The Economy of the city is largely dependent on tertiary activities,
particularly on commercial wholesale and retail services. These
economic activities generate substantial income for the city in
the form of business taxes generated from permits and license fees.
To boost the economic development of the city, the local government
is pursuing the development of the city public market and other
major private endeavors like the Baguio Center Mall (BCM)to provide
socio-economic opportunities that would reinforce and sustain the
continuing economic growth of the city.
Tourism also played a big role in the economy of the city. Tourist
traffic has been on the upward trend since after the earthquake.
This trend is a potential market for goods and services that can
boost the city's economy. Also, the presence of the DOT Regional
Office in the city provides better opportunity for coordination
and support national tourism programs.