The blue economy, which heavily relies on ocean-based industries, is emerging as a crucial driver of long-term economic growth in Cebu and the Central Visayas region. This was emphasized during a recent symposium hosted by the Philippine APEC Study Center Network (PASCN) of the Philippine Institute for Development Studies (PIDS) in partnership with the University of San Carlos (USC).
Dr. Julius Relampagos, Chair of the Department of Economics at USC, highlighted Cebu’s ocean-based industries and their contribution toward the region’s economic growth. He emphasized the need to sustainably harness marine resources, recognizing both the opportunities and challenges that come with economic expansion in the sector.
Cebu accounts for about 73% of the gross domestic product of the Central Visayas. The province is also home to over 80% of the Philippines’ inter-island shipping capacity contributing 8-10% of GDP. This means that the performance of Cebu’s ocean-based industries determines the long-term economic potential of the region.
Coastal tourism is a key driver of Cebu’s economy with the province accounting for 17.4% of all tourist arrivals by air in 2023. This positively impacted growth in accommodation, food services, transportation, and entertainment, while supporting professional and financial services.
Cebu also leads the nation’s shipbuilding sector, housing 22 of the Philippines’ 124 shipyard facilities and bolstering manufacturing and economic growth. Its construction sector grew by 12.7% in 2023, driven by coastal development, port infrastructure, and marine propulsion system manufacturing. Marine cables effectively interconnect Cebu with nearby islands, facilitating energy sharing and advancing renewable ocean energy.
Overall, Cebu's ocean-based economy contributes significantly to coastal aquaculture, ocean-based fishing and related industries despite concerns with carbon emissions and plastic pollution.
To address these challenges, Relampagos stressed the importance of ensuring ecological well-being in economic planning. “We have to look at the health of the marine ecosystem when undertaking ocean-based economic activities. Only then can we truly achieve sustainable growth.”
This perspective aligns with the broader concept of the blue economy which encompasses a wide range of industries, including fisheries, coastal tourism, maritime transport, and renewable ocean energy. Unlike the traditional focus on revenue generation, the blue economy integrates sustainability principles into economic planning.
“The concept of a blue economy presupposes that sustainability principles are incorporated in all ocean-based economic activities,” Relampagos explained.
It was noted that the Association of Southeast Asian Nations (ASEAN) Blue Economy Framework provides a critical roadmap for sustainability. “The ASEAN defines the blue economy as a new engine for future growth, covering both upstream and downstream sectors,” he stated.
Relampagos concluded that by balancing growth with sustainability, Cebu can remain a leader in the country’s blue economy, paving the way for inclusive and resilient development.
Watch the recording of the symposium at https://bit.ly/pidslive021925. ###
