Economic Instruments for Mt. Makiling Forest Reserve, Philippines

1. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines OUR GAINS • Economic instruments implemented • Entrance fees to the Makiling Botanic Gardens (MBG) were increased • Entrance fees to the Reserve were imposed • Prices of non-timber forest products were upgraded Mt. Makiling is famous among backpackers & mountaineers because of this “90 degrees” part of the climb.

2. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines Impacts of Implementing EI for Forest Recreation a For MBG, Entrance: PhP3 (UP), PhP5 (non-UP); Swimming PhP15 (UP), PhP50 (non-UP) For MFR: PhP0 entrance fee bFor MBG, Entrance: PhP6 (UP), PhP10 (non-UP); Swimming PhP30 (UP), PhP (non-UP) For MFR: PhP2 (UP), PhP5 (non-UP)

3. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines OUR GAINS • Linkages with stakeholders • The Calamba Water District approved the proposal to rehabilitate a portion of the Tigbi Watershed Landscape view of the Tigbi watershed showing the extensively forested headwaters • The Tourism Association of Laguna has pledged to provide contributions in kind

4. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines OUR GAINS • Involvement of communities • Potential partners in managing the Reserve • About 1,000 families that reside and/or have farms in the Reserve To ensure maximum participation, the project is explained to them in community assemblies • The farmers are willing to “pay” their share of the watershed conservation and protection fee in kind

5. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines OUR WEAKNESSES • Lack of a clear mandate to collect water user fees • Steps taken: • In 2002, MCME organized the “National Forum on the Legal Basis of Collecting Water User Fees for Philippine Watersheds” • Linkage with the Presidential Task Force on Water Resources Development and Management for the creation of the National Steering Committee on Economic Pricing of Raw Water

6. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines OUR WEAKNESSES • Costly and time consuming process • Arriving at a consensus was difficult because the stakeholders had their own interests that did not coincide with the University • Revenues not fully plowed back to the source/resource

7. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines THREATS • General resistance to any new fee • Changes in leadership • Leakages in accessing the resource

8. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines STEPS FORWARD • Conduct a follow-up study regarding the appropriateness of the entrance fees to the forest recreation and ecotourism areas • Aggressively market indigenous tree planting materials • Establish the University’s legal basis to collect water user fees

9. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines STEPS FORWARD • Evaluate options of how the water usage of different user groups can be monitored • Study the price structure that will be adopted • Pursue the creation of the National Steering Committee on the Economic Pricing of Raw water

10. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines REPLICATION The project chose: • Palawan Flora, Fauna and Watershed Reserve in Puerto Princesa City, Palawan Palawan Flora, Fauna, & Watershed Reserve • Palawan Island Puerto Princesa City Area: Elevation: 8,000 ha 60-1,098 m

11. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines REPLICATION And: • Mt. Isarog Natural Park in Camarines Norte Mt Isarog National Park • 450 km southeast of Manila Area: Elevation: 10,112 ha 1,196 m

12. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines REPLICATION • Conducted orientation-seminars for the stakeholders about the importance of economic instruments in managing and conserving the watersheds • Favorable response from both the agencies managing the watersheds and the other stakeholders Orientation-Seminaron ECONOMIC INSTRUMENTS FOR THE PALAWAN FLORA, FAUNA, AND WATERHED RESERVE 20October 2000 PTFPP Training Hall, Puerto Princesa City

13. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines CONCLUSION Economic instrument for forest recreation and ecotourism implemented with a fair degree of success because: • we control the entry points of the visitors • our efforts to counteract the negative effect of higher entrance fees on visitation rates with more aggressive marketing

14. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines CONCLUSION We were not as successful in implementing the economic instrument for water mainly because: • the University does not have a clear mandate to charge water user fees. • The University is not yet capable of monitoring water usage • We need to build up our technical and administrative capability to implement EI for water

15. MAKILING CENTER FOR MOUNTAIN ECOSYSTEMS Economic Instruments for the Mt Makiling Forest Reserve, Philippines Thank You!!!