EXECUTIVE SUMMARY
The rice terraces in four municipalities of Ifugao, namely, Banaue, Hungduan,
Kiangan and Mayoyao, were first inscribed in the UNESCO World Heritage List in
1995 as the Rice Terraces of the Philippine Cordilleras under the category of
organically evolved landscapes. This category includes landscapes that have developed
as a result of an initial social, economic, administrative, or religious imperative, and by
association with and in response to the natural environment. However, the Ifugao Rice
Terraces have deteriorated over the years, and those inscribed in the World Heritage
List were reclassified under the World Heritage in Danger List in 2001.
The study aimed to develop a sustainable financing mechanism for the
conservation of the Ifugao Rice Terraces and was carried out in two phases. Phase 1
involved the determination of the socio-cultural factors that influence the Ifugao
farmers’ practices in relation to the terraces; the analysis of the water allocation system
in Ifugao and how this was affecting the availability of water for irrigation; and the
assessment of the availability of labor to undertake the restoration of the terraces. On
the other hand, Phase 2 aimed at evaluating alternative approaches to capture tourists’
willingness to pay to partly finance conservation efforts; estimate the extent and
occurrence of abandonment and damage of the rice terraces in the four heritage Ifugao
municipalities; and lay the groundwork for the institutionalization of a sustainable
financing mechanism.
The activities under Phase 1 included focus group discussions, key informant
interviews, a farmer survey (150 respondents), and a high school student survey (100
respondents), all of which were conducted in the heritage municipalities. For Phase 2,
we conducted a contingent valuation survey among local (300 respondents) and foreign
(250 respondents) tourists to estimate their willingness to pay for the conservation of
the terraces. We used remote sensing as well as geo-referenced and other data from
various sources to produce maps showing the area of the rice terraces in the heritage
sites and the extent of damage. These were later validated by the farmers and local
officials—the results are recorded in a separate report. The information generated from
all these activities was used to estimate the cost of repairing/restoring the terraces and
the potential revenues that could be collected from local and foreign tourists.
The study concluded that the Ifugao farmers’ water supply problems in the
terraces would be reduced considerably if the irrigation system and damaged terrace
walls were repaired. Most of the respondents did not plan to abandon rice terrace
farming. However, the majority indicated a need for a labor subsidy for terrace repair
and maintenance because this was the costliest among the different terrace farming
activities. The significant factors affecting the farmers’ decision to abandon terrace
farming in the future were poor irrigation facilities and farm size. The incentives that
could strengthen the Ifugaos’ resolve not to abandon the terraces, and lure back those
who had left, are the repair of the irrigation system, a labor subsidy for terrace repair
and maintenance, and additional livelihood opportunities.
Meanwhile, the survey of high school students revealed that only about one-fourth
of the students were likely be involved in agriculture or farming in the future,
and the majority would most likely be engaged in non-agricultural occupations.
Aside from the cultural and environmental fees from tourists, the other possible
sources of funds for the conservation of the terraces included taxes and business
permits for the business sector, permit fees for students and researchers, as well as
donations from private corporations and individuals. The average willingness to pay
(WTP) values for local and foreign tourists were P 440 (about USD 9) and USD 71,
respectively. For local tourists, the significant factors affecting WTP were gender
(male), knowledge about the present condition of the terraces, and bid amount. For
foreign tourists, the significant factors affecting WTP were age, knowledge that the rice
terraces were a UNESCO World Heritage Site, and bid amount.
The total area of the rice terraces in the heritage sites was estimated to be
10,324 ha while the estimated area of damaged terraces was 4.1 ha (low estimate) to
457 ha (high estimate), or 0.04% to 4.4% of the total area. These translate to total
restoration costs of P 10.021 million to P 1.122 billion, respectively, or an annualised
cost of P 1,630,880 million to P 184,243,410 million (at a 10% interest rate over a 10-
year period). Collecting P 50 per local tourist and USD 20 per foreign tourist had the
potential of generating as much as P 6.65 million per year. Revenues from tourist fees
could thus be used to finance conservation activities for the rice terraces.
