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It is the capital and most populous city of the province of Negros Oriental. The city is nicknamed "The City of Gentle People."

Dumaguete is referred to as a university city because of the presence of four universities and a number of other colleges where students of the province converge to enroll for tertiary education. The city is also a popular educational destination for students of surrounding provinces and cities in Visayas and Mindanao. The city is best known for Silliman University, the country's first Protestant university and the first American university in Asia. There are also 18 public elementary schools and 8 public high schools. The city's student population is estimated at 45,000.

Dumaguete attracts a considerable number of foreign tourists, particularly Europeans, because of easy access from Cebu City in Central Visayas, the availability of beach resorts and dive sites, the attraction of dolphin and whale watching in nearby Bais City. Dumaguete is listed 5th in Forbes Magazine's "7 Best Places to Retire Around the World". The Philippine Retirement Authority a government agency under the Department of Tourism has named the city as the Best Place to Retire in the Philippines for 2018.