERSPECTIVE OF PILILLA WINDMILL AS A

TOURIST DESTINATION: INSIGHTS FROM MICRO ENTREPRENUERS"

A Thesis Proposal
Presented to
College of Tourism, Hospitality and Transportation Management Polytechnic
University of the Philippines

In Partial Fulfillment
Of the Requirements for a
Degree in Bachelor of Science in Tourism Management

By:
Fontiveros, Mitzie Fatima M.
Jimenez, Via Madel P.
Marcelo, Kaycilyn M.

BSTM 3 1-N
2019

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Abstract

Today, urbanization has been considered as one of the primary keys for
societal development and progress. As a result, many people congregate to cities and
urban areas in search of better opportunities and quick money. However, not all
individuals who migrated to trade centers can equally reap its fruits. As an effect,
many individuals engaged to sidewalk vending. It aimed to determine the impact of
Pililla Windmill in socio-economic life of vendors or entrepreneurs around the vicinity
of a Windmill Rizal. Structured interviews were conducted to determine the personal
and demographic profiles, business profile, monthly priority budget, and the impact of
Pililla Windmill as tourist destination to the economy, culture and sidewalk vendors in
Rizal, Philippines. Also this is answered the effects of tourism in the socio-economy,
culture and social development of the Windmill in Pillila, Rizal Philippines, how do
the micro-entrepreneurs exploit the socio-economic opportunities brought by tourism
in Pililla?, what are the responsible practices of micro-entrepreneurs to sustain the
socio-economic impact of tourism?, what problems hinder the beneficial impact of
tourism?and lastly what enhanced development plan maybe proposed?.
The study concluded that Pililla Windmill as tourist destination plays a
significant role in the lives of the vendors in terms of economic and business survival.
However, the extent of its impact is only enough to attend to their basic needs and to
feed their families.
Furthermore, the researcher used qualitative method or phenomenological
approached were the researcher will directly interview each participant while they are
getting some voice record and videos to get the specific data and to answer the
questions. This paper explored how people or entrepreneurs perceive the socio-
economic impacts of tourism in the Province. The paper further examined by
exploring the quality of tourism resources and the intensity of tourism activity, and
how these affect the perception. The study was commissioned as an input for creating
a tourism development plan for the province. Results of the study show that raising the
quality of natural resources and increasing business activity leads to a higher
perception of positive tourism impacts. Increasing the activities of some industries of
tourism contributes to both the positive and negative impact perception.

Keywords: Entreprenerurs, vendors, Socio-economic Life

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Introduction

Rizal is a historical capital of the Philippines. The province has many

significant historical sites. The province is also famous for the Laguna de Bay, one of
the most popular tourist destinations due to the beautiful scenery. Its proximity to
Metro Manila makes the province a preferred destination for excursions and short
stays. The province is popular for short hikes, unique themed restaurants, retreats and
conventions, wellness, and other leisure activities. The tourism industry of the
province has been developed on few areas, particularly the Municipality of Antipolo,
Tanay and Pililla Rizal.
The town Pililla, located in the province of Rizal, is surrounded by the
beautiful green fields, majestic windmills, and gigantic trees. It is also known as the
“Agricultural Haven of Rizal” blessed with different kinds of agricultural production
and one of this is an all-time favorite Pineapple fruit.
The "Pililla, Rizal" Wind Energy Service Contract granted to up Alternergy
Philippine Holdings Corporation covers an area of 4,515 hectares under Department of
Energy. This Wind Energy Service Contract has two phases, Pililla Wind Power
Project. The Mt. Sembrano Wind Power Project. In December 2008, Alternergy
Philippine Holdings Corporation was awarded by the Department of Energy the
exclusive right to develop wind power projects in 3 locations: Pililla in Rizal, Abra de
Ilog in Occidental Mindoro, and Kalayaan, Laguna. These locations were among those
identified under the Philippine Wind Atlas as potential sites for wind farms due to
good to excellent wind resources. APHC was subsequently awarded additional wind
energy service contracts in 3 other locations in 2009. APHC is committed to
implement the wind projects if the wind measurements and site-specific studies
demonstrate that the power plants are commercially viable.
The researchers conducted the study because Windmill is rare in the
Philippines; the researchers want to know the socio-economic perspective of Windmill

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in Sitio Bugarin, Pililla Rizal and to assess the Pililla Windmill as a potential tourism
destination in Rizal.
Literature review
This chapter will discuss the related literatures and studies of the study
that determine the relationship between the socio-economic perspectives of micro-
entrepreneurs towards Pililla Windmill in Rizal.

