Sustainability Policy

El Nido Resorts is committed to providing leisurely, engaging, and educational

experiences and services to all our guests in a manner that has the least impact on
the environment and promotes respect for El Nidos local people and culture. We will
accomplish this through:

Enjoining our staff and guests to uphold our five Be G.R.E.E.N. tenetsLinking with
local communities through employment and purchasesNurturing a culture of
environmental stewardshipInitiating opportunities for guests to experience nature
and the local cultureDiscovering and molding sustainability champions among the
staffOutdoing ourselves every year by building new sustainability programs on the
success of previous ones
Sustainable Operations

Waste Management

Sewage Treatment Plant

El Nido Resorts operates a state-of-the-art sewage treatment plant (STP) combined

with native reed bed filters. This ensures that no raw sewage and grey water are
discharged into sea. Treated water is utilized in flushing toilets, watering the plants,
and supplying fire hydrants. This directly reduces consumption of water, which
otherwise have to be produced through energy-intensive desalination processes or
sourced in the regions water sources.

Materials Recovery Facility

Solid wastes go through strict segregation before reaching the resorts full cycle
materials recovery facility (MRF). The MRF receives recyclable and organic wastes
from the resorts and is looked after by the Garden Department. After segregation,
the recyclable waste is stored in holding bins for pick-up by a local junk shop dealer
for recycling, while the organic waste is composted onsite and later packed for use
in the resort gardens or organic farms in El Nido mainland. Recognizing the negative
impact of using non-recyclable wastes, El Nido Resorts implemented a refillable
drinking water system in 2008 to try to eliminate the purchase of bottled waters
during activities. The Kitchen Department also implemented its own refilling system,

whereas instead of buying cooking oils in new containers, they just send the old
containers to the supplier for a refill.

Water Conservation

El Nido Resorts operates a rainwater catchment system to capture, filter, and store
rainwater for use in the guest rooms and staff quarters. Water saving devices such
as low-flow showerheads and low-flush toilets are also in place.

Desalination Plant

There is a very limited supply of fresh water in island resorts. El Nido Resorts
operates a desalination plant to convert salt water into fresh water suitable for
human consumption. The desalination plant enables us to avoid depleting mainland
water sources and competing with local communities for water supply.

Energy Conservation

All bulbs were replaced with Compact Flourescent Light (CFL) in 2008. Guest rooms
were also fitted with energy efficient water heater, and designed in such a way to
optimize natural lighting. Solar panels are installed at the Deluxe Water Cottages of
Miniloc Island Resort, and at Entalula Beach Club and Dibuluan Beach Club in El
Nido, both operated by El Nido Resorts. El Nido Resorts observes the global initiative
Earth Hour every March by turning off all non-essential lights at the resorts for 1hour. As an offshoot of Earth Hour, El Nido Resorts has gone further to celebrate
Eco-Hour every full moon during the summer months of March to May. The energy
savings from the 1-hour electricity shutdown is used to purchase seedlings from
Island Transvoyager Inc.s Carbon Offsetting Program, to be planted in the El Nido
watershed.

Low Impact and Sustainable Guest Experiences

El Nido and Taytay are areas of undoubtedly high biodiversity. El Nido Resorts is
committed to promoting nature-based activities that showcase yet protect the
richness of this biodiversity. Only low impact activities are offered to guests. There
are no jet-skis and other motorized marine sports equipment. Marine sports guides
accompany guests to supervise the activities, provide nature interpretation, and

ensure guests dont disturb or damage the environment. The resorts also started
using eco-friendly boat engines in 2006 and are continuously upgrading engine
maintenance systems to help minimize the negative effects brought about by
carbon monoxide emission. El Nido Resorts only serves sustainable menus. The
resorts no longer purchase grouper, as there has been an observable decline in their
local population. Locally and organically produced vegetables comprise 60% of total
kitchen purchases, while locally reared livestock comprise 90% of total kitchen
purchases. Women from several barangays (villages) in El Nido have also been
trained in weaving to produce native bags and slippers that are purchased by the
resort. These local bags and slippers are given complimentary to guests as part of
the El Nido Resorts experience.

