demographic profile and economic trends · 70 demographic profile and economic trends entails a...

Central Visayas Region Physical Framework Plan 65

Current Trends

Population Levels and Growth

Central Visayas is the fifth most populous region in the Philippines. The 2000 census estimates the population of Central Visayas to be a little over 5.7 million, which is about 7.5 percent of the country�s total population. More than 1.1 million people was added to the total population of the region since 1990. If the current rate of growth remains, the region's population is expected to double to 11.4 million by year 2031. (see Map 30)

On the average, the regional population grew at an annual rate of 2.25 percent in the seventies, 1.95 percent in the eighties, and 2.19 percent in the nineties. Compared to the other regions in the country, Central Visayas has one of the lowest population growth rates, even lower than the national averages of 2.18 percent, 2.35 percent and 2.34 percent, respectively, during the same periods. (see Figure 5)

The high out-migration rate in Central Visayas has helped regulate the population growth rate of the region. Despite the presence of Metro Cebu, which is considered the busiest urban center outside Metro Manila, Central Visayas as a whole remains an out-migration area in the country.

Population Distribution

Provincial Distribution. The population in Central Visayas is distributed somewhat unevenly among its provinces. Cebu accounts for more than half or 59 percent of the region�s population while the remaining 41 percent is distributed among the other three provinces of the region. Although Oriental Negros is a lot bigger than Bohol in terms of land area, the two are

comparable in terms of population size. Both provinces account for 20 percent each of the total regional population. Siquijor, which is the smallest province in Central Visayas in terms of land area, accounts for only 1 percent of the region�s population. (see Figure 6)

Data shows that Cebu�s share of the regional population has been steadily increasing

POPULATION PROFILE

1.0

1.5

2.0

2.5

3.0

3.5

P hil C . V isayas

'60-70 '80-90 '20-30'00-10

Figure 5. Population growth rates

projections

Source: NSO

1%

59%

20%20%

Figure 6. Distribution of population by province, 2000

Cebu

Or. Neg. Siquijor Bohol

Source: 2000 Census of Population, NSO

Demographic Profile and Economic Trends

Demographic Profile and Economic Trends 66

Map 30. Population Distribution


while those of the other provinces has been decreasing. This was due more to the high natural growth rate of Cebu than to migration. Cebu has the highest population growth rate in the region. On the other hand, studies conducted by the Cebu SEED Project and the Office of Population Studies of the University of San Carlos reveal that Cebu province and Metro Cebu are net out-migration areas.

Within Metro Cebu, the areas adjacent to the principal cities of Cebu and Mandaue experienced rapid population growth. Limitations for expansion in the uplands of Cebu City and Mandaue City led to the building up of population in areas along the coast of Metro Cebu including Mactan Island. The population of Lapulapu City, Talisay City, Consolacion, Liloan, Compostela and Cordova increased tremendously in 1990-2000 while Cebu City and Mandaue City, which serve as the urban core of Metro Cebu, registered much slower population growths in 1990-2000 than in 1980-1990.

Population Density. The population density of the region rose steadily over the years. From 253 persons per square kilometer in 1980, the population density of Central Visayas reached 307 persons per square kilometer in 1990 and 382 persons per square kilometer in 2000. This makes Central Visayas the third most densely populated region in the country, next to the National Capital Region and Central Luzon. (see Map 31)

Among the region's provinces, Cebu is the most densely populated province with 660 persons living on each square kilometer of land. Within Cebu province, however, more than half of the provincial population live in Metro Cebu, the country's second biggest metropolitan area. In 2000, Metro Cebu had a population density of 2,186 persons per sq. km., up from a density of 1,856 in 1990.

Bohol with less than half of the population density of Cebu province remains the second most densely populated province in the region with a population density of 277 persons per sq. km. Oriental Negros and Siquijor have population densities lower than the national average of 255 persons per square kilometer in 2000. In general, the three provinces' coastal municipalities that face the island of Cebu and Mindanao have relatively high population densities.

Concentration of people is heaviest in areas with a port and near the provincial capital. The distribution pattern of the region's population shows that accessibility to trading partners and other economic opportunities is a major factor in decisions of people where to settle.

Population Age Structure

The region has a relatively young

population with almost 50 percent of the population below 20 years of age. From 1990 to 2000, this pattern has not changed much.

More than half or 58 percent of the regional population belongs to the productive or working age group (15-64 years), up from 56 percent in 1990. A decreasing share or 37 percent, from 39 percent a decade ago, belongs to the younger age group (0-14 years). About 5.0 percent, up from 4.4 percent in 1990, belongs to the elderly group (65 years and over). The increase in the median age of the regional population from 19 in 1985 to 21 in 2000 indicates that the population is progressively getting older.

