The festive season in Cebu is a whirlwind of activity. Malls are overflowing with shoppers, where traffic is heavy but the air is thick with the excited chatter of Cebuanos. While chaotic for some, this vibrant display of consumer activity is a testament to the city’s economic prosperity.
As buying power increases with a thriving economy, the holiday season becomes a spectacle of lights, music, and joyous spending. Cebuanos, empowered by their growing economic vitality, embrace the festivities with renewed vigor, creating a festive atmosphere that is both a celebration of tradition and a reflection of the city’s remarkable progress.
In her State of the Province Address (SOPA) in August, Cebu Governor Gwendolyn Garcia asserted, “The state of the province is strong. In fact, it is super strong.”
Indeed, the statement rings true particularly from an economic standpoint.
Trillion reasons to be merry
According to data released by the Philippine Statistic Authority in November 28, 2024, the combined economy of Cebu Province and the three Highly Urbanized cities of Cebu City, Mandaue City, and Lapu-Lapu City has surpassed the one-trillion-peso mark, reaching a total GDP of P1.01 trillion. This significant milestone highlights the island’s robust economic performance and its increasing contribution to the country’s growth. Lapu-Lapu City led with 9.4 percent growth, followed by Cebu City at 8.3 percent and Mandaue City, 7.6 percent.
Cebu Island contributed 73 percent to Central Visayas’ GDP, solidifying its role as a key economic driver. In 2023, Central Visayas emerged as the fastest-growing regional economy in the Philippines, recording a 7.3 percent increase in Gross Regional Domestic Product (GRDP).
This growth translates to tangible benefits for Cebuanos. Increased economic activity fosters job creation, improved infrastructure, and better access to essential services. This is evident in the rise of malls, around 10 in Cebu City alone, the rapid construction of high-rise condominiums, which is expected to reach over 87,000 units by 2025, and the development of new attractions and recreational areas. The thriving IT sector, which employs thousands of people, also benefits from some 35 IT parks, buildings, and centers in the three major cities.
Fueling Cebu’s economic engine
What are the secrets behind Cebu’s economic success? Cebu’s strategic location, booming tourism industry, and IT and business process management (IT-BPM) sector continue to boost the local economy.
Cebu saw an influx of over 2 million domestic and international tourists as of September 2023, marking a 28 percent growth from last year’s figures. Its captivating beaches, vibrant festivals, and historical landmarks continue to attract tourists and drive the development of hotels, resorts, and various recreational facilities.
Additionally, Cebu is aiming to become a “smart city,” where citizens can benefit from improved mobility, connectivity, and an environment that fosters innovation. In 2022, the local government announced plans to develop two new IT parks: the Mabolo IT Park and Robinsons SRP IT Park. These projects are anticipated to generate 15,000 jobs and enhance Cebu’s position as a leading outsourcing hub beyond Metro Manila.
Over the years, Cebu has established itself as a key player in the outsourcing industry, second only to Metro Manila. In 2022, the local IT-BPM sector generated $32.5 billion in revenue and employed over 121,000 people.
Cebu’s strategic location, modern infrastructure, high-quality office spaces, and competitive operational costs compared to Metro Manila make it an appealing destination for global outsourcing companies. Its educated workforce, with high English proficiency, is another significant advantage for Cebu.
Moreover, Cebu’s strategic infrastructure investments underscore its commitment to improve connectivity and enhance its attractiveness as an investment destination. The Mactan-Cebu International Airport Terminal 2 is set to accommodate up to five million international passengers per year, making the province an important gateway for tourism and trade in the region.
Energy initiatives sparking bright future
To sustain Cebu’s economic momentum, ongoing power initiatives are underway to guarantee a stable and reliable energy supply. Garcia reassured investors by emphasizing the ongoing development of three solar farms in Daanbantayan, Dumanjug, and Toledo. Moreover, the expansion of baseload power in Toledo is aimed at bolstering the region’s power supply while supporting the transition to renewable energy sources. These energy projects are designed to address the increasing energy demands of a fast-developing Central Visayas.
“If we are to even be able to match the phenomenal growth that Cebu is experiencing right now, we would have to be serious in generating more capacity. That has become a focus and priority for me,” she said.
Cebu’s steady economic growth, fueled by its status as the country’s wealthiest province for nine consecutive years and Cebu City’s inclusion among the world’s top 500 cities to live in, signifies an improvement in the quality of life for its residents. This can be seen in the development of more business and industrial areas, infrastructure, and retail and commercial spaces.
However, with this higher quality of life comes a greater demand for energy. To sustain this growth and ensure a brighter future for all, Cebu must continue to invest in a reliable and sustainable energy infrastructure. Ensuring a balanced energy mix by combining traditional and renewable sources is vital to prevent disruptions in key industries. With the collaborative efforts of the government and the private sector, Cebu is well-positioned to become a true powerhouse of the South, driving economic and social progress for generations to come.
