THE CORRELATION OF TOURISM AND ECONOMIC STATUS IN BAGUIO CITY

December 9, 2024 Lifestyle

Baguio City has one of the fastest growing economies here in the Philippines. In fact, the results in economic status were highly significant during the pre-pandemic and most of the progressive movement happened in the tourism sector in the City due to the large number of local and foreign visitors as well as tourism related businesses and services improving from time to time. Additionally, the gross domestic product (GDP) of the City in 2018 and 2019 were 146.9 billion and 152.9 billion pesos respectively.

However, the tourism income shrunk in its lowest during the verge of COVID Pandemic which estimated to drop to 126.7 billion in 2020 and the damage continues at the latter part as Mayor Magalong stated that the City lost almost 3.5 billion pesos in the local tourism income due to strict rules and regulation in terms of tourist arrivals. Because of this, several economic and social factors began to slow down and it created a remarkable effect. Small scale and even large businesses experienced bankruptcy and closed immediately which directly affected the creation of essential jobs.

The income and local economy suffered from catastrophic damages as the main source of revenue began to collapse. The transportation and infrastructure sector were also not exempted from this situation since the regulations entering the city strictly limited the functions of public transportation and the redesignation of public infrastructure funds to health and safety were also evident. As the post-pandemic approaches, restrictions and regulations slowly get back to normal and the tourism sector gradually improves.

The number of tourists skyrocketed to 1.31 million tourist arrivals in 2023 which is considerably higher than 2022. Also, the economy of the Summer Capital continuously recovered in the tourism sector from the devastating impacts of the pandemic as the city’s gross domestic product rose by 11.3 percent. In addition, Small and Medium Enterprises as well as the closed businesses were able to bounce back and return from their normal operations signifying the creation of jobs for everyone.

The increase of local economy and income opened the possibility of improving the infrastructure projects, transportation, and even the protection of cultural heritage of the tourist spots for the greater economic gains. Overall, during the pandemic, the local tourism sector of the city experienced multiple problems and struggles which directly affected the people in different social aspects and the impact were also remarkable and evident during the post-pandemic which showcasing the idea of linear connection and correlation of tourism sector in the local economy of Baguio City.

By: Cyreen Almario