Tourism among winners from weak piso

Cebu’s tourism sector may gain from the weaker Philippine peso, as foreign visitors receive more pesos for every dollar spent, reducing costs for travel, dining, and leisure. UA&P economist Winston Padojinog noted that while a depreciating peso raises inflation concerns, it benefits export-driven industries like tourism, IT-BPM, and remittance-dependent households. From January to May 2026, the Philippines saw 2.74 million arrivals, a 7.51% increase from the same period last year, with the U.S., South Korea, and Japan as top source markets. Chinese arrivals surged 62.79%, and India, Canada, Australia, and Taiwan also recorded double-digit growth, signaling strong recovery in global tourism. Padojinog said the currency advantage could boost Cebu’s competitiveness against other Southeast Asian destinations, supporting local businesses reliant on visitor spending. The IT-BPM sector, which earns in dollars but pays expenses in pesos, also stands to benefit from higher peso value of export earnings. Remittances sent in dollars translate into larger peso amounts for recipients, improving purchasing power for OFW households, particularly in Cebu. The economist warned, however, that higher import costs for fuel, food, and industrial inputs could drive inflation, affecting transport, logistics, and consumer prices. Despite risks, Padojinog advised businesses to leverage the weaker peso by positioning themselves to capitalize on increased foreign tourism and export opportunities. Cebu’s strong trade links and reliance on goods movement heighten its exposure to inflation but also amplify potential gains in foreign-currency-earning sectors.