Situational Analysis THE ECONOMIC SECTOR

CHAPTER 5

The Economic Sector

This Chapter analyzes the overall situation of the essential sectoral components
of the city's economic base.

The economic sector is beset with several constraints as follows: a) limited

economic base, b) inadequate and poor support facilities, c) lack of viable
farmers’ and fishermen’s associations and cooperatives, and d) untapped tourist
potentials and inadequate tourist facilities.

5.1 LIMITED ECONOMIC BASE

The city has a limited economic base. This constrains the economic activities
undertaken by the populace and consequently, the growth of the city. The limited
economic base is intertwined with limited employment opportunities and high
migration rate of the population.

The economy is mainly agricultural-based and service-oriented. Agricultural

activities include crop production, fishing, and livestock and poultry production.

5.1.1 Agriculture

Major agricultural crops produced in the city include palay, coconut, banana, and
calamansi. About 13,590 hectares of the city’s total land area are devoted to
palay production. Considered as the rice granary of the Southern Tagalog region,
Calapan supplies rice to several areas including Metro Manila.

There are two cropping seasons for rice, the wet season, covering May to
September, and the “palagad,” October to December, and the dry season,
January to April. A majority of the ricelands is irrigated, with free flowing surface
water and pumps. Vegetables are grown during the wet season.

Other major crops of the city include coconut, banana, lanzones, coffee, citrus,
and rambutan. Major coconut producing areas include the hills from Suqui to
Sapul, the coastal areas along Calapan Bay from Wawa to Nag-Iba, and the
upland areas in Baruyan, Canubing, Comunal, and Patas.

The average landholding for about 2,899 farmers engaged in palay production is
one hectare. As to tenurial status, about 80% of the farmers are share tenants,
lease holders, and owner-operators.

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Situational Analysis THE ECONOMIC SECTOR

There has been a decline in the area planted to palay, from 14,356 has. in 1993
to 13,262 has. in 1994-1996, and 13,590 in 1997. The average yield, however,
remained fairly the same, from 4.02 MT in 1993 to 4.03 MT in 1997. The drastic
decline in yield that occurred in 1994 was attributed to the destruction of irrigation
systems due to a typhoon in December 1993.

Table 5.1. Area Planted and Average Yield, Palay, 1993-1997

Item 1993 1994 1995 1996 1997
Area Planted (has.) 14,356 13,262 13,262 13,262 13,590
Average Yield (MT) 4.02 3.26 4.05 4.04 4.03
Source : Office of the City Agriculturist

5.1.2 Fishery

Municipal fishery serves as a major source of livelihood for the 21 coastal

barangays and some 1,067 fishermen. The coastlines of Calapan serve as
fishing grounds and are used for shallow fishing. Fish species caught include
tangigue, tambakol, tulingan, dilis, manamsi, and galunggong. The total volume
of fish catch has declined through the years, from 533 MT in 1993 to 485 MT in
1997.

Table 5.2. Volume of Fish Catch

Year Volume (MT)
1993 533
1994 614
1995 119
1996 401
1997 485
Source : Office of the City Agriculturist

There are also fishponds that raise mostly bangus, shrimps, and crabs which are
shipped directly to Metro Manila. There are a total of 526.0 has. covered by
fishpond concessions.

Freshwater and brackish water fish production potentials are yet untapped fully.
Caluangan Lake and other bodies of water represent potential sources of inland
fish and freshwater species, and brackish water in swampy areas may also be
utilized for aquaculture development and may include production of banak,
sabalo, hito, dalag, tilapia, gurami, bangus, tilapia, and sugpo.

Most of the fishing vessels used are small, motorized or non-motorized, and up to
a maximum capacity of 3.0 tons. The fishing gears normally used are baklad (fish
coral), bobo and bonbon for shallow sea fishing; basnig, pusit, panti, and kitang
for deep sea fishing; and salap, basnig, and sakag for inland waters

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Situational Analysis THE ECONOMIC SECTOR

Table 5.3 shows the breakdown of fishpond concessions by barangay.

Table 5.3. No. of Fishpond Concessions, by Barangay

Barangay No. of Fishpond
Concessions (in has.)
Balite 24.0
Baruyan 9.4
Canubing I 20.0
Canubing II 10.0
Masipit 234.9
Nag-Iba I 7.0
Nag-Iba II 20.0
Navotas 49.7
Parang 49.0
Tawagan 71.0
Tawiran 25.0
Wawa 6.0
Total 526.0
Source : 1997 Socio-Economic Profile

5.1.3 Livestock and Poultry

Livestock and poultry production is mainly backyard with a few commercial

poultry farms. Animals raised include carabao, swine, poultry, and goats. A
number of carabaos are sold in the livestock markets in Batangas City for
fattening; poultry grown in commercial scale are being shipped to Batangas and
Metro Manila.

Table 5.4. Animal Population, 1993-1997 (in heads)

Animal 1993 1994 1995 1996 1997
Carabao 1,694 1,732 1,771 1,942 2,244
Swine 4,161 4,169 4,686 4,402 5,923
Poultry 16,573 17,591 19,561 29,622 38,081
Goat 713 800 1,612 853 1,502
Source : Office of the City Agriculturist

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Situational Analysis THE ECONOMIC SECTOR

5.1.4 Trade, Industry, and Services

Calapan is the business hub of the province. The central business district
features a large number of business establishments, most of which are on
wholesale and retail trade as well as services. In 1997, there were 1,646
wholesale and retail trade establishments out of a total of 2,376 establishments
registered with the city government, comprising 69.3%. The rest of the
establishments are mainly oriented towards private services and small-scale
manufacturing such as ricemills, eateries/restaurants, machine shops, and
lending investors.

