Cebu's private sector is approaching the new year with a spirit of cautious hope, following a challenging 2025 that tested the island's economic fortitude. Business leaders now advocate for a unified, collaborative strategy to foster resilience and sustainable growth across all industries.
A Year of Adversity Reshapes Priorities
The past year served as a stark reminder of Cebu's vulnerabilities. A 6.9-magnitude earthquake on September 30 was followed by severe flooding from Typhoon Tino (Kalmaegi) on November 4, which resulted in casualties and widespread property damage. The province later faced large waves from Super Typhoon Uwan (Fung-Wong). These consecutive disasters disrupted infrastructure, crippled logistics, and stretched business continuity plans to their limits.
Micro, small, and medium enterprises (MSMEs) bore the brunt of the impact, often lacking sufficient financial reserves or insurance. While relief efforts were swift, responses were frequently uncoordinated, highlighting a critical gap in private-sector disaster management. This fragmentation prompted chambers across Metro Cebu to agree late in the year to establish a unified task force aimed at streamlining support, especially for smaller businesses.
Sectoral Challenges and Pockets of Resilience
Beyond natural calamities, companies struggled with high operating costs, logistics expenses, power supply concerns, and persistent infrastructure gaps. These pressures squeezed profit margins and forced many to delay expansion plans.
The tourism sector, a cornerstone of Cebu's economy, experienced an uneven recovery. Arrivals from South Korea, the island's top international market, dropped significantly early in the year due to capacity limits, safety worries, and regional competition. Although domestic travel provided some stability, overall momentum lagged behind pre-pandemic expectations.
"2025 was a shaky and uncertain year," stated Mark Ynoc, President of the Mandaue Chamber of Commerce and Industry. "Calamities, rising costs and confidence issues discouraged investment and slowed demand." He cited weak airport capacity, restrictive visa policies, and fragmented global marketing as key hurdles.
In real estate, confidence waned as households redirected spending to repairs and family support post-disasters. Demand remained stronger in the affordable and mid-market segments, while high-end projects saw slower uptake. Concerns also grew in the IT-BPM sector, where automation and AI pose medium-term headcount risks, compounded by skills mismatches.
Despite these hurdles, resilience emerged as firms pivoted to efficiency, digitalization, and financial consolidation. "Growth in 2025 was not loud, but it was deliberate," noted Carl Cabusas of the Talisay Chamber of Commerce. "It was a year of recalibration."
The 2026 Blueprint: Unity and Strategic Rebuilding
Looking ahead, 2026 is viewed as a pivotal transition year focused on rebuilding trust and fostering ecosystem-led growth rather than pursuing rapid, isolated expansion. Jay Yuvallos, President of the Cebu Chamber of Commerce and Industry, emphasized, "Our outlook for 2026 is about unity and scale... The private sector needs to move as one."
Persistent challenges include a power supply struggling to meet rising demand, water security issues, and high logistics costs. However, opportunities are identified in electric vehicle incentives, data centers, logistics hubs, e-commerce, and export-oriented manufacturing bolstered by a weaker peso.
Local chambers plan to synchronize advocacy, trade promotion, and disaster preparedness efforts. Key initiatives include integrating MSMEs into larger value chains and working with local governments to improve the ease of doing business and prioritize critical infrastructure.
Tourism operators are cautiously optimistic for 2026, pinning hopes on expanded air connectivity, a strong MICE events pipeline, and major gatherings like the ASEAN Tourism Forum in January. Property developers anticipate steadier conditions driven by population inflows, with a focus on affordable housing.
"2026 will be about rebuilding trust rather than chasing aggressive expansion," said Anthony Leuterio of Filipino Homes.
While risks from climate volatility, infrastructure backlogs, and governance issues remain high, the shared trials of 2025 have galvanized a push for deeper public-private collaboration. "If we align strategies and speak with one voice, we can shape policies that support inclusive and resilient growth," Yuvallos added. For Cebu's business community, the coming year is a definitive test of whether coordinated action can forge a more resilient and competitive economic path forward.
