Cebu bets on PPPs to accelerate tourism

Cebu bets on PPPs to accelerate tourism
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INTENSIFYING public-private partnerships (PPP) in Cebu’s tourism and experience economy will be a critical factor in accelerating the industry’s growth.

Industry leaders and government officials discussed the province’s tourism, lifestyle and experience landscape during the third day of the Cebu International Investments Summit 2026.

Provincial Administrator Felix Mari “Ace” Durano, one of the panelists, said tourism development cannot be driven by government alone. He noted that public institutions account for only about 10 percent of the overall visitors’ experience.

“The remaining 90 percent is delivered by the private sector,” Durano said.

Durano said effective collaboration between the government and private sectors is essential to sustaining tourism growth.

Durano, who previously served as tourism secretary, said Cebu possesses strong tourism and branding fundamentals, including adventure, beaches and culture, that make it one of the country’s most recognizable tourism brands.

He said partnerships with private stakeholders are crucial in translating these strengths into concrete visitors’ experiences.

Drawing from his tenure at the Department of Tourism, Durano said joint campaigns with the private sector tailored to specific international markets played a major role in encouraging foreign visitors to travel to the country.

These initiatives helped increase tourist arrivals from 2.1 million in 2004 to 3.2 million in 2010, he said.

Joint campaigns include using an artist or influencer to lead marketing for international audiences instead of the tourism secretary, he said.

Private sector leaders echoed the importance of PPPs across segments of the tourism value chain.

Julita Urbina, president of Laguna Group of Companies, said investments in food, culture and lifestyle thrive when the government creates an enabling environment for private players to innovate.

Urbina said Cebu’s tourism sector remains open to new entrants whose participation can help strengthen the province’s global competitiveness.

Michelle Leslie Llanos, vice president for Visayas mall operations of SM Supermalls, said collaboration with local governments allowed malls to evolve beyond traditional retail spaces. Modern malls function as lifestyle and economic hubs integrating offices, residences, schools and event venues that support tourism and urban growth, Llanos said.

The upcoming SM Seaside Arena at the South Road Properties will have a 16,000-seating capacity, larger than the SM Mall of Asia Arena in Metro Manila. It is expected to drive economic growth by hosting concerts and events.

Cleofe Albiso, managing director of Megaworld Hotels and Resorts, said integrated townships demonstrate how PPPs can expand Cebu’s tourism offerings.

Albiso said coordinated planning between developers and the government enables the inclusion of facilities for diverse markets, including Muslim travelers.

Rafael Aboitiz, vice president and head of airports at Aboitiz InfraCapital, said aviation development is another area where PPPs play a decisive role.

Aboitiz said that while Central Visayas remained the most visited region by foreign and domestic tourists from 2000 to 2024, it has fewer direct international routes.

This gap presents an opportunity for private airport operators to work with government regulators and airlines to open more destinations and direct flights, Aboitiz said.

Aboitiz said Aboitiz InfraCapital, which operates the Mactan-Cebu International Airport, plans to open 10 new routes in 2026 to strengthen the airport’s position as a major transfer hub.

Discussions during the summit suggested that Cebu’s tourism revival is anchored on PPPs that combine government regulation with private sector capital and execution.

Cebu is presenting itself as a mature PPP market capable of delivering long-term tourism and lifestyle projects. (EHP)

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