1. Development in the Supply Chain of the Philippine Agri-tourism Industry:An AssessmentPresented byElmer R. Esplanaelmer.esplana@gmail.comSocio-economist & Interdisciplinary Researcher National Secretariat Coordinator,Price and Volume Watch, Bureau of Animal IndustryDepartment of AgriculturePresented at the1st International Agriculture and Tourism Expo, World Trade Center, Pasay City July 1, 2011

2. Objectives of the Presentation The main objective of the study is to document andassess the developments in the Philippine agri-tourismindustry supply chain. Specifically, the study aims to: 1) provide a situation onthe tourism industry both in local and internationalsituation; 2) provide a baseline information on thedevelopments in the Philippine agri-tourism industryfrom input supply, production, processing, marketingand demand/consumption; 3) identify the best practicesalong the supply chain approach; 4) provide the baselinetourism competitiveness of agri-tourism with someASEAN countries; 5) suggest solutions for the gaps andproblems encountered by the industry along the supplychain; and 5) recommend strategic directions for thePhilippine agri-tourism industry. 3. Figure 1. Conceptual Framework for the Agri-tourism IndustrySupply Chain and Development Assessment 4. Results of the Study Supply Chain -the core business process in anyorganization that creates and delivers aproduct or service, from concept throughdevelopment and manufacturing orconversion, and into a market forconsumption. It is called as the seed to shelfor breed to plate or farm to spoonapproach. 5. Mission of Supply Chain The mission of supply chain, as a managementapproach, is the ability of individualagribusiness firm/agri-tourism establishmentor an industry to enhance the customersexperience through excellence in deliveringthe right products, services, resources andinformation seamlessly to the right place atthe right time. 6. Industry Focus of Supply Chain Management The industry focus of supply chainmanagement includes activities such as 1)integrated behavior, 2) mutual sharing ofinformation, 3) mutual sharing of risk andrewards, 4) cooperation, 5) same goal andsame focus on serving customers, 6)integration of processes, 7) partnership inbuilding and maintaining long-termrelationships among each industrystakeholder. 7. Figure 2. Agri-tourism Industry SupplyChain FrameworkInput Supply ProductionProcessing Marketing ConsumptionSource: Esplana, Abao, Vasquez, 2007 8. World Tourism Situation In 2010, international tourism receiptsare estimated at $919 billion worldwidehigher than the $851 billion in 2009(UNWTO, May 2011) . No. of tourist worldwide was recorded at880 million in 2009. Top three international touristdestinations in 2010 are France (79 M),China (56 M) and United States (61 M). 9. No. of Arrivals and Receipts of the Tourism Industry and itscontribution to GDPPercentNo. of Arrivals and Receipts from GR(2006- 2006 2007 20082009 2010Change Tourism Industry2010) 2010/2009Total Arrivals2,843,345 6,080,591 3,139,422 3,017,099 3,520,471 (2.70)16.68Total Receipts (In $ Million) 3,465 4,622 2,429 2,236 2,490 (12.95) 11.36Converted to PhP (In PhP Million) 177,803.01 213,275.75 108,029.78 106,516.33 112,323.90 (14.90) 5.45GDP 6,031,164 6,648,619 7,409,371 7,678,917 8,513,037 8.6910.86% Share to GDP 2.953.211.461.391.32 (21.70) (4.88)In general, during the last five years for the no. of arrivals and totalreceipts of tourist industry in the Philippines, it has been in decreasing trends. The average contribution of the tourism industry in the last five years was posted at two percent of the gross domestic product. 10. Visitors Arrivals by Country of Residence (Subcontinent) from 2006-2010 and Average Growth RatesVistor Arrivals byPercentGR(2006-Country of Residence20062007 200820092010 Change 2010) (Subcontinent)2010/2009Grand Total2,843,335 3,091,9933,139,422 3,017,099 3,520,471 4.1116.68Foreigners 2,696,970 2,911,2542,939,999 2,819,178 3,292,026 3.7316.77ASEAN202,886 235,615254,077 255,586 298,176 8.8916.66East Asia 1,338,777 1,430,077 1,370,059 1,202,995 1,563,013 1.3829.93South Asia31,97537,596 43,66246,96050,91412.22 8.42Middle East 31,50335,688 36,61546,81148,71612.11 4.07North America648,929 671,744681,922 682,696 707,705 1.91 3.66Central America - - - -South America2,776 3,1773,505 3,597 3,650 6.95 1.47Western Europe 117,167 128,199134,663 138,946 149,193 5.80 7.37Northern Europe106,088 124,684136,260 138,950 150,178 8.37 