At the sub-regional level, the population age structure of the provinces and their historical trends closely resemble that of the region. Majority and an increasing proportion of the provinces' inhabitants belong to the working age group; about a third and a decreasing proportion belong to the younger age group; and less than 10 percent are 65 years old and above.

Siquijor on the whole has a relatively older population compared to the other provinces of the region. This means that Siquijor has a large number of elderly people. The proportion of the elderly in Siquijor is more than double the proportion of elderly in Cebu, which has the smallest percentage of population aged 65 years and above.

The impact of the ageing of the region's population is evident in the overall age dependency ratio. The increase in the population of the working age group has resulted in the decrease of the age dependency ratio of Central Visayas from 83 dependents for every 100 working age persons in 1980 to 71 dependents in 2000 (63 young dependents and eight old dependents). A decreasing age dependency ratio is expected to help spur economic growth by improving the people's capacity to save. Among


Map 31. Population Density


the region's provinces, Cebu and Siquijor had the lowest dependency ratios (69) followed by Bohol (73), and Oriental Negros (76).

Migration

Despite the presence of Cebu City which is

the second most important growth center in the country next to Metro Manila, Central Visayas remains an out-migration point in the Philippines. In 1985-1990, the region registered a negative net migration rate suggesting that the region was losing more people to other areas in the country than gaining people. Better economic opportunities in other areas was viewed as the major push factor for the region's people to move out of Central Visayas.

Within the provinces of the region, lowland to upland migration still continues, contributing to the degradation of the region's forest areas. Limited available resources in the lowlands due to rapid growth of population is a major factor propelling people to establish settlements in the uplands and to develop these areas which are supposed to be protected.

Distribution of Migrants. Over half (52.1 percent) of the moves made by the people of Central Visayas between 1995-2000 were long distance moves (from other provinces) and 44.6 percent were local (within the same province). About 3.3 percent of the movers/migrants came from abroad. While the overall moving rates have not changed substantially over the past decades, there has been noted a decrease in the percentage of moves made within the same province (local or short-distance moves) and a corresponding increase in the percentage of moves between provinces (long-distance moves). In 2000, 44.6 percent of all moves were local, down from 57.4 percent in 1980. Similarly, in 2000, 52.1 percent of all moves were between provinces, up from 40.4 percent in 1980.

More than half (53 percent) of the movers in Central Visayas were females. In all the provinces in Central Visayas, female movers outnumbered male movers. There were more females than males who moved within the same province and between provinces in the country. Males, on the other hand, were much more likely than females to have come to the region from abroad.

Short-distance moves (moves within the province) are more prevalent in Cebu than in any other province in the region. In 1995-2000, about half of the movers in Cebu came from another city or municipality in Cebu province. On the other hand, inter-provincial moves (long-distance moves) dominate in the three other provinces of the region. In Siquijor and Bohol, 8 of 10 and 7 of 10 movers in 2000 came from other provinces in the country. (see Figure 7)

While Metro Cebu is perceived as the preferred destination of intra-regional rural-urban migration, a recent study conducted by the Office of Population Studies of the University of San Carlos for the Cebu SEED Project shows that Metro Cebu as a whole has become a net-out-migration area. That is, there were more people who moved out of the metropolis in 2000 than those who moved in. Of the ten (10) cities and municipalities comprising Metro Cebu, the study shows that only the city of Mandaue and the municipalities of Liloan and Cordova, all located north of Cebu City, are in-migration areas. The rest are experiencing population outflow.

Future Trends

Population Levels and Growth

The population of Central Visayas is

estimated to be around 6.6 million in 2010, 7.4 million in 2020 and 8.3 million in 2030. This

0% 50% 100%

Bohol

Cebu

O r. Neg.

Siquijor

Within pro v Other prov A bro ad

Figure 7. Distribution of movers by province, 2000

Source: 2000 Census of Population, NSO


entails a steady decline in the annual growth of the region's population from 2.19 in the period 1990-2000 to 1.43 percent in the period 2000-2010, 1.23 percent in 2010-2020 and 1.11 percent in 2020-2030. This means that Central Visayas will be one of the moderate growing regions in the country in terms of population.

Assuming that the share of Metro Cebu to the total regional population will not change significantly, the region's principal urban settlement will have around 2.5 million inhabitants by 2030. Growth of population in the northern and southern corridors of Metro Cebu is expected to accelerate as Metro Cebu's urban core centered in Cebu City becomes saturated.

Provincial Distribution

The distribution of the regional population

across provinces is not expected to change substantially although the Province of Bohol which is aggressively being promoted as site for tourism-related investments, will start to emerge as an alternative to Cebu for employment and economic opportunities. The diversification of economic activities in Bohol as it develops its tourism industry is projected to attract an increasing number of migrants leading to a higher population growth rate for the province, possibly exceeding Cebu's population growth rate and the regional average in the next ten (10) to twenty (20) years.

