The government reports sound economic growth in Eastern Visayas, meaning business activity is sound to better.
But economic observers think otherwise, pointing out the rising number of rental spaces now vacant, better understood by the increase of “for rent” abandoned shops and establishments.
Official data paints a mixed picture. According to the Philippine Statistics Authority (PSA), Tacloban’s economy expanded by 8.2 percent in 2024, outpacing regional averages and continuing a recovery trend after pandemic-induced slowdowns.
Tacloban’s GDP was estimated at about P59.6 billion that year, contributing roughly 10.7 percent of Eastern Visayas’ gross regional output.
Meanwhile, the Business Permit and Licensing Division reports a jump to 12,093 registered businesses by end-2025, up from 9,239 the prior year, signaling fresh investments and new market activity.
But these figures don’t fully align with what many shop owners and patrons experience on the ground.
Downtown streets tell a different story as storefronts once teeming with life now sit empty, several long-standing local boutiques have closed, and some popular eating spots have disappeared, leaving residents to speculate on underlying causes beyond headline growth numbers.
Social media discussions among Taclobanons highlight costly rent, competition from larger malls, rising labor and logistics expenses, and subdued consumer spending outside major retail centers as potential drivers of closures.
Complicating the scene is the city government’s stepped-up effort to bolster revenues through more aggressive real property and business tax collection.
In late 2025, the Tacloban Treasurer’s Office reported leading the region in locally sourced revenue with over P728 million in the third quarter, largely driven by real property tax and other local levies.
Expanded payment options and incentives for early compliance were touted as means to support essential city services and infrastructure.
For some small business owners, however, the pressure to meet heightened tax obligations comes at a difficult time.
With profit margins already squeezed by fixed costs and variable expenses, the added burden of timely tax payments and penalties despite discounts for early payments can strain cash flow, discouraging continued operation in marginal locations.
Economists warn that urban centers like Tacloban cannot rely solely on aggregate GDP growth to reflect vibrant local commerce.
Vacancy in malls and downtown could signal sectoral shifts, with retail activity migrating to larger mall anchors while smaller enterprises struggle.
If persistent, closures risk broader social impacts such as loss of jobs, reduced consumer choice, and weaker foot traffic for surviving businesses, all dampening the city’s role as a regional economic magnet.
City officials argue business turnover is normal and overall consumer spending remains robust.
Still, balancing revenue collection with support for small and medium enterprises will be essential to translating Tacloban’s macroeconomic gains into inclusive, sustainable growth across its commercial districts.
(Photos courtesy of Paper Blooms Tacloban)
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