Our Lady of Fatima University – Quezon City

1 Esperanza Street, Hilltop Mansion Heights, Quezon City, 1100 Metro Manila

A Tourism Development Plan 

Presented to the Faculty of
College of Hospitality and Institutional Management
Our Lady of Fatima University
 
In Partial Fulfillment
Of the Requirements for the Course
Tourism Policy Planning and Development (TPPD 311)
 CHAPTER 1: Area Profile of the Destination

Submitted By:

BSITM TTO 1-4Y-1

Alvear, Clauhd E.
Bacud, Edelaine
Bangloy, Mark Angelo B.
Castañeda, Dianne L.
Descalzota, Gerielyn S.
Salvador, Rachelle Mae Q.

Submitted To:

Mr. Albert Ryan Evangelista

 Chapter I: Area Profile of the Destination

I.I Name of City or Municipality

Ilagan City, Isabela

I.II Location

Region: II
Province: Isabela
Municipality: Ilagan City

Ilagan City is a 1st class component city and capital of the province of Isabela, Philippines. It
was also recognized as the corn capital of the Philippines. It is also the capital, the largest city in
the province and the fourth largest city in terms of land area in the Philippines after Davao City,
Puerto Princesa and Zamboanga City
Neighboring City/Provinces/Island:
It is bordered by the provinces of Cagayan to the north, Kalinga to the northwest, Mountain
Province to the central-west, Ifugao and Nueva Vizcaya to the southwest, Quirino and Aurora to
the south, and the Philippine Sea to the east.
I.III Land use

Total Area (Hectare): 1,166 km²

Land Use are by type: (Hectare)
Forest
Forest land area of the municipality remained at status quo at 72,048.26 hectares implying that
the forestlands of the municipality have been preserved and not reclassified to any other uses as
provided by existing forestry laws. Forests occupy the larger portion of the municipality covering
61.78% of its land area.
Agriculture
Agricultural use covers 24,117 hectares comprising 20.68% of the municipal land area. This
indicates that during the previous years there was a conversion of some agricultural areas by
7.28%. from the total agricultural area of 32,604.26 hectares in 2000.
Settlement (urban/rural residential area)
The urban area has a total area of approximately 3,454 hectares. With a total household
population of 38,255.00, the gross urban density is 11.08 persons per hectare. This population
density is still relatively low and still falls under a low-density residential area. The approximate
area covered by the residential area is 448 hectares which is over the 2000 existing residential
area of 231 hectares or 51.56% increase.
Residential areas are present 12.97% of the total urban land area. Although most of the lands in
the residential area are privately owned there are still unoccupied lots spread out within the urban
area.
Roads and Utilities
The total aggregate area of roads and utilities within the municipality is approximately 2,344.05
hectares or 2.01% of the municipal land area, a significant increase of .21% in road and utilities
expansion from the 2000 figures.
Grassland / Open spaces
There are 9,633.17 hectares of grassland and open spaces in the municipality covering 8.26% of
the total land area.
Water Bodies
Water bodies which include the mighty Cagayan River, the Pinacanuan River, the Bintacan
River and their tributaries runs along an aggregate area of 3,733.52 hectares or 3.20 % of the
total land area of Ilagan.
Institutional Areas
Approximately 66.56 hectares are being utilized for institutional purposes in the urban core.
Institutions comprise 1.93% of the total area of the urban core. As compared to the 2000 data,
institutions increase by a minimal area of .56 hectares only.
Industrial areas
About 5.28 hectares in the urban core is being utilized for industrial purposes. The existing
industries represent 5.28 has. Or 0.15% of the total land area of the urban area.
Zones specified for tourism use
The area covered by the commercial area is approximately 90.56 hectares or 2.62% of the urban
core.

