Cebu’s growth beyond tourism hinges on timely infrastructure

CEBU’S next phase of growth will depend less on tourist arrivals and more on whether infrastructure, water, energy, housing, and logistics projects can be delivered on time and at scale, local stakeholders and business leaders said during the 2026 Cebu International Investment Summit on Tuesday, January 13, 2026.

Local leaders from construction, utilities, real estate, and logistics outlined during the CIIS 2026 Summit’s second day what investors should watch closely in the coming years.

Cebu is repositioning itself from a tourism-centered economy into a regional hub for industry, trade, and technology.

Construction executive Willy Justin Go Jr., vice president of Cebu Contractors Association, said Cebu’s growth strategy is anchored on major transport and logistics projects designed to remove long-standing bottlenecks and support industrial expansion.

Among these are the Fourth Cebu-Mactan Bridge and Mandaue Coastal Road, the Metro Cebu Expressway, the New Cebu International Container Port (NCICP) in Consolacion, and the Cebu Bus Rapid Transit (CBRT) system, which is undergoing final testing.

“These projects are economic platforms, not just structures,” Go said, warning that delays or coordination failures could directly affect Cebu’s competitiveness as an investment destination.

Go said infrastructure expansion must be paired with reliable and resilient energy systems, particularly as Cebu courts manufacturing and technology-driven investments.

He cited plans to increase renewable energy use to as much as 35 percent by 2030, supported by large-scale solar projects in northern Cebu, as part of efforts to meet rising power demand while reducing climate risk.

Without stable power supply, Go said, infrastructure gains could be undermined regardless of how quickly roads, bridges, and ports are built.

Water security seen as investor issue

Utilities executive Ramon Aboitiz Tuason, assistant vice president of Aboitiz InfraCapital Inc., said water security is emerging as a major risk factor for Cebu’s continued growth, especially amid rapid population and economic expansion.

Tuason said public-private partnerships (PPPs) remain the most viable option for scaling water infrastructure, citing the experience of the Mactan-Cebu International Airport as proof that complex facilities can be delivered efficiently through collaboration between government and the private sector.

He also pointed to the Davao City Bulk Water Supply Project as a working model for shifting from groundwater to surface water, improving access to 24/7 potable water and easing pressure on aquifers.

For Cebu, Tuason said desalination offers a faster, targeted solution, particularly for economic zones and island developments. He noted that a desalination facility in Mactan Island already supplies water to industrial users.

Housing supply under pressure

Real estate developer Jose Franco Soberano of Cebu Landmasters Inc. said Cebu’s property market remains relatively stable because demand is driven mainly by end-users rather than speculation.

However, he warned that the growing housing backlog nationwide, particularly for homes priced below P3 million, could become a constraint on growth if not addressed alongside infrastructure expansion.

Soberano said sustained investment in transport, utilities, and township developments is essential to keeping housing accessible and preventing congestion-driven cost increases.

Logistics as unseen backbone

Entrepreneur Joseph Tan said Cebu’s competitiveness as an investment destination also depends on the reliability of supply chains that support tourism, retail, and manufacturing.

He said Cebu’s airport and port infrastructure position the province as a natural gateway to the Visayas and Mindanao market, but warned that front-end developments cannot succeed without strong back-end logistics.

“Front-end projects fail without back-end systems,” Tan said, referring to the flow of maintenance, electrical, and operational supplies that keep businesses running.

Tan also urged larger firms to support small and medium enterprises through partnerships and mentoring, saying inclusive growth strengthens the overall business ecosystem.

Industry leaders said Cebu has emerged as a thriving international hub due to its strategic location, skilled workforce, and strong family-business culture, but warned that permitting delays and utility reliability remain critical risks.

Cebu’s attractiveness to investors lies not only in infrastructure spending but in how well the province plans its communities, supports long-term businesses, and removes bottlenecks that slow project delivery, panelists said during a discussion on what makes the province truly investable. (EHP)

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