The Panagbenga Festival, a vibrant annual event in Baguio City, significantly enhances the local economy and draws a surge of tourists. The Baguio Flower Festival Foundation, in partnership with community organizations, recently held a press conference to discuss the festival’s impact, which is set to commence on February 1, 2025. The festival not only stimulates economic activity through taxes and business permits but also increases tourist expenditure in the area.
In 2024, the foundation contributed PHP6 million in taxes to the city’s coffers, as stated by Anthony De Leon, the chairman of the foundation’s Executive Committee. He emphasized the foundation’s commitment to adhering to tax obligations 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 boost from the festival. Street vendors selling snacks like fish balls, barbecue, hotdogs, and milk tea, along with artisans offering woven fabrics and processed foods, experience increased sales due to the festival’s large crowds.
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. He noted that constructing a large float can cost up to PHP500,000, reflecting the significant investment in flowers and labor.
Since the 1990 earthquake, the Panagbenga Festival has played a crucial role in Baguio’s economic recovery. De Leon stressed the festival’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. She pointed out the increased consumer spending on accommodations, food, and transportation, evidenced by crowded bus stations and heightened traffic during the festival’s peak times. Ganongan described this as a ‘good problem,’ indicating the positive economic flow that benefits both businesses and workers.