Iloilo City: Beyond the image

By Artchil B. Fernandez

In 2023, Iloilo City was recognized as a UNESCO Creative City of Gastronomy, the first in the Philippines to get the distinction. The award highlights the city’s image as a progressive, modern, and flourishing urban center.

Iloilo City leads the way in the region in terms of economic progress. Data from the Philippine Statistics Authority (PSA) reveal Iloilo City is the fastest-growing economy in Western Visayas, with its gross domestic product (GDP) valued at PHP160.28 billion. The city’s economy grew by 10.5 percent in 2023 and recorded the highest per capita GDP among all provinces and highly urbanized cities (HUCs) in the Visayas at PHP337,805. PSA’s 2023 Family Income and Expenditure Survey shows that family incomes in the city also grew, with an average annual income of PHP478,730.

The Bureau of Local Government Finance (BLGF) of the Department of Finance (DOF) recognized the Iloilo City government as the top-performing HUC in Western Visayas for exceeding its 2023 revenue collection target by collecting PHP2.43 billion in locally sourced revenues, with 113 percent collection efficiency.

The business process outsourcing (BPO) industry is thriving in the city. Iloilo City is a booming hub of BPO with its skilled workforce and competitive operating costs. Currently, the city is host to 100 Information Technology and Business Process Management (IT-BPM) companies employing 36,800. In 2021, Iloilo City was recognized as the Best Driver of IT-BPO Investments after Manila. The city also earned the “2020 Most Business-Friendly Local Government Unit Award” given by PCCCI.

Given that Iloilo City grew by leaps and bounds in the past decades, it created an image of a thriving and booming city, an envy of its neighbors in the region. However, dark clouds are hovering on the horizon, and the city faces serious challenges.

The Iloilo-based Institute of Contemporary Economics (ICE) has identified key challenges confronting Iloilo City as it navigates into the future. Inflation, according to ICE, is a grave challenge to the city. In December 2024, inflation in Iloilo City was at 5.4 percent, the highest among HUCs. Though it declined to 2.7 percent in June 2025, inflation in Iloilo City went up to 3.7 percent in July 2025, making it one of the highest in Western Visayas. Iloilo City’s overall inflation weight share in the region’s latest figure (0.6 percent) is 13.1 percent.

ICE identified “abrupt rise in actual rentals for housing” as “the single largest contributor to inflation for Iloilo City,” among other factors such as water, electricity and other fuels, and transportation. One factor that has influenced inflation in Iloilo City, according to ICE, is the impact of the controversial Real Property Tax — particularly on housing rental rates, commercial rental rates, and follow-on impact on prices of goods and services.

To recall, the previous administration of Mayor Jerry Treñas in 2024 updated the Fair Market Values (FMV) for lands and buildings, the first time since 2006. The revision led to a 300 percent increase in real property tax (RPT). Land levy rate increased from 1.5 percent to 2.0 percent, while ad valorem for idle land rose to 2 percent from 1 percent for residential properties and from 2 percent to 3 percent for agricultural, commercial, and industrial lands. To cushion the effect of the controversial 2024 Real Property Tax, ICE recommends a review of its impact and exploring adjustments.

Growth and progress of Iloilo City could be jeopardized by these troubling issues. Current leaders of the city must go beyond the present image of the city. They should not be lulled into complacency by the city’s positive image. It is even worse if city leaders assume photo-ops and slick PR campaigns can sweep under the rug the red flags that could imperil Iloilo City’s development.

Daunting tasks lay ahead to sustain the growth of Iloilo City. Leadership has a critical role as the city meets head-on the dangers that could put at risk not only the good image of the city but its progress. Mature and enlightened leadership is needed at this point for the city to sustain and maintain what it has achieved. It is one that does not rely on public posturing or publicity alone to wiggle out from contentious issues and escape responsibility or accountability.

The leadership of the hour that Iloilo City badly wants as it struggles to withstand the current difficulties is one that assumes responsibility, seeking no excuses or blaming others. It is a leadership that is willing to take risks, bravely and strongly tackling the problems and issues besetting the city. A petty and shallow leadership, prone to tantrums, fits, rage, outbursts, and bad temper will only bring disaster to Iloilo City, undoing whatever has been achieved so far. This, the city cannot afford.

To secure the progress of Iloilo City, leaders of the city must rise above petty partisanship, narrow self-interest, and parochial concerns. Vindictiveness and spite have no place in a city transforming itself into a modern and prosperous urban center. Leaders should not be shackled by political grudges but set them aside for the sake of the common good. Do the leaders of Iloilo City have the capacity and capabilities to sacrifice, if not forget, their own selfish agenda and put the welfare of the city above all?

Iloilo City has gone a long way in its journey to become the premier urban center in the region. It has established an image of a progressive metropolis with enlightened and forward-looking leadership. The city must go beyond the image and walk the talk. It must demonstrate through concrete action and behavior that, indeed, it is governed by leaders who are sensible, adept, skillful, and thoughtful — imbued with wisdom and discernment.

Leaders genuinely working together are the only way for Iloilo City to sustain its growth and development. Their unity is the key that will propel the city to greatness. Manufacturing illusion and impression management will not do the magic or the trick.

Go beyond the photo-ops, transcend the image-building. Forget partisanship. Leave the pettiness behind. Lead by example, live by example. These are what Iloilo City and the Ilonggo community demand from their leaders.