The province of Cebu is home to over 80 percent of the Philippines’ inter-island shipping capacity, making it a central hub of the country’s economy but at same time triggering concerns to ensure sustainability of the Visayas region’s blue economy, the Philippine Institute for Development Studies (PIDS) said.
This was the gist at the recent symposium organized by the Philippine APEC Study Center Network (PASCN) of PIDS, in partnership with the University of San Carlos (USC).
Known for its blue economy, driven by ocean-based industries, the symposium highlighted Cebu province’s pivotal role in the growth of the economy, especially in the Visayas.
The province of Cebu contributes approximately 73% to the gross domestic product (GDP) of the Central Visayas.and 8-10% of the nation’s GDP. “The performance of Cebu’s ocean-based industries is therefore crucial in determining the region’s economic trajectory,” PIDS said.
The blue economy, driven by ocean-based industries, is rapidly emerging as a pivotal factor for long-term economic growth in Cebu and the Central Visayas region, said the government think tank.
The symposium also acknowledged that Cebu also stands at the forefront of the Philippine shipbuilding industry, hosting 22 of the country’s 124 shipyard facilities.
This is a major contributor to both manufacturing and broader economic growth. In 2023, the construction sector in Cebu expanded by 12.7%, driven by developments in coastal infrastructure, port facilities, and marine propulsion system manufacturing. Additionally, marine cables interconnecting Cebu with nearby islands have advanced energy sharing and bolstered renewable ocean energy initiatives.
Coastal tourism plays a significant role in Cebu’s economic landscape, accounting for 17.4% of all tourist arrivals by air in 2023. This surge in tourism has spurred growth in related sectors such as accommodation, food services, transportation, and entertainment, while also supporting professional and financial services.
Dr. Julius Relampagos, chair of the Department of Economics at USC, highlighted in his address at the symposium the substantial role of Cebu’s ocean-based industries in fueling regional economic development.
With that, he also stressed the importance of sustainably managing marine resources, and recognizing the opportunities and the challenges associated with the sector’s expansion.
Relampagos noted that despite the positive economic contributions, Cebu’s ocean-based economy faces challenges related to carbon emissions and plastic pollution, particularly in industries like coastal aquaculture and ocean-based fishing.
To address these environmental concerns, Dr. Relampagos emphasized the need for sustainable economic planning that prioritizes the health of marine ecosystems. “We must consider the well-being of the marine environment when undertaking ocean-based economic activities. Only then can we achieve true sustainable growth,” he asserted.
This approach aligns with the broader blue economy framework, which includes a variety of sectors such as fisheries, coastal tourism, maritime transport, and renewable ocean energy. Unlike traditional economic models focused solely on revenue generation, the blue economy integrates sustainability principles into the very fabric of its development strategies.
Relampagos also referred to the ASEAN Blue Economy Framework, which provides a vital roadmap for sustainable growth in the region. “ASEAN views the blue economy as a new engine for growth, encompassing both upstream and downstream sectors,” he noted.
Concluding his address, Relampagos stressed that by balancing economic expansion with environmental sustainability, Cebu can continue to lead the nation’s blue economy. This approach will not only drive economic growth but also ensure inclusive and resilient development for future generations.