Tourism Impacts
The sustainable tourism development in a destination is built on three pillars
such as the promotion and enhancement of the natural and cultural environment; the
effective planning and sustainable management of the environment and the
participation of the local community (Myburgh & Saayman, 2012). The impacts
follow-on tourism developments have been deliberated vastly in various contemporary
studies. Generally, these impacts are typically identified as either positive or negative,
in one of three particular groups i.e. economic, environmental and socio-cultural
impacts.
Both the economic and environmental impacts caused by tourism development
can be measured using a range of relatively standard criteria; measuring the economic
impacts through the financial flows that either enter or leave a national, regional or
local tourism economy; through tax revenues, or via the number of direct and indirect
forms of employment tourism may initiate and environmental impacts through wildlife
species decline, erosion rates, or by physical changes to protected areas (Buultjens,
2015). But, the social impacts remain as a more contested issue as a result of many
intangible costs and benefits that the tourism development may induce.

Socio-cultural Impacts of Tourism

According to many scholars, socio-cultural impacts focuses on the community,
and therefore the changes in societal, collective and individual value systems,

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behavior, social relationships and lifestyles, modes of expressions and community

structure (D'Mello, 2015).

In the positive socio-cultural impacts, tourism changes the values and customs,
promotion of cultural exchange with other cultures to unite one another (Nilahut,
2010) and cross cultural communication (Kim, 2013) and help preserve cultural
identity (Pizam, 2016) it can also generate pride and identity for the locals (Lim, 2012)
like the residents of Rizal when they were asked what were the effects of living near a
tourist attraction and they said that it increases their and other people’s pride in their
culture (Rasoolimanesh, 2015). It also showcase local produce and local products as
well show the events like festivals to the visitors (Lim, 2012) but it also has it’s
negative cultural impacts.

According to Archer (2018) mixing different cultural behavior is a recipe for

disaster. Tourism can also be one of the causes on the disappearance of Local Cultures,
as many would rather adapt the way of lives of the foreigners that are visiting in the
country.

Socio-economic Impact of Tourism

Tourism not only increases foreign exchange income, but also creates
employment opportunities, stimulates the growth of the tourism industry and by virtue
of this, it triggers overall economic growth and poverty reduction in Philippines
(Vilayphone, 2010).

So tourism is generally acknowledged as an international socio-economic in

terms of income, social and cultural activity, effected by and contributing to
globalization. Likewise, tourism is perhaps a concept of economic activity with great
impacts on society as it is an instrument of development. The tourism increases
income generation, tax revenue and improved standard of living. The tourism sector is

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remarkably generating of strong currency income and employer has with the ability to
spread its economic benefits to every community (Vilayphone, 2010).

The socio-economic development in Pililla Windmills like other places where

tourist destination is streamlined to has significantly driven the area on infrastructure
development. Tourism significantly creates new and increases demands on the water,
electric power, sewage and solid waste disposal and telecommunications (Vilayphone,
2010) that the expenditure of construction and management of all facility buildings
would be spread out to the hands of the local workers.

Most of the Rizal people have been gradually improved the living standard to
the better condition and other tourism infrastructures like roads, transportation facility,
restaurants, hotels, resort, home stay, hawker and vendor’s places, entertainment
facility, daytime and nighttime markets, overall local authority officials and private
sectors supporting all tourism activities are become better as drivers to tourist
business.

Optimistic impact of Tourism on Local Economy

The economic impact entails the effect that the production, distribution and
consumption of wealth in the human society have on one another (Moffatt, 2018).
Usually, the host community is quite happy to see the influx of tourists into their living
areas where many recreational activities were organized and settled up in a quality
way to welcome the tourists who would spend their money out; generating new
revenues for the community (Tisdell, 2011). So, tourism is a concept of economic
activity with great impacts on society as it is an instrument for the community
development.