It is recommended that the irrigation systems in the Ifugao Rice Terraces be
repaired to reduce the possibility of farmers abandoning their terraces. Farmers should
also be given support for the repair and maintenance of terrace walls and for other
livelihood activities to supplement their incomes from farming. Furthermore, the local
government units (LGUs) should endeavor to develop tree plantations for the wood
carving industry. This will ease the pressure on the woodlots supporting the
watersheds of Ifugao and ensure sustainable wood sources for wood-carvers.
The value of the terraces should be integrated into the elementary and high
school curricula in Ifugao. Furthermore, providing students with incentives such as
scholarships and jobs may rekindle interest in agriculture and forestry- related courses.
The LGUs should review the fees they are collecting from tourists, and consider
the possibility of increasing these and collecting different fees from local and foreign
tourists. The same rates for local and foreign tourists should apply across
municipalities. The revenues generated from tourists should be placed in a trust fund to
be managed by a council that is not controlled by politicians to ensure continuity, and
should be used mainly to support the activities of farmers such as the repair and
maintenance of terrace walls and irrigation canals.
The possibility of collecting the cultural and environmental fee only once to
gain access to all the rice terraces in the heritage municipalities and, eventually the
whole province of Ifugao, should be studied. This may promote visits to non-heritage
areas to benefit the communities and will make it easier to administer, monitor and
control the implementation of the mechanism of fee collection; lower transaction costs;
and reduce the inconvenience to tourists of having to pay each time they visit different
sites.
Finally, support to farmers should be formalized through a memorandum of
agreement (MOA) between an organized and functional farmers’ organization and a
multi-sectoral council in each municipality. The MOA should clearly specify the
farmers’ benefits, responsibilities of the parties concerned, sanctions for non-compliance,
and incentives for complying with the terms of the MOA.
This report discusses the activities and results of Phases 1 and 2, except for the
results of the estimation of the area of the terraces and the extent of damage and
abandonment which are discussed in a separate report.
1.0 INTRODUCTION
1.1 Background
Many Filipinos take pride in the Ifugao Rice Terraces, which they often refer to
as the 8th Wonder of the World. While there are similar terraces in other parts of the
Asia-Pacific Region, the Ifugao Rice Terraces are the most famous because they reach
the highest altitude of 1,600 m and are considered to be the best built and most
extensive (Philippine Historical Commission 1940, cited by Gonzalez 2000). The use
of traditional skills in the engineering and hydraulic works in constructing the terraces
has also been marveled at. Alejandro Roces, a distinguished Filipino writer and
educator (cited by Gonzalez 2000) notes that what puts the terraces above other
wonders of the world is the fact that the terraces were constructed voluntarily by a free
people, and not under a tyrannical rule that used slave labor.
The terraces are located in the province of Ifugao, a landlocked province under
the Cordillera Administrative Region in Northern Luzon. Some of the terraces,
particularly those in the municipalities of Banaue, Kiangan, Hungduan and Mayoyao,
were inscribed in the World Heritage List of the United Nations Educational, Scientific
and Cultural Organization (UNESCO) in 1995 based on the following inscription
criteria: “Criterion (iii): The rice terraces are a dramatic testimony to a community’s
sustainable and primarily communal system of rice production, based on harvesting
water from the forest clad mountain tops and creating stone terraces and ponds, a
system that has survived two millennia; Criterion (iv): The rice terraces are a memorial
to the history and labor of more than a thousand generations of small-scale farmers
who, working together as a community, have created a landscape based on a delicate
and sustainable use of natural resources; and Criterion (v): The rice terraces are an
outstanding example of land-use resulting from a harmonious interaction between
people and their environment which has produced a steep terraced landscape of great
aesthetic beauty, now vulnerable to social and economic changes” (UNESCO 2008).
This category covers landscapes that developed as a result of an initial social,
economic, administrative or religious imperative, and by association with and in
response to the natural environment (UNESCO 1992).
