Republic of the Philippines

UNIVERSITY OF NORTHERN PHILIPPINES

Vigan City, Ilocos Sur

The Philippine Experience of the Decentralization Policy and Good Governance on Cultural and
Historical Tourism: A Case Study of UNESCO Heritage City of Vigan

Abstract

The UNESCO Heritage City of Vigan has a unique local governance perspective that originated
in the historic creation under the Royal Decree of September 7, 1757 issued by Fernando VI, King of
Spain that validated and recognized its approval as a city government on December 27, 2000 in pursuance
with the provision of Republic Act No. 7160. In its historic perspective on local governance, UNESCO
Concerning the Protection of the World Cultural and Natural Heritage through the World Heritage
Committee in the Report approved in the 23 rd Session in Marrakesh, Morocco dated November 29,1999-
December ,1999. The Historic Town of Vigan (Id. No. 502 Rev) the UNESCO Committee inscribed the
property on the World Heritage List on the basis of criterion (ii) Vigan represents a unique fusion of
Asian building design and construction with European colonial architecture and planning, and criterion
(vi) Vigan is an exceptionally intact and well preserved example of a European trading town in East and
South-East Asia.

This conference paper dealt with public policy research on documentary analysis with the city
government report on fiscal management, e-report of the LGPMS and public promotion program about
cultural tourism. The research stream of this paper is reforming institutions, structures and processes for
responsive public administration and good governance with the meager financial resources the UNESCO
Heritage City of Vigan has able to maintain sound fiscal management on productive decentralization
system . The UNESCO Heritage City of Vigan has shown initiative on good governance as it was
awarded in the best practice on World Heritage property in relation to local governance on conservation,
local people, legal frame, sustainable finance, staff training and development, sustainable development,
and education and interpretation programmes along the tourism development that affected on what is
known as metro Vigan.

I. Introduction

The UNESCO City of Vigan was created by Republic Act No. 8988 approved on December 27,
2000.The legislative intent on the approval of the Philippine State distinctly viewed on its historical
perspective as “ An Act Validating and Recognizing the Creation of the City of Vigan by the Royal
Decree of September 7,1757 issued by Fernando VI, King of Spain.” In social science research, this is a
break through to decode the meaning of the value-life experiences on the social and cultural reality of the
colonial diplomacy of Spain about the continuing historical events of Ciudad Fernandina de Vigan
which originally created by the Royal Decree of September 7,1757 issued by Fernando VI, King of
Spain .
 After more than two and half centuries from its recognition in Spain as Ciudad Fernandina de
Vigan, now becomes the famous Spanish heritage city with Outstanding Universal Value as listed in the
UNESCO World Heritage Site of the Historic City of Vigan.

The UNESCO World Heritage Committee defined its path as Worl Heritage Property by the
Historical Perspective deeply rotted by the colonial diplomacy of Spain in the Asia-Pacific region:

Established in the 16th century, Vigan is the best-preserved example of a

planned Spanish colonial town in Asia. Its architecture reflects the coming together of
cultural elements from elsewhere in the Philippines, from China and from Europe,
resulting in a culture and townscape that have no parallel anywhere in East and South-
East Asia.

The Advisory Body Evaluation of the UNESCO World Heritage site approved by its
inscription as the Historic Town of Vigan with the Justification :

Criterion (ii): Vigan represents a unique fusion of Asian building design and
construction with European colonial architecture and planning. Criterion (iv):
Vigan is an exceptionally intact and well preserved example of a European trading
town in East and South-East Asia.

The UNESCO World Heritage Committee justified this Historic Town of Vigan on this long
description from its origin as the European trading town in East and South-East Asia as to the emergence
and fusion of the Asian building design and construction with European colonial architecture. There is a
good reason to preserve the historic centres and towns just like Vigan City. The Philippine government
through the Department of Tourism and City Government of Vigan was able to implement inscription of
the Historic Center of Vigan. In the operational guidelines for the inscription of a cultural heritage site
must fully consider that: “While fully respecting the sovereignty of the States on whose territory the
cultural and natural heritage is situated, States Parties to the Convention recognize the collective interest
of the international community to cooperate in the protection of this heritage.” States Parties to the World
Heritage Convention, have the responsibility to: (Article 6(1) of the World Heritage Convention)
a) ensure the identification, nomination, protection, conservation, presentation, and transmission to
future generations of the cultural and natural heritage found within their territory, and give help in
these tasks to other States Parties that request it; (Article 4 and 6(2) of the World Heritage
Convention)
b) adopt general policies to give the heritage a function in the life of the community;( Article 5 of the
World Heritage Convention Operational Guidelines for the Implementation of the World Heritage
Convention 3)
c) integrate heritage protection into comprehensive planning programmes;
d) establish services for the protection, conservation and presentation of the heritage;
e) develop scientific and technical studies to identify actions that would counteract the dangers that
threaten the heritage;
f) take appropriate legal, scientific, technical, administrative and financial measures to protect the
heritage;
g) foster the establishment or development of national or regional centres for training in the protection,
conservation and presentation of the heritage and encourage scientific research in these fields;
h) not take any deliberate measures that directly or indirectly damage their heritage or that of another
State Party to the Convention; ( Article 6(3) of the World Heritage Convention)
 i) submit to the World Heritage Committee an inventory of properties suitable for inscription on the
World Heritage List (referred to as a Tentative List); (Article 11(1) of the World Heritage
Convention.)
j) make regular contributions to the World Heritage Fund, the amount of which is determined by the
General Assembly of States Parties to the Convention; ( Article 16(1) of the World Heritage
Convention)
k) consider and encourage the establishment of national, public and private foundations or associations
to facilitate donations for the protection of World Heritage; ( Article 17 of the World Heritage
Convention)
l) give assistance to international fund-raising campaigns organized for the World Heritage Fund;
(Article 18 of the World Heritage Convention)
m) use educational and information programmes to strengthen appreciation and respect by their peoples
of the cultural and natural heritage defined in Articles 1 and 2 of the Convention, and to keep the
public informed of the dangers threatening this heritage;and (Article 27 of the World Heritage
Convention.)
(n) provide information to the World Heritage Committee on the implementation of the World Heritage
Convention and state of conservation of properties. ( Article 29 of the World Heritage Convention
Resolution adopted by the 11th General Assembly of States Parties (1997) Operational Guidelines
for the Implementation of the World Heritage Convention.

The UNESCO World Heritage List of Cultural Properties has acknowledged the Vigan Ancestral
Houses as a historic buildings and monuments that was constructed during the reign of European power
and adopted from the participation of the Chinese on its economic trade and cultural relations of the
Ilocanos. The native artisans were given an opportunity to redefine the architectural legacy of the
European and behind the support of the East Asian influence.The World Heritage Centre officially cites
“Vigan represents a unique fusion of Asian building design and construction with European colonial
architecture and planning”. Furthermore ,“Vigan is an exceptionally intact and well preserved example
of a European trading town in East and East Asia.”

In the applicability of “Historic Towns and Town Centres” in Vigan can be traced from the
Spanish colonial period. As a town centre, it conformed with Ley de las Indias ( the Law of the Indies)
that regulated on its spatial form which was similar with the European structure. The urban planning has
street patterns that radiated form a central park. The historic town was transformed as a bustling city
called “Ciudad Fernandina de Vigan” that had complete administrative and religious buildings to show
the complementary structure for the church and state which was located in central plaza ( Plaza Salcedo).
These were the Casa Real, Capitolio , Municipio, Colegio de Ninas, Cathedral, and the other Spanish
structures

In local governance, the multi-disciplinary approach of cultural management provides important

insights as to the development of the UNESCO World Heritage site in its Universal Outstanding Value on
the following:

1. The human society on its social and cultural facts based on historical antecedents provides the
strategic opportunity to revive the concept of cultural management and the development of
cultural tourism to transform the town or municipality as a tourists’ hubs for local economic
growth and development.