Nature Conservation and Protection

El Nido Resorts embraces its leadership role in nature conservation, being the
largest employer in the municipality and operating in small islands within the
Protected Area. We work closely with the community and local government in areas
requiring much support, such as in the prevention of illegal fishing, coral and reef
fish assessments, environmental education campaigns, and more.

Monitoring Wildlife

El Nido Resorts launched El Nido Biodiversity Online, a database of El Nidos flora

and fauna, in 2008. The database contains datasheets and photos of the plants and
animals found in El Nido, where they are seen, and when.

Aside from the participation of guests and staff in monitoring wildlife, the academe
is also involved. El Nido Resorts supports scientific studies on the flora and fauna of
El Nido by providing board and lodging, boats, equipment (e.g. dive gear), and
personnel to visiting researchers. Examples of studies conducted are the reef fish
surveys by Dr. Gerry Allen and Dr. Mark Erdmann and carrying capacity of dive sites
by Dr. Lyndon deVantier and Mr. Emre Turak.

Marine Ecosystems Preservation and Protection

Marine Turtle Conservation Program

All marine turtles found in the waters of El Nido and Taytay are endangered. At least
five species of turtles are known to nest in some of El Nidos beaches.El Nido
Resorts champions the conservation of endangered sea turtles, with tag-and-release
programs in cooperation with the Protected Area Office, and hatchling releases from
nests safeguarded by resort staff.

To further educate guests, El Nido Resorts offers a Turtle Tracking Tour during the
hatching season. This tour provides guests with the opportunity to track the gentle
sea turtles in their natural habitat, participate in turtle releases, and learn about
turtle biology and our hatchery program.

Coastal Cleanups

Lagen Island Resort has consistently supported and participates in eco-events such
as International Coastal Clean-up Day, World Ocean Day, and Earth Day and has
chosen to make coastal clean-up a regular activity, clearing beaches of marine
debris twice monthly.

Installation of Eco-reefs at Tres Marias

In April 2006, El Nido Resorts partnered with the local community and El Nido
Foundation, Inc. (ENF) in the installation of EcoReef artificial reef modules in Tres
Marias, a former dive site devastated by illegal fishing, coral bleaching, and
typhoons. El Nido is only the 2nd in the world to receive the ceramic modules, after
Bunaken National Park in Indonesia.

Installation of Mooring Bouys

To prevent anchor damage on coral reefs, El Nido Resorts Dive Team installed (and
maintains) mooring buoys in 21 sites around Bacuit Bay. These are especially
important in high-traffic areas such as the Small Lagoon and South Miniloc.

Protection of Giant Clams

El Nido Resorts transplanted giant clams to the front reef of Miniloc Island Resort
and Lagen Island Resort from different parts of Bacuit Bay, where these endangered
species are harvested indiscriminately.

El Nido Marine Monitoring Task Force

The waters of El Nido are constantly under threat from various illegal activities. El
Nido Resorts patrols the waters of Bacuit Bay and coordinates with local authorities
in apprehending violators. Participation in the Marine Monitoring Task Force means
extending more assistance in terms of logistics, drafting ordinances and lobbying for
penal provisions both in the Protected Area Management Board and the Municipal
Legislative Body.

Building Sustainable Communities

Our eco-resorts on Miniloc Island and Lagen Island in El Nido and Apulit Island in
Taytay have been good neighbors by building mutually beneficial partnerships
with key stakeholders; promoting responsible tourism principles in community and
provincial tourism planning; enjoying community support and high morale of staff;
and providing guests with unforgettable cultural experiences with local staff in a
beautiful setting.

