Central Visayas cemented its position as the fastest-growing regional economy in the Philippines for the second consecutive year, posting a robust 7.3% growth in gross regional domestic product (GRDP) in 2024. This outpaced the national average of 5.7% and brought the region’s total economic output to ₱1.28 trillion.
Now comprising Cebu and Bohol, Central Visayas continues to demonstrate exceptional economic resilience and dynamism. At the heart of this momentum is Cebu, which contributed a commanding 73% to the region’s economic performance.
According to PSA Region 7 Chief Statistical Specialist Leopoldo Alpanta Jr., Central Visayas is the “largest economy in the Visayas and Mindanao.”
(Also read: Cebu Seeks Power & Independence Amid Heat and Tourist Surge)
Cebu’s top industries
Cebu’s business community welcomed the region’s strong economic performance, viewing it as a clear sign of its sturdy and adaptable economic foundation. They pointed to thriving sectors—tourism, business process management (BPM), industry, and trade—as the driving forces behind Central Visayas’ sustained momentum.
In 2024, Cebu held firmly onto its title as Central Visayas’ top tourist magnet, drawing an impressive 5.08 million overnight visitors, a commanding lead over Bohol’s 1.37 million. Cebu captured 67.5% of the region’s total arrivals, underscoring its unrivaled pull as a travel destination.
Steven Yu, former president of the Mandaue Chamber of Commerce and Industry, credited improved airport access and rising flight connectivity as key drivers of the region’s tourism surge. He also highlighted the Cebu Provincial Government’s push to boost tourism and trade in the countryside as a transformative move for regional growth.
Meanwhile, Cebu continues to play a central role in the country’s IT-BPM sector, accounting for 15% of the national workforce. With over 160,000 FTEs across Cebu alone, the province stands out as the region’s BPM hub, supported by strong activity in Mandaue, Lapu-Lapu, and the South Road Properties (SRP) area. Its momentum is further driven by 66 new and expansion projects in early 2025, totaling nearly ₱59 billion in investments.
BPM has been so vital to Cebu’s economy that the City Council has officially declared March 28 as BPO Day. The ordinance, approved on April 24, 2024, recognizes the industry’s billion-peso contributions and the thousands of jobs it has created for Cebuanos and nearby provinces.
Other significant growth drivers in Central Visayas included wholesale and retail trade, along with the repair of motor vehicles and motorcycles, which expanded by 7.7%, and manufacturing, which recorded a 6.6% increase.
(Also read: Visayas and Mindanao Are Growing Fast—Is the Power Supply Ready?)
Energy stability & affordability are key to Cebu’s growth
Cebu’s push to become a top-tier tech hub hinges on one critical factor: energy. The province’s ambitions, from hosting AI firms to powering data centers, rely on a stable and affordable electricity supply. Without it, efforts to compete with regional tech leaders could stall.
For business leaders like Mandaue Chamber of Commerce and Industry president Marc Ynoc, reliable power is non-negotiable. “Electricity costs play a crucial role in attracting venture capital and foreign investments,” he emphasized.
Electricity rates in the Philippines are among the highest in Southeast Asia, making Cebu less attractive to global investors. With power costs accounting for up to 40% of manufacturing expenses, Cebu risks losing out to Vietnam, Malaysia, and Indonesia—markets now luring companies exiting China with lower operational costs and more stable supply.
High electricity costs are also affecting Cebu’s businesses. On average, large firms spend over ₱1.1 million per month on power, while micro, small, and medium enterprises (MSMEs) spend around ₱160,000. During outages, daily losses can reach ₱216,000 for big companies and ₱82,000 for smaller ones.
In the context of Cebu’s tourism growth, energy security is just as crucial. According to Hotel Resort and Restaurant Association of Cebu Inc. president Alfred M. Reyes, the island is expecting up to 4,000 additional hotel rooms across Cebu’s tri-cities in the next few years.
“During summer [in 2024], we’ve encountered rotational blackouts, and we all know that not all hotels are equipped with generators that run 24/7,” he noted. “Energy is something that you cannot compromise. Once you’re out of energy, automatically your guests will move to properties that can provide 24/7 electricity.”
Additionally, Cebu’s tourism and business leaders are calling for urgent upgrades to the province’s aging energy infrastructure as power demand continues to climb. In a recent forum hosted by energy consumer group ILAW, stakeholders pointed to frequent outages and rising consumption from sectors like tourism and IT-BPM as major concerns.
“Failure to address these issues could hinder Cebu’s ability to attract investments and sustain its economic momentum,” the report cautioned.
Scaling up power for a growing Cebu
Cebu sources about 60% of its electricity from outside the metro, making it vulnerable to disruptions in supply.
When supply keeps pace with demand, electricity prices tend to stabilize. Expanding local power generation can reduce dependence on external sources and protect consumers from price shocks and supply disruptions—an approach now being considered for Cebu.
One effort underway is the 169-megawatt expansion of the Therma Visayas Inc. plant in Toledo, which is expected to strengthen Cebu’s energy security by providing steady baseload power. While renewable energy continues to grow as part of the mix, it cannot yet replace the reliability needed to support fast-developing areas like Cebu.
Cebu’s rising energy demand, growing at roughly 7% each year, has prompted serious warnings from business leaders. Cebu Chamber of Commerce and Industry President Charles Kenneth Co said a power shortfall is likely without new in-island generation. Although the regional grid helps maintain supply, the 2024 blackouts in Panay exposed the risks of overreliance on external sources.
“While these interconnections are helpful to us, we would like to establish our autonomous power plants in Cebu so that we always have access to local power,” Co stressed.
Cebu Chamber of Commerce and Industry President Jay Y. Yuvallos highlighted that reliable power is fundamental to reducing business risk and driving inclusive growth. He noted that if energy security keeps pace with development, more than 200,000 families across Central Visayas could rise out of poverty.
Meanwhile, energy advocates are urging swift investment in local power facilities to boost Cebu’s energy resilience. The Cebu Electricity Rights Advocates (CERA) warned that the province’s heavy reliance on power from neighboring islands puts it at risk of supply disruptions, as seen during the Siargao outage in December 2024.
Department of Energy Assistant Secretary Mario Marasigan added that long-term energy stability for Cebu hinges on developing new in-island generation projects.
In summary, Cebu’s leaders across government, business, and civic organizations are aligned: the province must rapidly expand its power generation capacity—ideally through local, baseload plants—to ensure energy resilience, recognising that Cebu’s progress drives broader national advancement.
Sources:
https://www.sunstar.com.ph/cebu/cv-still-phs-fastest-growing-economy
https://www.sunstar.com.ph/cebu/cebu-solidifies-lead-in-it-bpm-boom
https://businessmirror.com.ph/2024/08/30/cebus-hi-tech-ambitions-hinges-on-energy-abundance
https://tribune.net.ph/2024/03/01/cebu-business-sector-urgently-pushes-for-power-self-sufficiency
https://www.sunstar.com.ph/cebu/group-urges-power-plant-investmentsto-shield-cebu-from-energy-crises