2. The international recognition of the historic town or city as supported by the UNESCO World
Heritage Committee based on their evaluation on its Outstanding Universal Value (OUV)
provides the historical and cultural awakening of the human society for its cultural tourism
development of a given site.
 3. The local government officials and the concerned stakeholders are the key in the sustainable
development of the UNESCO World Heritage Property as their innovative strategy to
promote historical and cultural tourism ensure the right path for the local economic growth
and development.

The Philippine government through the Department of Tourism (For the Presidential Commission
for the Restoration, Conservation and Preservation of the Vigan Heritage Village) was able to get an
international grant from the Government of Spain (For Agencia Espanola de Cooperacion International
and Fundacion Santiago) to implement and ensure the protection, conservation, and preservation of the
cultural heritage of the Historic City of Vigan.

The Memorandum of Agreement between the Government of the Republic of the Philippines and
the Government of Spain: which was signed in March 23,1999 agreed to formulate the Master
Development Plan for the Historic City of Vigan in accordance with the programme developed by
Agencia Espanola de Cooperacion International on the preservation of cultural heritage in those countries
where Spain has shared its history.

In the Memorandum of Agreement of the Master Plan for the Revitalization of the Historic
Center of Vigan, the development objectives of the project are: (1) to promote the preservation of Filipino
historical and cultural heritage and resources; and (2) to develop tourism along the lines of conserving the
socio-cultural heritage, preserving the environment and sustainable development. While the Strategic
Objectives are: (1) to formulate a master plan for the revitalization of the historic town of Vigan; (2) to
enhance knowledge in crafts/skills which are relevant to restoration and preservation; (3) to come up with
a concept on the packaging and promotion of Vigan Heritage Village, with other tourism destinations
within the province and the whole of Region I, in order to ensure its position in the region’s tourism
market; and (4) to formulate viable investment strategies in the pursuit of development in the study area.

The scope of work of the Master Plan for the Revitalization of the Historic Center of Vigan
considered the physical and the socio-economic aspects such as human development, community
organization, education and livelihood as the basis for sustainable development. It also covered the
Physical Development Planning, Socio-Cultural and Socio-Economic, Ecological and Environmental,
Legal and Financial, Project Development and the Institutional Aspects of work.

After its completion of the contract, the Cuidad Fernandina de Vigan finally recaptured its glory
in the past as the commercial center of the north that sustained the economic growth and development. It
has been able to continuously promote the preservation of Filipino historical and cultural heritage
resources. The Philippine movie and entertainment industry has been utilizing the old Spanish structure of
Vigan to portray the historical setting during the Spanish period from the 16the century to the 18 th
century. It has been the major local tourist attraction for its unique cultural landscape as it represents the
old Spanish town in the north of the Philippines. The strategic vision of the Historic City of Vigan has
fulfilled for its revitalization as the best practice in World Heritage Property management for the
contemporary time. However, the next phase of the development to sustain its tangible path in the
knowledge-based society is to document and publish the best practices for the cultural management
particularly those listed in the World Heritage Property.

This is case study of the UNESCO Heritage City of Vigan with the meager Internal Revenue
Allotment (IRA)the challenge of local governance is to test the application of decentralization policy
under Republic Act No. 7160. This the success story of cultural and historical tourism as to the infusion
of local governance strategy to sustain the development of the UNESCO Heritage site as handled by the
city government.
 II. Research Objectives

The research paper discusses the Philippine experience of the decentralization policy and good
governance in the best practice of cultural conservation and management of the UNESCO heritage city of
Vigan. These are the following specific objectives relevant to the Cultural Heritage Conservation and
Local Government Administration:

1. To present the development thrust, vision, mission and objectives in the Cultural Heritage
Conservation and the Local Government Administration of the UNESCO Heritage City of
Vigan.
2. To identify the contribution of the Financial Support of the Regional Investment Program (In
the 2012 Annual Investment Programs in Region I, of Government Sectors and Local
Government Units) relevant to the support of the cultural Heritage .
3. To present the fiscal management in the economic, environment and social development
sectors (2011-2012) and the Internal Revenue Allotment (2009-2012) of the City
Government of Vigan.
4. To evaluate the state of local government administration along administration, economic,
social, environmental and valuing of fundamental of governance in the City Government of
Vigan.

III. Methodology

The research study utilized the public policy research on documentary analysis with the city
government report on fiscal management, e-report of the Local Government Performance Monitoring
System( LGPMS), Regional Development Council (RDC) Report on Investment Program of Ilocos
Region, Commission on Audit (COA) on Local Government Audit Report and tourism promotion
programs of Vigan City. The public policy as guided by the Local Government Code (Republic Act No.
7160) in the creation of component city and its approval of Republic Act No. 8988.The state of local
governance is provided in the e-report of the Local Government Performance System of the Department
of Interior and Local Government (DILG) and the documentary analysis as to the local governance report
of the UNESCO Heritage City of Vigan.

Based on the theme of the research paper on reforming institutions, structures and processes for
responsive public administration and good governance, the state of local governance would spell out the
case of the UNESCO Heritage City of Vigan by its development thrust of heritage preservation and
management, cultural tourism activities that needed to have vast financial resources to sustain the
development program and maintain the basic services as provided in the LGPMS. Hence, it also provides
the 2009-2012 state of local governance report namely: (1) Administration Governance–Customer
Service, Development Planning, Human Resource Management and Development, Resource Allocation
and Utilization, and Revenue Generation; (2) Economic Governance-Support to Agriculture,
Entrepreneurship, Business and Industry Promotion, and Support to Fishery; (3) Social Governance-
Support to Education, Health Services, Peace, Security and Risk Reduction; and (4) Environmental
Governance- Freshwater , Coastal and Urban Ecosystem.

This study further validated local government structures and processes in the documentary
analysis of the actual COA Audit Report for Local Government CY 2011-2012, LGPMS Full Disclosure
Policy Portal (FDPP) of the financial statement and the Annual Investment Program of Ilocos Region
(2012) as to the development programs of the City Government of Vigan. Furthermore, the Vigan City
websites provides the comprehensive documentary reports in all activities in the local government
administration.

IV. Research Discussions and Findings

A. The Cultural Heritage Conservation Program and Local Government Administration

In 2009, the income class of the city was a fifth class municipality with population of 50,157
(11,942 households) and a land area 2,880 hectares. The significance of this year report, the economic
activity identified on its tourism potential that mainly served the local governance transformation of the
city “ History and Culture (eg fort, cathedral, church, museum, structures and buildings.” It is articulated
in the strategic direction as city magnified by its grandeur in the past as Ciudad Ferdinand de Vigan (with
the other two cities in the Spanish period namely Maynilad and Cebu in the Philippines) under the Royal
Decree of September 7, 1757 issued by Fernando VI, King of Spain that eventually carried on its approval
as a city again by Republic Act No. 8988 approved on December 27, 2000. It also became a UNESCO
Heritage site “Vigan represents a unique fusion of Asian building design and construction with European
colonial architecture and planning”. Furthermore, “Vigan is an exceptionally intact and well preserved
example of a European trading town in East and East Asia.”