8.08Southern Europe 23,09728,961 30,98629,28132,388 7.1110.61Eastern Europe14,04214,599 16,81916,52221,82110.5832.07Eastern Mediterranean- - - 6,141 7,411 n/a 20.68Europe *Oceania149,276 163,403174,583 185,014 203,211 7.69 9.84Africa 2,246 3,0903,317 3,082 3,584 9.7716.29Others and Unspecified28,20834,421 53,53162,59752,06620.01 (16.82)ResidencesOverseas Filipinos **146,365 180,739195,287 197,921 228,44510.3115.42Source of Basic Data: DOT 11. No. of Foreign Tourists Arrivals in 2010 from country of residences (subcontinent)7,411, 0%3,584, 52,066, 2%ASEAN 0% 21,821, 1% East Asia32,388, 1%203,211, 6%298,176, 9%South AsiaMiddle East 150,178, 5%North America 3,650, 0% 149,193, 5%Central AmericaSouth AmericaWestern EuropeNorthern Europe 707,705, 21% 1,563,013, 47% Southern EuropeEastern EuropeEastern Mediterranean Europe*Oceania 48,716, 1%Africa50,914, 2%Others and Unspecified ResidencesThe biggest arrivals came from East Asia, North America and ASEAN 12. Source: DOTSouth Korea is the country with the highest no. of tourist arrivals(740,622 or 21%) or source of market, followed by United States600,165 or 17%, Japan (12%), China (7%) and Australia (3%). 13. Comparative Foreign and Domestic Tourists from 2009 to 2010 20102009 Growth RateDestinations ForeignDomesticTotal ForeignDomestic TotalForeign Domestic TotalCamarines Sur310,0631,569,109 1,879,172 206,9371,022,092 1,229,029 49.83%53.52%52.90%Metro Manila 1,111,152576,680 1,687,832 879,577516,168 1,395,745 26.33%11.72%20.93%Cebu 528,145784,790 1,312,935 484,341749,361 1,233,7029.04% 4.73% 6.42%Boracay Island 230,459377,078 607,537 163,820343,076 506,896 40.68% 9.91%19.85%Davao City46,084462,668 508,75255,090614,774 669,864-16.35% -24.74% -24.05%Baguio City*22,672412,527 435,19930,194501,229 531,423-24.91% -17.70% -18.11%Bohol 79,584170,561 250,14573,660167,010 240,6708.04% 2.13% 3.94%Zambales**49,781197,794 247,57557,146189,283 246,429-12.89% 4.50% 0.47%Cagayan Valley10,793218,968 229,76110,709214,904 225,6130.78% 1.89% 1.84%Puerto Princesa City**24,440189,378 213,81818,328178,418 196,746 33.35% 6.14% 8.68%Camiguin Island5,650172,178 177,828 5,792152,087 157,879 -2.45%13.21%12.64%Negros Oriental 36,088139,310 175,39834,838143,727 178,5653.59%-3.07%-1.77%Ilocos Norte13,067126,918 139,98510,279128,844 139,123 27.12%-1.49% 0.62%TOTAL2,467,978 5,397,9597,865,9372,030,711 4,920,973 6,951,684 21.53%9.69%13.15%*January-August only**partial report as of September 2010Sources of Data: DOT Regional Offices/ Local Tourism Offices/ Accommodation EstablishmentsThe top five tourists destinations in 2010 are: MetroManila with 21-percent growth, Camarines Sur, 53%;Cebu, 6.42%; Boracay Island, 19.85%; and Davao City(-24%). 14. Occupancy Rates and Length of Stay of Guests (in nights) for the different type of accommodations in Metro Manila by classified hotels Type of Accomodations Occupancy Rates (%) Length of Stay of Guests (in nights) De Luxe 64.582.63 First Class 60.342.47 Standard67.352.39 Economy 64.631.98 Source : DOTThe Standard Room (67.35%) accommodations had thehighest occupancy rate while the De Luxe Room (2.63) had highest length of stay for guests. 15. What is Agri-tourism? Agri-tourism is a form of niche tourism that isconsidered a growth industry in many parts of theworld, including Australia, Canada, US, and thePhilippines (Wikipedia). It is sometimes called as farm or rural tourismwhich is a fast expanding tourism product thatacts as a supplemental activity to the main activityof farming. This is characterized by a link betweentravel and products, services and experiences ofthe agriculture and food systems.(http://www.gov.nf.ca). 16. Agri-tourism Industry in the Philippines Agri-tourism concept in the Philippines involve activitieswhich maximizes the potential of income generation ofexisting farms in the country through tourism relatedactivities. This on-farm diversification scheme aims to openopportunities for livelihood, business and employmentgeneration, and education of non-farming public about farmand farm products and the preservation of rural landscape. It is a tourism where the working environment forms part ofthe tourist product. It likewise covers attractions, activities, services, andamenities as well as cultural resources of the area. It isintended to promote an appreciation of local culture,heritage and traditions through personal contact with localpeople (DOT, Philippine Agri-tourism Concept Paper, 1999) 17. Agri-tourism Industry in the Philippines It is considered as an emerging industry developedas a niche market both of the agriculture andtourism sectors. There are some agribusiness establishments thatoffer agri-tourism products and services, as avalued-added from their core business in the farmsto increase their profitability or competitiveness, asa business entity. While some agri-tourism sites had intentionallydeveloped business models which basically madetourism as their core business, but only few aredoing this at the moment, among the new entrant tothe industry, due to availability of enough capitalinvestment. 