Business Bayani PH

Cebu’s business scene presents a mixed picture: while the aroma of sizzling success wafts from its vibrant food sector, tourism cautiously inches towards recovery, and the construction industry faces a slowdown, further complicated by a proposed minimum wage increase that sparks debate.

Food scene booms

Restaurants are bustling, delivery services zoom through the streets, and innovative menus tempt taste buds – Cebu’s food scene is thriving. Charles Kenneth Co, president of the Cebu Chamber of Commerce and Industry, attributes this to a post-pandemic shift towards dining out, coupled with the talent and resourcefulness of local entrepreneurs.

“People who were ordering online during the lockdown are now exploring and eating out again, as evidenced by the current traffic situation,” Co observed during the latest episode of The Freeman’s “Hot Seat.” 

He further described the Cebu food business scene as “medyo okay-okay.” However, rising ingredient costs and intense competition remain potential challenges for this flavorful sector.

Tourism recovery

While hotels see encouraging signs, resorts lag behind. Co paints a picture of cautious optimism, highlighting the need for renewed efforts. “Resorts? Not so…. Lesser than pre-pandemic,” he said in The Freeman interview, attributing this to factors like non-resumption of many direct flights and lingering territorial disputes that deter visitors. 

The industry is calling for easier visa application processes to entice more foreign tourists, aiming to reclaim Cebu’s pre-pandemic tourism glory.

Construction slump

Cebu’s once-booming construction sector faces a stark reality — fewer projects and delayed timelines. “Construction projects, nag lie low pud karon,” (construction projects are also lying low now) remarked Co, pointing towards a decrease in government funding compared to the robust “Build Build Build” program under the previous administration. 

This slowdown impacts not only workers and material suppliers but also the overall economic activity in the region.

Minimum wage hike: balancing needs with viability

The proposed ₱100 increase in the daily minimum wage for private sector workers has ignited a debate. While proponents hail it as a boost to worker well-being, Co expresses concern. 

Predicting the proposed wage increase would bring down the country’s economy, Co fears negative impacts on small and medium enterprises (SMEs) that might resort to underground practices or even closure. 

He advocates for alternative solutions like skills development programs and targeted government assistance, emphasizing the need for a sustainable approach that balances worker needs with business viability.

Navigating uncertainty and building a prosperous future

Cebu’s business landscape presents a complex mosaic — pockets of success amidst challenges and uncertainties. Co highlights the need to diversify tourism markets, invest in infrastructure development, and support SMEs. 

He emphasizes the collective responsibility of government, businesses, and individuals in shaping a prosperous future for Cebu. “We need to find a balance between growth and kaning atong livelihood, compensation,” (We need to find a balance between growth and our livelihood, compensation) he stated.

Cebu’s business landscape, though riddled with complexities, brims with potential. Embracing innovation, addressing challenges collaboratively, and prioritizing sustainable growth can pave the way for a brighter future where the sizzle of success resonates across all sectors, not just the food scene.◼