Employment and Livelihood Opportunities for the Local Community

Through creation of meaningful employment opportunities and the commitment to

hire and promote locally, the people of El Nido and Taytay have a viable option to
earn a decent living and stay in their own community. Scheduled trainings are
offered to the local community to improve the skill set for potential employees not
just for the resort, but also for other smaller tourist cottages in the area. Since 2005,
resort supervisors have been training local people for basic skills in the areas of
food & beverage, housekeeping, and kitchen. Working with professional trainers,
local women are trained to become massage therapists. Over the years, banca
owners from town have been regularly providing the transportation needs of El Nido
Resorts guests.

Patronizing Local Products

Women from several barangays (villages) in El Nido have also been trained in
weaving to produce native bags and slippers that are purchased by the resorts. The
bags and slippers are given as complimentary room amenities, thereby ensuring
ongoing demand.

El Nido Resorts tries to keep on reducing food miles by sourcing locally. Locally and
organically produced vegetables comprise 60% of total kitchen purchases, while
locally reared livestock comprise 90% of total kitchen purchases.

Community Service

Annually, El Nido Resorts arranges Sea Scouts training for both staff and the
community. A Sea Scouts certificate assists individuals seeking employment in the
maritime industry. Increasing the local pool of Sea Scouts enhances the largely
coastal communitys ability to respond to accidents. El Nido Resorts doctors
augment the services of the lone Municipal Health Officer in El Nido, bringing
healing and health education to the various villages at least twice a week. Resort
doctors also render free services on the annual Mass Blood Donation Program of the
Philippine Red Cross in El Nido. Staff are willing donors, making El Nido Resorts one
of the biggest contributors in Palawan. El Nido Resorts 1.5-hectare organic farm in
El Nido serves as demonstration site for locals to help improve the quality of their
produce for long-term sustainability. Instead of using chemicals as fertilizer,
composted biodegradable wastes of El Nido Resorts are used here. It also
demonstrates the rearing of Happy Pigs, leaner pigs that feed on vegetables and
effective microorganisms. Local farmers are welcome to learn about the technique
so the resort can purchase locally and organically produced vegetables and meat
from them in the future.

Environmental Education

The Be G.R.E.E.N. (Guard, Respect, Educate El Nido) training program, in place since
2007, trains all staff on: ecological waste management; water, energy, and
biodiversity conservation; and environmental laws. To encourage the staff to apply
what theyve learned in the seminars, Pa-Berdehan: The El Nido Resorts Eco
Challenge, a company-wide competition for environmentally friendly initiatives,
was established in 2007. Since then, innovative work practices have been
developed and implemented, such as patronizing cooking oil retailers with reusable
containers (initiated by the Purchasing department), and limiting the running time
of air conditioning units without sacrificing guest comfort (initiated by the
Engineering department). The Environment Department conducts yearly Nature

Interpretation training seminars for the Marine Sports Guides and other staff who
wish to attend.

Educating Guests

Guests are reminded and encouraged to conserve our natural resources. The
companys Environmental Code of Conduct called Ten El-NiDos is provided in each
room to remind guests about the environmentally sensitive Protected Area and the
appropriate behavior to ensure conservation. Guests are actively discouraged from
touching the animals, whether on land or underwater. Collecting shells, corals,
starfish, and other animals is not allowed and is specifically stated in our welcome
message. Guests are likewise informed of the Conservation Fees that the Resorts
collect and remit to the Protected Area Office. El Nido Resorts also strives to be an
industry leader by creating opportunities to be studied by numerous tourism
practitioners. By participating in various eco-events, we are able to share best
practices for others to follow.

El Nido Resorts Environment Department

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El Nido
The municipality of El Nido is located on the northwestern tip of the Palawan
mainland. It has a total land area of 465.10 km2 and 174,520 hectares of municipal

waters, mainly in Bacuit Bay on the western side and Balayan Bay on the eastern
side. It is bordered by the Linapacan Strait in the north, the South China Sea in the
west, and the Sulu Sea in the east.