18. Input Supply Suppliers of business ideas, concept/business model. Suppliers of raw materials used as input to productionof agricultural products and the operation of the agri-tourism establishment. Suppliers of kitchen equipments & technology. Providers of technical assistance (skills, knowledge,desirable values) such as academicians, professionals,consultants & experts in the different segments of theagri-tourism business. The complexity of input supply in an agri-tourismestablishment is dependent on the business modelthat a farmer-entrepreneur decided to develop. There are some industry players that are highlyintegrated in operation from input supply to marketing,e.g. Bohol Bee Farm and Ilog Maria Honeybee Farm. 19. Sourcing raw materials either in internal or external suppliers In the input supply subsystem, it is observed thatamong the agri-tourism sites, the purchasing of rawmaterials requirement for their operations areeither supplied through their existing farm inputoperation while some have been purchasing itthrough their regular suppliers. Some of the players in the input supply subsysteminclude: breeders and feeds supplier for livestock,seeds and seedlings supplier, fertilizer and pesticidesupplier for crops, agricultural/processingmachinery suppliers, food and beverages suppliersand other agricultural inputs. Most of the labor aresourced from within the area where the farm islocated. 20. Production-Processing Creation of goods and services In agri-tourism business, the distribution ofproduction load in the operations of agri-tourismsites include: 70% of production is goods while30 % of production is services or vice versadepending on the business model. 21. Production Activities of Agri-tourism Sites The production subsystem activities in agri-tourism industry include: production of farm andprocessed products, conduct or participate intrade fairs, exhibit, farm direct marketing,acceptance of farm tours and conduct of training.Only few have farm stay or overnightaccommodation capability. Some have a regular farm tours organized bythem or by either their network tour guideoperators, travel agencies or travel association.Others have other value-added products such asconsultancy services for their farm commodityexpertise. 22. Selected Agri-tourism Sites in the PhilippinesFarm Category Name of Establishments LocationFarm Stay (with Day Tour overnight facility)Gourmet Farm Silang, Cavite XSonyas Garden Alfonso, CaviteX XMindanao Baptist Rural Life Center Bansalan, Davao del SurX XTrappist Monastery Jordan, Guimaras XIlog Maria Honeybee Farm Silang, Cavite XBohol Bee Farm, Resort and RestaurantPanglao Island, BoholX XDel Monte Philippines Inc. Camp Philips BukidnonXMenzi Agricultural Development Camilag, Manolo Fortich, BukidnonXTomato Farms NFC, Sarrat, Piddig, Ilocos NorteXNational Apiculture Research Training, Devt. Inst. DMMMSU-NARTDI, Bacnotan, La UnionX XCentral Luzon State University Munoz Science City, Nueva EcijaX XUniversity of the Philippines Los BanosCollege, LagunaX XLos Banos Horticulture Society RGC, Calamba City, LagunaXHacienda Macalauan Inc.Calauan, LagunaXPamora FarmPidigan, AbraXCostales Nature FarmsMajayjay, Laguna XPalawan Butterfly Garden Puerto Princesa, Palawan XJuboken Farm and EnterpriseCamalig, Albay X Source: Farm Visits, Interviews/Websites 23. Farm Tour is the dominant Tourism Service and onlyfew have the capability for overnight stayAmong the selected agri-tourism sites, aside from the farm tour, only few or 6 out of 17 have the capability to handle an overnight stay for theirclients. Facilities for overnight stay include Sonyas Garden, Bohol Bee Farm, Mindanao Baptist RuralLife Center, National Apiculture Research and Development Institute, UPLB and CLSU. 24. Selected Agri-tourism Sites in the Philippines and Mode of Reservation for Farm/Plant TourAvailability ofMode