October 2025 marks a transformative milestone in Iloilo City’s journey toward becoming one of the Philippines’ most competitive urban centers
After two years of anticipation and delays, Iloilo City’s two iconic public markets—the Terminal Market (known locally as “Super”) and the Central Market (“Tienda Mayor”)—have finally opened their doors. The soft opening on October 31, 2025, represents more than just the completion of a construction project; it signals a fundamental shift in how this Western Visayan city approaches economic development, tourism, and urban revitalization.
A P3 Billion Investment in Iloilo's Future
The redevelopment of these historic markets represents the first major public-private partnership (PPP) between the Iloilo City Government and SM Prime Holdings Inc., with a total investment of approximately P3 billion—at no cost to the city government. The project, which broke ground on September 18, 2023, has transformed two aging single-floor markets into modern three-level facilities that honor heritage while embracing progress.
The numbers tell a compelling story of expansion and modernization:
- Terminal Market now accommodates 1,250 vendors, up from 885—a 41% increase in capacity
- Central Market hosts 850 vendors, compared to the previous 603—a 41% increase
- Combined, these markets directly impact approximately 2,100 vendors and their families
The redeveloped markets feature state-of-the-art amenities including building management systems, computerized maintenance systems, fire detection and alarm systems, and roof deck parking accommodating around 300 vehicles. Notably, they are designed to be the first green markets in the Visayas, utilizing solar panels and maximizing natural light and ventilation.
From Market to Destination: The Tourism Impact
Perhaps the most significant shift in the markets’ role is their transformation from purely transactional spaces into cultural and tourism destinations. Mayor Jerry Treñas, inspired by Barcelona’s famous Mercado de la Boqueria, envisions these markets as places where both locals and tourists experience the flavors, rhythm, and heritage of Ilonggo life.
This vision aligns with Iloilo City’s remarkable tourism trajectory. According to the Iloilo City Economic Development Council’s 2024 report, tourism receipts increased by 13%, rising from P8.29 billion in 2023 to P9.4 billion in 2024. The modernized markets are expected to amplify this growth by serving as anchor attractions in the Calle Real Heritage Zone, the city’s historic downtown district.
Terence Uygongco, Chairman of the Iloilo Local Economic Development (ILED) Foundation, emphasized the cultural significance: “A thriving public market is essential to any food culture. This redevelopment enhances Iloilo’s brand as a gastronomic destination.” He cited examples from cities like Sandakan, Malaysia, where similar market redevelopment projects successfully boosted tourism and created jobs.
Economic Ripple Effects Across Sectors
The markets’ reopening comes at a pivotal moment for Iloilo City’s economy. The city recorded a 7.1% economic growth in 2024, maintaining its position as the fastest-growing economy in Western Visayas. More impressively, in 2023, the city posted a 10.5% GDP increase, making it the second fastest-growing highly urbanized city in the entire country.
The markets’ impact extends far beyond their walls:
1. Downtown Revitalization
The Central Market’s location within the Calle Real Heritage Zone positions it as a catalyst for the revival of the old business district. Mayor Raisa Treñas has announced plans for a daily night market along JM Basa Street, creating additional livelihood opportunities for micro-entrepreneurs and breathing new life into the historic downtown area.
2. MSME Empowerment
The city government, in partnership with SM Prime Holdings and financial institutions, has implemented comprehensive vendor training programs. In March 2025, over 400 market vendors participated in financial literacy and business management training. According to Mayor Treñas, improved financial management has resulted in the city’s markets moving from operating deficits to running with a surplus.
3. Enhanced Trade Infrastructure
The Terminal Market, where most produce from other parts of Panay Island is traded wholesale and retail, now offers improved facilities for regional commerce. With better storage, cleaner facilities, and organized spaces, vendors can more effectively compete with larger retailers while maintaining their market presence.
4. Employment and Livelihood
Beyond the direct vendor count increase, the modernized markets create employment in facility management, security, maintenance, and ancillary services. The retail spaces and parking areas also generate additional economic activities in surrounding areas.