El Nido is a first class municipality ( P55 million average annual income), covering
18 barangays. As of 2007, El Nido had a total population of 30,249 people in 6,295
households. Eighty-five percent of the population resides in the rural barangays,
with only 15% in the main Poblacion area. Sixteen of the 18 barangays are found
along the coast. Its main industries are agriculture, tourism, and fisheries.

HISTORY

Archaeological evidence suggests that El Nido was inhabited as far back as 16,000
years ago. Artifacts discovered in Dewil Valley, New Ibajay last May 2011 were
carbon-dated to be between 200 to 16,000 years old. A cremation burial site was
dated to be 9,000 years old. Other main study sites are the Ille Cave and
Rockshelter and Pasimbahan Rockshelter. Tiger bones (Panthera tigris) found in Ille
Cave in 2004 and 2008 and dating back to at least 12,000 years ago are the first
evidence of tigers in Palawan. A bracelet, also found in Ille Cave in 2008, is the first
of its kind found in the Philippines. The bracelet is proof of El Nidos ties to China, as
similar bracelets have been unearthed in Hong Kong and China. Dr. Robert Foxs
excavations in Leta-Leta Cave in Lagen Island in the 1960s led to the discovery of
artifacts dating back to the Metal Period.

El Nido traces its name to the Spanish words for the nest, after the nests made by
the edible nest swiftlet (Collocalia fuciphaga). Tucked away in difficult-to-reach
caves and crevices in the limestone cliffs, these nests (made of the birds saliva) are
the nests prized by the Chinese and used in birds nest soup. But El Nido wasnt El
Nidos original name.

The areas first recorded name was Talindak, named after the Tagbanua
community located in the present-day Sitio Langeb-Langeban in Barangay
Aberawan. The Spanish colonizers renamed the area Bacuit in 1890. This is how
Bacuit Bay got its name, which it retains to this day. Bacuit was formally renamed to
El Nido in 1954 via Republic Act No. 1140.

El Nidos population increased from 1,789 (1918) to 7,358 (1970), then to 27,029
(2000), then to 30,249 by year 2007. Northern Palawan was opened to commercial
logging, mining, and fishing in the 1980s, creating tremendous incentives for
migration and strong population growth in the 1980s. The 1980s was also when

tourism started in El Nido, with the discovery of good scuba diving sites and the
opening of El Nido Resorts (Miniloc Island Resort) in 1982.

HABITATS AND BIODIVERSITY

El Nidos lowlands and mountains boast of five types of forest: lowland evergreen,
semi-deciduous, forest over limestone (karst forest), beach, and mangrove forest.
Beyond the shore, El Nidos marine waters conceal seagrasses, seaweeds, coral
reefs, and estuarine habitats. Together, the terrestrial and marine environment are
home to six species of large, Palawan-endemic mammals, 16 species of Palawanendemic birds (10 considered to be threatened), and 855 species of coral reef fish.

CONSERVATION

Bacuit Bay, with its 45 islands and islets, has been a protected area since 1984. Its
declaration as a Marine Turtle Sanctuary in 1984 stemmed from the report of Ten
Knots Development Corporation (TKDC), owner and operator of El Nido Resorts, that
the area was a significant habitat for sea turtles. TKDC lobbied for the protection of
the area and supported marine law enforcement. DENRs Department
Administrative Order 14 enlarged the area into a Marine Reserve in 1991 as it was
included in the Debt for Nature swap program funded by WWF-US and
administered by the Haribon Foundation. The zoning of the Marine Reserve came
about in 1992 with DENR DAO 4. The Reserve was zoned into core, multiple use,
and buffer zones. The administration of the Reserve was also transferred from the
Pawikan Conservation Project to the El Nido Marine Reserve Management Board
(ENMRMB).