Tourism not only increases foreign exchange income; that contributes to

improve the nation’s balance of payments (Gee, 2017), but also creates new
employment opportunities, stimulates the growth of the tourism industry and through

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that it helps to enhance the economic growth and poverty reduction (Vilayphone,
2016).

Furthermore, Murray (2016) has pile up a range of common positive economic

impacts relating to the local economy as, direct employment opportunities (including,
administration, guiding, tours and transport, construction, hospitality, management,
accommodation shopping, food and beverage outlets), indirect employment
opportunities (including, environmental management, entrepreneurs, and other
supportive industries), the support of the development of multi-sector or mono-sector
non-profit community based enterprises, the provision of alternatives to changing or
fading traditional industries, increasing of land values, and thus rates payable to
council for community services.

Apart from that, tourism encourages new infrastructure investment (Inskeep,

2011), and communication and transportation possibilities (Milman and Pizam, 2018)
as well. The amount of taxes collected by the government will also increase with the
higher level of economic activity. Residents of a local community might have a better
standard of living and higher income by tourism activities and economic
empowerment; bringing lasting economic gains to the local community (and Binns,
2011).

The above arguments demonstrate how tourism generates positive benefits for
a country’s host communities. Conversely, however, tourism may also cause negative
economic costs to the host communities.

Pessimistic Impact of Tourism on Local Economy

Though, tourism is obviously economical in a wide range, it’s just like a

double edge sword. Several host communities had negative attitudes towards tourism
due to the economic costs of tourism. One of such economic costs is high consumer
prices.

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The booming tourism industry places a great pressure on the limited resources
such as food, land, transport, electricity and water supply, etc. in the host economy and
the increasing demand on these limited resources and facilities may lead to the
inflation; causing negative effects on host community (Kreag, 2011). As tourism
depends very much on external demand factors, it creates over-dependence on
tourism; ignoring the traditional ways of income earning (Liu and Var, 2016).

Tourism creates jobs which are not sustainable, do not require professional
skills and do not provide a sufficient salary to afford family expenses (Tomoko and
Samuel, 2016). In Philippines, the employment generation due to the tourism industry
has increased significantly by 65.9 percent in 2019.

Impact of Tourism on Small and Medium Scale Enterprises

Tourism plays an important role in encouraging the establishment of new small

and medium scale enterprises and develops the existing businesses in order to
welcome the tourists and the tourism development. The tourism enterprises can be
categorized into four main suppliers i.e. accommodation, food and beverage services,
transportation and excursions services and crafts and shopping items. The local
residents and entrepreneurs have experiences to develop their small businesses to sell
fruits, meals, cafe, sweets, handicraft, wood carving, pottery, accommodation etc.
Some with high financial resources combined tourism knowledge started with hotel
services, travel agency, elephant riding, nature tracking, souvenir and handicraft shops
etc. Some are invested in foreign partnerships that had more experience and network
in overseas connection. Further, the tourism entrepreneurs make their town more
developed (Phoummasak, Kongmanila & Changchun, 2014).

The main aim of this study is to examine the limitation experienced by tourism
entrepreneurs in promoting sustainable development in Pililla Windmills. Shaper and
Volery (2017) stated that small firms are essential in the growth of the national

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economy. Small enterprises are very crucial components in the economic structure of
any country.
The paper enumerated the potential and significant contribution according to
Volery (2017) that a small business may give the economy. First, small firms provide
employment opportunities for people. Not only does the owner have employment
(self-employment) but also their staff or workers. Second, the small enterprises are the
next generation of large firms. It is customary that large firms are not going to exist
forever so having small firms will enable new potential large businesses in the future
if the small firms survive and succeed. Third, they provide competition in the market.
If the market is monopolized by one or two firms, the customers will be experiencing
over pricing and that they will have no other choice but to avail of their product or
service even if it is over-priced, low in quality and with poor service. Fourth, small
firms provide innovative ideas and specialized products and services that will allow
the market to have new and fresh products or ideas. Lastly, they aid in having exports
and they provide an outlet for entrepreneurial activities for the growth of the economy.
The important contributions are not limited to those that are given above. There may
be other possible contribution that small firms may give to the growth of the economy
(Shaper and Volery 2017).
In the study entitled “SME Development and Technology Upgrading in
Malaysia: Lessons For The Philippines” by Habaradas (2008), it stated that small and
medium enterprises are the backbone of vibrant economies since they provide
significant contributions in addressing the poverty crisis by creating jobs and increase
employment opportunities, in scattering economic activities in rural and urban areas
and providing broadbased sources of growth, in serving as a top supplier or provider
of support services for large enterprises, in stimulating entrepreneurial skills among
the people and lastly, in acting as seedbeds for developing domestic enterprises into
large corporations (Habaradas, 2018).