The local governance indicators will be integrate the case of the UNESCO Heritage City of Vigan
along the Four Objectives of the Cultural Heritage Conservation Program :

(1) to fortify the sense of identity and pride of the community on their historic city;
(2) to institutionalize local protective measures and development plans to
ensure continuity of programs and involvement of stakeholders;
(3) to forge local and international linkages; and
(4) to develop Vigan as a tourist destination where tourism programs enrich and conserve the
people’s core values and traditions, as well as sustain livelihood and employment
for Bigueños

Furthermore, the City of Vigan operations ( Commission on Audit, Annual Audit Report Local
Government Unit of the City of Vigan from 2011 to 2012 ) as are focused on the following :

Vision : A habitable heritage City of choice.

Mission : To conserve our heritage and deliver effective services for improved quality of life.
Local Government Administration
A. Fiscal Administration
1) To increase revenue capped by more prudent public expenditures to be able to give quality
service to the people.
B. Human Resource Management
1) To improve the quality of officials and employees performance in the delivery of public
service.
2) To provide incentives to government workers in the discharge of their functions and duties.
C. Economic Development
1) Commerce, Trade and Tourism
1.1 To improve business climate by attracting new local and foreign investors.
1.2 To construct the other modules of the new Vigan City Public Market
1.3 To conduct livelihood skills and agricultural management training programs in the
different barangays.
2) Agriculture
 2.1 To improve the quality of food and feed grains produced by farmers.
2.2 To increase the production of high value commercial crops
2.3 To implement Key Fisheries Development
D. Social Services
1) To bring services of the government closer to the people
E. Environmental Protection and Ecology
1) To protect the environment and all other natural resources.
2) To clean and green the environment
F. Education and Cultural Awareness
1) To improve community participation in improved educational development.
2) To increase community participation in improved economic development
3) To provide bases upon which the people can develop appreciation for and pride in Vigan
history and tradition so they can identify themselves with the symbols
G. Peace and Order
1) To maintain if not decrease the crime rate of the city.
2) To promote police professionalism as well as encourage them to embark on Human Resource
Development Approaches
3) To provide Local Government Unit (LGU) Logistics Reports to Philippine National Police

The Local Government Administration will be the basis of the development analysis in relation to
the state of governance of the City with inclusion of the conservation management program as identified
in the vision of habitable heritage city and the mission of conservation of the heritage. The issues and
challenges of the UNESCO Heritage City of Vigan reflect from the integration of the state of governance
in the sustaining the local government services as the prime mover of development in the quality of life of
the Biguenos. The City Government has to respond the state of local governance (administration,
economic, social and environmental governance). In the local governance indicators of the basic profile
of the UNESCO Heritage City of Vigan , the ecosystems are agricultural, coastal marine and freshwater
ecosystem. In 2009, the LGPMS report defined its tourism potential in history and culture including
beach resort, hotels and natural attractions. From 2010 to present, the LGPMS reports includes the
sustained economic activities: (1) commercial and service center; (2) agricultural; (3) industrial; and (3)
fishery.

This is in line with the City’s mission statement “to conserve our heritage and deliver effective
services for an improved quality of life.” The study provides the documentary analysis and LGPMS
e-report of the City Government to analyze the effectiveness of the decentralization policy under
Republic Act No. 7160 otherwise known as the “1991 Local Government Code of the Philippines” along
the mandate of Republic Act No.8988 on its historical perspective as “ An Act Validating and
Recognizing the Creation of the City of Vigan by the Royal Decree of September 7,1757 issued by
Fernando VI, King of Spain.”

B. Annual Investment Program ( Regional Development Council Report of 2012) of Ilocos

Region Relevant to the Tourism Promotion of the UNESCO Heritage City of Vigan

As reported for the annual Investment Program in Ilocos Region for 2012 , majority of the budgetary
requirements on investments are generated from the Local Government Units ( For Local Government
Administration), comprising 50.82% of the total in the region. The infrastructure sector, fueled by
numerous infrastructure projects by DPWH and NIA, follows with 31.55 %.The Economic (with the
development thrust of Competitive Trade, Industry and Tourism; More Vibrant Agribusiness; and
Sustainably Management Environment) and Social Development sectors comprise 8.99 % and 8.58 %
respectively while the Governance sector (Better Governance) has the least with 0.07% of the total
budgetary requirements on investments for 2012.
 Table 4
2012 Annual Investment Program of Ilocos Region in the Role of Local Government Administration of
the UNESCO Heritage City of Vigan ( in thousand pesos)

Description Amount Percent Rank

General Public Services 95,757.40 39.32 1
Research and Administrative 11,000.00 4.52 6
Infrastructure Development 36,885.30 15.15 3
Education and Manpower Development 14,561.00 5.98 5
Health, Nutrition and Population Control 23,415.00 9.62 4
Housing and Community Development 10,217.00 4.20 7
Gender and Development 1,000.00 .41 10
Youth Development 37,820.00 15.53 2
Agriculture and Fisheries Development 7,820.00 3.21 8
Tourism Promotion 4,500.00 1.85 9
Trade and Industry 500.00 .21 11
Total 243,476.20 100 Rank 1-11

Based on the Regional Development Council Report of the 2012 Annual Investment Program in
Ilocos Region, the UNESCO Heritage City of Vigan has been identified in the investment program on
Local Government Administration with the budgetary allotment of Php 243,476,000.20 or 2.32 percent.
The General Public Services received the highest budget of the Annual Investment Program with Php
95,757,000.40 (39.32 percent) followed by the mandate of Local Government Code on Social
Development with Php 87,013,000.00 (35.74 percent). Furthermore, the financial allocation of the Local
Government Administration of Vigan City also provides the support on Youth Development (15.53
percent); Health, Nutrition and Population Control (9.62 per cent); Infrastructure (15.15 percent);
Education and Manpower Development (5.98 percent); Research and Administrative (4.52 percent);
Housing and Community (4.20 percent); Agriculture and Fisheries Development (3.21 percent); Tourism
Promotion (1.85 percent) ; and Trade and Industry (.21 percent).

The direct support of the Tourism Promotion has financial allocation of Php 4,500,000.00 with
1.85 per cent as to the total budget of Vigan City. The budget percentage shares of the tourism program
includes the Cultural Conservation and Events Promotion (0.82 per cent); Visual Performing Arts
(0.41); Improvement of Public Parks and Plazas (0.41); and Products Quality and Packaging
Improvements ( .021). The substantial portion of the Annual Investment Plan for 2011 was directed to the
Local Government Administration.

The Annual Investment Program is within the vision of a habitable city of choice and the mission
statement have substantial portion of the budget to deliver effective services for improved quality of life
has the budget as presented in Table 4 of Php 238,976.20 or 98.15 per cent that provided substantial
support in the Local Government Administration as mandated in the decentralization policy of Republic
Act No. 7160. The UNESCO Heritage City of Vigan on its blueprint of the vision-mission statement it is
directed heritage habitable city and conserve our heritage with the budget allocation of Php 4,500,000.00
and 1.85 percent for Annual Investment Program on Tourism Promotion under the Cultural Heritage
Management Program and the entire investment program of Ilocos Region amounting of
20,609,098,000.00 with the city investment share of Php 243,476,000.00 (2.32 percent ).