of AvailabilityName of Establishments Website/BlogsonlineReservation/Accessibility of Website reservation of Farm/Plant TourGourmet Farm www.gourmet.com.phYesNonecall/telephone, emailSonyas Garden www.sonyasgarden.comYesNonecall/telephone, emailMindanao Baptist Rural Life Center http://mozcom.com/~mbrlc/index.htmYesNonecall/telephone, emailTrappist Monastery through blogs and profile account onlineNo Nonecall/telephone, emailBohol Bee Farm, Resort and Restaurantwww.boholbeefarm.com/www.boholbeefarm-panglao.com Yes Yesonline reservationDel Monte Philippines Inc. http://www.delmontepacific.comYesNonecall/telephone, emailMenzi Agricultural Development through blogs and profile account onlineNo nonecall/telephone, emailTomato Farms www.nfc.gov.phYesNonecall/telephone, emailNational Apiculture Research Training, Devt. Inst. http://nartdidmmmsu.multiply.com/ YesNonecall/telephone, emailCentral Luzon State University www.clsu.edu.ph YesNonecall/telephone, emailUniversity of the Philippines Los Banoswww.uplb.edu.ph YesNonecall/telephone, emailLos Banos Horticulture Society www.lbhs-ph.org YesNonecall/telephone, emailHacienda Macalauan Inc.www.hmi.net.phYesNonecall/telephone, emailPamora Farmwww.pamorafarm.comYesNonecall/telephone, emailCostales Nature Farmswww.costalesnaturefarms.com YesNonecall/telephone, emailPalawan Butterfly Garden through blogs and profile account online noneNonecall/telephone, emailJuboken Farm and Enterprisethrough blogs and profile account online noneNonecall/telephone, email Source: Websites/Internet 25. Agri-tourism Mode of Reservation When it comes to mode of reservation for farmtour, phone calls (landline/mobile) and emailcommunications are the most widely usedmeans of communication tools. Among the identified 17 selected agri-tourismsites, only Bohol Bee Farm and Ilog MariaHoneybee Farm had the online reservationfacility/could purchase their product for salethrough an e-commerce facility. 26. Selected Agri-tourism Establishments/ Players with Best Practices 27. Bohol Bee Farm Bohol Bee Farm which is an organic bee farm withhotel resort and restaurant. They have 17 productsfrom honey and honeybee by-products that arecurrently offering to their clients. Some of theseproducts include: pure honey, honey spread, beepollen, honeyed salabat, bee propolis, honeyedmuffins. Bohol Bee Farm is promoting organicfarming. 28. Ilog Maria Honeybee Farm Ilog Maria Honeybee Farm is an integrated bee farm operator with awebsite shopping cart as their main mode of purchasing theirproduct. Being an integrated operator in the honeybee industry, theyare the most number of processed products and by-productproduced from honey and bee products. Some of their productsinclude: honey, natural bee pollen pellets, raw propolis, fresh RoyalJelly, scented beewax candles, beewax, propolis soap and shampoos,honey cedar vinegar, bee venom, to name a few. Based on theirwebsite there are two means of payment for Ilog Maria productssuch as: 1) the usual way, by making a deposit to their account andfaxing the deposit slip to them; and 2) a newer way by GCash andSmart money. As part of their value-added services, they host fieldtrips or conduct tours within the bee farm for a minimum of 50people. Tour in Ilog Maria is designed for walking through along thefresh cool air and walk around their garden. They have establishedtheir own museum which they call Museo sa Ilog Maria. There areother value-added services that they are doing that include beeseminar, contract pollination services and bee project consultancy. 29. Mindanao Baptist Rural Life Center MBRLC is a private volunteer organization whose main objective is to helpall people, especially upland farmers. MBRLC has developed into a 19-hademonstration farm with seven satellite projects throughoutMindanao. They are involved in local village development programs. Over20,000 visitors come to the Center per year with about 2,000 of those beingone-week trainees per year. They are primarily promoting sustainabledevelopment for the uplands utilizing agriculture, health care, literacy, andcommunity organizing, among others with tie-ups in over 12 Asiancountries. "People who come to the farm dont only see what we do butalso learn something. Roy Alimoane, MBRLC, Director As to the commodities, they are into livestock and aquaculture production,organic fertilizer, seed production, training and agricultural andagroforestry technology promotion. Almost daily, group tour arrive to see their Disneyland of sustainablefarming systems which according to them, they have developed throughthe years of experimentations and consultations. Most of their visitors, came from Asia such as Afghanistan, Bangladesh,Bhutan, Brunei, Burma (Myanmar), Cambodia, China, East Timor, India,Indonesia, Japan, Laos, Malaysia, Mongolia, Nepal, Pakistan, Papua NewGuinea, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.There are also some who came from Australia and Zimbabwe. 