Professional Documents
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Market Analysis
A fully functioning tourism system (Figure 1) is based upon five (5) factors namely:
(a) Attractions: provides the major pull factor of travel, its function is vital to entice, lure
and stimulate interest in travel as well as provide visitor satisfactions; (b) Promotion:
composed of paid advertising, publicity (unpaid), public relations and incentives; (c)
Information: is usually confused with information, tourist information refers to maps,
guidebooks, tour guide narratives, videos, magazine articles, brochures, Internet, and
traveler anecdotes; (d) Transportation: provides the critical linkage between market source
and destination. The pedestrian movement is important in tourism wherein tourist service
businesses and attractions are accessed by foot and; (e) Services: is the component of
tourism supply with greatest economic impact. This refers to accommodations, food
service, transportation, travel agencies and other travel businesses. And all these factors
are linked in the process of tourism planning depending on the scale and theme in relation
to the physical characteristics of land and resources.
DEMAND
SUPPLY
Attractions
Transportation
Promotion
Information Services
The supply side of tourism has to primarily match the market demand in order to
reach a correct tourism development. According to Taylor (1980 as cited by Gunn) tourism
has changing demands and that the present ability of a plant should be able to adapt to these
rapid changes. The government agencies also plays a role in administering individual
policies and practices in providing the opportunity for linking travel market preferences
with supply development.
There are four (4) major factors of tourism demand. According to Gunn (2002)
tourism demand is influenced by the following factors:
(a) Motivation to travel- which means the desire, interest and purpose for travel.
(b) Financial ability- enables the tourist to pay for services and facilities; the bulk
of the market demand is from the middle to higher socio-economic brackets.
(c) Time and physical ability- the elderly maybe restricted due to physical ability
but the younger brackets are restricted in their travel time due to work schedules
and physical disability.
The most recent data on present and historical demand is unfortunately is only
between the years 2013-2016. The 2016 tourist arrival however, is component of data up
to the third quarter of the year only. Table 1 describes Cavinti’s major tourist attractions
and tourism service businesses namely the Cavinti Falls, Pueblo El Salvador, Bumbungan
Ecopark, CURCC and Hotel/Resorts. There is a fluctuating trend of tourist arrivals in
almost all of attractions although there is a 2.17% growth rate in this data set.
100,000
80,000
60,000
40,000 2013
20,000 2014
0
2015
Table 2 is indicative of the bulk of tourists visiting the Cavinti Falls or what is
popularly known as the Pagsanjan Falls at 51.68%, next to the Cavinti Falls is their hotel
and resort accommodations at 38.07%. CURCC is a newly discovered attraction that’s
why it yields the lowest percent share among the attractions. Figure 3 indicates the pie
graph of the Cavinti Tourist Arrivals.
Table 3 illustrates the recent data on Cavinti’s tourism receipts from 2014-2015.
There is an overall growth rate of 5.24% in a year. According to this data the Pueblo El
Salvador site has the highest growth rate in terms of income at 24.05% and CURCC having
the lowest at -8.18%. Figure 4 illustrates the slight increase in their tourism receipts.
15,000,000
10,000,000
5,000,000
2014
0
2015
Tourism Sites
Table 4 shows the share of income for the year 2014 and 2015. In here, Cavinti
Falls garnered the highest tourism receipts at 90 % and 88% percent share next to Pueblo
El Salvador with 6% and 8% respectively. Figure 5 and 6 illustrates the percent share of
the tourism sites wherein Pueblo El Salvador had a 2% increase in 2015.
Cavinti Falls
Pueblo El Salvador
Bumbungan Ecopark
CURCC
90%
Hotel Resorts
2015 Percent Share of Tourism Income
1% 3%0%
8%
Cavinti Falls
Pueblo El Salvador
Bumbungan Ecopark
CURCC
88%
Hotel Resorts
Table 5 presents the 25-year tourism demand projections. The baseline data used is
from the year 2013-2015 since the data by 2016 only includes up to the 3rd quarter of this
year. The growth rate of 2.17% was derived using the exponential growth model. The
annual average growth of 6,444 was also derived based from the 2040 projection. By the
year 2040, the tourist arrival in Cavinti will rise to 384,786 or 72% increase (Figure 7).
A.2.4. Demand Projections
No.of Tourists
200,000
150,000
100,000
50,000
0 2015
2040
According to the municipal government of Cavinti, its top three (3) local income
comes from: (a) Tourism: P5.3M or 46.75%; (b) Business Taxes: P3.99M (35.05%); and
(c) Waterworks System P0.82M (7.17%). (Data has no date)
Its tourism assets include twenty-one (21) tourist attractions of which fifteen (15)
are natural tourist attractions and nine (9) of them are waterfalls. Table 6 summarizes the
tourism assets from most of the barangays.
At present, its existing tourism circuit showcases the man-made lakes of Caliraya
and Lumot due to their unique scenic lakefronts, Cavinti Falls (a.k.a. Pagsanjan Falls), and
Shooting the Rapids. It has identified new sites for future tourism development namely
Cavinti Underground River and Cave Complex (CURCC), the unique long trail going to
CURCC, El Pueblo, Bumbungan Eco-Park, Bayakan Falls, Japanese Garden, and Twin
Falls. According to the LGU there has been a 69.5% (n.d.) increase in tourist arrivals in
Cavinti due to its promotional activities in the form of videos, social media postings,
television coverage and more importantly, the hosting of five (5) annual festivals in the
municipality. In essence, Cavinti’s tourism is nature-based and in particular caters
adventure and extractive tourism.
These festivals serve as an entry point/strategy to attract and increase tourist arrivals
in their integrated tourism plan according to their recent CLUP. To illustrate it further, the
festivals highlights the nature-based tourism activities:
Activities include:
Bass Fishing Competition
Dragon Boat Racing
Canoe Racing
Kayak Racing
Open Water Swimming Competition
Kite Boarding Exhibition
Carabao Swim Racing
Underwater Fish Hunting
Munting Dampa sa Lawa and Trade Fair
1
The term “Sambalilo” originated from the Spanish word “sombrero,” which means hat. It was used by people
of Cavinti to protect them from rain and sun during work in the farm since the local weather in the
municipality is unpredictable.
recognition to the world-famous Cavinti Falls as one of the major
income generating tourist spot in Laguna. This event will take place as
soon as the new boating station of Cavinti in Barangay Anglas has been
established. Activities include a shooting the rapids race and obstacles
course going to the world-famous waterfalls.
FINANCE LABOR
ENTREPRENEURSHIP
ORGANIZATION
LEADERSHIP
FUNCTIONING
CULTURAL TOURISM COMMUNITY
RESOURCES
SYSTEM
NATURAL
COMPETITION
RESOURCES
GOVERNMENTAL
POLICIES
Figure 8 features externalities that greatly influence the supply side of tourism:
natural resources, cultural resources, organizations/leadership, finance, labor,
entrepreneurship, community, competition and governmental policies.
Finance. Tourism development requires financial backing from both the private
and public sector. The current trends for investors right now require projects with sound
feasibility.
Competition. In order to satisfy the market demand, an area must first dwell into
market research and acquire information about competing areas. For tourism expansion, an
area should be able to provide the same opportunities with less cost and greater ease.