The 1.85 percent share( less than five million pesos) of the Annual Investment Program for the
Tourism Promotion have produce the year round cultural activities in the UNESCO Heritage Site:
1. Vigan city Fiesta and Longganiza ( Local Sausage) Festival in January
2. Semana Santa in April
3. Viva Vigan Binatbatan Festival in May
4. World Heritage Cities Solidarity day featuring the Repazzo de Vigan ( Vigan’s History on
Parade)
5. Other Cultural Awareness Program

The substantial portion of the domestic tourism such as educational field trip, national convention,
religious pilgrimage and cultural entertainment has affected all Government Agencies (GAs), Local
Government Units (LGUs), Higher Education Institutions ( HEIs), private schools and other sectors of the
society that contributed to the direct economic growth of Ilocos Region in the transportation sector,
hotels, handicraft and souvenir industries, food and manufacturing, and etc. The UNESCO Heritage City
has been of the World Heritage List that the national government has to support that need to maintain its
grandeur of the past as the only original Castillian building structure survived from the ruins of the World
War II. The Vigan Master Plan through the development assistance of the Spanish government that
contributed the 100 million pesos annual budget for the last five years (2000-2005) revived its grandeur
that provided the tangible result to the booming tourism industry of Ilocos region .

In Ilocos region, the tourism industry (2010) has able to capture 477,966 regional travellers with the
breakdown of 37,530 Foreign Travellers; 2,767 Overseas Filipino Workers; and 437,669 Domestic
Travellers. This is only 2.19 percent share of the 23,808,667 travellers nationwide for 2010. In Ilocos Sur,
there are 75,516 travellers (4,137 foreign travellers, 533 Overseas Filipinos, and 70,706 Domestic
Travellers) who visited the tourist attractions particularly in Vigan. The tourism industry in Ilocos
Region has the strategic opportunity to capture at least four percent share (Php 920,000) of the travellers
nationwide for the next three years with the right promotion programs particularly the sustained increase
of the Historical and Cultural Tourism activities in the UNESCO Heritage City of Vigan. This means that
the City Government will be able to take the higher share of travellers that will spill off in the other
provinces in Ilocos Region. In this situation the UNESCO Heritage City of Vigan should increase its
tourism investment program with an annual rate of five percent in the amount of 12 million pesos for the
next three years. This is only 7.2 percent (36 million pesos) when compared to the total investments in the
Vigan Master Plan (2000-2005).

C. The Fiscal Management in the Economic, Environment and Social Development Sectors
and Internal Revenue Allotments in the Local Government Administration of Vigan City

The mandate of decentralization policy (Republic No. 7160) provides the fiscal management in the
economic development sectors for commerce, trade, tourism and agriculture; social development for the
support for education, health services, housing, basic facilities, security, peace and disaster risk
management; and environment development sectors for freshwater, coastal and forest ecosystem
management. The Internal Revenue Allotment (IRA) has been the major subsidy provided by the national
government to finance the delivery of social and economic services of the local government units in the
Philippines. However, the UNESCO World Heritage of Vigan City initiates way to expand the financial
resources in support of the site’s outstanding universal value. There are many cultural activities as the
intangible development sustenance of the UNESCO Heritage site as the foreign and local tourists are
attracted to the cultural festivities.

Table 5
The Role of Local Government Administration in the Economic, Environment and Social Development
Sector of the UNESCO Heritage City of Vigan

Description 2011 2012

Targets Accomplishments % Target Accomplishment %
Economic 33,554,101.82 32,634,760.40 97 24,385,398.87 23,269,455.33 95
Development Sector
Environment 5,677,317.01 5,207,535.52 92 3,155,128.36 3,142,707.97 99
Development Sector
Social Development 111,186,455.00 55,728,269.15 20 44,136,105.10 69,902,012.40 96
Sector
Total 150,417,874.65 93,570,565.09 62 71,676,632.33 96,314,175.70 97

In the UNESCO Heritage City of Vigan, the Local Government Programs on the economic,
environment and social development sectors has accomplished 97 per cent in 2012 as compared to 62
percent in the fiscal management of 2011. The environment development sector reflected the high level
of accomplishments to 99 per cent. This was followed by social development sector that achieved only 20
per cent in 2011. The economic development sector accomplished 95 per cent accomplishments for 2012
which was higher accomplishments in 2011 with 97 percent.

The significant findings of the Commission on Audit on the actual report (2012) of Vigan City
that it is worthy report to note, the City Government allocated the amount of Php 72,136,105.10 or 43.13
percent of the total Internal Revenue Allotment (IRA) of Php 167,237,333.00 for Development Fund
which is higher than the mandated 20 percent, requirement for the LGUs and the amount of Php
69,902,012.40 or 96.90 percent which was utilized this leaving a balance of Php 2,234,092.70.
Furthermore, the five percent appropriations for Gender and Development (GAD) was fully provided in
the Annual Budget and 97.19 percent it was utilized for various development programs/projects
achieving this the national government its aim in pursuing women’s empowerment and gender equality
in the country was favorably attained.

Table 6
The Internal Revenue Allotment, Local Source and Other Revenues of the
UNESCO Heritage City of Vigan from 2009-2012

Description 2009 2010 2011 2012

1.Internal Revenue Allotment 165,427,469.00 181,454,721.00 194,521,189.00 167,237,333.00
2.Local Source Revenues 62,994,108.45 75,460.054.33 80,018,774.00 95,038,798.00
3.Other Revenues 2,289,536.00 20,129,066.72 13,599,949.00 16,651,970.00
TOTAL LGU INCOME 230,711,113.45 277,043,842 288,139,812.18 279,928,101.39

In 2010, the city has an Internal Revenue Allotment Share of Php 181,454,721.00 with local-
sourced revenues of Php 75,460.054.33 and other revenues of Php 20,129,066.72 with the total LGU
Income. The year 2011 has the highest Internal Revenue Allotment (IRA), based on the COA report in
this year that it was worthy to note that during the year, the City Government allocated the amount of Php
150,417,874.05 or 77.32 percent of the total Internal Revenue Allotment of Php 194, 521,189.00 which is
higher than the mandated 20 percent requirement for Local Government Units and the amount of Php
93,570,565.09 or 62.21 percent was utilized this leaving the balance of Php 56,847,309.56.

D. The State of Local Governance of the UNESCO Heritage City of Vigan

As provided it the LGPMS Report is highlighted in this report is your LGU's performance in four
(4) areas of governance: (1) The Administrative Governance provides information about the local
legislation, revenue generation, development planning, resource allocation and utilization, and customer
service and human resource management and development; (2) Social Governance for the support of
education and health services including peace, security and disaster reduction; (3) Economic Governance
provides the support on agriculture, fishery and business promotion; and (4) Environmental Governance
ensures the sustainability of the freshwater, coastal and forest ecosystem. In the LGPMS, a special report
is included to determine how the fundamentals of good governance such as Participation, Transparency,
and Financial Accountability are valued in the LGU. It is to note that the LGU's performance was
assessed based on the responses of the LGU's Team to the questions provided into the LGPMS database.
A Performance Scale is used to identify areas with excellent performance and areas for improvement. A
perfect scale of 5 denotes excellent performance while performance scales of 1-4 indicate areas for
improvement. Although scales of 3 and 4 are relatively high, there are areas which can still be improved
on.
Administrative Governance looks into six areas: Local Legislation, Development Planning,
Revenue Generation, Resource Allocation and Utilization, Customer Service and Human Resource
Management and Development.

Table 1
Administrative Governance of the UNESCO Heritage City of Vigan

Administration Governance 2009 2010 2011 2012

1. Local Legislation 4.80 4.75 4.50 4.50
2. Revenue Generation 3.93 3.93 4.67 4.67
3. Development Planning 5.00 5.00 5.00 5.00
4. Resource Allocation and Utilization 4.00 4.50 4.50 4.50
5. Customer Service-Civil Application 4.80 5.00 5.00 5.00
6. Human Resource, Management and 5.00 5.00 5.00 5.00
Development
Average Mean Score 4.58 4.70 4.78 4.78

In the 2009-2012 LGPMS report, the local governance of the UNESCO Heritage City of Vigan
showed sustained excellent performance in : (1) Human Resource Management and Development; (2)
Development Planning; and (3) Customer Service Application.

