Baguio Is Now Richer Than 7 Metro Manila Cities… but Locals Aren’t Happy About It

Baguio, also known as “The Summer Capital of Philippines”, just became the richest city outside Metro Manila, but residents say life in the City of Pines is starting to feel more suffocating than successful. 

Are we even surprised? The number of tourists visiting the province every Christmas and summer season makes the city congested. But what exactly is the reason why locals aren’t thrilled by this news?

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Baguio may be winning on paper, but many locals say it doesn’t feel like it.

According to the Philippine Statistics Authority (PSA), the city’s economy reached ₱178.85 billion in 2024, making it the wealthiest city outside Metro Manila. Its growth slowed slightly to 5.8 percent, down from 9 percent in 2023, but each Baguio resident still technically produced ₱485,433 worth of goods and services last year. That’s richer per person than residents of seven cities in the National Capital Region.

Sounds impressive, right? Not quite for those who actually live there.

City Planning Officer Architect Donna Rillera Tabangin said people were hesitant to celebrate when the ranking was first announced in April. The reason? Many feel that the booming economy is also making daily life harder. Traffic has worsened, prices are rising, and the once-serene mountain city now feels overcrowded.

Tourism and business growth have made Baguio rich, but they’ve also strained its livability. For a lot of residents, progress feels like something they see happening around them, not something they truly benefit from.

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To make sure growth doesn’t come at the expense of quality of life, the city government is running a “quality of life” survey, which is expected to finish by November. The goal is to understand how Baguio can turn its wealth into something more meaningful for its people.

Here’s what’s on the city’s agenda:

• Promoting ecotourism to protect remaining forests and timberlands

• Pushing for a circular economy focused on recycling and repurposing waste

• Completing its smart city transformation by 2027 to attract sustainable investments

Despite these challenges, Baguio remains the economic heart of the Cordillera region. It accounted for nearly half (47.3 percent) of Cordillera’s ₱378.26-billion gross regional domestic product (GRDP) in 2024. Benguet followed with 23 percent, while provinces like Ifugao, Kalinga, and Abra showed signs of new growth in manufacturing, mining, and services.

But experts warn this concentration of wealth could widen inequality. Industry output in 2024 was 71 percent concentrated in Baguio and Benguet, while services were 72.1 percent, with Baguio producing 51 percent of that. The rest of the region risks being left behind.

Baguio’s story shows that progress and comfort don’t always go hand in hand. Yes, it’s possible for cities outside Manila to thrive, but real success depends on whether locals can actually feel that progress in their daily lives.

For other fast-growing Philippine cities, Baguio’s experience is a wake-up call: getting richer is one thing; staying liveable is another.

Featured image credit: Getty Images | Unsplash