Despite the slowing down of its population growth rate, Cebu will continue to account for the biggest share of the region's population because of a wide population base. Meanwhile, Oriental Negros and Bohol will account for one-fifth each of the regional population but the disparity in their population densities will further widen as the latter's population expands more rapidly than the former.

Migration

The region is projected to remain an out-

migration area in the country at least up to year 2020, despite the continued development of Metro Cebu as a major urban center in the country next to Metro Manila. The expansion of economic activities in the region especially in the areas of tourism and IT industries however is expected to lead to less and less people

migrating to other regions as a result of better economic opportunities in Central Visayas' provinces, and a surge of migrants from other areas in the country.

Migration outside the country is also projected to escalate as strong demand for health and other professionals abroad will entice many people to go out of the country to seek better paying jobs.

Within the region, rural-urban migration will continue but migration to Metro Cebu will not be as intense as in the past years as other urban centers will develop in the other provinces. The areas in and around Tagbilaran City in Bohol and Dumaguete City in Oriental Negros are especially anticipated to account for an increasing share of the prospective migrants to urban centers.

Unless measures are vigorously instituted to depopulate and protect the upland and forestal areas from further encroachment by illegal settlers, migration from the lowlands to the uplands is projected to persist.

URBANIZATION AND SETTLEMENTS

Current Trends

Urban-Rural Growth and Distribution of Population

Majority of the population (54%) in Central

Visayas still resides in the rural areas. Results of the 2000 census, however, indicate that the region as a whole is becoming more urbanized with the urban population now accounting for almost half (46%) of the total regional population, up from only 40 percent in 1990. From 1970-2000, the urban population of Central Visayas grew at an average annual rate of 3.8 percent while the rural population grew at a much slower pace of 1.1 percent.

The period 1980-1990 were years of rapid urbanization in the region. During this period, the urban population of Central Visayas grew by more than 50 percent. This remarkable growth could be attributed to the industrialization thrust of the government that saw many new businesses and economic activities rising in the region.

Although not as rapid as in the previous decade, the region's urban population during the


period 1990-2000 still grew by 43 percent. This indicates that many people continue to flock to the urban areas, perhaps because of limited economic opportunities in the rural areas.

Property developers took advantage of the growing demand for housing in the urban areas during the last decade by accelerating the implementation of residential real estate projects in many of the large urban centers in the region. Cebu continued to account for most of the housing and land development projects in the region.

The increasing urbanization of the region, however, is not shared by its provinces. Except for Cebu, the region's provinces showed lower levels of urbanization in 2000 compared to 1990. This contrasted with the situation during the 1970-1990 period wherein an increasing level of urbanization was noted in all the provinces. This suggests that most of the urbanization happening in the region in the last decade was centered in Cebu at the expense of other provinces. Cebu accounted for 80 percent of the total regional urban population in 2000, up from 76 percent in 1970. Within the province, Metro Cebu accounted for a lion's share (77 percent) of Cebu's urban population. (see Figure 8)

In 2000, more than 60 percent of Cebu's population were already living in the urban areas. In fact, Cebu is the only province in Central Visayas where majority of the population lives in the urban areas. In contrast, Bohol and Oriental Negros had more than three-fourths of their population living in the rural areas. Siquijor remained predominantly rural with more than 90 percent of its population living in the rural areas, up from around 88 percent in 1990.

Settlements Structure

As in the other parts of the country, each

municipality in Central Visayas has a small-scale town-like urban settlement with the �poblacion� as the core. Almost without exception, the poblacion consists of a city/ municipal hall, a church, a public plaza, a public market, schools, retail outlets and small vendor shops. Rural banks or commercial banks are also common establishments in the poblacion of cities and larger municipalities.

Being a region composed of island provinces, the region's urban settlements are

almost exclusively located on the coasts and are historically linked by sea transport. Most of them develop from being trading centers serving the agricultural hinterlands. The small size and production of the hinterlands coupled with the topographical constraints on land transportation led to the development of a large number of relatively small urban centers, scattered throughout the region. Except for Metro Cebu and a few cities and municipalities, the region's urban settlements have population of less than one-fifth of the total population of the municipality.

Almost all of the urban expansion happening in the municipalities in the past years occurred in the poblaciones. Considered as the most suitable areas for rapid urban development, the poblaciones are expected to accommodate most future expansion in urban population at the local level. The agricultural areas in and around the poblaciones are thus most likely to be the first to be subjected to land use conversion.

Metro Cebu. Metro Cebu is the principal urban settlement in Central Visayas. Consisting of four (4) cities and six (6) municipalities, this metropolitan area is home to more than 60 percent of the region's urban inhabitants. It also has the largest share of urban sprawl which stretches from Compostela in the north to Naga in the South. No metropolitan area of intermediate size has developed next to Metro Cebu.