Despite the existence of protection since 1984, the first stakeholders workshop was
only conducted in 1996. The workshop was organized by the El Nido local
government and the El Nido Foundation (ENF) in preparation for the implementation
of the National Integrated Protected Areas Program (NIPAP). The products of this
workshop include the Strategic Framework for the El Nido Marine Reserve
Management Plan and the reorganization of the ENMRMB to follow the structure of a
DENR Protected Area Management Board (PAMB). The NIPAP was implemented in
1997 to 2001 with funding provided by the European Union. In 1998, the area was
declared by Presidential Proclamation 32 as the El Nido-Taytay Managed Resource
Protected Area (ENTMRPA). The ENTMRPA spans 90,391 ha, with 36,018 ha of land
and 54,303 ha of marine waters. It covers all 18 barangays of El Nido and an
additional three barangays in Taytay. It is administered by the PAMB.

CHALLENGES

Legislation

There are four main laws that affect the management of and the activities within
the ENTMRPA: RA 7160 (Local Government Code of 1991), RA 7611 (Strategic
Environmental Plan of Palawan Act, creator of the Palawan Council for Sustainable
Development [PCSD]), RA 7586 (National Integrated Protected Areas System Act of
1992), and RA 8550 (The Philippine Fisheries Code of 1998). Unfortunately, these
four laws have different scales of applicability that can lead to conflicts in
jurisdiction of the various governing bodies.

Take for example RA 8550 The Philippine Fisheries Code of 1998. RA 8550 applies
to all Philippine waters. It defines municipal waters as not only streams, lakes,
inland bodies of water and tidal waters within the municipality which are not
included within the protected areas as defined under Republic Act No. 7586 (The
NIPAS Law), public forest, timber lands, forest reserves or fishery reserves, but also
marine waters included between two (2) lines drawn perpendicular to the general
coastline from points where the boundary lines of the municipality touch the sea at
low tide and a third line parallel with the general coastline including offshore islands
and fifteen (15) kilometers from such coastline. This means that the El Nido LGU
has no jurisdiction over 54,303 ha of Bacuit Bay because of the NIPAS designation.
Thus, the fishery permits that are granted by the LGU only apply to the waters
outside the ENTMRPA. In addition, the PCSD can also issue fishery permits due to
their jurisdiction over the whole of Bacuit Bay as granted by RA 7611. The
Department of Agriculture (DA) can also establish fish refuges and sanctuaries in2540% of fishing grounds. In municipal waters, the LGU is mandated to establish at
least 15% of the total coastal area as a fish sanctuary.

The presence of many governing laws makes management somewhat complicated.

As a result of these laws, three agencies have jurisdiction over Bacuit Bay and the
surrounding land area: PCSD, El Nido LGU, and the ENTMRPA PAMB. Even though a
policy that harmonizes the different laws has yet to be enacted, the different
agencies are all involved in multi-stakeholder organizations that aim to manage the
sustainable use of the resources within El Nido.

REFERENCES

Cleland D, Muallil RN, Doctor MVA, Cabate RG, Naola Jr. CL, Martinez RJS. El Nido,
Palawan (in press)

History of El Nido. Talindak Ang Opisyal na Pahayagan ng Pamahalaang Lokal ng El

Nido (Talindak The Official Newspaper of the Local Government of El Nido).
Accessed 6 January 2012

National Statistics Coordination Board. 2010. Municipality: El Nido (Bacuit). Accessed

18 October 2010.

University of the Philippines-Archaeological Studies Program Palawan Project

Varona BP. 2009. Exhibit reconstructs Filipino-Chinese cultural bond. The UP

Newsletter (Vol 30, Issue 11). Accessed 6 January 2012

Varona BP. 2011. UP ASP unearths new finds in Palawan. The UP Newsletter (Vol 32,
Issue 06). Accessed 6 January 2012

WWF-Philippines. 2005. El Nido: working together for environmental law

enforcement (A case study in the Philippines). WWF-Philippines. Quezon City,
Philippines. 41 p.