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Data and Methods

Phenomenological study was used in this research as the research
method. According to Creswell (2013), phenomenology research is a design inquiry
coming from philosophy and psychology in which this research describes the life
experience of an individuals who is the participants in this study, which is the micro-
entrepreneurs and residents of Sition, Bugarin Rizal.
In this study, sampling technique will use in this study. Purposive sampling is a
type of a non-probability sampling. According to Creswell (2012) in non-probability
sampling, the researchers select individual or groups because they are available,
convenient, and represent some characteristics the investigator seeks to study.
Participants
The researcher's respondents would be the selected micro-entrepreneurs
in the municipality of Rizal which stands as experts of the study and random people
who are resident of Sition, Bugarin Rizal. The participants will be composing of 50 as
a key informant of the study regarding certain benefits of Pilila Windmill to the socio-
economic and community. These informants would help the researchers in
determining the socio-economic perspective of Pililla Windmill as a tourist
destination.

Data Collection
In this study, all the data gathering procedures will be conducted at
Sition, Bugarin Rizal. The first stage is to provide a letter of approval to be submitted
to the management or municipal of Rizal which is the place that delimit our study.
The next step will be the stage 2, collection of data. In this stage the
researchers conduct semi-structured interview with the use of audio and video
recording to transcribe after. Observation field notes and checklist of the instruments
will be done in this study.

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The researcher seeks help and consultation from the experts. The last stage, the
stage 3, will be the analyzation of data using thematic coding and triangulation. This
will help the researchers identify the themes of data. Lastly, the researchers finalizing
all the gathered data.
This section provides details on how the study was conducted. In performing
the project study, the researcher first conducted data gathering to identify problems.
After the problem had been identified, the researcher began to set objectives that
served as a guide in answering the problem.
Data gathering is the first step in conducting a research study. It consists of
different means in collecting data needed. The present design was studied in
accordance to know the socio-economic perspectives of Pililla Windmills as a tourist
destination from the insights of micro-entrepreneurs and residents of Sition, Bugarin
Rizal.
Data Analysis
This study will use coding as the data analysis tool of qualitative data. When
all the information relating to the study was gathered, analyzing it will be the next
procedure. Through data analysis, the researcher interpreted the data and was able to
design a planned solution to the existing problem.

Results
No. Themes Subthemes
1 Money-Making Due to Poverty
Lack of Employment
Self-Dependency
Less Competition
Presence of Potential Customers
2 Daily Saver Household Expenses
Distance and Access to their
Residences
Education Purposes
Loan Payment
Personal Savings

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3 Barriers Space and Place for Selling

Lack of Capital
Many Competitors
Tourists Rate
4 Word of Mouth Financial Resources

In theme number one (1) Money Making theme is answering the questions on
“why you chose to be an entrepreneur?”. This theme presents the reasons of the
respondents for engaging in this kind of business. It was revealed that the primary
reason why they are in such kind of enterprise is due to poverty. This suggests that
small entrepreneurs or vendors engaged to this kind of business in order to survive in
this world and to sustain their basic needs. Because of lack of education, these vendors
have a difficulty in finding a decent job and as a result, they engaged in selling some
souvenir and crafts. Two respondents said that even if the tourism rate of Pililla is
failing, they have no choice but to continue their business because they do not have
any ways to have other source of income and most importantly, the government does
not give any alternative way or a livelihood support program. It is also important to
note that the least reasons for them to engage to this business are for self-dependency
and it is easy to manage and to operate.

