Shares of Family Income

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

Shares of Family Income 7%

7%

39%

10%

Aklan Antique

2%

Capiz Guimaras Iloilo

35%

Negros Occ

Table 11 Data Matrix: Total Family Income by Household Head, by kind of Business/Industry, 2000 ( in million pesos) Kind of Business/Industry Province Agriculture

Total

Wholesale & Retail

Manufacturing

Community, Recreational & Personal Services

Transportation Storage Communication Services

Mining & Quarrying

Construction

Other Service Industries

Not Defined

Aklan

1,336.50

697.15

155.11

251.87

181.10

-

22.88

3,271.08

2,350.21

8,265.90

Antique

1,959.12

614.04

26.95

57.66

94.32

-

-

2,432.98

3,196.19

8,381.26

Capiz

2,491.26

574.94

99.14

279.43

468.20

-

-

4,856.99

2,719.22

11,489.18

182.85

231.06

14.25

-

51.83

-

8.69

950.73

647.57

2,086.98

4,894.56

3,563.46

759.43

852.17

1,276.66

26.73

309.85

15,375.35

13,542.68

40,600.89

Neg.Occ.

10,284.99

2,811.34

622.20

1,239.92

822.81

10.53

148.23

18,135.43

9,528.72

43,604.17

Region VI

21,149.28 2,681.05 8,491.99 1,677.08 Source: FIES, 2000 (Latest available data)

2,894.92

37.26

489.65

45,022.56

31,984.59

114,428.38

Guimaras Iloilo

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

Table 12 Joint Probability: Shares of Family Income (%) by Household Head, by Kind of Business/Industry, 2000

Province

Aklan Antique Capiz Guimaras Iloilo Neg.Occ. Region VI

Kind of Business/industry Commu Transpornity tation RecreaStorage Mining tional & Communi& PersoCation Quarry nal Ser. Service ing

Agriculture

Whole sale & Retail

Manufacturing

1.16 1.71 2.18 0.16 4.28 8.99

0.61 0.54 0.50 0.20 3.11 2.46

0.14 0.02 0.09 0.01 0.66 0.54

0.22 0.05 0.24 0.00 0.75 1.08

0.16 0.08 0.41 0.04 1.12 0.72

18.48

7.42

1.46

2.34

2.53

Construc tion

Other Ser vices Indus tries

Not Defined

0.00 0.00 0.00 0.00 0.02 0.01

0.02 0.00 0.00 0.01 0.27 0.13

2.86 2.13 4.25 0.83 13.43 15.85

2.05 2.79 2.38 0.57 11.84 8.33

7.22 7.32 10.05 1.82 35.48 38.11

0.03

0.43

39.35

27.96

100.00

Total

4.1.2. Patterns of Industry Concentration and Specialization Negros Occidental ranked first in the agriculture sector with 49 percent followed by Iloilo with 23 percent, Capiz with 12 percent and the least was Guimaras with 0.86 percent as shown in Table 13.

The industry sector specifically the wholesale and retail, manufacturing, mining and quarrying, and construction are dominated by Iloilo with

42 percent, 45 percent, 72 percent and 63 percent,

respectively, while Capiz ranked second with 33 percent , 37 percent, 29 percent and 30 percent, respectively. Guimaras consistently ranked last, being a small province, compared to other larger provinces in the region.

On the service sector, Negros Occidental dominated the community, recreational and personal services with 46 percent and other service industries with 40 percent followed by Iloilo with 32 percent and 34 percent,

respectively.

While,

the

transportation,

storage

and

communication services are dominated by Iloilo with 44 percent, second was Negros Occidental with 28 percent. Capiz ranked third on the above stated sectors and Guimaras still on the last.

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

Table 13 Concentration: Total Family Income (%) by Household Head, by Kind of Business/ Industry, 2000 Province

Kind of Business/Industry Agriculture

Wholesale

Manufac-

Community,

Transportation

Mining

Construc-

Other

Not

& Retail

Turing

Recreational

Storage

&

tion

Service

Defined

& Personal

Communication

Quarrying

Services

Services

Industries

Aklan

6.32

8.21

9.25

9.39

6.26

0.00

4.67

7.27

7.35

Antique

9.26

7.23

1.61

2.16

3.26

0.00

0.00

5.40

9.99

Capiz

11.78

6.77

5.91

10.42

16.17

0.00

0.00

10.79

8.50

Guimaras

0.86

2.72

0.85

0.00

1.79

0.00

1.77

2.11

2.03

Iloilo

23.15

41.96

45.28

31.78

44.10

71.74

63.28

34.15

42.34

Neg.Occ. Region VI

48.63

33.11

37.10

46.25

28.42

28.26

30.28

40.28

29.79

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

4.1.3 Basic Sectors and Corresponding Industries Looking at Table 14, the economy of the region is basically anchored on the agriculture sector because all the provincial economies except for Guimaras accounts for dominant share of family income.