The case of UNESCO Heritage City of Vigan has able to management the human resource that is
geared towards a desired end which is “desirable organizational performance and productivity” in the
development thrust of the cultural heritage conservation program. In the recent award of the best practices
of UNESCO World Heritage site management of the celebration of the 40 th anniversary of the World
Heritage Convention that was awarded in Kyoto, Japan, last November 8, 2012, the staff training and
development as to the approaches and strategies have developed and implemented to assure that the
human resources are adequate to manage the World Heritage Property:
 1) The City Government has established a Heritage Conservation Division manned by trained
personnel and created within the City Engineer’s Office to ensure that all physical interventions
(repair and restoration works) within the protected zone are properly carried out, according to
approved engineering and architectural plans. This is a task that requires political will as it may
go against business interest. But this shows that the government is steadfast in its commitment.
2) The Escuela Talyer(School for Traditional Building Crafts) was established, in collaboration with
academic institutions, to train a pool of building crafts persons to maintain, repair or restore
historic buildings.
3) To date, the city has three scholars studying at Escuela Taller in Intramuros. After graduation,
they shall teach other Biguenios the skills they have acquired. The city shall then have a pool of
restorers to take care of its historic buildings.
4) Institutional and human capacity building is constantly built through the participation of
concerned employees of the City Government in national and international training workshops
such as the International Course on Disaster Risk Management for Heritage Sites in Kyoto,
Japan.
5) The drivers of the traditional horse-drawn carriages have been trained by the Department of
Tourism to act as unofficial tour guides for the multitude of visitors.
6) The kalesa rides make the visit to Vigan more fun, more exciting and more meaningful and
memorable. It makes the Vigan tour a real travel in time.
7) Concerned government agencies are assisting local producers of handicrafts and service providers
(hotel and restaurants) to improve their products and services to visitors.
8) Employees of the city government undergo records keeping and archives management trainings
to enhance their capabilities to document historical records.

In Development Planning, prior to its approval as city government it has already established the long
range plan that started in the Vigan Master Plan way back in the year 2000 that provided the full
transformation of the UNESCO Heritage site in the restoration of the ancestral buildings and grant and
assistance in the delivery of basic services.

The City Mayor, Hon. Eva Marie S. Medina presented the conference paper entitled “The Vigan City
Heritage Conservation Program : A Tool for Development” at Penang International Conference on
Sustainable Cultural Development : The Economics of Heritage Revitalisation at George Town World
Heriatge Site last 8-9 October, 2009 provided a discussion about the role of the Spanish government as to
the Vigan Master Plan in an effort to conserve and preserve the ancestral buildings of Vigan that had
tourism potentials in the province of Ilocos Sur. This led to its sustainability that has been in place as to
the structure, consultative processes and planning databases which are highly facilitative in the
preparation or updating of land use and development plans.

After the completion of the Vigan Master Plan, the Spanish government sustained the momentum
with other joint undertakings, which included:
1. The restoration of an ancestral building that has been transformed into the Vigan culture
and trade center;
2. The provision of potable water for all of our 30 rural villages under which each resident
is entitled to a free daily supply of 5 liters of potable water for 25 years;
3. The establishment of an integrated water supply system;
4. The introduction of scientific methods of aquaculture and fish processing;
5. The development of metal crafts;
6. The improvement of health and sanitation; and
7. The formulation of a solid waste management program.
 At present, our city government is collaborating closely with UNESCO and the University of
Northern Philippines in the preparation of the heritage homeowner’s preservation manual. This will
empower homeowners, architects, property developers students and other target users in the protection of
our shared heritage. ( Medina ,2009)

The cultural conservation program has been supported by the ciy legislature as the enactment of the
following legislative measures to safeguard and preserve the historic city:

1. City Ordinance No. 12, S.1997 delineating the boundaries of the historic core and buffer zones of
the World Heritage Site;
2. City Ordinance No. 14, S.1997 defining the allowable uses in the core and buffer zones;
3. City Ordinance No. 7, S.2006 providing the Vigan Conservation Guidelines which provides
guidelines for appropriate restoration works on historic structures, construction of new structures
and development of open spaces within the protected zones. The Ordinance also created a multi-
sectoral Vigan Conservation Council which formulates, recommends, evaluate and approve
development plans, policies and programs relating to the conservation and development of the
protected zones. A Technical Working Group implements the Conservation Guidelines and
evaluate restoration/development plans for approval by the Vigan Conservation Council.
4. Traffic Code which effectively pedestrianized the main historic street of Crisologo St. and
smoothen the flow of traffic within the protected zones

There were special measures that have taken to ensure the legal framework for the legal framework
for the World Heritage to effectively maintain the OUV of the property that led to get the best practice
award in 2012:

1. City Ordinance No. 12, S. 1997 delineating the boundaries of the historic core and buffer zones of
the World Heritage Site;
2. City Ordinance No. 14, S. 1997 defining the allowable uses in the core and buffer zones;
3. City Ordinance No. 7, S. 2006 providing the Vigan Conservation Guidelines which provides
guidelines for appropriate restoration works on historic structures, construction of new structures
and development of open spaces within the protected zones. The Ordinance also created a multi-
sectoral Vigan Conservation Council which formulates, recommends, evaluate and approve
development plans, policies and programs relating to the conservation and development of the
protected zones. A Technical Working Group implements the Conservation Guidelines and
evaluate restoration/ development plans for approval by the Vigan Conservation Council.
4. Traffic Code which effectively pedestrianized the main historic street of Crisologo St. and
smoothen the flow of traffic within the protected zones

Although enormous city ordinances for the UNESCO Heritage site of Vigan to institutionalize the
cultural heritage that recognized worldwide as to the best practice in Cultural Heritage Preservation with
the development plan with the inclusion of the social and economic services of the city government. The
balance score card of the LGPMS remained as a challenge of the UNESCO Heritage City.

In 2010, the score card in the local legislation was 4.75 with the description that the imperatives of
quality legislation have to be looked into. This might mean looking into legislative staff competence and
the greater use of legislative tools such agenda development, legislative tracking, backstopping committee
and legislative performance. The imperatives of quality legislation have to be looked into. This might
mean looking into legislative staff competence and the greater use of legislative tools such agenda
development, legislative tracking, backstopping committee and legislative performance.

The award for its best practice was received in 2012 of the Best Practice in Cultural Management that
legislation has provided the strong support to achieve the good governance in the conservation, and legal
framework that no other Local Government Units in the Philippines have ever achieved its international
recognition. Not even the highly urbanized city that construed to maintain an excellence in local
legislation to be recognized by the prestigious organization like UNESCO. This means that local
legislation has able to provide quality legislation in response to the legal framework of the Cultural
Management of the UNESCO Heritage property. Instead, the score card remained at the descending order
to 4.50 for two consecutive years with the description that the imperatives of quality legislation have to be
looked into. This might mean looking into legislative staff competence and the greater use of legislative
tools such agenda development, legislative tracking, backstopping committee and legislative
performance.

It is therefore a challenge in the local legislation through the City Council has to achieve as to the
greater use of legislative tools such agenda development, legislative tracking and pinpoint specific
legislative performance to enable to reach excellent performance as most of the local governance
variables and implemented by the executive branch has sustained score card of excellent performance
(mean score of 5.00) in the LGPMS result in 2012 .