Moreover, the theme number two (2) answers the “how do the micro-
entrepreneurs exploit the socio-economic opportunities brought by tourism in
Pillilia?”. This theme presents the impact of Pililla Windmills to the socio-economic
lives of the respondents and to the government. It was revealed that the major impact
of being a vendor near or around Pililla Windmill is that they can have a way to pay
their household expenses and to satisfy their basic needs. The findings affirmed in this
theme was the vendor’s priority budget. Three of the informants said that being a
small vendor in Pililla Windmill is very helpful in their lives. They can buy their needs
and they can survive every day, but sometimes, since the budget is limited, they cannot
buy their wants such as cellular phones, new clothes and recreation activities.

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It is also important to note that Pililla Windmill also helped the vendors pay for
their debts and loans. Moreover, Pililla Windmill as tourist destination also afforded
them to send their children to go to school. This suggests that despite poverty and lack
of income, they still prioritize education as part of their daily living. Five (5) from
interviewee said that they need to engage in this kind of business to help their children
to go to school. It also their 'hope that someday, they will end this kind of enterprise
because their children will have a more decent jobs after their graduation.
And finally, the least contribution of Pililla Windmill to the life of the
respondents is to have a personal savings for emergency and future use. This implies
that being a vendor around or near Pililla Windmill is for everyday survival of the
informants. The income of the informants could not meet the demand to have a
personal saving because their income could only satisfy their basic needs.

While in terms of “what problems hinder the beneficial impact of tourism?”

the theme three answered it, Barrier reveals that space and place for their business is
the main problem of the informants with regards to selling. The results of the
interview revealed that vendors are afraid to be driven away since there’s a lot of
tourists who’s need to be entertain. Moreover, most of the vendors are hoping that the
Government of Rizal must be considerate to them and to allow them to stay
permanently in the Pililla, since selling souvenirs, foods and crafts is their only source
of income and living.

In addition, the results of the interview and thematic analysis represents the
reasons of vendors in engaging their businesses in the Pililla Windmill. The result
reveals that their primary reason is on the presence of potential customers. Most of the
responses in the interview revealed that most of their customers are the students and
tourists from another municipality of region. This suggests that since students rely on

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their allowances given by their parents, they need to allocate their money wisely and
buy cheaper products and goods.
Moreover, other reasons for engaging in the Pililla Windmill are distance and
access to their residences, since most of the vendors are residing near Pililla Windmill;
the Government of Rizal are not strict especially that they are not being driven out the
rules and regulations of the tourist destination.

Discussion
This study was conducted to investigate and analyze the socio-
economic impacts of the Pililla Windmill as tourist destination insights from micro-
entrepreneurs and has recommended a set of strategies for economic progress in the
municipality of Rizal. The study sought to answer the questions, the effects of tourism
in the socio-economy, culture and social development of the Windmill in Pillila, Rizal
Philippines?, how do the micro-entrepreneurs exploit the socio-economic
opportunities brought by tourism in Pillilia?, what are the responsible practices of
micro-entrepreneurs to sustain the socio-economic impact of tourism?, what problems
hinder the beneficial impact of tourism? and lastly what enhanced development plan
maybe proposed?.

The empirical findings of this study are addressed, and the questions are
answered in the previous four chapters; socio-economic impacts, roles of economic
impacts, enhancing socio-economic aspects of societies, and formulating strategies for
economic progress respectively.
First, the socio-economic impacts identified in this study are direct, which
include commodities, industries, and sources of spending, and indirect and induced
that contain capital investments and all economic activities that yield further jobs and
economic prosperity which is also defined by Corner and Ho (2010) entrepreneurial
opportunity is a combination of socio-economic conditions interpreted as favorable to

