The Philippines has one of the fastest-growing economies in the world. Back in 2019, governing agencies such as the International Monetary Fund, Asian Development Bank, and the World Bank stated that the nation’s economy would grow faster compared to other neighboring countries like Indonesia, Malaysia, Thailand, and Vietnam.
The year 2020 will be no different—the country’s economy is expected to boom at a rate of 6.2% to 6.4%. This is just one of the many various reasons why businesses should invest in the country.
Other than a steady and consistently growing economy, the Philippines also boasts a strategic location, a relatively low cost of living, and several tax benefits to businesses. But, aside from Metro Manila and other notable regions, companies should also be excited about Cebu’s robust economy.
In 2018, Central Visayas attained 7.6% growth in the gross regional domestic product (GRDP), coming in fourth, behind regions 5 (Bicol), 4B (MIMAROPA), and 11 (Davao).
Thanks to growth drivers such as its vibrant tourism, the high employment rate for Business Process Outsourcing (BPOs), and proper government spending on construction, Cebu was able to attain an average GRDP of 6.8% for the past five years.
While there’s still a lot of work to be done, people can remain optimistic about the region’s future. Whether you’re looking to buy pieces of property or planning to set up a business outside Metro Manila, here are five big reasons why you should invest in Cebu.
1. Economic zones
Cebu is a great place to start or expand your operations since it hosts nine economic zones. Starting up a business here will be a lot easier thanks to incentives such as tax exemptions that can trim down your expenses and improve the bottom line. Over time, these economic zones will be filled with world-class organizations, so settling there early while prices are still affordable can be one of your best decisions.
2. Booming constructions
One of the biggest contributing factors to Cebu’s growth is its construction boom. Since the demand for residential areas, commercial spaces, and office buildings has risen significantly, both the private sector and government agencies involved were driven to satisfy the area’s growing needs.
To put everything into perspective, Central Visayas has emerged as the region with the second-most construction projects in 2019. Based on the approved building permits collected by the Philippine Statistics Authority, Region 7 built a total of 5 072 construction projects at the end of the second quarter of 2019.
With no signs of slowing down, it’s expected that Cebu’s construction projects will pave the way for a stronger economy and more opportunities.
3. Tourism
Other than being a center for trade and commerce, Cebu is also close to several popular tourist destinations such as Kawasan Falls and Oslob. The city is easily accessible by land, air, and sea that it’s turned into a gateway for tourism and has significantly contributed to the surge of local and foreign visitors in other neighboring areas.
As the oldest city in the country, it’s no surprise that Cebu also boasts a rich culture and history. Apart from fun activities, historical sites, and beautiful tourist spots, local cuisine and fashion have also contributed greatly to Cebu’s tourism revenue.
Now that it’s been designated as a UNESCO “Creative City,” its tourism rate is only expected to rise in the years to come. If you’re a business owner, you can align your marketing strategy with the city’s tourism efforts to attract customers effectively.
4. Real estate
As Cebu is recognized as a tourist destination, one should also take note that the province is capturing the attention of global investors. When it comes to matters related to real estate, most people are hesitant to move to a location that can’t give them the comfort and convenience that a metropolitan area provides. But, thanks to its development, Cebu has been pegged as a perfect mix of the urban and the rural.
Real estate giants and other corporations are working non-stop to build residential and commercial spaces. Now that Cebu is can also provide the necessities that Metro Manila can, a touch of its provincial atmosphere has tagged it as one of the most livable areas in Asia.
If you’re looking for an investment, buying a piece of property in the location while the price is still low and eventually renting it out can potentially give you a decent sum of returns.
5. Business Process Outsourcing
Alongside India and Malaysia, the Philippines has established itself as one of the top outsourcing destinations in the world, and now, BPOs are expanding to Cebu after its success in Metro Manila. The city’s workforce is home to many impressive talents, and as of today, it also hosts several top companies that range from the IT sector up to the customer service industry.
If you’re worried that you won’t have an agency that supports your business operations, you can rest assured that there are a lot of competent companies here that you can partner with to attain the solutions you need.
Take Advantage of Cebu’s Growing Economy
Cebu’s continuous development is expected for years to come. As its economy grows, more opportunities will eventually present themselves in one form or another. Whether you’re planning to start a business, expand your operations, or live outside the Metro, Cebu should definitely be one location on top of your list.
Take advantage of this flourishing region. If you’re looking for a recruitment firm in Cebu, we’ll be glad to help your company transition and absorb the best talents available in the area. Contact us today for solutions!