In executive leadership on local government administration on social, economic and environmental

governance, the City Mayor has been able to achieve gradually the exemplary performance as the 15
areas of local governance maintained a balance score card of 5.00 as excellent performance.

Table 3
Local Governance Performance ( LPMS Report from 2009-2012) of the UNESCO Heritage City of Vigan

Social Governance 2009 2010 2011 2012

1. Health Services 5.00 5.00 5.00 5.00
2. Support to Education 3.95 4.30 5.00 5.00
3. Support to Housing and Basic Utilities 5.00 5.00 5.00 5.00
4. Peace, Security and Disaster Risk 5.00 5.00 5.00 5.00
Management
Economic Governance 4.75 4.96 4.98 5.00
1. Support to Agriculture 4.76 4.95 5.00 5.00
2. Entrepreneurship, Business and Industry 4.83 5.00 5.00 5.00
Promotion
3. Support to Fishery Services 4.66 4.95 4.95 5.00
Environmental Governance
1. Freshwater Ecosystem 5.00 5.00 5.00 5.00
2. Coastal Marine Ecosystem 5.00 5.00 5.00 5.00
3. Urban Ecosystem Management 4.75 4.88 4.88 4.88
Valuing Fundamental of Governance
1. Participation 5.00 5.00 5.00 5.00
2. Transparency 5.00 5.00 5.00 5.00
 3. Financial Accountability 4.83 4.83 5.00 5.00

The Office of City Mayor implements the development programs in all areas that achieved an
astounding local governance productivity with 15 excellent performance in administrative, economic,
social, valuing fundamental and environmental governance It had not only aligned to the cultural
conservation programs but the delivery of social and economic services based on the mandate of Republic
Act No. 7160. This will be the challenged of the City Council as to the use of legislative tools with
respect to agenda development and legislative tracking measures. The legislative performance has
achieved at 93.40 per cent the specific legislative measures in the LGPMS requires 6.60 per cent to
achieve the excellent performance in local legislation. Other than the administration governance on
development planning, customer service and human resource management and development, the other
areas of governance maintained excellent performance.

A. Economic Governance

The mission statement relevant of the local government administration has able to achieve the
development thrusts on commerce, trade and tourism as major take off of the economic development in
Vigan City. Based on the local governance performance report of 2012, the economic development
indicates excellent performance with the score of 5.00

1. Entrepreneurship, Business and Industry Promotion : Very capable of promoting a business-

friendly environment. Customer-oriented civil application system is in place. Speedy processing
and release of building, occupancy and business permits characterize the system (for
municipalities and cities) . A management authority is created to take the lead in promoting the
investment potentials of the LGU. Initiatives such as provision of tax incentives, assistance in
product labeling especially for SMEs and support to job fairs are in place.”

2. Support to Agriculture . Financial support is adequate for (a) communal irrigation system, farm-
to-market roads, and post-harvest facilities, either in the aspect of maintenance or rehabilitation;
and (b) agricultural extension and on-site research services or facilities, i.e., credit facilitation
services, production support services, research and development, and market development
services, benefitting most if not all farmer-beneficiaries.

3. Support to Fishery .A working FARMC. Funding for the fishery sector is fully provided such as
on the rehabilitation or construction of fishery-related infrastructure, e.g., mariculture park, fish
port, sea cages. Credit, production support, research and development, and market development
services are available. Most if not all the fisherfolks benefitted from fishery extension and on-site
research services or facilities.

The mission statement has attained the improvement of business climate by attracting new local
and foreign investors. The City Government provides livelihood skills and agricultural management
training programs in the different barangays and the construction of the other modules of the new public
market. In agriculture, the quality of food and feed grains produced by farmers were improved as they
were also able to increase the production of high value commercial crops. It also implemented the key
fisheries development in the rivers and coastal areas of Vigan City.
 It has shown from the financial management as validated by the Commission on Audit ( 2012
Audit Report) that Economic Development Sector has accomplished 97 percent on its budgetary
allocation of Php 32,632,760.40 for 2011 and 95 percent with the amount of Php 23,289,415.33 as a result
of the booming local economy and the increasing participation of SMEs with the year round cultural
activities. This promoted the attraction of UNESCO Heritage Site that made Vigan City to have
tremendous traffic by the parading Kalesas ( horse drawn carriage)in transporting the excited tourists in
the buffer zone of the Ciudad Fernandina and the famous historical and cultural place that had political
history of the Philippine society.

The UNESCO Heritage site in the Historic City of Vigan has the changing social life experiences
as to the domestic tourism is booming in the northern part of Luzon as the result the media advertisement,
movie plot of Spanish setting, historical account of the past culture of the Spaniards and the astonishing
collective communication process as to the tourists have been excited to visit and feel the past scenario of
the Spanish life in the Philippines.

In local governance, the cultural conservation and development provides the right fiscal tool for
the revenue resource generation of the historic city to attract foreign and local visitors. The immediate
development impact is the increasing number of hotel occupancy, booming souvenir shops and
commercial establishments, tourist amenities and facilities with user charges. The multiplier effects of the
increasing number of local and foreign tourists because of the Spanish old houses are not only the revenue
resources but also the increasing business taxes collected by the city government.

These are year round cultural activities in the UNESCO Heritage Site :
1. Vigan city Fiesta and Longganiza ( Local Sausage) Festival in January;
2. Semana Santa in April;
3. Viva Vigan Binatbatan Festival in May;
4. World Heritage Cities Solidarity day featuring the Repazzo de Vigan ( Vigan’s History on
Parade); and
5. Other Cultural Awareness Program

The economic services through livelihood programs on micro-enterprise and medium scale
enterprise provide the main ingredient of mass-based generation of income and employment as initiated
by the local government units. The UNESCO Heritage Site in the Historic City of Vigan is a sterling
example of good governance through the cultural tourism programs has been able to produce local
economic services to attract the local and foreign tourist to buy souvenir items and local products in the
commercial areas of the city. The growing business demand and supply activities in the world heritage
site is an indication of the sustained economic growth and development in investments, economic
services, private sector initiatives that may reduce the labor mobility and improve the chance of good
employment for the highly specialized profession within the city.
1. Entreprises are the souvernir items; weaving; handicraft; woodcarving; jar, ceramics and etc.
2. Streetside food court serving the famous Vigan Empanada. (similar to the Mexican Taco)
3. The Damili (terra cotta) Village for jar and ceramics products.
4. The weaving and handicraft areas.
5. The native delicacies zone and other destinations have drawn visitors in the buffer zone.
6. Escuela Talyer(School for Traditional Building Crafts) was established, in collaboration with
academic institutions, to train a pool of building crafts persons to maintain, repair or restore
historic buildings.

B. Social Governance
 Social Governance looks into four areas: Health Services, Support to Education Services, Support to
Housing and Basic Utilities, and Peace, Security and Disaster Risk Management. Based on the 2012
LGPMS e- report portal these are the excellent areas achieved:

1. Health Services. A highly functioning health system characterized by quality primary health
care, quality maternal care and quality child care. CSO-participated medical missions and
health insurance for indigent families are innovations that add more cluster to, and
dynamism in, the health system.

2. Support to Education. Truly effective support to basic education. The LSB is functional.
Principally, the SEF is used where it should be utilized in the first place - school facilities,
educational research, additional classrooms and teachers, scholarship program.
Supplementary allocation from the General Fund is an added value in favor of the education
sector.

3. Support to Housing and Basic Utilities. An administrative mechanism dedicated to

addressing the multiple requirements of housing services is in place. Mass housing project
and donation of lots for socialized housing are twin-response to the housing backlog.