I.IV Population

Total Population
In the 2020 census, the population of Ilagan, was 158,218 people, with a density of 140
inhabitants per square kilometer or 360 inhabitants per square mile.
The rapid increase of population in Ilagan is attributed to the current growth of economic
activities specially in the sectors of Commerce, Industry, Agriculture and Housing. Ilagan is one
of the 145 emerging cities in the Philippines with more than 100,000 residents. Statistics from
the Philippine Statistics Authority show that Ilagan had a population 131,24311 in 2007, which
increased to 135,174 people in the 2010 census making Ilagan as the most populous city in the
province of Isabela and the second in Cagayan Valley after Tuguegarao.
I.V Employment

Total Employment
The City of Ilagan had a total of 1,808 personnel complemented with 697 employees, 395
contractual and 690 casuals and job orders.
Primary Sector: Ilagan City’s Primary sector in terms of employment is Agriculture.
I.VI Major Industry

One major industry in Ilagan is furniture making. Several furniture shops, located along the
National Highway in Barangays Alinguigan 2nd & Alinguigan 3rd, manufacture and sell
furniture made of quality narra wood. These barangays were dubbed as "Butaka City" of Ilagan,
where the Guinness Book of Records' entry for the biggest lounge chair in the world, the Butaka,
was manufactured.
Ilagan became one of the largest producers of tobacco during the Spanish time. The Tobacco
Monopoly caused the valley to languish in poverty from 1785 to 1797. The lifting of the
monopoly was caused by the heavy loss incurred by the government.

Agriculture and fishery remain to be the main backbone of Ilagan's economy. There are almost
23,803 hectares that are basically cultivated land and 314 hectares are utilized for fish culture.
However, the suitable farm area of Ilagan is 32,153.19 hectares potentials for crops, livestock
and fish production. This figure shows that a significant percentage (24.99%) is not being fully
utilized for agricultural production leaving them idle and under-utilized.

I.VII GDP/GRDP
Ilagan City has one of the fastest growing economies in the Philippines. Located in the province
of Isabela, in the northeast region of the archipelago with several rivers running through the
city’s expansive land mass, Ilagan’s local economy revolves around agriculture and fisheries. At
the pulse of its economy is corn, dominating the city’s farmlands, public markets, and dinner
tables.
The city emanates hope and promise. Its local government, led by Mayor Evelyn Diaz, works
hard to maintain its status as a first-class city. From building infrastructure to facilitating
economic connectivity between its 91 barangays (district boroughs), farms and public markets, to
providing
accessible health and social services for its residents, the local government has one vision: to
provide a home where opportunities abound for its residents.

PRIMARY SECTOR (Agriculture, Fishery, Mining)

The economy of Isabela is at the fulcrum of an ever-increasing growth curve. In terms of income
classification, it is rated as a first-class province and considered among the richest and most
progressive province in the Philippines.
Strategically located at the center of Cagayan Valley region, Isabela is acknowledged to have
demonstrated strengths in business and industry. Thus, it has come to be known as the “Regional
Trade and Industrial Center” of north-eastern Luzon.
Agriculture is the biggest industry in Isabela. As the country’s top corn-producing province, it
contributes 21%of the annual national yellow corn production. Asia’s largest post-harvest corn
processing facility, the Mindanao Grains, is located in the town of Reina Mercedes, Isabela.
As second highest rice-growing province nationwide, Isabela produces 15% of the aggregate
national rice production on an annual basis. Being a surplus producer of the Filipinos’ staple
crop, the province’s rice sufficiency rate is at 224%, which means that Isabeliños produce more
than they consume and are in fact responsible for supplying the rice requirements of Metro
Manila and many other provinces.
High- value agricultural crops grown in Isabela include monggo, tobacco, coffee, banana, and
mango. Its livestock and poultry industries are also on the rise, especially dairy processing, hog
production, cattle breeding, and commercial poultry raising.
Another thriving industry in Isabela is aquaculture, sustained by inland fishing through 1,108
hectares of developed freshwater fishponds and 450 hectares of fish cage culture at Magat Dam
Reservoir. Rich marine resources could be found in Coastal Isabela’s seaboard towns of
Maconacon, Divilacan, Palanan, and Dinapigue.
The best quality timber resources in the Philippines are found in the forest of Isabela. Some 54%
of the province`s total area is covered by forestland, of which 62% is part of the protected area
while 38% is designated as production forest. The woodwork industry continues to operate under
a regulated system, particularly the making furniture using indigenous materials.
In recent years, tourism has become an income-generating industry for Isabela. New hotels and
resorts have opened, mostly in Cauayan City, Santiago City, and the towns of Tumauini and
Roxas. Top tourist attractions are the centuries-old churches of Saint Mathias and San Pablo;
Magat Dam Tourism Complex, which houses Southeast Asia’s biggest dam; Santa Victoria
Caves at Fuyo National Park; the beaches and islands of Coastal Isabela; the world’s biggest
wooden lounge chair or butaka in Ilagan; and various festival and fiestas, most famous of which
is the Bambanti Festival from May 1-11 every year, commemorating the birth of the province
during Isabela Day.