30. Lao Integrated Farm, Inc. Lao Integrated Farm, Inc., located in Brgy.Eman, Bansalan, Davao del Sur has anintegrated multi-commodities goat farm undercoconut trees, pig production, organicfertilizer, fruits, vegetables and value-addedproducts. Around 700 people visit the farmper month. 31. Best Practices among EducationalInstitutions Some of the most popular agri-tourism sites inthe country include the Central Luzon StateUniversity for integrated farming, Universityof the Philippines Los Banos for theirexcellence as an agricultural educationalinstitution, nature and agroforestry farmingconcept that they are promoting in their area,and Don Mariano Marcos Memorial StateUniversity for their apiculture and sericulture 32. Learnings from the best practices ofsome agri-tourism players There should be a business model There should be an advocacy e.g. natural or organicfarming, nature/environment-friendly, wellness andclient-friendly. The importance of value-added products and services Integrated operation and diversification from the corebusiness Effective supply chain management Application of agribusiness management approach inoperation. 33. Tourism Competitiveness among ASEAN countries 34. Rank in terms of Measures of Tourism Competitiveness for Selected ASEAN Countries, 2007IndicesPhilippines Singapore Malaysia Thailand Indonesia VietnamPolicy rules & regulation 611 26 5543104Environmental Regulation836 20 3981 84Air Transporation Infrastructure721031 2564 90Ground transport infrastructure 913 15 2889 85Tourism Infrastructure934460 5387121ICT Infrastructure831837 5880 88Price Competitiveness7262 4110Human Resources 932 34 7562 81National Tourism perception 834726 3557 51National & cultural resources 9579 101 7758 84Overall Index 868 31 4360 87Source: Travel and Tourism Competitiveness Report 2007, World Economic Forum,as lifted from the Policy Advisory, Congressional Planning and Budget Department, HOR, 2008-03Compared to other five ASEAN member countries, the Philippines competitiveness is second to the last in terms of overall tourism competitiveness index. 35. MARKETINGMarketing Agri-tourism Products In the Philippines, marketing of agri-tourism products islower than compared with ASEAN countries. Tourismproduct in agricultural operation serves as a value-addedservice. Among the five ASEAN countries, identified above, thePhilippines has a price competitiveness of 7, lower thanSingapore (26) and Vietnam (10) but higher than Malaysia(2) , Indonesia (1) and Thailand (4). There are 17.18 million regional travellers recorded in 2009.Of this total, 13.84 million or 81% are domestic travellers;3.14 million (18%) are foreign travellers and only onepercent (202,940) are Overseas Filipino travellers. 36. Payment Terms Most of the payment of products/services inthe agri-tourism business are being paid on acash basis while those who have the creditcard facility accepts credit card payment. 37. Demand/Consumption of Agri-tourismProducts or Services The demand of agri-tourism products has a quality if it hasbeen repeatedly order by their customers who are satisfiedwith their products/services. Consuming or patronizing agri-tourism product is theprocess of using them in order to satisfy desires and real orimagined needs which had to be either used up,transformed, or deteriorated/consumed, in such a manneras not to be either reusable or recognizable in their originalform. When it comes to the volume of tourists who visited thecountry in 2010, the volume of Koreans who travelled inthe Philippines was recorded at 435,701. They are thebiggest foreign travellers in the country. 38. Demand/Consumption of Agri-tourism Products or Services The second highest volume of tourists wereAmericans at 309,493; Japanese ranked no. 3 at291,385; Chinese ranked no. 4 at 164,728 and thetop 5 are Australians at 79,552. In terms of the type of occupation of people whoare visiting the Philippines, as of 2008 with atotal of 3.084 million, professional had thehighest volume which contributed 29% (903,880),followed by students at 11 percent (348,697);and those in the clerical/sales jobs ranked no. 3 at162,617 tourists. 