4. Peace, Security and Disaster Risk Management. Appropriate structure and plan for
community and child protection are established. Funding and other essential support for
protective services and the Katarungang Pambarangay are ensured. Crime incidence is
reduced, and most if not all interpersonal disputes are immediately and amicably settled. The
Local Disaster Coordinating Council is functional - which is a measure of disaster-
preparedness. There is a high level of readiness to respond to, or manage, the risks attendant
in a disaster or calamity - including relief and rehabilitation.

The mission statement of the social services on the support of health services, education, housing
and basic utilities, peace, security and disaster management brings the government closer to the people
that enhances the quality of life of the Biguenos. The support to education has been the major concern in
the local administration to directly provide school facilities, classrooms and teachers including
educational research that focuses on cultural awareness about the history and tradition of Vigan. While
the achievement of the disaster preparedness program directs mitigating measures particularly the
flooding of mestizo river that will have catastrophic result in the buffer and core zone of Ciudad
Fernandina.

C. Environmental Governance

Environmental Governance provides the assessment of the freshwater, forest, coastal and urban
ecosystem. Based on the 2012 LGPMS e- report portal Vigan City has garnered excellent performance in
freshwater and coastal ecosystem. However, the urban ecosystem has not able to reach the excellent
performance to enhance solid waste management program that have been the same problems in the highly
urbanized cities of Metro Manila. These are the 2012 environmental governance reports of the City
Government of Vigan:

1. Freshwater Ecosystem. Freshwater ecosystem management is of importance to the LGU.

Long-term planning is valued. CSO and citizen participation are recognized and are
mobilized in fresh water protection and rehabilitation. Areas for rehabilitation and
protection are set, and that target areas for rehabilitation and protection are met.
 2. Coastal Marine Ecosystem . Coastal marine ecosystem management is a core concern of the
LGU. Long-term planning is practiced. CSOs and citizens are engaged in coastal marine
protection and rehabilitation. Areas for rehabilitation and protection are set, and that target
areas for rehabilitation and protection are met.

3. Urban Ecosystem (X-4.88) Pollution control and proper solid waste management are
essential in preserving the integrity of the environment. More need to be done. To gain better
performance in this area, consider the following: Move from Open Dumpsite Facility to
Controlled Dumpsite Facility to a Sanitary Landfill as the final disposal facility. It makes
sense. At the very least, inaction has legal implications. But more telling are the health and
environmental imperatives

The City Government of Vigan delivers an innovative approach of the environmental

sustainability to conform the UNESCO Heritage Site on cultural management. The city government has
adopted significant measures to sustainable development and environmental measures to mitigate climate
change. These are the cultural management and development that enhances the environmental
sustainability in the unique advocacy of cultural tourism:

1. Solid Waste Management Facility and Recycling Plant. This is to mitigate the concern of solid
waste, water pollution and other human waste as recycled to functional things such as tables,
chairs, hollow blocks, papers and etc.

2. River Cruise Navigation System. This river system for sustainable development provides the
distinct presentation of the historical and cultural events in the coming of the Spaniards and
cultural life of the Ilocano through river cruise navigation in the Mestizo river.

3. Climate Change and Sustainable Development Advocacy. The disaster preparedness and risk
reduction programs to mitigate the concern of environment including the natural calamity
broke about climate change.

4. Flood Control Management and Development .The engineering projects on the river system to
reduce for the possible flooding in the low lying areas in Metro Vigan. The construction of
canals have been done to reduce the flooding in the UNESCO Heritage site

The innovative approach in the cultural management of the heritage sites ensures the critical
inventory for the repository of the documents relating to the tangible and non-tangible cultural heritage.

Establishment of a City Public Safety and Disaster Risk Reduction

Management Office, as well as the adoption of fire safety measures such as
preventing the use of fireworks within the protected zones.

The threat of destruction in the conservation effort of the UNESCO Spanish Cultural Heritage is
imminent unless the maintenance and safety is provided by the city-government. As the priority mission
of statement on UNESCO Heritage conservation and protection of the city government of Vigan, the
Public Safety and Disaster Risk Reduction Management Office has been providing to possible destruction
of the world heritage site on fire safety measures. It must be noted that the natural calamities such as
earthquake and flood have been properly addressed in the buffer zone of the world heritage site.
 In the environmental sustainability as directed to the natural calamities has been given in the
conservation and preservation of the world heritage site. The multi-disciplinary approach in social
sciences has generated important knowledge and information for the disaster preparedness mechanism in
support of the conservation effort in the UNESCO Spanish Heritage site of the historic city of Vigan
through the Public Safety and Disaster Risk Reduction Office:

1. The sustained monitoring mechanism for the fire safety of the world heritage site to reduce
and prevent the possible complete damage of the Old Spanish houses in the buffer zone of
Vigan.

2. The infrastructure effort through the rehabilitation and maintenance of canals within the
periphery of the UNESCO World Heritage Site in the historic city of Vigan addresses the
concern of the possible flood in the area.

3. The World Heritage Conservation efforts of the city government provides the legislative
mechanism as to the preservation and conservation effort to strengthen the Old Spanish
houses structure to prevent from its damage and destruction in case of earth in the area.

D. Valuing Fundamental of Governance

The UNESCO Heritage City of Vigan delivers an innovative approach in the citizens’
engagement, full disclosure of government transaction and highly acceptable structure and systems of
financial transactions that led to the transformation of the dynamic local governance system of the City
Government of Vigan. In the 2012 LGPMS report, the valuing fundamental of governance has the score
card of excellent in all areas with the following commendation of the criteria:

1. Participation. Engaging the citizens and CSOs in local governance has achieved an
admirable level of maturity. Proofs to this are CSO participation in decision-making through
the Local Special Bodies, CSO involvement in local development projects and Citizens
Feedback.
2. Transparency. Transparency in governmental operations is remarkable. Communicating to
the public through various means, i.e., Bulletin Board, Public Information Office or Desk,
print, broadcast media, website, and forum, is valued.
3. Financial Accountability. Financial accountability is highly valued. Structures and systems
for accounting, internal control, procurement and financial transactions are well-defined
and working.

In the Civil Society Engagement, the UNESCO best practice for the local stakeholders’ participation
ensures the conservation, preservation and protection of the World Heritage Site as the benchmarking
mechanism and paradigm shift for the peoples’ participation:

1. The multi-stakeholder participation and the local peoples of Vigan have been in covenant with
commit to pursue the conservation, preservation, protection and development of the priceless
treasures of the Old Spanish Houses within the city.

2. The vision statement (2000) for the next ten (10) years of the historic city of Vigan as the
cultural tourism hub in the north of Philippines by the strategic opportunity of the old Spanish
houses as the humanistic appreciation of the past colonial diplomacy of Spain.
 3. The non-government organizations ( NGO) have been the prime mover of cultural and economic
development as pursued good governance and collaboration to the local people in initiating their
sustained participation in consultation meetings, conferences, fora, symposia and other relevant
cultural activities of the conservation, protection, regulation and development of the World
Heritage Site.

4. The inter-agency collaboration particularly the academe, and government agencies for the
research and development program of the development of knowledge-based system for the
cultural management, researches, and preservations of the Spanish buildings.

The experience of local stakeholder participation revolves in the dynamic and sustainable support of
the direct beneficiaries of the UNESCO Spanish Heritage site in the historic city of Vigan known as the
Save Vigan Ancestral Homeowners Association, Incorporated (SVHAI ). This is an example of non-
government organization with role to protect the endangered old Spanish building from destruction and
subsequent modification as a result of the technological and social change. It was also organized to
empower the members of the SVHAI to actively participate in the conservation, protection, and
preservation effort of the City government.

