Poblacion, Loreto, Agusan del Sur
Based on data from the Bureau of Local Government Finance (BLGF), Department of Finance, the municipality’s "Locally Sourced Revenue Dependency" was only 2% for 2011 and dropped to 1% in 2012-2016. An implication of high Internal Revenue Allocation (IRA) dependency.
The public market, slaughterhouse, and transport terminal are present in Loreto, but they cause more burden than benefits. They do not pass the standards (set) by the national agencies (concerned) like the National Meat Inspection Service for the slaughterhouse. The lack of customers in the (old) public market resulted in the depreciation of the market stalls because of incorrect/abusive usage.
These are some reasons why the municipal market revenue collection is low.
The Proposed Economic Enterprises
Food Hub
One of the economic enterprises the municipality aims (to successfully) establish is the Food Hub (termed Agri-Trading and Training Center).
In a Feasibility Report for A Food Hub (by Development Economics LLC, Peter Cambier, Principal, 2013), listed the defining characteristics:
- Carries out or coordinates the aggregation, distribution, and marketing of primarily locally/regionally produced foods from multiple producers to multiple markets.
- Considers producers as valued business partners instead of interchangeable suppliers and is committed to buying from small to mid-sized local producers whenever possible.
- Works closely with producers, particularly small-scale operations, to ensure they can meet buyer requirements by either providing technical assistance or finding partners that can provide this technical assistance.
- Aims to be financially viable while also having positive economic, social, and environmental impacts within its communities, as demonstrated by carrying out certain production, community, or environmental services and activities.
Catering Services
The proposal of this enterprise was due to complement the enterprises above.
This LEE is envisioned to go beyond Loreto and extend its services to airlines by providing microwavable packed meals and bottled beverages.
Proposed Products/Services
Corporate and Events Catering Services
This enterprise may cater corporate/private events such as (but not limited to) seminars, parties, and ceremonies.
Company Gatherings and Executive Meetings
Corporate life may be exhausting sometimes. Employees and the company management need some rest from their toxic work. This enterprise envisioned providing the best places (within the municipality) and foods to help the clients/guests relax and enjoy the moment.
This enterprise will be ready to cater to the executives of a company and their employees/staff. The goods and services must be the best.
Business Training Classes and Lunches
The Microtel function hall can accommodate (a maximum) of 600 guests based on the building plan. Schools providing business training and workshops may coordinate with the enterprise manager for negotiations.
Mobile Kitchen Units
To maximize income generation, this enterprise proposed to provide on-the-go foods, especially to the working/busy class (of people). A mobile kitchen will bring these foods to the areas with high demands.
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| From Farm to Plate - photos of rice field, manufacturing plant, rice processor, and rice used as a dish |
Microtel with Swimming Pool (including Dome or Business Center)
Microtel is a mini-hotel. It offers accommodation and facilities closely similar to what large hotels offer.
This Microtel will be the first-ever (mini) Hotel in the municipality. Tourists from the Philippines and other parts of the world have visited Loreto. That includes a group of candidates for Miss Earth International 2019 to witness the beauty of Loreto and its Wildlife Sanctuary. That is one of the bases for the need to establish a food and accommodation enterprise that will pass the international standards or the National Accommodation Standards (for Hotel) by the Department of Tourism.
Through this Microtel, the unemployed proportion of the municipal population who have the capabilities and drive to work as a hotel staff/manager will have the opportunity to be hired to achieve the short-long term goals and objectives of this LEE.
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| Front view of the Microtel at night |
Market Analysis Summary
In 2018, the total population in the Philippines is 106.7 million, and the current population of the Philippines is 110,069,447 as of November 2, 2020, based on Worldometer elaboration of the latest United Nations data11. The median age in the country is 25.7 years, and its population yearly % change is at 1.35% in 2020.
In Caraga region (where Loreto, Agusan del Sur belongs), the total population as of August 1, 2015 was 2,596,709 based on the 2015 Census of Population (POPCEN 2015). The top ten most populous cities/municipalities excluding Butuan City (337,00) are Surigao City (Surigao del Norte), Bayugan City (Agusan del Sur), Bislig City (Surigao del Sur), Prosperidad (Agusan del Sur), San Francisco (Agusan del Sur), Cabadbaran City (Agusan del Norte), Buenavista (Agusan del Norte), Tandag City (Surigao del Sur), Esperanza (Agusan del Sur), and Trento (Agusan del Sur) with population of 154,137, 103,202, 94,535, 82,631, 74,542, 73,639, 61, 614, 56,364, 54801, and 51,565 respectively.
Revenue Possibilities and Examples
Food Hub
Based on the revenue projections from the business plan, the first year net revenue is Php 39,995,288.00. For year two to five are the following: 1.) Php 41,620,145.00; 2.) Php 40,530,656.00; 3.) Php 42,927,859.00; and 4.) Php 41,141,846.00.
Greenmarket － a program of the Council on the Environment of New York City (CENYC) created by the former Mayor of the City, reached $2,788,515.00 in total revenues or ₱134,162,427.94 (peso valued at 48.11).
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| Photo of the Microtel lobby and the swimming pool |
Microtel
Data from the Department of Tourism (DoT) showed visitor arrivals from January to December 2017. The total is 6.6 million.
The National Development Tourism Plan (2016-2022) projected 12 million international visitor arrivals in 2022.
The revenue projection in year one based on the business plan is Php 41,015,443. The projected net revenue increase in year two of approximately 24%, 6% in year three, 2% in year four, and 20% in year five.
It looks impossible, but based on the total views of the Microtel on Google Maps, it can earn Php 8,929,200.00 with the single room alone in 1 year (considering the assumptions are valid). Based on the estimate, the maximum occupancy of the rooms (Single, Twin, Suite, VIP, and Dormitory) is 95. The (updated) proposed rates for each room are Php 700.00, and Php 1,200.00, Php 2,500.00, Php 1,950.00, and Php 6,000.00 respectively.
Other sources of revenue include the function hall with rates as follows (based on the reason for use): 1.) Commercial Use - Php 10,000.00; 2.) Private Events - Php 9,000.00; and 3.) Community Events - Php 8,000.00. The Business Center and Microtel swimming pool are revenue-generating assets wherein the revenue may form part of the net revenue of the Microtel. The proposed monthly rental rate for a stall in the Business Center is Php 6,000.00. The rate for the exclusive use of the swimming pool is Php 10,000.00, while the entrance fee for adults is Php 100.00 and Php 50.00 for children.
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| Loreto Microtel on Google Maps |
Catering Services
According to an article by Andrew J. Masigan dated June 16, 2019, the food service industry may expand (in tandem) with the growing population and rising income. For 2020 and 2021, revenues may reach P637.3 billion and P656.5, respectively.
In year one of the projected revenue, the net amount is Php 965,250.00. An approximately 33% increase in year two then stagnates in year three. The growth in year four is 62%, but it did not change in year five.
The assumptions that determined the revenue projections are pessimistic and optimistic. Nobody can tell what lies ahead, but we will do our best to follow through with the plans and realize the dream of self-reliant and sustainable local economic enterprises.