The hotel industry in Cebu City, Philippines, has fallen into severe depression due to the complete withdrawal of the offshore gaming industry (POGO), with most hotels' occupancy rates dropping to 25% to 60%, equivalent to the level during the pandemic lockdown. The departure of POGO employees and associated enterprises has led to the disappearance of high-end customers, and the disruption of banquets, exhibitions, and surrounding consumption chains, forcing some hotels to cut operations or even shut down. Although the government has tried to attract tourists through measures such as visa relaxation, industry players generally expect no significant recovery until at least the first quarter of 2026, highlighting the risk of economic structural monoculture.
POGO Withdrawal and Current Hotel Industry Status
Since the Philippine government completely banned the offshore gaming industry (POGO), the hotel industry in Cebu City has been severely hit. Previously, POGO employees and corporate customers were the mainstay of high-end rooms, banquets, and dining consumption, and their withdrawal has caused hotel occupancy rates to plummet to 25%-60%, comparable to the lockdown period in 2020. Some hotel owners have stated that current revenues are even lower than during the toughest phase of the pandemic, and there is a lack of government subsidy support, putting the industry in a state of operational contraction.
Economic Chain Reaction and Industry Adjustment
The withdrawal of POGO has triggered a widespread chain effect: hotels are reducing costs by implementing staff rotations, closing dining areas, and idling conference facilities, and small to medium-sized hotels are shutting down due to continuous losses. The surrounding dining, transportation, and entertainment industries are also shrinking, forming a "chain depression." Industry insiders point out that the economic vacuum created by the gaming industry is difficult to quickly fill through ordinary tourists or the local market, and existing recovery policies are limited in effect.
Policy Response and Industry Outlook
The Philippine government is attracting international tourists by relaxing visa policies and reshaping a safe image, but the industry holds a pessimistic attitude towards short-term recovery. Analysts believe that the Cebu tourism market may not see improvement until the first quarter of 2026 and must avoid over-reliance on a single industry. The current predicament serves as a warning for the Philippines to promote economic diversification and reduce dependence on foreign-sensitive industries.