Due to topographical constraints, linear expansion of urban development has occurred following the coastline. There is now a 42-

0

10

20

30

40

50

60

70

Bohol Cebu O r. Neg. Siquijor

1980 1990 2000

Figure 8. Urbanization Level: 1980, 1990, 2000


kilometer continuous built-up strip along the coastal road from Compostela to Naga. While central and upland expansion of settlements is noticeable in Cebu City, this is limited due to physical constraints. Linear growth along the coast is expected to continue in Metro Cebu.

Being the second largest urban center of the country, Metro Cebu has practically all of the facilities and services found in Metro Manila. These facilities are accessed not only by the residents of the region but also by people from the other regions in Visayas and Mindanao.

High population density has brought about various social and environmental problems in Metro Cebu. The metropolitan area is faced with problems on lack of basic infrastructure, proliferation of squatter settlements, traffic congestion, pollution, and increasing volume of garbage. One of the strategies initiated by the Central Visayas Regional Development Council (RDC) to address these problems was the creation of a Metro Cebu Development Council (MCDC) whose primary function was to coordinate planning, project implementation and monitoring of Metro Cebu-wide programs and projects. However, due to absence of a legal personality and authority and operated only on voluntary basis, the MCDC did not prosper and has remained non-functional.

Other Urban Areas. The other important urban centers in the region are the capital cities of Tagbilaran and Dumaguete. These cities owe a larger part of their growth to their status as provincial administrative centers.

Other than Tagbilaran City in Bohol and Dumaguete City in Oriental Negros, the facilities and service capacity of urban centers outside Metro Cebu are quite limited. Nonetheless, about twelve (12) of them can be considered relatively large with a substantial urban population. These are the cities of Danao and Toledo, and the municipalities of Bogo, Carcar, Madridejos, Medellin, Sta. Fe in Cebu; the municipalities of Candijay, and Dauis in Bohol; and the city of Canlaon and the municipalities of Zamboanguita and Bacong in Oriental Negros. The Cities of Tanjay and Bayawan in Oriental Negros, and Talisay City (a part of Metro Cebu) were recently elevated into cities in 2000 and 2001.

Increasing land requirements due to continuous expansion of the urban areas has led

to rapid conversion of many of the agricultural lands in and around these areas into industrial and non-agricultural uses. This has generated concern on its impact on food sufficiency/security.

Indigenous Peoples

The rights and well-being of �Indigenous

Peoples� (IPs) are protected by special laws. In particular, the Indigenous Peoples Rights Act (IPRA) of 1997 recognizes the rights of IPs to ancestral domain and lands, to self-governance and empowerment, to social justice and human rights, and to cultural integrity.

The term "indigenous peoples" refers to the more than 12 million descendants of the original inhabitants of the Philippines who have managed to resist centuries of colonization, and in the process, have retained their own customs, traditions and life ways.

In Central Visayas, the indigenous people constitutes a very small percentage of the region�s total population. Many of them are actually not natives of the region but are migrants from other areas in the Visayas and Mindanao.

As of 2004, 40,519 indigenous peoples have established pockets of communities in the provinces of Cebu, Bohol and Oriental Negros. Two tribes, namely, the Magahats and Bukidnons have established themselves in several municipalities of Oriental Negros. The Eskayas are the dominant tribe in Bohol followed by the Badjaos and Aetas or Atis, who likewise have established communities in Cebu province.

The Aetas in Naga, Cebu are located in a foreshore area of South Poblacion. About two years ago, with the assistance of the National Commission for the Indigenous Peoples (NCIP), the Aetas applied with the Department of Environment and Natural Resources (DENR) for the declaration of their present location as resettlement site. The application is still pending with the DENR. (see Map 32)

The Badjaos in Cebu City are squatters occupying the foreshore area in Alaska, Mambaling, Cebu City. Since fishing is their primary means of livelihood, their resettlement site should be located near the sea. An island near Cordova, Cebu is being considered for a resettlement site. However, the local government has yet to consider and approve the proposal.


Map 32. Indigenous People Settlements, 2004


Gross Regional Domestic Product Central Visayas owes its economic

structure to the fact that it has limited agricultural productive land. Unlike that in most regions in the country, the economy of Central Visayas is dominated not by agriculture but by services and industry. For the past twelve years (1990 � 2002), the industry and service sectors accounted for not less than 29 percent and 52 percent of the region�s Gross Regional Domestic Product (GRDP), respectively. Agriculture�s contribution to the total value of goods and services produced in Central Visayas, on the other hand, has decreased from 16 percent in 1990 to 13 percent in 2002. (see Table 10)

While the region continues to export traditional products produced by the agriculture sector (crude coconut oil and copra products), non-traditional commodities particularly industrial and consumer goods are the top dollar earners of the region. Within the industry sector, manufacturing has established itself as the dominant industrial activity. This is followed by construction, which accounts for about 28 percent of the region�s total industrial output.