SECONDARY SECTOR (Industries)

Existing Locators

Since the start of 21st century, a growing number of foreign and local investors have selected
Isabela as the site of their business ventures. Heading the list are Isabela’s top three investors,
namely: Mindanao Grains Processing Company, Inc. in Reina Mercedes, SN Aboitiz Power-
Magat Inc. in San Mariano.
Universal Leaf Philippines has built a tobacco processing plant in Reina Mercedes. The Coca-
Cola Company’s Philippine subsidiary and SAN Miguel Corporation’s Cosmos division both
operate bottling plant in Cauayan City, while RC Cola AND Pepsi Cola have beverage
operations in Ilagan and Santiago City, respectively.
In the rice industry, substantial investments have been made by Valiant Rice Mills Corporation
in San Mateo, Family Choice Grains Processing Center in Cabatuan, Golden Season Grains
Center in Luna, Hergo Agro Industries in Santiago City, JDT Silver Grains Center and New
Cauayan Goldyluck Grains in Cauayan City.
Retail giants SM and Robinsons have set up shop in Ilagan with the opening Savemore
Supermarket and Robinsons Supermarket, respectively. They are located in Isabela’s NEW
MALLS, Northstar and Talavera Square, owned and operated by homegrown investors. Fast
food chains such as Jollibee, McDonald’s, Chowking, Goldilocks all have outlets in Isabela.

The “big three” oil companies- Shell, Petron and Chevron – have numerous gasoline stations in
Isabela, as do new petroleum industry players Total, Eastern Plus Gold and Flying V. Land
transportation operators Victory Liner, Baliwag Transit, Dagupan Bus Line, Dalin Liner, Florida
Bus and Nelbusco have terminals and depots in the province.
The country’s leading passenger airline Cebu Pacific services the Cauayan-Manila- Cauayan
Route. Light planes operated by Cyclone Airways and WCC Aviation’s Sky Pasada Have flights
from Cauayan Domestic Airport to the community airports in Palanan and Maconacon. Telecom
firms Globe, PLDT/Smart and Digitel/ Sun operate cellular sites and fixed telephony facilities
throughout Isabela.
OR
Top Three Investors
SN | Aboitiz Power Group (SNAP) is a joint venture between SN Power of Norway and Aboitiz
Group of the Philippines. Through its wholly owned subsidiary SNAP-Magat Inc., it owns and
operates the 360-megawatt Magat hydroelectric power plant (HEPP) in Ramon, Isabela. The
Magat HEPP was a state-owned facility operated by the National Power Corporation until its
privatization in 2006, when SNAP-Magat won the bid conducted by the Philippine government
for the amount of US$ 530 million. Since then, it has received recognition for its safety, quality
management and corporate social responsibility programs.