39. Support subsystem According to DOT, currently they are waiting for the releaseof the new masterplan for the tourism industry which theyare preparing during this time. It is assumed that agri-tourism should also be given thehigher priority in terms of program implementation in thenext five or more years, particularly that the strengths ofthe Philippines is basically both agriculture and tourism. It is also important to get the complementary support ofthe Department of Agriculture by providing an agri-tourism-related program in collaboration with theDOT and other agencies supporting the tourismdevelopment in the country which will help in improvingthe industrys performance in the succeeding 5 to 20 years.It will also help to improve the tourism competitiveness ofthe country, in general and the agri-tourism, in particular. It is observed that except in 2010, the volume of touristarrivals had been in the decreasing trends at an average ofthree percent per year. 40. Projected Impact to Agri-tourism Industry with this 1stIATE organized by Alinks Events International, Inc. Provide local employment . Support local and national development. Support the growth of both agriculture and tourismsector. Create awareness and advocacy campaigns, learningseminars, product exhibits and cultural performances Promote agri-tourism sites. Support the development and establishment of moreagri-tourism sites in the country and other Asiancountries, as well. Develop more economic activities among theparticipating LGUs in different parts of the country,particularly, the potential new local and foreigninvestments. 41. Organization of an Agri-tourism Association When it come to self-organization, there is aneed to organize an agri-tourism associationamong our key stakeholders to unify thesupport and advocacy of the industry for thefurther improvement of the sector. The organization of the group will be importantin their participation to policy and programmonitoring of the different governmentagencies, involved in the agri-tourismdevelopment in the Philippines. 42. Conclusion There are some developments in the supplychain of agri-tourism industry from inputsupply, to production-processing, to marketingand demand/consumption. The gaps in the each segment of the supplychain could be improved by strengthening thesupply chain management of the agri-tourismindustry stakeholders. 43. Conclusion In terms of production of agri-tourismproducts/services, the convergence effort ofDA and DOT through their program supportand improvement in the regulatory andstandards in the agri-tourism industry is amust. Based on my interview with an DOT-insider, there is no current clear registrationmechanism in accrediting/policing the agri-tourism establishments. 44. Conclusion The best practices are demonstrated by selected successfulplayers such as Mindanao Baptist and Rural Life Center,Bohol Bee Farm, Ilog Maria Honey Bee Farm, and LaoIntegrated Farm, Inc and the initially developed bestpractices among some state colleges and universities inpromoting agri-tourism in their respective institutions. Some of notable best practices and characteristics/successfactors which could be learned from them include: a) adoable business model, b) inclusion of value-added productsand services, c) effective supply chain management and d)either integration or diversification from their core business,e) application of agribusiness approach, and f) effective andefficient use of resources in their respective company or agri-tourism farm have contributed for the success of someplayers. 45. Conclusion In terms of tourism competitiveness, it is alsoimportant to note that priority support of thegovernment and the industry players shouldfall within these areas: policy rules &regulation on agri-tourism, air transportationregulation and support programs, groundtransport infrastructure, agri-tourisminfrastructure, ICT infrastructure and national& cultural resources, including theparticipation of local and foreign investors tofurther develop the agri-tourism industry inthe next 5 to 20 years. 