‘Experience’ economy seen as Iloilo’s next growth driver

By Mariela Angella Oladive

Businesses built around human experiences could power Iloilo’s next phase of economic growth, a research expert said during the culminating day of SustainAbility Directions 2026 on Feb. 13 at the Grand Xing Imperial Hotel in Iloilo City.

Ronilo M. Balbierañ, a research associate at the Research, Education, and Institutional Development Foundation, said enterprises centered on tourism, events, arts, hospitality and digitally enhanced services could deliver both sustainable and transformative growth for Iloilo province and the city.

Balbierañ made the statement during the forum’s Green Chat segment, “Greener Pathways for Domestic and International Trade,” which discussed emerging local and regional economic trends.

He said the COVID-19 pandemic permanently altered the Philippine economic landscape, pushing three sectors ahead of others: accommodation and food services; transport and storage; and “other services,” which include public events such as weddings, baptisms, funerals, concerts and theatrical performances.

“These three sectors are registering double-digit growth, around 15 to 25 percent, while the rest of the economy is growing at only five to six percent,” he noted.

He cited the rapid sellout of tickets for the Philippine staging of Les Misérables as an example of strong consumer demand for live experiences, saying tickets were wiped out within two weeks of the announcement.

Balbierañ also referenced insights from the World Economic Forum in January 2026, which identified experience-driven businesses among those most likely to remain viable over the next decade.

“Our economy is already reflecting that global consensus. The businesses that will thrive are those centered on human experiences,” he said.

He cited examples in Japan, including themed cafes where customers pay to be hugged and specialty bars where patrons can pay an additional fee to be slapped by a bodybuilder waitress, to illustrate how consumers are willing to pay premium prices for unconventional, experience-driven services.

“Think of the wide opportunities in tourism and the world of human experiences that we can offer here in Iloilo. Combine that with our delicious food, our restaurants, and our hotels — but focus on the experiences,” he added.

He said sustainability requires adapting to emerging trends, particularly as consumer preferences shift toward curated and immersive services.

“Some restaurants become popular and then eventually close. Full service alone is no longer enough. You have to integrate various human experiences,” he stressed.

He called on entrepreneurs to collaborate and leverage the convergence of e-commerce, logistics, tourism and the creative industries, which are increasingly shaped by digital platforms.

Organized by the Iloilo Business Club Inc., SustainAbility Directions 2026 convened more than 170 stakeholders from government, business and civil society to promote resilience and strengthen the role of sustainability and Environmental, Social, and Governance integration in driving long-term growth in Western Visayas.