Within the province, service and agriculture sector dominated other industries with 38 and 12 percent, respectively as shown in Figure 8. The Province of Iloilo has primarily an agricultural-based economy considering that agriculture and fishery accounted for 20 percent of the gross regional domestic product for CY 2006 as reported by the National Statistics Coordination Board.

Relative to this, Iloilo is the

region’s major agriculture hob and accounts to more than 40 percent of its agricultural and fishery outputs, followed by Negros Occidental and Capiz.

Table 14 Specialization: Total Family Income (%) by Household Head,

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

by Kind of Business/Industry, 2000 Province

Kind of Business/Industry Agriculture

Wholesale

Manufac-

Community,

& Retail

turing

Recreational & Personal

Transportation

Total Mining

Construc-

Storage

&

tion

Communication

Quarrying

Other

Not

Service

Defined

Industries

Services

Services

Aklan

16.17

8.43

1.87

3.05

2.19

0.00

0.29

39.57

28.53

100.00

Antique

23.38

7.33

0.32

0.69

1.13

0.00

0.00

29.02

38.13

100.00

Capiz

21.68

5.00

0.86

2.43

4.08

0.00

0.00

42.28

23.67

100.00

Guimaras

8.76

11.07

0.69

0.00

2.46

0.00

0.42

45.56

31.04

100.00

Iloilo

12.06

8.78

1.87

2.10

3.14

0.07

0.76

37.86

33.36

100.00

Neg.Occ.

23.59

6.45

1.43

2.84

1.89

0.02

0.34

41.59

21.85

100.00

Region VI

18.48

7.42

1.46

2.34

2.53

0.03

0.43

39.35

27.96

100.00

Figure 8 Specialization: Iloilo Shares of Total Family Income by HH Head 37.86%

40%

33.36%

35% 30% 25% 20% 15%

12.06% 8.78%

10% 5%

1.87%

3.14%

0.02

0.07%

0.76%

Mining & Quarrying

Construction

0% Agriculture Wholesale & Retail

Manufacturing Community, Transportation, Recreational & Storage, Personal Communication Services Services

Other Service Industries

Not Defined

Table 15 Location of Production, Employment and Income Province

Kind of Business/Industry Agriculture

Wholesale

Manufac-

Community,

Transportation

Mining

Construc-

Other

Not

& Retail

turing

Recreational

Storage

&

tion

Service

Defined

& Personal

Communication

Quarrying

Services

Services

Industries

Aklan

0.87

1.14

1.33

1.30

0.88

0.00

0.65

0.01

1.02

Antique

1.26

0.99

0.19

0.29

0.43

0.00

0.00

0.74

1.36

Capiz

1.17

0.72

0.61

1.02

1.61

0.00

0.00

1.07

0.85

Guimaras

0.48

1.48

0.38

0.00

0.87

0.00

1.28

1.16

1.12

Iloilo

0.65

1.18

1.27

0.90

1.25

1.89

1.77

0.96

1.19

Neg.Occ.

1.28

0.87

0.97

1.21

0.75

0.88

0.79

1.06

0.78

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

4.2.

Potential for Contributing to Local Economic Growth

4.2.1. Economic Base Industries

Industries that have high potentials for contributing to the economy of the Iloilo are Agriculture (palay and corn), Livestock (swine), Fishery and Tourism.

Agriculture, Livestock and Fishery.

Iloilo’s economy is essentially

anchored on the agriculture, livestock and fishery sector. Forty four percent of the employed persons in Iloilo or 329,014 are employed in this sector. Most of these are farmers, fishermen and fishery sector. Agriculture. The Province of Iloilo known for its agricultural-based products has been enjoying the over supply of rice for the past years. The Department of Agriculture Region VI revealed that as of June 2007, Iloilo ranks second among the highest rice-producing provinces in the country. Rice production in the Province of Iloilo recorded an increasing trend at an average of 21 percent growth annually. The province posted a surplus of 325,297 metric tons of rice with a palay sufficiency level of 165 percent in year 2007 as shown in the graph.

Total rice production in the Province of Iloilo in CY 2007 was pegged at 864,112 metric tons valued at Php10.4B, followed by the provinces of Negros Occidental and Capiz with 413,906 metric tons and 303,879 metric tons, respectively. The 42 municipalities, 1 component city and even the City of Iloilo contribute to this production. The highest 10 of which are the municipalities of Dumangas, Pototan, Cabatuan, Barotac Nuevo, Sara, Barotac Viejo, Dingle, Passi City, Lambunao and Sta. Barbara. Total production in these municipalities accounted for 41percent of the total production of the province.