Green Future Innovations Inc. (GFII) is a joint venture between Japan’s Itochu Corporation,
Taiwanese holding company GCO, JGC Philippines, and Philippine Bioethanol and Energy
Investments Corporation, the latter owned by the Bantug-Palanca family of Negros Occidental
and the Uy family of Isabela. GFII aims to contribute to the domestic supply of renewable
energy through 54-million liter ethanol plant in San Mariano that is poised to be fully operational
in 2012. The US$ 120 million investment will produce bioethanol from an 11,000 hectare
sugarcane plantation around San Mariano’s 30-kilometer radius, and will convert sugarcane
residual material or bagasse to electricity in this 19-megawatt power plant, projecting a 13-
megawatt contribution to the Luzon grid in the future.
Mindanao Grains Processing Company Inc. is an agribusiness venture based in the Mindanao
province of Bukidnon and owned by the La Filipina Uy Gongco Corporation of Iloilo City in the
Visayas region. Mindanao Grains has expanded its operations to Luzon by opening its P500
million Reina Mercedes Corn Processing Center, the largest post-harvest facility for the corn
industry. It was inaugurated by Philippine President Benigno Aquino III in October 2010 and is a
testament to the company’s commitment to assist Isabela’s corn farmers in production efficiency
so as to ensure food security in the country.

TERTIARY SECTOR (Services)

Telecommunications and Media

Isabela is as accessible to the world as any major city or key destination is. Even the coastal
region of Isabela which is separated by the Northern Sierra Madre from the commercial areas or
mainstream Isabela. A dependable telecommunications and multimedia infrastructure ensures
24/7 connectivity via the internet, satellite/cable and cellular services which augment information
sourced from television, radio and national and local newspapers and magazines that are readily
available in all of Isabela

I.VIII Major Tourist Attractions/Destinations

 Santa Victoria Caves
 The Giant Butaka
 Ilagan Japanese Tunnel
 Ilagan Sanctuary
 Abuan River

I.IX Conservation of Tourism attractions/destination

In the 2011-2016 Regional Development Plan for Cagayan Valley, Ilagan is identified as an Eco-
Tourism, Adventure and Sight-Seeing destination of region 2. True to its role in the tourism
industry, Ilagan’s rich ecology offers a wide array of adventure to nature lovers. Our existing
tourism site, the Ilagan Sanctuary offers an exciting experience such as the Zip Line, Cable Car,
ATV Adventure and Wall Climbing. Also in the sanctuary are amenities like mini-zoo,
swimming pools and picnic grounds/gazebos, a perfect getaway for family and groups. What is
more marvelous in the Sanctuary that wows local and foreign visitors are natural caves and the
pinzal waterfall.

I.X Historical Background of tourism attractions

Santa Victoria Caves
At least 12 limestone caves can be found on the foot of the mountain ranges of Sierra Madre. Be
astonished with the atypical, gorgeous formations caused by underground waterfalls and
sparkling rocks in the area.

They are also of archaeological significance as they are believed to have been occupied by the
nomadic Agta or Dumagat people in the past. The caves are located within the Isabela Sanctuary,
which is part of the Fuyot Springs National Park (FSNP) in Ilagan, Isabela. This area is included
in the Palanan Wilderness Area or Northern Sierra Madre National Park in the province of
Isabela in Cagayan Valley.

The Giant Butaka

The pride of Isabela and Ilagan’s winning bid for Guinness Book of World Records for the
biggest armchair, locally known as butaka. The butaka is a chair with a long arm rest which is
not used for the arms but for the legs.
The “lazy chair” of rich families, during Spanish era, it was used by hacienderos as their resting
chair after a busy day of roaming around their lands and rice fields. Also known as the “little
hospital,” pregnant women also gave birth to their newborn child on a butaka, with their legs
comforted by its long armrests.
The giant butaka, christened as the “Butaka ni Goliath,” measured 11.4 ft. high, 20.8 ft. long, 9.7
ft. wide and weighed 2,368 kgs. It was made from a total of 1,184.48 board ft. of seasoned, first-
class narra with a seat made with 1,740 ft. of interwoven 1-in. diameter rattan.
The project, to promote Isabela’s furniture industry, reportedly cost about PhP175,000 and, for
the manufacture of the giant butaka, the big furniture entrepreneurs in the village contributed at
least PhP500 each while small ones chipped in PhP200 each. The rest of the expenses were
shouldered by the municipal government, led by Mayor Delfinito Albano.
Behind the butaka were craftsmen of Barangay Alinguigan II, touted to be the "furniture capital"
of the Cagayan Valley. About 95 percent of Alinguigan residents are furniture makers.
Ilagan Japanese Tunnel

