Local Economy

I.  ECONOMIC STRUCTURE

A.  Primary Sector

Ormoc City is predominantly an agricultural area. Agriculture is the dominant land use with a total area of 26,928.29 ha. This represents more than half (56.64%) of the total land area of the city. However, the area allocated to agriculture has been reduced due to conversions to industrial estates and residential uses.

B.  Secondary Sector

The secondary sector includes economic activities such as manufacturing, mining and quarrying, construction, electricity, water, gas and utilities, among others. Based on its land use, Ormoc City has an industrial area of 755 hectares and mineral area of 162 hectares. The major industrial products include geothermal energy, ethyl alcohol and dairy products. As of December 2012, there were 39 local construction firms. Sand and gravel were the commonly used construction materials, and a quarry site of 340,000 sq.m. is ready for extraction. In terms of the ancillary services, the city has nine (9) trucking service companies, eight (8) warehouse facilities, one (1) food processing facility and one (1) slaughterhouse.

The small-scale industries include production of commodities such as cut flowers, coco-based crafting, dry goods retailing, metal crafting, food processing, among others.

In 2015, there are two (2) major industrial establishments in Ormoc City, the Leyte Agricultural Corporation in Barangay Ipil with an area of approximately 10 hectares is one of them. This industry is highly pollutive and highly hazardous. Further, the Leyte Agricultural Corporation manufactures ethyl alcohol at 22,000 liters per day and ethanol at 23,900 liters/day. It uses raw materials such as molasses.

C.  Tertiary Sector

1.  Business Permits Issuance

Business establishments in the city are classified as retailers, services, manufacturers as well as banks and financing institutions. In 2013, there were 5,260 business permits issued, of which 85% (4,459 business permits) were renewal and 15% (801 business permits) were newly issued.

2.  Investment Priorities

Ormoc City has the potential to become the Leyte Provincial Industrial Center. Among the investment priorities of the city are coconut production and processing, abaca-based production and processing, root crop production and processing, aquamarine production and processing, food and beverage, ceramics, gifts, toys, housewares, tourism-related, infrastructure and utilities services.

3.  Banking and Finance

The existence of banks and OFIs in a local economy indicates the active exchange of goods and services. There are about 16 banks in the city located strategically at Districts 2, 3, 5, 8, 12, 21 and 24.

4.  Micro-finance Institutions and Cooperatives

As of 2013, there were 37 micro-finance institutions and cooperatives in Ormoc City. Multi-purpose cooperatives dominated the types of existing cooperatives in the city.

5.  Lending Investor/Financing Firms

Aside from banks and other financing institutions, as well as micro-financing entities and cooperatives, financial assistance is also extended by lending investors/financing firms to potential borrowers to include farmers, fishers, and entrepreneurs, among others.

6.  Tourism Industry

Ormoc City is endowed with natural resources which can be tapped for tourism. The succeeding section describes the tourist and heritage spots that form part of the culture of the city. Heritage structures are important to the people since they are part of the local history of a certain place. Preservation of heritage sites has also proven beneficial to the local economy by attracting tourism activities from both local and foreign visitors. The City of Ormoc has several heritage structures that need to be preserved.

II.  PRODUCTION

A. Commercial (Business, Retail, Wholesale)

Formal business establishments of 2 to 5 storeys are concentrated in the town center. These consist of banks, small service-oriented offices and retail shops. In vacant, undeveloped lots within the Poblacion, a few informal types of businesses can also be found. The vicinity of the public market, in particular, also teems with formal and informal retail activities.

Small shed type structures used for small-scale businesses line up the major roads. A significant number of informal commercial activities such as fruit stands, cut flowers stalls, and other retail stores can be found at the city core near the old city hall. Old vernacular houses used as shop houses may still be seen interspersed with the newer commercial buildings. Ambulant vending augments the retail activities in the formally-designated commercial areas.

B. Industries

Industrial uses are scattered and could be found in several points of Ormoc. In Barangay Ipil, south west of the city core, linear growth of developments are found along the major highway. Updated land use in Barangay Linao has also identified a couple of large industrial uses in a residential designated zone. In Barangays Luna and Dolores, a cluster of communities have been proliferating near the industrial buildings and power substations.

C. Agriculture

Almost 57% of Ormoc’s land area is of agricultural use. The lands grow various crops such as rice, coconut, banana, coffee, cacao, chico, sugar cane, pineapples, legumes, vegetables, and root crops, which are the main source of income for the farming families.

Agriculture lands have been converted in several land uses. In Barangay Dolores, large areas of unutilized land designated originally as agricultural lands have now been converted into a solar energy farm. Sugarcane lands have been converted into residential subdivisions. With more industries targeted and the increase in population expected as a consequence, there will be more pressure to convert agricultural land uses to non-agricultural uses.

Several large tracts of privately owned lands contain clusters of settlements and uncontrolled and incompatible uses developed by the land owners.

D. Tourism

The water uses provide both means of income as well a great potential for tourism. In most recent years, resorts and tourist spots have been sited situated along the coastal area. Ormoc’s natural assets are found in its coastal areas and forests such as Lake Danao, Tongonan Hot Springs, Lake Kasudsuran, and Mount Hinagdan. Currently, there are only few developments present but these areas have development potentials to accommodate non-invasive tourism. They should, however, remain largely as protected areas1

E. Planned Unit Developments

Several clusters of planned unit developments can be found outside of the Poblacion. Intended to replicate the existing city center, these self-sufficient communities contain residential, commercial, recreational, and government centers.