The Panagbenga Festival, a vibrant annual event in Baguio City, significantly enhances the local economy and attracts a surge of tourists. The Baguio Flower Festival Foundation, in partnership with community groups, recently held a press conference to discuss the festival’s impact, which is set to commence on February 1, 2025. The festival not only boosts the economy through taxes and business permits but also through heightened tourist expenditure.
In 2024, the foundation contributed PHP6 million in taxes to the city government, as stated by Anthony De Leon, the chairman of the festival’s Executive Committee. He emphasized the foundation’s commitment to tax compliance and timely payments post-event. The festival’s economic benefits are further realized through the issuance of special business permits to vendors at the Panagbenga Market Encounter and Session Road in Bloom, which together host around 450 stalls. These stalls feature products from small and micro enterprises across the country.
Local businesses, including food and beverage outlets and service providers, also see a significant increase in customers. Street vendors selling snacks like fish balls, barbecue, hotdogs, and milk tea, along with artisans offering woven fabrics and processed foods, thrive due to the festival’s increased foot traffic. De Leon also pointed out the festival’s importance to Benguet’s flower growers, who are integral to creating the festival’s renowned floral floats, which can cost up to PHP500,000 each.
The festival has played a crucial role in Baguio’s economic recovery since the 1990 earthquake, as De Leon noted, emphasizing the event’s broad benefits and the importance of its continued support. Jovita Ganongan, Director of the Department of Tourism – Cordillera Administrative Region, highlighted the festival’s role in boosting tourism, leading to increased spending on accommodations, food, and transportation. She observed that the high volume of tourists, evidenced by crowded bus stations and increased traffic during the festival, is a positive sign of economic activity benefiting both businesses and workers.