THE proliferation of retail developments along with an influx of domestic and foreign tourists is turning Metro Cebu into a major retail destination in the South, according to real estate advisory firm CB Richard Ellis (CBRE) Philippines.

CBRE said that with the right push and consistent support from both public and private sectors, Metro Cebu can even become the newest retail destination in Asia.

The firm reported a total of 5.6 million local and foreign tourists visited Cebu from January to November last year.

CBRE noted that 1.32 million of these tourists are international travellers.

With the increasing number of tourists, local and national retail developers are seeing Metro Cebu’s retail business as a growth opportunity.

Local retail players like Prince Warehouse, Metro Gaisano, Gaisano South and Gaisano Capital are no longer alone in Metro Cebu’s retail arena with the expansion of big national retailers such as SM, Robinsons, Rustan’s/Shopwise and Puregold.

‘The entry of these big players are a show of confidence in the growth potential of Metro Cebu’s retail sector,’ CBRE said.

American fashion brand Forever 21 launched its first outlet outside Metro Manila in SM City Cebu in the second half of 2011.

A three-storey mall with 70,000 square meters of gross leasable area called J Centre was also launched in the second half of last year.

CBRE reported that Cebu Holdings, Inc. (CHI), an affiliate of property developer Ayala Land, Inc. (ALI) is embarking on the central stage of Ayala Center Cebu’s expansion within the 9-hectare land inside the Cebu Business Park.

The P3-billion four-level development is said to complete the original full-circle design of the mall.

In addition, two SM Savemore Markets opened in Mandaue last November while SM Consolacion with its 40,000 sqm of gross leasable area is set to open this year.

SM Prime Holdings also launched a P20 billion integrated development project at South Road Properties (SRP) called SM Seaside Complex.

The 30-hectare development will be anchored by a huge shopping mall to be known SM Seaside City Cebu which is about half of the size of the SM Mall of Asia in Pasay, CBRE reported.

Filinvest Land also announced its entry to the Metro Cebu retail business late last year with a retail space project in its 50-hectare new community development in Cebu City’s SRP.

The land development of the 10.6-hectare retail development has started in October last year and the first phase would be completed by the third quarter of 2013.

Metro Cebu is composed of three major cities in Cebu, namely Cebu, Mandaue, and Lapu-Lapu.

Metro Cebu has an aggregate population of roughly 1.5 million and a total land area of 408 square kilometers.

CBRE noted that about 37 percent of Cebu’s population is found in these three major cities.

‘With Cebu now becoming known as a major tourist destination, Cebu retailers are directly benefitting from the upsurge in tourist arrivals from shopping requirements as well as increased demand from HORECA (Hotels, Restaurants and Catering Services),’ CBRE said.

‘This momentum continues to build up as government initiatives are geared towards the growth of investment and tourism of Metro Cebu,’ the firm added.