The list of businesses registered with the Department of Trade and Industry
likewise shows the dominance of service and trading-oriented establishments
(Table 5.5).

Table 5.5. DTI-Registered Business Establishments, by Sector, 1991-1996

Sector No. of Business Establishments
Services 876
Trading 507
Manufacturing 70
Agriculture 33
Financing 22
Mining 1
Source : DTI

5.1.5 The Challenge

The limited economic base of the city poses the challenge of enhancing the
economic vitality of the city through diversification of economic activities while at
the same time strengthening the agricultural resource base of the city. Calapan
is in a strong position of asserting its dominance in palay production in the region
and taking advantage of the presence of inter-island roll-on roll-off (Ro-Ro)
vessels. Enhancing the city’s agricultural base may also result in future value-
adding activities such as processing in the city itself, or merely increasing the
supply base for value-adding activities in areas outside Calapan, such as
Batangas.

Expanding the economic base will also imply enhancing the informal sector and
assisting their transition towards the formal sector, particularly small and medium
scale enterprises. Such enterprises will require less land requirements as well as
develop the entrepreneurial skills of the residents. This will also translate to a
broader revenue base for the city.

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Situational Analysis THE ECONOMIC SECTOR

5.2 INADEQUATE AND POOR SUPPORT FACILITIES

The slaughterhouse and public market represent two of the important public
facilities that play an important role in the economic activities of the city as well to
its revenues. In 1997, the slaughterhouse earned Php 1.110 million in 1997,
with a sizable excess income of Php 101,176. In 1997, the public market
contributed Php 1.953 million and an excess income of Php 31,404 in 1997.

The slaughterhouse is characterized by poor conditions; residents have voiced

the need to relocate and improve the slaughterhouse. The Calapan Public
Market, located within the central business district, has 658 stalls. The public
market likewise needs to be expanded considering that the market serves as a
central assembly area for agricultural commodities grown in various parts of the
city.

Poor farm-to-market roads, particularly in interior barangays, are likewise

considered as a constraint in the marketing and transport of agricultural produce.
Other support facilities also considered as inadequate are dryers and
warehouses for palay production and ice plants for fish.

5.3 LACK OF VIABLE FARMERS’ AND FISHERMEN’S ASSOCIATIONS

AND COOPERATIVES

There are 34 farmers’ associations, mostly engaged in production of palay,

vegetables, hogs, chicken, and poultry with a membership of 899 in 34
barangays. Fishermen’s associations number eight (8), representing eight (8)
barangays and 501 members. There are 11 cooperatives with a membership
base of 929, most of which provide palay production loans to its members.

Despite Calapan being the financial center of the province as evidenced by the
number of banks (10 commercial banks and 4 rural banks), the farmers and
fishermen are not able to avail of loans from these banks. This may partly be
attributed to the lack of viable farmers’ and fishermen’s associations. This
stresses the need for institutional strengthening measures.

5.4 UNTAPPED TOURIST POTENTIALS AND INADEQUATE TOURIST

FACILITIES

Calapan boasts of a wide range of natural, historical, and cultural attractions.

Natural tourist attractions include Suqui and Tamaraw beaches; Baco-Chico
islets; Caluangan Lake; the marsh areas in Navotas, Silonay, and Maidlang;
estuary along Baco; Wawa River; Ginubatan hills; and the Bulusan Nature Park.
Cultural tourist attractions include the Sanduguan festival; the Mayuhan sa
Calapan; and the Santa Cruzan in San Vicente. The city is also home to some
interesting flora such as the everlasting Bulusan found in Bulusan Park and a
unique species of anahaw found in Sta. Cruz.

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Situational Analysis THE ECONOMIC SECTOR

Tourist products may include beach resort facilities, sightseeing tours that focus
on nature, culture and special interest products on scuba diving, snorkeling,
boating, trekking, and festivals.

Calapan may be packaged as a nature’s paradise catering to diverse clientele.

Eco-tourism particularly holds promise for Calapan as it conforms to several of
the criteria set by the Department of Tourism in declaring an area as an eco-
tourism destination, such as : a) rich in natural attractions and conducive to
adventure travel; b) environmentally rich in flora and fauna; c) native and tribal
traditions of the people in the destination are almost untouched by modern
influences (e.g., Mangyans); and d) area is not frequented by commercial
tourists. Eco-tourism will necessitate a type of tourism that is environmentally,
culturally, and socially aware. This will further enhance the natural and cultural
diversity of the city.

The tourism development efforts of the city should be complemented and/or

integrated with other tourism clusters such as those identified under the Southern
Tagalog Regional Tourism Master Plan, particularly the Mindoro Oriental Tourist
Destination Circuit which includes Puerto Galera/San Teodoro, Baco-Calapan,
Naujan, Bulalacao, and Pinamalayan.

The development of tourist destinations will however require complementary

development such as provision of infrastructure and support services and
generation of alternative livelihood opportunities. The presence of tourist facilities
such as accommodation and recreational facilities, and shopping centers for
quality arts and crafts will be required and linked to tourism. As of 1997, there
are 13 hotels/inns and 10 beach resorts.

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