Cooperative Conversion as a Model for Community-Driven Entrepreneurship in Tourism-Based Associations

This study takes a closer look at how converting community-based tourism associations (CBTAs) into cooperatives can spark grassroots entrepreneurship and help overcome persistent challenges that hinder their growth—particularly in Puerto Princesa City. Using the lens of the Theory of Community-Based Enterprise, this research explores cooperative conversion not just as a structural shift, but as a potential turning point—one that could empower communities to take greater control of their economic future. By identifying both the hurdles and the opportunities tied to this transition, the study aims to enrich ongoing conversations around sustainable tourism and inclusive development. The research draws on qualitative data gathered through structured and semi-structured interviews conducted in January 2025. Six key informants were purposively selected, including CBTA leaders and government officials with firsthand experience in cooperative conversion efforts. Through thematic analysis, the study uncovered a range of financial, legal, and organizational challenges—such as difficulty in raising capital, members’ financial apprehensions, and complex issues around land tenure and taxation. Despite these obstacles, participants largely viewed the shift to a cooperative model as a strategic move. They highlighted its potential to improve governance, instill financial discipline, and promote long-term sustainability. More importantly, cooperatives were seen as a powerful tool for community-driven entrepreneurship—enabling better resource management, diversifying income streams, reinvesting in local assets, and fostering collective decision-making. These insights underscore the transformative potential of cooperatives in strengthening grassroots tourism enterprises and driving inclusive economic growth.