V. Conclusion

The Philippine experience of decentralization policy and good governance proves its political
worth when applied in the UNESCO Heritage Site as the World Property in the heritage conservation
program with the right recipe of executive leadership to pursue the mandate of local government
administration. Based from the case of the UNESCO Heritage City of Vigan defines an interesting
insights as to its sustainability of the cultural heritage program that subsequently received numerous
awards and citations particularly the 2012 UNESCO Best Practice for Heritage Conservation and
Management including the Galing Pook Award.

It must be noted that the research stream of this paper is reforming institutions, structures and
processes for responsive public administration and good governance with the meager financial resources
the UNESCO Heritage City of Vigan. It has able to maintain sound fiscal management on productive
decentralization system. This has shown in the local government administration of the city government
that the mandate in Republic Act No. 7160 has achieve its vision and mission as supported by the
exemplary performance in the state of local governance (2012) along:
1.Administration Governance: (a) Development Planning; (b) Customer Service-Civil Application;
and (c) Human Resource, Management and Development.
2.Social Governance : (a) Health Services ; (b) Support to Education; (c) Support to Housing and
Basic Utilities; (d) Peace, Security and Disaster Risk Management.
3. Economic Governance: (a) Support to Agriculture; (b) Entrepreneurship, Business and Industry
Promotion; and (c) Support to Fishery.
4.Valuing Fundamental of Governance : (a) Participation; (b) Transparency; and (c) Financial
Accountability
5. Environmental Governance : (a) Freshwater ecosystem and (b) coastal water ecosystem

Furthermore, the civil society engagement, financial transparency, dynamic leadership, and fixing the
local governance processes, structures and systems have proven its worth in consideration with the
advocacy of good governance. The exemplary performance in the major areas of local government
administration has able to justify the effectiveness of the decentralization policy and good governance
based on the Philippines experience of the historical and cultural tourism in the UNESCO Heritage City
of Vigan. The local government administration of the UNESCO Heritage City of Vigan through the COA
Annual Report (2011 -2012) has validated its excellent performance as to the significant findings and
highlights (other than being A Galing Pook Awardee in 2004) in the financial accountability in the budget
process of the LGU:
1. For Calendar 2011, the City of Vigan has again received awards and citations:
a) Hall of Fame Award Most Child Friendly Component City of the Philippines.
b) Green Banner Awardee of Region 1 as Best Implementor of Nutrition Programs.
c) CY 2010 Most Outstanding Accounting Office of the Philippines ( City Category)
d) The Seal of Good Housekeeping from the National Government for Excellence in Financial
Management, Transparency and Accountability , Performance Monitoring, Planning,
Investment Programming and Compliance with the Government’ Disclosure Policy.
e) The City Mayor was awarded by the Civil Service Commission Parangal ng Bayan
Awardee for Region 1.
2) The City garnered different prestigious awards from Regional, National and International Award
giving bodies for the year 2012 :
a) UNESCO Best Practice for Heritage Conservation and Management.
b) 2012 Likas Yaman for Excellence in Environmental Programs and Projects.
c) 1st National Gawad Pamana ng Lahi Awardee
d) Consistent Regional Outstanding Winner in Nutrition
e) Given Banner Hall of Fame Awardee for Nutrition
f) Seal of Good Housekeeping
g) Pinnacle of Excellence Award for Support Contribution to National Tuberculosis Program

However, there are critical issues and challenges that the local government administration must
address as the historical and cultural tourism as frontline in the social and economic development in the
Ilocos Region. The UNESCO Heritage City of Vigan reflects from the integration of the state of
governance in the sustaining the local government services as the prime mover of development in the
quality of life of the Biguenos. The city government has to respond the state of local governance
(administration, economic, social and environmental governance) as provided in the earlier discussions
about the development thrust for the tourism promotion efforts. There seems a disparity of the Annual
Investment Program of the Ilocos Region that the Regional Development Council as the financial
allocation has been meager to only 1.85 percent from less than five million pesos for the sustained
development of the historical and cultural tourism industry of Vigan City that became the core of
domestic and foreign tourists destination in the Northern Luzon that affected within the periphery of
urban development in Ilocos region.

The state of local development (2012 e-SLDR, LGPMS Electronic Report) within the approximation
of the core development challenges, the city government needs to address the socio-economic and
environmental development in addressing the crude death rate, access to water, index crime, freshwater
and unemployment in the local government administration.

In local legislation, it is worthy to note that the resolutions and ordinances to support the development
thrust and legal framework in the Conservation and Management of Cultural Heritage have achieved its
international recognition that not even the highly urbanized city has received such best practice award.
However, the local governance score card remained a challenge of the City Council to look into quality
legislation in the greater use of legislative tools set by the LGPMS to finally achieve what the executive
leadership transformed the exemplary performance in local government administration and the utilization
of good governance in the cultural management of the UNESCO Heritage property.

VI. Recommendations

In the Philippines, the UNESCO Heritage City of Vigan has proven its worth as to the
implementation of administration, economic, environmental, and social governance with the 15 excellent
performances in the local government administration. The LGUs should also benchmark as to the local
governance initiatives in the cultural heritage and conservation management practices that led to the
UNESCO Best Practice for Heritage Conservation in areas of conservation; legal framework; sustainable
finance; staffing training and development; sustainable development; education and tourism programs.

In the part of the city government, it has able to maximize the financial resources to balance the
local government administration, and management and preservation of the UNESCO Heritage. Likewise,
it must increase its investment plan to five percent budgetary allocation relevant to the Tourism
Promotion of the Annual Investment Program in Ilocos Region for the Cultural Heritage Program of
Vigan City. It must be noted that Ilocos region has less than three percent with estimated travellers of less
five hundred thousand domestic and foreign travellers of the 24 million travellers nationwide. This has
strategic opportunity of the Ilocos Region provides share of travellers about the historic nostalgia of the
grandeur of Ciudad Ferdinandina de Vigan that survived from the wrath of the Second World War.

BIBLIOGRAPHY

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BIOGRAPHICAL SKETCH

The author is an Associate Professor 4 currently teaching professional subjects of the graduate
courses in Public Administration and Education at the University of Northern Philippines, Vigan City. He
is a graduate of Doctor of Philosophy in Education with the field of expertise in public administration,
education and social sciences. He was designated to work in various administrative positions of the
University as the Secretary for Teacher Enhancement and International Affairs (2002-2004), Assistant
Director of Extension Office for Programs and Projects (2004-2005), Assistant Director of the Special
Projects and International Affairs ( 2006-2008), Special Assistant to the Vice President for External
Affairs and Alumni Relations (2009-2011), ASCU-SN Secretariat in the Course Book Writing
Development Project (2007-2011), Discipline Chair in Social Sciences (2005-2009), Core Faculty and
Extension Coordinator of the Graduate School Program (2001-2013) and currently the College Secretary
of the Graduate School .He is a Distinguished World Book Awardee in the World Research Festival 2013
awarded by the International Association of Multidisciplinary Research (IAMURE) in the public
administration and social science book entitled “Contemporary Republic: The Emerging Political and
Economic Philosophy of the 21st Century.” This was published in Amazon.com followed by the social
phenomenological book entitled “2013 Contemporary Republic: The Space Age Philosophy and Culture
of the 30th Century.” He published varied social science amazon.com books in sociology, political science
and economics. He also presented phenomenological and sociological researches in the NAKEM
Conference International and other international conferences in the Philippines.