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

Corn production also accounts a large share in the economy of the province. Iloilo ranks 1st in corn production in Rgeion VI. For CY 2007 corn production in Iloilo was recorded at 148,408 metric tons valued at P1.5B. Negros Occidental ranked second while Capiz ranked third in terms of corn production with 63,239 metric tons and 42,054 metric tons production, respectively. Top corn producing municipalities are mostly located in the 5th district of the province as follows Sara, Batad, San Dionisio, Lemery, and Ajuy. Other top producing municipalities are Passi City, Leon and Alimodian. Production in these municipalities totaled 41,232 MT contributing 28 percent of the total corn production in the province.

Iloilo accounts for 47 percent of the total corn

production in the region. Average production per unit area is 3.76 MT/hectare compared to the region’s 2.74 MT/ha. The province is 70 percent sufficient in corn.

Livestock. Records showed that hogs (swine) also contribute large shares in the economy of the Province of Iloilo.

Hog industry in the

province is gaining more momentum. In the last quarter of CY 2007, hog population reached 516,350 heads representing 35 percent of the total regional hog population which is 1,477,500 heads valued at approximately P3.3 B computed live weight, while Negros Occidental and Capiz shared only 27 percent and 12 percent of the total hog population of Western Visayas.

Hogs are raised productively

throughout the province. The top hog producing municipalities are Sta. Barbara, Oton, Lambunao, Guimbal, Passi City, Concepcion and Banate representing 37 percent of the total hog population. Fishery. Fishery Sector is also one of the sectors that account for large shares in the economy of the Province of Iloilo. Iloilo’s rich fishing grounds placed the province as the region’s top fish producing area with an annual production of 128,618.06 MT in CY 2007 representing 31.5 percent of the region’s production of 408,267.35 MT in the same period. Production includes aquaculture, 26,794.91 MT, commercial 88

Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

fisheries, 51,761.55 MT, marine, 72,315.83 MT and inland, 44,540.68 MT. Major coastal municipalities are Carles, Ajuy Anilao, Dumangas, Concepcion and Estancia.

Another opportunity wwhich is an Ilonggo resource and which the Ilonggo themselves can exploit is tilapia fish which grow very fast but the market share of the Philippines is minuscule. If Iloilo is able to address some of its concerns and obstacles in the agri-fishery sector, Iloilo will be able to tap the growing market for tilapia. Tourism. Another sector that account for large shares in the economy of the Province of Iloilo is tourism.

A quick review of the tourism

industry’s performance shows that tourism is now the largest industry. Iloilo’s tourist arrival for 2007 totaled to 412,689 with a tourist receipts amounting to P7.7 billion as shown in Annex 34.

The province ranks

3rd next to Negros Occidental and Aklan in terms of tourist arrivals and tourist receipts, which is 21 percent of the total tourist arrival and receipts in Western Visayas in 2007.

The 2006 labor and employment data of NSO showed that roughly 109,000 persons were employed in the tourism industry.

4.2.2. Local Employment Growth

The province’s total labor force population (15 years and over) for year 2006 totaled to approximately 1.373 million which is 30 percent of the total labor force of the region.

The economic development of the province is basically anchored on the agriculture sector because 44 percent of the labor force is in the agriculture sector while 56 percent is in the services and industry sectors.

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Provincial Development & Physical Framework Plan, Province of Iloilo, CY 2008-2013

On the average, employment rate of the province for CY 2006 was recorded at 94.2 percent, 3.1 percent higher than CY 2004 and 0.5 percent higher than the region’s employment rate with was pegged at 93.7 percent.

Looking at the historical trends from CY 2001 to 2006, employment rate was increasing annually. This is an indication that the province’s economy is improving.

Iloilo has demographic dividend where the economy is now benefiting from a very young population.

The population ages 15-64 are

considered economically active. While other countries are facing a prospect where their active labor force is fast depleting, Iloilo has a very young and dynamic population that can still be expected in the next seven to eight years. As far as the labor force is concern, there is an ample supply to tap. 4.2.3 Competitiveness and Market Share

Tourism is one of the potential industries in Iloilo in terms of competitiveness and market share.

Iloilo’s tourist destinations are

positioned to significantly contribute to the growing economic sphere in this part o the country and the big advantage of Iloilo is that it is a popular site for seminars, trainings and national conventions with its location being at the heart of the country. This provides locators and end-users a complete one stop tourism experience.

The main challenge for the province is how to attract a major portion of the projected arrival to its boundaries despite of the bad image our country has when it comes to safeguarding our foreign and local visitors. Despite these constraints, Iloilo still faces a bright future for tourism in the years to come. One reason would be that Ilonggos are friendly and hospitable people, an indigenous trait that easily attracts 90