Biology of Business

Cebu City

TL;DR

Where Magellan died and Spain's first Philippine colony rose in 1565, now the country's second-busiest airport hub and Central Visayas' economic engine after the 1990s 'Ceboom.'

City in Central Visayas

By Alex Denne

Cebu is where the Philippines began—both the colonial order and the resistance to it. Ferdinand Magellan landed on April 7, 1521, planting a cross and baptizing Rajah Humabon. Twenty days later, Magellan died at the Battle of Mactan, killed by Lapu-Lapu's warriors in one of the earliest successful resistances to European colonization. That defeat halted Spanish expansion for 50 years. When Miguel López de Legazpi returned in 1565, he founded 'Villa del Santísimo Nombre de Jesús'—the first Spanish settlement in the Philippines and briefly the colonial capital before Manila.

The pre-colonial polity called Sugbu was already a thriving port, ruled by the Indianized mandala system under Sri Lumay. Its capital Singhapala—Tamil-Sanskrit for 'Lion City,' sharing etymology with Singapore—conducted trade across Southeast Asia. Spanish colonization transformed Cebu into a mission station and later a trading center, but Manila's deeper harbor captured the galleon trade. Cebu remained provincial until the 20th century.

The 1990s 'Ceboom' changed everything. Cebu transformed into a global hub for BPO, tourism, shipping, and furniture manufacturing. Metro Cebu now holds 3.2 million people (2024). The 'tri-cities'—Cebu City, Lapu-Lapu City, and Mandaue—generate 22.2%, 11.3%, and 8.3% of Central Visayas' GRDP respectively. Mactan-Cebu International Airport is the Philippines' second busiest.

In 2025, President Marcos backed major infrastructure: a fourth Mactan-Cebu bridge and the ₱16-billion New Cebu International Container Port (groundbreaking February 2025) to make Cebu a national logistics hub. A magnitude 6.9 earthquake struck northern Cebu in September 2025, testing the 'Queen City of the South.' From Lapu-Lapu's resistance to the Ceboom to earthquake resilience—Cebu's identity is persistence through disruption.

Key Facts

965,332
Population

Related Mechanisms for Cebu City