46. Recommended Strategic Directions of the Philippine Agri-tourism Industry1. Extensive application of agribusiness management approach and supply chain management in the agri- tourism industry to improve the efficiency and effectiveness of operation of each stakeholder.2. Organizing and unifying the concerted advocacy work of an industry association to get bigger bargaining power to demand support from the government, particularly the Department of Tourism and Department of Agriculture and other departments and agencies, LGUs, including policy makers. 47. Recommended Strategic Directions ofthe Philippine Agri-tourism Industry3. Conduct trainings that would help agri-tourism players to improve their supply chain management capabilities and capability in doing competitive strategy.4. Additional budgetary support from Philippine government is needed to support the agri- tourism industry in the country, so they can further strengthen/or expand their services being provided to the industry stakeholders. 48. Recommended Strategic Directions of the Philippine Agri-tourism Industry5. It is also important to develop a specific loan facility or scheme that will support the agri-tourism industry agribusiness stakeholders in improving their agri-tourism infrastructure through the Food Supply Chain Program of the Department of Agriculture which is currently lodged at the Landbank of the Philippines, and6. Develop and implement agri-tourism infrastructure, ICT infrastructure, national & cultural resources, natural tourism perception, human resource, environmental regulation, air transportation infrastructure programs/projects and relevant policy rules & regulation for the institutional strengthening among the different government agencies and local government units, and further development and improvement of agri-tourism industry competitiveness, in particular, and tourism sector competitiveness, in general in the next 5 to 20 years. 49. References1. Department of Agriculture, supported by Japan International Cooperation Agency, SADP TEAM. (2009). Strategic Agribusiness Development Plan. First and Second Draft. February & October 2009. Quezon City, Philippines.2. Esplana, Elmer, R. Abao, Lary Nel B. and Rolando M. Vasquez. (2007).Development in the Supply Chain of the Philippine Goat Industry: An assessment. Grand Prize Winner. Socio-economic Research Category. 19th DA-BAR National Research Symposium. Bureau of Agricultural Research and Club of Professional Researchers. October 2007.3. Esplana, Elmer R. (2009). Development in the Supply Chain of the Philippine Honey Industry: An Assessment. Bureau of Animal Industry. Proceedings. 8th National Beekeeping Convention cum Symposium with the theme Livelihood Opportunities and Environmental Conservation through Beekeeping. December 8-10, 2009. Documentation Committee. Don Mariano Marcos Memorial State University. North La Union Campus. Bacnotan, La Union.4.National Statistical Coordination Board. (2009 and 2010). Philippines Statistical Yearbook.5. National Statistical Coordinator Board. (January 2011). Economic Indicators.6. Department of Tourism. Tourism Masterplan. 1991-2010.7. Department of Tourism and Department of Agriculture in coordination with Asian Institute of Tourism. (October 2002). Manual: A Guidelines for Developing Agri- tourism in the Philippines.8. Department of Tourism. (June 2011). Materials provided by the DOT-Public Information Office and Research and Statistics Division. Manila. 50. References9.Durano, Ace. Secretary. Department of Tourism. Philippine Tourism:Stimulating Tourist Growth and Capacity Expansion in KeyDestinations.10. Gutierrez, Elsie C. (2008). House of Representatives. CongressionalPlanning and Budget Department. Maximizing the Potential ofPhilippine Tourism. Policy Advisory. 2008-03.11. World Tourism Organization (UNWTO). (May 11, 2011). InternationalTourism: First Results of 2011 confirm consolidation ofgrowth. Madrid. http://media.unwto.org/en/press-release/2011-05-11/international-tourism-first-results-2011-confirm-consolidation-growth Accessed: June 201112. World Tourism Rankings.Wikepedia.http://en.wikipedia.org/wiki/World_Tourism_rankings. Accessed: June 2011.13. Other selected websites of some agri-tourism sites in the Philippines.Key informant interviews and focus group discussions to selectedindustry players. 51. Thank you!Maraming Salamat! 52. For inquiries about this study, pleasecontact the author at mobile no.+639228117367or you can contact him at telephone no. 632-925-9229 or visit him at the Marketing Development Division, Bureau of Animal Industry,Department of Agriculture Visayas Avenue, Diliman, Quezon City, Philippines