BAGUIO CITY — Baguio City Mayor Benjamin Magalong said a plan is being finalized following a series of workshops and consultations with representatives from the business, tourism, and transport sectors, in a bid to address a significant decline in tourism caused by fuel supply disruptions linked to the conflict in the Middle East.

He said the Baguio City government is developing an economic continuity plan. The plan is designed to identify specific risks within these industries and implement strategies to maintain economic activity during the current downturn.

According to data from the Baguio Tourism Council, the city has seen a 40 to 50 percent decrease in tourist arrivals in recent weeks. This trend has resulted in a corresponding drop in hotel occupancy rates across the city. Officials project that the decline in visitors could reach 60 percent in the near future, which is expected to negatively impact the city’s tax revenues and financial performance for the coming year.

The city’s broader economic indicators also show signs of slowing growth. Baguio’s gross domestic product growth rate fell from 5.6 percent in the second quarter of last year to 4.4 percent more recently. Economic forecasts suggest the growth rate could drop below 3 percent in the first quarter of the year.

Magalong noted that while the city is utilizing experience gained during the COVID-19 pandemic to manage the crisis, the current situation is complicated by an ongoing energy shortage.

Proposed relief measures and support for local businesses will be reviewed in upcoming management committee meetings. The mayor emphasized the importance of creating new strategies to stimulate the economy, with a particular focus on supporting micro, small, and medium enterprises.

Smaller businesses in the city are currently identified as the most vulnerable segment of the local economy as Baguio navigates the impacts of the global fuel crisis.