What does it take to become an economic powerhouse? For years, Cebu has been charging full speed ahead, cementing its status as the country’s wealthiest province for the ninth consecutive year in 2023. In 2024, Cebu City ranked 436th among the list of 1,000 best cities to live based on the Oxford Economics Global Cities Index.
Its strategic location, robust tourism and business process outsourcing (BPO) sectors, and strong infrastructure all contribute to a thriving local economy for the Queen City of the South. Meanwhile, ongoing power projects and initiatives aim to ensure a stable and reliable energy supply to support Cebu’s growth trajectory.
Cebu province is a key driver of the region’s economic growth, contributing 30.1 percent to Central Visayas’ economy and P388.11 billion (1.9 percent) to the national GDP. In 2023, Central Visayas emerged as the Philippines’ fastest-growing regional economy with a 7.3 percent increase in gross regional domestic product.
Here’s a closer look at the factors fueling Cebu’s impressive growth.
Diverse and Thriving Industries, Skilled Workforce
Cebu’s economy is powered by a diverse mix of industries, including tourism, IT and business process management (IT-BPM), real estate, manufacturing, agriculture, and shipbuilding.
Tourism stands out as the province is home to stunning beaches, historical landmarks, and vibrant festivals. To cater to the rising number of tourists, Cebu continues to see the development of hotels, resorts, and other recreational facilities. In the first half of 2023 alone, Cebu recorded a total of 1.55 million domestic and international tourists.
At the same time, Cebu has established itself as a major outsourcing center next to Metro Manila, with the local IT-BPM sector generating $32.5 billion in revenue in 2022 and employing over 121,000 people. Cebu’s strategic location, strong infrastructure network, premium office spaces, and relatively lower operational costs compared to Metro Manila make it an attractive hub for global outsourcing firms.
In 2022, the local government revealed plans to construct two new IT parks—the Mabolo IT Park and Robinsons SRP IT Park. The two projects are expected to create 15,000 jobs and further strengthen Cebu’s status as a major outsourcing hub outside Metro Manila.
Yet Cebu’s success in industries like IT-BPM and tourism would not be possible without its highly educated and English-proficient workforce. The presence of skilled labor attracts global firms and supports the expansion of local industries, allowing Cebu to remain competitive in a fast-changing global landscape.
Investments in Infrastructure
Cebu has made important investments in infrastructure to support its growing economy. The Mactan-Cebu International Airport Terminal 2, designed to accommodate up to five million international passengers a year, has positioned Cebu as a major gateway for tourism and trade in central Philippines.
The Cebu-Cordova Link Expressway has eased travel, while ongoing projects like the Metro Cebu Expressway aim to reduce congestion and improve inter-city connectivity.
Energy Security for Sustained Growth, Higher Living Standards
As Cebu continues to drive regional growth, ensuring a stable energy supply is crucial, especially for key industries like tourism, IT-BPM, and manufacturing.
Governor Gwendolyn Garcia allayed investor concerns by highlighting upcoming projects aimed at bolstering energy reliability. Currently, the development of three solar farms in Daanbantayan, Dumanjug, and Toledo is underway to meet the escalating energy needs of a swiftly developing Central Visayas.
Additionally, the expansion of Therma Visayas Inc. (TVI), a base load power plant, will further augment power supply and provide a reliable electricity when solar energy becomes intermittent. This approach underscores the importance of a balanced energy mix, combining both conventional baseload and renewable sources to sustain economic momentum.
At a recent energy forum, Garcia reiterated the need to address Cebu’s growing energy demands, with the Department of Energy (DOE) projecting peak demand to double by 2032.
“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.
For DOE Assistant Secretary Mario Marasigan, Cebu needs more power plants despite having stable supply within the next two years. “[I]f we want to have a reliable, sufficiently-produced (power), independently for the Visayas, then we have to come up with new generation facility projects,” he said in the same energy forum.
A stable and reliable energy supply is the backbone of Cebu’s continued success. The proactive steps the province is taking to enhance its power infrastructure will ensure not only uninterrupted business operations and social services, but also that Cebu’s key industries continue to expand, sustaining the region’s remarkable economic progress and higher living standards.