Part of a Broader Urban Transformation
The Terminal and Central Markets are just two pieces of Iloilo City’s comprehensive infrastructure upgrade. The city is simultaneously redeveloping district public markets in La Paz, Jaro, Arevalo, and Mandurriao. By the end of 2025, all major city markets are expected to be fully operational under modern standards.
This market modernization initiative fits within the city’s RISE Iloilo City Roadmap, which consists of three core pillars:
- Rising Health and Social Services
- Rising Economy
- Rising Livability
Strategic infrastructure development, a booming business process outsourcing sector, a strong education ecosystem, diversification from agriculture, real estate development, good governance, and tourism are the key drivers fueling this growth, according to Velma Jane Lao, head of the Local Economic Development and Investment Promotion (LEDIP) office.
Challenges Overcome and Lessons Learned
As Iloilo City positions itself to become one of the top three most livable, sustainable, and resilient cities in the Philippines by 2028, the modernized markets represent a critical infrastructure foundation for future growth.
Economic Diversification Strategy
While Iloilo City’s economy is predominantly service-based (88.3% of total output), the LEDIP office recognizes the need for diversification. The city is exploring export-oriented industries, particularly engineered bamboo, under the Bamboo Industry Development Strategic Plan. This initiative aims to position Iloilo as Southeast Asia’s Bamboo Powerhouse by 2030, leveraging the fully operational Visayas Container Terminal for manufacturing and export growth.
Competitive Positioning
Iloilo City has risen dramatically in the national competitiveness index—from 27th place in 2015 to 5th place in 2023. The market redevelopment is expected to accelerate this progress by:
- Improving sanitation and food safety standards
- Enhancing the city’s gastronomic tourism appeal
- Providing world-class facilities that attract both local and international visitors
- Supporting MSME growth through better infrastructure and training
Regional Economic Hub
As the regional center for Western Visayas, Iloilo City’s modernized markets strengthen its role as the primary trading hub for the region. The Terminal Market’s wholesale functions connect farmers and producers from across Panay Island with retailers and consumers, creating economic linkages that benefit the entire region.
A Model for Sustainable Urban Development
The Iloilo markets project offers valuable lessons for other Philippine cities grappling with aging infrastructure:
- Public-Private Partnerships Work: The P3 billion investment came at no cost to city coffers, demonstrating how strategic partnerships can deliver infrastructure that municipalities cannot afford alone.
- Heritage and Progress Coexist: By preserving the Central Market’s iconic façade while modernizing facilities, the project shows that cities don’t have to choose between history and progress.
- Vendor Support is Essential: Comprehensive training programs, maintained rental rates, and transparent stall allocation processes ensured vendor buy-in and smooth transition.
- Sustainability Matters: Green building features like solar panels and natural ventilation reduce operational costs while supporting environmental goals.
- Tourism Integration Creates Value: Reimagining public markets as cultural destinations, not just transaction points, multiplies their economic impact.
The reopening of Iloilo’s Terminal and Central Markets represents more than upgraded facilities—it symbolizes a city’s commitment to inclusive, sustainable growth that honors its past while building for the future. As vendors arrange their stalls in clean, spacious facilities, as tourists add these markets to their Iloilo itineraries, and as the surrounding downtown district experiences renewed vitality, the full impact of this P3 billion investment will continue to unfold.
For Iloilo City, these markets are proving to be economic anchors, tourist destinations, and community hubs all at once. They demonstrate that with vision, partnership, and careful planning, public infrastructure can be a powerful catalyst for urban transformation.
As the city continues its journey toward becoming one of the Philippines’ most livable and competitive urban centers, the modernized markets stand as concrete evidence that Iloilo’s best days are not behind it—they’re just beginning.
The grand opening is slated for later this year, when the full mall component will be completed, marking the official culmination of this historic redevelopment project.
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