The Ilagan Japanese Tunnel is a war tunnel that was part of a military base built by the Japanese
government as headquarters for its soldiers during World War II. It is found in Santo Tomas
village in Ilagan City in the province of Isabela. It is one of the few remaining tunnels in the
province. It measures about forty meters in length and a bit over three meters in width and
height. The real size of the tunnel, however, has yet to be determined as the site has yet to be
fully checked and explored.

The Japanese Occupation in the Philippines happened from 1942 to 1945. During that time
tunnels were built by the Japanese soldiers to serve as headquarters and storage facility for its
weaponry like bombs, explosives, guns, and several ammunitions. The tunnel is also the place
where they held the Filipino guerrillas in captive. One of the tunnels built is the Ilagan Japanese
Tunnel which is located in Barangay Sto. Tomas, City of Ilagan, Isabela.
Through the preservation efforts of the local tourism of Ilagan, visitors can come to the place to
see the actual tunnel built when Japan conquered the Philippines. Visitors can also try wearing
Japanese Kimonos and have their hair styled like Japanese women then have their pictures taken.
Additional attractions today include the Ilagan Japanese Bridge and Koi Pond, The Furin and the
Ilagan Japanese Tunnel Food Court.
Ilagan Sanctuary

This is the major tourist attraction in the city for so many reasons. Located in Barangay Santa
Victoria, it is also called the Fuyot Springs National Park. Many outdoor adventurers and nature
lovers flock to the area due to the diverse range of activities available such as hiking, bird
watching and mountain climbing. The Sanctuary is where you can also find the Santa Victoria
Caves as well as the Pinzal Falls.

Ilagan Sanctuary is a protected sanctuary located at Sta Victoria, Ilagan, Isabela. It is composed
of Santa Victoria caves, Fuyot Springs national park and Pinzal falls. Fuyot Springs National
Park is designated for the wildlife and gardens. Santa Victoria cave has limestones and rock
formations that visitors would love to see. There are also rides that you’ll surely love to
experience. After some trekking, you can dip in to the basin of the Pinzal Falls. You will need to
conquer the muddy and rocky roads in order to reach this majestic fall.
The junction to Ilagan Sanctuary is located along the National Highway at Brgy. San Andres, 6
km north of the city center of Ilagan. One can ride a northbound bus, van or jeepney and alight at
the junction, where tricycles can be hired to take you to Ilagan Sanctuary in Brgy. Santa

Abuan River
It’s the main river in the Northern Sierra Madre Park that feeds the Abuan watershed in the city.
You can explore the diverse animal and plant life in one of the country’s remaining and lush
virgin forests. Activities include kayaking, water rafting and wall climbing.

Many years ago, the Sierra Madre Forest and Watershed was a victim of illegal logging and
charcoal production. The forest was drastically destroyed but the water from the stream remained
clean, clear, and pure.
Based on the manager of the project no other than Luis Caraan, they already started working on
an ecotourism project in the area and once the project succeeds, it will provide an alternative
livelihood for the local people. It will also help the province’s environment and community.
Livelihood programs are very important to the area to lessen and stop altogether the illegal
activities in the forest.
Isabela’s forest is the oldest and richest forest in the Philippines. It is also a home of different
kinds of flora and fauna like crocodiles and eagles. The water from the stream is used in water
irrigation for the crops and rice fields in the province. Some activities can be done in Abuan
River such as hiking, scaling cliffs and falls, swimming, rappelling, and rafting or kayaking.