‘Blue economy’ push promises new prosperity for Cebu
While the world debates the future of ocean sustainability, one Philippine province is following a compelling path forward in the depths of its surrounding seas.
Cebu, in the country’s Visayas region, is transforming itself into a trillion-peso economic powerhouse by treating the ocean not as a boundary, but as a highway to prosperity, thanks to its “blue economy.”
As defined by the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods and jobs and ocean ecosystem health.”
For Cebu, it has become the engine driving growth that outpaces the national average.
Integrated ecosystem
In a presentation at the Symposium on Shaping Apec’s Blue Economy Agenda: Philippine Leadership and Visayas-Centric Innovations held earlier this year, University of San Carlos’ (USC) Department of Economics chair Julius Relampagos showcased how Cebu has built an integrated ecosystem that turns every wave, every port and every coastal kilometer into economic opportunity.
It’s what sets Cebu apart from other rapidly growing Philippine regions—the province is strategically embracing the blue economy, with coastal tourism as a key driver.
According to Relampagos, the tourism sector’s composition—34 percent accommodation and food services, 27 percent transportation and storage and 21 percent other services (including entertainment and recreation)—demonstrates a mature industry that extends far beyond simple beach tourism.
Unique value propositions are created by the integration of tourism with other blue economy sectors: Visitors can experience world-class maritime museums, tour active shipyards and participate in sustainable marine tourism activities that showcase Cebu’s commitment to ocean conservation.
Natural advantages
Cebu’s blue economy also covers a network of other industries that leverage the province’s natural advantages.
Interisland shipping is one area where Cebu dominates, as it serves as the base for over 80 percent of the Philippines’ capacity, according to the Philippine Institute for Development Studies, effectively making it the archipelago’s logistical nerve center.
According to Relampagos’ analysis, this strategic position generates an estimated 8 to 10 percent of Cebu’s gross domestic product (GDP) directly from shipping operations, but the indirect effects ripple throughout the economy.
The shipbuilding and ship repair (SBSR) sector further exemplifies Cebu’s maritime sophistication.
Cebu is home to 22 of the Philippines’ 124 SBSR facilities, including industry leaders like Tsuneishi Cebu and Austal Philippines, according to the Maritime Industry Authority.
The province has been recognized as the “shipbuilding capital of the Philippines,” a designation that isn’t merely symbolic, but representative of the thousands of high-skilled jobs and substantial foreign investment in advanced manufacturing capabilities.
Cebu’s ocean-based power generation, transmission and distribution sector is perhaps the most innovative aspect of its blue economy strategy.
Through marine cable interconnections with Leyte, Negros, Panay Island and Bohol, Cebu has created an interisland power grid that allows for optimal resource allocation across the region.
This infrastructure development serves a dual purpose: ensuring energy security for Cebu’s growing industrial base while creating revenue streams from power trading with neighboring islands.
The ongoing transmission backbone projects represent billions of pesos in investment and position Cebu as the energy hub for the entire Visayas region.
While maritime industries provide the foundation, Cebu’s services sector has evolved into a sophisticated ecosystem that supports both local economic activity and international business processes.
The province’s services sector accounts for over 69 percent of GDP, including everything from financial services that support maritime trade to information and communication technologies that serve global markets.
The major contributors to economic growth were financial and insurance activities and wholesale and retail trade, according to recent economic data.
This diversification within the services sector provides economic resilience and creates pathways for continued growth even as individual industries face cyclical challenges.
With interest rates expected to ease and inflation remaining at a manageable level, Cebu businesses are positioned for continued growth.
The convergence of favorable macroeconomic conditions with Cebu’s established blue economy infrastructure creates conditions for sustained expansion.
The numbers tell a compelling story: In 2023, Cebu accounted for 73 percent of Central Visayas’ GDP, reaching a trillion-peso economy in real terms (P1.008 trillion or 5 percent of the national GDP), according to the Philippine Statistics Authority, despite being among the country’s smaller provinces by land area.
This ability to generate substantial wealth from limited geographic space has made Cebu a model for sustainable island development.
Despite its impressive growth trajectory, Cebu faces challenges that will test its blue economy model.
Climate change poses risks to coastal infrastructure and marine ecosystems that underpin the province’s economic strategy. Rising sea levels, increased storm intensity and ocean acidification require adaptive management approaches that balance economic development with environmental protection.
The province’s rapid growth has also created infrastructure pressures, particularly in transportation and utilities.
Managing these growing pains while maintaining environmental quality will require continued investment and innovative policy approaches.
Ultimately, the true innovation in Cebu’s strategy lies in its integration of sustainability principles with economic development.
The blue economy framework requires businesses to consider environmental impact alongside profit margins, creating incentives for long-term thinking and resource conservation.
In riding the wave of ocean-based sustainable development, Cebu could serve as both inspiration and practical example for the transformative potential of the blue economy.