The closure of the Atlas Mining and Development Corporation in Toledo City (Cebu), which used to be the biggest copper mining company in Asia, significantly affected the productivity of the mining sector. Until the early nineties, copper concentrate was the leading export product of Central Visayas and mining was the region's second largest industry. With the closure of Atlas Mines, the contribution of the mining industry to total regional output has become insignificant.

Among the sub-sectors of the service sector, trade is the most dominant sector. The strategic location of Central Visayas in the Philippine archipelago makes the region attractive for trade activities. Statistics show that trade accounted for approximately 31 percent of the total regional output. With more than one-eighth of the country�s trade output coming from Central Visayas, the region is the third largest contributor to the country�s trade output.

Another sector, which is fast becoming an economic driver for the region, is the e-services and information and communication technology

The Eskayas are located in five municipalities of Bohol province, namely, Guindulman, Sierra Bullones, Duero, Pilar and Candijay. They have established settlement sites in areas classified as ancestral domains. Most of their ancestral domain claims have been applied for ancestral domain titling.

The Magahats and Bukidnons live in the hinterlands and forest areas of Oriental Negros. The Magahats are clustered in few barangays in Ayungon and Bais City, while the Bukidnons are located in some villages in Bayawan, Bindoy Mabinay, Manjuyod, Guihulngan, Canlaon, Sta. Catalina, Tanjay and La Libertad. These tribal groups wish to formally claim ownership over currently occupied lands. The tedious documentation to prove ancestral claim, however, has delayed the issuance of the certificate for ancestral domains claims.

The presence of indigenous cultural communities in the region has raised concerns pertaining to: (1) identification of permanent resettlement sites, and (2) facilitating the conversion of ancestral domain certificates to certificate of ancestral domain titles. Future Trends

Urbanization

Although Metro Cebu will remain the

primary urban center of Central Visayas, the other major urban centers in the region, namely Tagbilaran City and Dumaguete City, are expected to experience rapid urbanization and to play significant roles in the socio-economic development of the region's provinces. In addition, the other cities in the region, the municipalities/cities adjacent to and facing Metro Cebu, the municipalities with major ports and those being developed or planned to be developed as growth points/centers are anticipated to register faster urbanization rates than other areas in the region. The facilities in these areas and their service capacities will have to be enlarged and strengthened to keep up with the anticipated increase in demand.

Cebu will continue to account for most of the region's urban population in 2030 with more than 60 percent of them living in Metro Cebu. Bohol and Oriental Negros together will account for 15-20 percent of the region's urban population. Siquijor will still be basically rural.

REGIONAL ECONOMY


(ICT) sector. Internet cafés, Internet service providers, IT training institutions, and offshore outsourcing IT-enabled services providers (i.e. call centers, medical transcriptionists, data digitizers) have abounded in the region's major urban areas in the past years indicating that Central Visayas is in the forefront of the country�s efforts to expand the ICT industry and become the e-services hub in Asia.

On the average, the regional economy grew at an annual rate of 3.9 percent in 1990-2002. This was higher than the average growth rate of the Philippine economy of 3.2 percent per annum for the same period. In absolute terms, the Gross Regional Domestic Product (GRDP) of Central Visayas rose from P 47.2 billion in 1990 to P 74.9 billion in 2002, or almost double in 12 years.

In terms of the region�s contribution to the total goods and services produced in the country, statistics show that the region�s share to the

Table 10 Gross Regional Domestic Product by Industrial Origin

Percent Distribution, 1998 � 2002 (At Constant 1985 Prices)

Industry 1998 1999 2000 2001 2002

Agriculture, Fishery, Forestry

Agriculture and Fishery Forestry

Industry

Mining and Quarrying Manufacturing Construction Electricity, Gas, Water

Services

Transport, Communication & Storage Trade Finance Ownership of Dwelling & Real Estate

Private Services Government Services

Gross Regional Domestic Product

13.40

13.36 0.03

31.78

1.51

20.40 6.98 2.89

54.82

6.55

28.93 2.34 6.39 7.38 3.24

100.00

13.62

13.60 0.02

31.72

1.24

20.44 6.56 2.88

55.26

6.54

29.77 2.36 6.20 7.29 3.11

100.00

12.69

12.67 0.02

33.74

1.18

20.23 9.52 2.81

53.57

6.49

29.25 2.21 5.73 6.99 2.90

100.00

12.91

12.89 0.02

33.12

1.00

19.95 9.43 2.74

53.98

6.57

30.08 2.15 5.45 7.01 2.71

100.00

12.88

12.88 0.00

32.55

0.83

20.06 8.94 2.72

54.57

6.79

30.58 2.15 5.31 7.07 2.67

100.00

Source: National Statistical Coordination Board Estimates are as of July 2003

Gross Domestic Product (GDP) has increased over time. Central Visayas now accounts for approximately 7.2 percent of the country�s GDP (2002) compared to only about 6.5 percent in 1990.