EXECUTIVE SUMMARY
The rice terraces in four municipalities of Ifugao, namely, Banaue, Hungduan,
Kiangan and Mayoyao, were first inscribed in the UNESCO World Heritage List in
1995 as the Rice Terraces of the Philippine Cordilleras under the category of
organically evolved landscapes. This category includes landscapes that have developed
as a result of an initial social, economic, administrative, or religious imperative, and by
association with and in response to the natural environment. However, the Ifugao Rice
Terraces have deteriorated over the years, and those inscribed in the World Heritage
List were reclassified under the World Heritage in Danger List in 2001.
The study aimed to develop a sustainable financing mechanism for the
conservation of the Ifugao Rice Terraces and was carried out in two phases. Phase 1
involved the determination of the socio-cultural factors that influence the Ifugao
farmers’ practices in relation to the terraces; the analysis of the water allocation system
in Ifugao and how this was affecting the availability of water for irrigation; and the
assessment of the availability of labor to undertake the restoration of the terraces. On
the other hand, Phase 2 aimed at evaluating alternative approaches to capture tourists’
willingness to pay to partly finance conservation efforts; estimate the extent and
occurrence of abandonment and damage of the rice terraces in the four heritage Ifugao
municipalities; and lay the groundwork for the institutionalization of a sustainable
financing mechanism.
The activities under Phase 1 included focus group discussions, key informant
interviews, a farmer survey (150 respondents), and a high school student survey (100
respondents), all of which were conducted in the heritage municipalities. For Phase 2,
we conducted a contingent valuation survey among local (300 respondents) and foreign
(250 respondents) tourists to estimate their willingness to pay for the conservation of
the terraces. We used remote sensing as well as geo-referenced and other data from
various sources to produce maps showing the area of the rice terraces in the heritage
sites and the extent of damage. These were later validated by the farmers and local
officials—the results are recorded in a separate report. The information generated from
all these activities was used to estimate the cost of repairing/restoring the terraces and
the potential revenues that could be collected from local and foreign tourists.
The study concluded that the Ifugao farmers’ water supply problems in the
terraces would be reduced considerably if the irrigation system and damaged terrace
walls were repaired. Most of the respondents did not plan to abandon rice terrace
farming. However, the majority indicated a need for a labor subsidy for terrace repair
and maintenance because this was the costliest among the different terrace farming
activities. The significant factors affecting the farmers’ decision to abandon terrace
farming in the future were poor irrigation facilities and farm size. The incentives that
could strengthen the Ifugaos’ resolve not to abandon the terraces, and lure back those
who had left, are the repair of the irrigation system, a labor subsidy for terrace repair
and maintenance, and additional livelihood opportunities.
Meanwhile, the survey of high school students revealed that only about one-fourth
of the students were likely be involved in agriculture or farming in the future,
and the majority would most likely be engaged in non-agricultural occupations.
Aside from the cultural and environmental fees from tourists, the other possible
sources of funds for the conservation of the terraces included taxes and business
permits for the business sector, permit fees for students and researchers, as well as
donations from private corporations and individuals. The average willingness to pay
(WTP) values for local and foreign tourists were P 440 (about USD 9) and USD 71,
respectively. For local tourists, the significant factors affecting WTP were gender
(male), knowledge about the present condition of the terraces, and bid amount. For
foreign tourists, the significant factors affecting WTP were age, knowledge that the rice
terraces were a UNESCO World Heritage Site, and bid amount.
The total area of the rice terraces in the heritage sites was estimated to be
10,324 ha while the estimated area of damaged terraces was 4.1 ha (low estimate) to
457 ha (high estimate), or 0.04% to 4.4% of the total area. These translate to total
restoration costs of P 10.021 million to P 1.122 billion, respectively, or an annualised
cost of P 1,630,880 million to P 184,243,410 million (at a 10% interest rate over a 10-
year period). Collecting P 50 per local tourist and USD 20 per foreign tourist had the
potential of generating as much as P 6.65 million per year. Revenues from tourist fees
could thus be used to finance conservation activities for the rice terraces.