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start up new business. The results shows that Windmill affects the economy, culture,
and social development of the Pillila, Rizal. It stated that the Pililla Windmill in Rizal
is participating in community development by contributing funds to community
development projects like income for vendors, resorts, coming up with another tourist
spot/destination and supplying the electricity and energy in Rizal. Also tourism
development in Pililla Windmill Rizal municipality has created many jobs and
incomes and also has significant impact on income of the local community.
It has been discussed in chapter two (review of related literature) that tourism
became the main industry in this particular area and is the major job provider. Local
community of Rizal believes that tourism is a blessing for them as very few other
economic activities provide them jobs. It is found that local community of Rizal is
happy to get job although they sometimes express dissatisfaction about salary,
working condition and job insecurity.
Entrepreneurs around and near Pililla Windmill believ ethat although they are
earning low income or wages in selling crafts and any stuffs from Pililla Windmill but
it is comparatively better than working in agricultural or fishing activities as in those
sectors wages are even lower, jobs are hazardous and also do not provide expected
social status. Findings show that most members of local community of Rizal work in
lower level of tourism industry and think that lack of education and skill are the
reasons behind their poor status.

Rizal municipality has the higher rate of literacy in the country. Geographic
location of this city creates an opportunity for industrialization and hence there are a
few government and private sector manufacturing industries in this area.
Moreover, Pililla Windmill as tourist destination has also created significant
socio-cultural impacts that are visible and influence every section of local population.
Researchers had previous experiences and know-how about the socio-cultural

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characteristics of the research area and his findings assist to trace social-cultural
changes in Pililla Windmill.
In addiyion, economic conditions, demographic conditions, employment
composition, role of tourists, and community resources and entrepreneurs are
identified and analyzed to address the roles of socio-economic impacts which is
according to D'Mello (2015), socio-cultural impacts focuses on the community, and
therefore the changes in societal, collective and individual value systems, behavior,
social relationships and lifestyles, modes of expressions and community structure
(Page & Connell, 2012)..

Second, the micro-entrepreneurs exploit its opportunities by selling crafts that

related to Windmill. Local people are keen to get involved in development of tourism
and this attitude is justified argument that people who get benefits from Windmill,
support its development and want to get involved. Most people coming from lower
and midlevel income group want to contribute in this development process through
availing jobs. They perceive that they are not able to open their own business as they
do not have proper experience or adequate capital and therefore find it easier to be a
part of tourism development endeavor as vendors or employees.
Some upper-middle class are interested to establish small or medium scale
tourism related business to provide support services to tourists. Now, local rich
businessmen are also interested to be involved with Windmill business like overdeck,
resorts and hotels. These local businessmen face two fold difficulties coming from
non-local entrepreneurs and government. Most large and medium scale businesses are
owned by non-local entrepreneurs and local entrepreneurs find it quite difficult to
compete with them because of their lack of business experience and capital. As it was
discussed earlier that non-locals are not interested to employ local people in their
business therefore these local people find it difficult to penetrate this sector even as
employees.

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Third, the enhancement of socio-economic impacts for economic prosperity by

creating new jobs, minimizing social confrontations, increasing the benefits for
societies and stakeholders, harmonizing cooperation between small businesses, and
tourism, and motivating ecological activities in tourism industry are analyzed in turn
which Pililla Windmill is one of the renewable energies, which have been applied in
various conditions due advantages such as it being in-exhaustible, less environmental
pollution, and is freely accessible, and reduces the costs of balancing services (Yuan,
2013).

Lastly, a set of strategies are formulated as a strategic step towards economic

prosperity from the tourism.

Conclusion
The following are the strategies discussed as empirical findings, creating Rizal
tourism in further development, this all about the tourism and business environment is
dynamic which needs timely reviewing of the strategies and developments for the
sustainable economic progress. Reviewing the strategies and exploring the new
opportunities to achieve economic prosperity can facilitate the attainment of the vision
of the Government of Rizal towards Pililla Windmill. The thesis identified and
analyzed the socio-economic impacts and formulated a set of strategies for the
economic progress of Pillila Windmill, Rizal despite some limitations.
This paper will recommended that the national and local government may
continue giving assistance by way of financial support in the development of tourism
infrastructure and for the local government of Rizal may offer financial assistance for
small entrepreneurs to produce products. Others may conduct similar study using
different variables. Lastly it recommended that the tourism sector of Government in
Rizal must promote Pililla Windmill social media so that they can easily find Pililla
Windmill. Second, it may save time because you don’t need to go to the specific place
that you want to visit because nowadays when you want to ask something it's easier,

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you can just send a private message when you have a question regarding the place than
visiting it actual it will just waste your time and money.

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