Per Capita GRDP

In general, the per capita GRDP of Central

Visayas improved in the last 10 years, an indication that the regional economy grew faster than the growth of population.

Except in 1997-1998 when the economy was barely growing, the per capita GRDP of the region grew by not less than 1.5 percent. The highest growth recorded was in 1999-2000 at 8.7 percent. This was also the period when the region saw the fastest economic expansion since 1988. (see Table 11)


Provincial Economic Structure Although Central Visayas as a whole is

one of the fastest growing regions in the country, the bulk of its economic activities, specifically the industrial and service activities, are concentrated in Cebu, notably Metro Cebu. It is estimated that Cebu accounts for 80 percent of all the industrial output in the region, while the remaining 20 percent is accounted for by the rest of the provinces. This situation has remained unchanged for several years even with the development of other urban centers in the region.

Cebu. The center of economic activities in the province is Metro Cebu, where majority of the population is also concentrated. The influence of Metro is not only confined in the province but extends to the other provinces in Visayas and Mindanao. As the premier industrial, commercial and service center in Central Visayas, Metro Cebu is host to various manufacturing industries, shopping centers, educational institutions, financial institutions, and other service-oriented institutions that cater not only to the needs of the people in the region but also those from other provinces in Southern Philippines.

Of the eight proclaimed Special Economic Zones (SEZ) in the region, five are located in Metro Cebu. The remaining three SEZ are in Danao City, Balamban and Bogo, all in Cebu.

Manufacturing activities in the province used to be mainly of the light and medium type of industries until the West Cebu Industrial Park in Balamban, which house two shipbuilding companies, started operations in 1993. Less than a decade after the first locally-made tricat-catamaran and bulk carrier were launched, fast ferries and bulk carriers have become important export products of the province. Other major exports of Cebu are electronics, other industrial goods, electrical equipment, and furniture. The first three (3) products are mainly produced inside the Mactan Economic Zone.

Aside from the shipbuilding companies in Balamban, the Mitsumi Cebu Inc., manufacturer of electronic parts, is another important employer outside Metro Cebu. It is one of the largest single manufacturing enterprise in the country in terms of employment. This firm, located in Danao City, north of Metro Cebu, employs around 17,600 workers.

Table 11 Philippines and Central Visayas GRDP, 1990 � 2002

At Constant 1985 Prices

Year Philippines Central Visayas

Gross Domestic Product (In Million Pesos) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Growth Rates of GDP (In Percent) 1990-1991 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002

Per Capita GDP (In Pesos) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

720,690 716,522 718,941 734,156 766,368 802,224 849,121 893,151 888,001 918,162 972,961

1,001,715 1,046,083

(0.6) 0.3 2.1 4.4 4.7 5.8 5.2

(0.6) 3.4 6.0 3.0 4.4

11,722 11,397 11,188 10,961 11,168 11,417 11,810 12,147 11,816 11,958 12,670 12,746 13,006

47,193 46,971 47,086 47,757 49,663 52,327 56,615 59,926 61,174 63,341 68,715 71,671 74,895

(0.5) 0.2 1.4 4.0 5.4 8.2 5.8 2.1 3.5 8.5 4.3 4.5

10,224 9,992 9,838 9,464 9,621 9,914

10,500 10,884 10,885 11,046 12,005 12,256 12,537

Source: National Statistical Coordination Board


Service industries that support tourism are equally important in Cebu�s economy. Most of the country�s major shipping lines are based in Cebu. These include WG&A, Sulpicio Lines and Gothong Lines, which ply the Luzon-Visayas, intra-Visayas and Visayas-Mindanao routes. Allied with the vibrant tourism industry is the expansion of financial services. Metro Cebu hosts branches of all banks with services in Metro Manila. Among the international banks operating in the province are Hong Kong Shanghai Banking Corporation (HSBC), Standard Chartered Bank, and Citibank.

Worthy of mention also is the proliferation of information and communications technology enterprises in the province. Cebu is reputed to have one of the highest densities of Internet users in the country. It has over 30 Internet Service Providers and almost all institutions of higher learning in the province offer IT courses.

Bohol. While Bohol is predominantly an agricultural province, home-based industries, which are mostly of the micro and cottage types, play a vital role in its economy. Tourism is another industry, which is increasingly gaining influence on the province�s economy. There are visible signs that Bohol is a growing favorite destination not only of domestic but also of foreign tourists.