It is recommended that the irrigation systems in the Ifugao Rice Terraces be
repaired to reduce the possibility of farmers abandoning their terraces. Farmers should
also be given support for the repair and maintenance of terrace walls and for other
livelihood activities to supplement their incomes from farming. Furthermore, the local
government units (LGUs) should endeavor to develop tree plantations for the wood
carving industry. This will ease the pressure on the woodlots supporting the
watersheds of Ifugao and ensure sustainable wood sources for wood-carvers.
The value of the terraces should be integrated into the elementary and high
school curricula in Ifugao. Furthermore, providing students with incentives such as
scholarships and jobs may rekindle interest in agriculture and forestry- related courses.
The LGUs should review the fees they are collecting from tourists, and consider
the possibility of increasing these and collecting different fees from local and foreign
tourists. The same rates for local and foreign tourists should apply across
municipalities. The revenues generated from tourists should be placed in a trust fund to
be managed by a council that is not controlled by politicians to ensure continuity, and
should be used mainly to support the activities of farmers such as the repair and
maintenance of terrace walls and irrigation canals.
The possibility of collecting the cultural and environmental fee only once to
gain access to all the rice terraces in the heritage municipalities and, eventually the
whole province of Ifugao, should be studied. This may promote visits to non-heritage
areas to benefit the communities and will make it easier to administer, monitor and
control the implementation of the mechanism of fee collection; lower transaction costs;
and reduce the inconvenience to tourists of having to pay each time they visit different
sites.
Finally, support to farmers should be formalized through a memorandum of
agreement (MOA) between an organized and functional farmers’ organization and a
multi-sectoral council in each municipality. The MOA should clearly specify the
farmers’ benefits, responsibilities of the parties concerned, sanctions for non-compliance,
and incentives for complying with the terms of the MOA.
This report discusses the activities and results of Phases 1 and 2, except for the
results of the estimation of the area of the terraces and the extent of damage and
abandonment which are discussed in a separate report.
1.0 INTRODUCTION
1.1 Background
Many Filipinos take pride in the Ifugao Rice Terraces, which they often refer to
as the 8th Wonder of the World. While there are similar terraces in other parts of the
Asia-Pacific Region, the Ifugao Rice Terraces are the most famous because they reach
the highest altitude of 1,600 m and are considered to be the best built and most
extensive (Philippine Historical Commission 1940, cited by Gonzalez 2000). The use
of traditional skills in the engineering and hydraulic works in constructing the terraces
has also been marveled at. Alejandro Roces, a distinguished Filipino writer and
educator (cited by Gonzalez 2000) notes that what puts the terraces above other
wonders of the world is the fact that the terraces were constructed voluntarily by a free
people, and not under a tyrannical rule that used slave labor.
The terraces are located in the province of Ifugao, a landlocked province under
the Cordillera Administrative Region in Northern Luzon. Some of the terraces,
particularly those in the municipalities of Banaue, Kiangan, Hungduan and Mayoyao,
were inscribed in the World Heritage List of the United Nations Educational, Scientific
and Cultural Organization (UNESCO) in 1995 based on the following inscription
criteria: “Criterion (iii): The rice terraces are a dramatic testimony to a community’s
sustainable and primarily communal system of rice production, based on harvesting
water from the forest clad mountain tops and creating stone terraces and ponds, a
system that has survived two millennia; Criterion (iv): The rice terraces are a memorial
to the history and labor of more than a thousand generations of small-scale farmers
who, working together as a community, have created a landscape based on a delicate
and sustainable use of natural resources; and Criterion (v): The rice terraces are an
outstanding example of land-use resulting from a harmonious interaction between
people and their environment which has produced a steep terraced landscape of great
aesthetic beauty, now vulnerable to social and economic changes” (UNESCO 2008).
This category covers landscapes that developed as a result of an initial social,
economic, administrative or religious imperative, and by association with and in
response to the natural environment (UNESCO 1992).
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