The earliest and most dominant manufacturing industry in Bohol is the handicraft industry particularly loomweaving. This can be observed in nine coastal and hinterland municipalities west of the province with Inabanga as the anchor municipality for the industry. This century-old industry is, however, being threatened by the dwindling of resources used as raw materials. Thus, to sustain the activities in the area, programs to replenish the raw materials have to be implemented. Other industrial products of Bohol are fashion accessories, shellcraft, woodcraft, processed food, ceramic craft, hand-made paper and novelty items.

Bohol as the food source of Central Visayas devotes around 45 percent of its land area to agriculture. Palay, one of its principal crops, is grown all over the province though it shows some concentration in the central portion of the island. Coconut, another major agricultural product of the province, is planted in 36 percent of its agricultural area. Livestock and poultry are

also produced in the province. The Ubay Stock Farm, which is the largest livestock-breeding center in the country, is located in Bohol. Meanwhile, fishing is conducted along most of its offshore areas. The fishing industry consists of deep-sea fishing, municipal fishing and inland fishing.

The market of Bohol products has gone beyond its neighboring provinces. There are several products in the province that directly find their way to the world market. These are the starch produced by the Philippine Starch Industrial Corporation and the limestone from the Philippine Sinter Corporation. Both products are exported to Taiwan.

The central business district is Tagbilaran City, the provincial capital, although business also thrives in other growth centers of Ubay, Tubigon, Talibon, Carmen and Jagna. Aside from being the center of commercial activities, Tagbilaran City is also the center of education in the province where quality tertiary education is offered.

Oriental Negros. Like that of Bohol, the economy of Oriental Negros is largely agri-based. However, while agricultural activities in the former is focused on the cultivation of food crops, that of the latter is more of the plantation type focused on commercial crops like sugarcane and coconut. Thus, among its major exports are copra and sugar molasses. Bais City, 45 kilometers north of its provincial capital accounts for many of the sugar mills that process the bulk of the sugarcane produced by the province.

The province is not only known for its vast sugarcane plantation, the capital town of Dumaguete City has also established its reputation as a University Town and home of one of the oldest universities in the country, the Silliman University. Major universities, colleges and training institutions are located in Dumaguete. Tourism is also a growing industry in the province. Dolphin and whale watching, scuba diving, mountain trekking, and world-class golf courses are among its tourist attractions.

The province has identified two sites for special economic zone development. One is in Bais City (Bais City Ecozone) and the other is in the adjacent city of Tanjay (Polo Ecocity Special Economic Zone). If proclaimed by the President, the two would be among the first special economic zones outside Cebu.


The working-age population of Central Visayas in 2003 was estimated at 3.9 million. They constituted 63 percent of the region's total population. About 2.5 million joined the labor force during the year for a labor force participation rate of 65.4 percent. Sixty-one (61) percent of the region's labor force were males and 39 percent were females.

Data reveal that from 1993-2003, the size of the region�s labor force grew less rapidly compared to that of the country. During the period, the labor force of Central Visayas grew at an average of 1.9 percent annually while that of the Philippines grew at 2.7 percent.

Total Employment, Unemployment and Underemployment

Total employed persons in 2003 stood at 2.2 million, thus placing the employment rate and unemployment rate of the region at 88.2 percent and 11.8 percent, respectively, during the year. Data shows that the employment situation in the region has deteriorated over the last couple of years. Where the regional employment rate hovered above 90 percent during the period 1993-1998, it went down to 88 to 89 percent from 1998 to 2003. Correspondingly, the unemployment rate has gone up and has remained double-digit since 1998.

Underemployment in the region exhibited an erratic trend in the past 10 years. Starting in 1997 though, it has never gone down below 10 percent. As a proportion to total employment, underemployment in 2003 was estimated at 11.2 percent. Only about 56 percent of those who wanted more work were actually working for less than 40 hours a week. About 44 percent had already full time jobs (work at least 8 hours). (see Table 12)

Sectoral Employment

Agriculture has lost its dominance in the

regional economy in terms of total employment. The sector which used to be the biggest employer

EMPLOYMENT

Labor Force

Indicator Philippines Central Visayas

(In Thousands)

Total Pop�n 15 years and over Employed in

Agriculture Industry Services

(In Percent)

Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Rate Visible Underemployment Rate

52,305

11,741 4,948

14,865

67.1 89.8 10.2

9.7

3,854

738 438

1,045

65.4 88.2 11.8 11.2 6.3

Table 12 Employment Indicators

Philippines and Central Visayas: 2003

Note: Data were taken from final results of the October 2003 rounds of Labor Force Survey using past week as reference period

Source: National Statistics Office

Siquijor. Siquijor with its limited land area is not a significant producer of agricultural crops. Agricultural productivity in the province is even declining due to unwise use of land. As a result, it depends on neighboring provinces for food supply.

Since Siquijor has no city, the industrial activities in the province are limited to the poblaciones of Larena and Siquijor, the provincial capital. The province has strong links with Dumaguete City, being once a part of Oriental Negros. Thus, the industrial and business firms in Dumaguete City service not only Oriental Negros but the province of Siquijor as well.

Fishing and tourism, which are still underdeveloped, are the potential economic drivers of Siquijor. Its major fishing grounds include the Siquijor Sea, South Tañon Strait, Bohol Strait, and Mindanao Sea. In tourism, among its attractions are the 201-year old stone church convent, pristine beaches and caves.


of the region now lags behind the service sector in terms of providing employment opportunities to the people in Central Visayas.

From 46.6 percent in 1993, the share of agriculture to the total regional employment went down to 33.2 percent in 2003. In contrast, the share of services increased from 34.7 percent in 1993 to 47.0 percent in 2003, making it the biggest employer in Central Visayas. Employment in the industry sector also expanded to account for 19.7 percent of total regional employment in 2003, up from 18.7 percent in 1993.

Employment statistics suggest that during periods of economic recession, people tend to go back to working in agriculture. In 1992, after the regional economy experienced a negative growth, agriculture�s share to total regional employment rose. The same trend was observed in 1997 and in 2000-2001 when the country was hit by economic and political crisis. It seems like agriculture is the least vulnerable to economic shocks, specifically in terms of providing employment. Urban-Rural Employment

In 2002, majority of the unemployed workers could be found in the urban areas. Unemployment in the rural areas had always been lower compared to that in the urban areas. From 1993-2002, the rural unemployment rate had not gone higher than 10.5 percent. Meanwhile, the highest unemployment rate recorded by the urban areas was 14.0 percent, which was registered in 2001 and 2002.

The relatively higher unemployment rate in the urban areas could be the result of the perception that more jobs could be had in the urban centers. Thus, many people looking for work trek to the urban centers where jobs were actually not enough given their existing skills. This is evident by the rapid expansion of the labor force in urban areas. In 1993-2002, the average annual growth rate of the labor force in the urban areas (2.1 percent) was almost double that in the rural areas (1.1 percent). (see Table 13)

On the other hand, underemployment is generally more rampant in the rural areas although there were years (2000, 2001 and 2002) when the underemployment rate in the urban areas either equaled or exceeded that in the rural

areas. Underemployment in the rural areas is caused by the seasonality of farm activities as well as by the great imbalance between the number of people living in the area and available land and other resources for their use. In the urban centers, underemployment is largely caused by the desire of workers to have additional jobs to cope with the rising cost of living in urban centers.

Provincial Employment

Cebu, where most of the population in the

region is concentrated, has also the most number of the working-age population. In 2002, about 2.2 million people (63 percent) in Cebu were 15 years old or older.

While Cebu had the most number of population aged 15 years and over, it had one of the lowest labor force participation rate in the region. Siquijor had the highest labor force participation rate of 70.9 percent. Labor force participation rate is higher in areas where agriculture is the primary economic activity. This may be due to the labor intensive nature of activities in the agriculture areas.

Majority of the workers in Siquijor are engaged in agricultural production while only about one-third of the workers are employed in

Indicator Urban Rural

(In Thousands) In the Labor Force Employed Persons Unemployed Persons Underemployed Persons (In Percent) Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Rate

1,060 912 148 101

64.0 86.0 14.0 11.1

1,330 1,211

119 128

64.9 91.1 8.9

10.6

Table 13 Urban- Rural Employment Indicators

Central Visayas: 2002




Table 14 Provincial Employment Indicators

Central Visayas: 2002

Indicator Bohol Cebu Oriental Negros Siquijor

(In Thousands) Total Pop�n 15 years and over Employed in: Agriculture Industry Services

(In Percent) Labor Force Participation Rate Employment Rate Unemployment Rate Visible Underemployment Rate

724

213 70

137

63.5 91.4 8.6 7.4

2,195

299 294 607

63.5 86.2 13.8 4.6

733

251 48

168

68.2 93.3 6.7 9.0

53

23 3

10

70.9 97.6 2.4

22.9



non-agricultural activities. In contrast, Cebu�s employment structure is less agricultural with more than 70 percent of its working population engaged in non-agriculture related activities. Oriental Negros and Bohol�s workers meanwhile, though still predominantly employed in agriculture, are gradually engaged in non-agriculture related activities.

Cebu has the highest unemployment rate among the provinces in the region. Apparently, the number of jobs generated was not enough to meet demand. Also, reports show that many of the jobs that were generated could not be filled because the labor force lacked the necessary skills to do the job. (see Table 14)

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