Cebu Condo Wars: Is Airbnb Ruining Horizons 101?

In Cebu City, the debate over short-term rentals has moved from online forums to formal complaints. The Hotel, Resort, and Restaurant Association of Cebu (HRRAC) has formally called for government regulation of Airbnb operators, arguing that unlicensed units create an uneven playing field for the accommodation sector. At the centre of this tension are condominium buildings like Horizons 101, where the line between residential living and commercial hospitality has become increasingly blurred.

Globally, entire-home listings account for 82.4 percent of all Airbnb listings, representing roughly 6.88 million housing units potentially removed from long-term residential use. In Cebu, the same pattern is playing out in buildings originally designed for residents, not transient guests. The question is not whether short-term rentals are profitable — they clearly are — but whether the current lack of oversight is sustainable for residents, investors, and the broader hospitality industry. For a closer look at how one specific development handles this tension, you might find our review of The Persimmon Studios relevant.

What the Airbnb debate in Cebu is really about

The core issue is straightforward: hotels and resorts in Cebu operate under a established framework of taxes, permits, and safety requirements. Airbnb hosts in condominium buildings like Horizons 101, by contrast, often operate without the same obligations. HRRAC President Alfred Reyes put it plainly when he said that Airbnb operators create unfair competition by avoiding taxes. The association has submitted a position paper to both the Department of Tourism and the Bureau of Internal Revenue, and plans to bring the matter to Congress.

But the debate is not one-sided. A study commissioned by Airbnb and conducted by Oxford Economics found that the platform contributed $840 million to the Philippine economy and supported nearly 103,800 jobs in the tourism sector in 2022. The same report noted that Airbnb guests spent a total of $876 million in the country that year on restaurants, retail, and transportation, with domestic guests accounting for $445 million of that figure. These numbers suggest that short-term rentals are not merely a nuisance — they are a significant economic force.

How unregulated short-term rentals affect residents and housing

The impact of short-term rentals extends beyond the hospitality sector. In buildings like Horizons 101, residents report increased foot traffic, noise, and security concerns from a constant turnover of guests who have no long-term stake in the community. The problem is not unique to Cebu. In New York City, research estimated that Airbnb activity prior to regulation generated USD$2.7 billion in aggregate renter welfare losses, primarily through higher rents. In Ontario, Canada, short-term rentals added approximately CAD$2.6 billion in additional rent payments.

Consider a scenario: a building with 200 units, of which 40 are used as short-term rentals. Those 40 units are effectively unavailable for someone looking to lease an apartment for a year. If demand for long-term rentals remains constant, the reduced supply puts upward pressure on rents for the remaining 160 units. The effect is gradual but measurable, and it compounds as more units convert to short-term use. In Cebu, where urban housing is already constrained, this dynamic deserves attention.

Globally, the scale is striking. In 92 percent of active countries and territories, entire homes dominate Airbnb listings. Multi-listing hosts — those managing multiple properties — control 62.9 percent of all listings worldwide. In 78 percent of Airbnb’s global markets, both entire homes managed as commercial assets prevail simultaneously. This suggests that what looks like peer-to-peer sharing is often a professionalised commercial operation. For a comparison, our analysis of Calyx Residences explores how another Cebu development positions itself in this evolving market.

What gets missed in the Airbnb regulation debate

Most discussions about short-term rental regulation focus on taxes and competition. But several less obvious factors complicate the picture.

The enforcement gap is wider than it appears

Even when regulations exist, enforcement is another matter. Globally, just 16 out of 218 active countries and territories — roughly 7 percent — have licensing or registration systems that apply to the majority of their entire-home listings. In 82 percent of countries, fewer than 1 percent of entire-home listings are licensed or registered. This means that even if the Philippines passes regulations, the real challenge will be ensuring compliance across thousands of individual unit owners.

Major events supercharge listing growth

Short-term rental supply does not grow steadily — it spikes around major events. In Rio de Janeiro, Airbnb listings increased by 96.52 percent ahead of the 2016 Olympics. In Paris, listings rose by 92.66 percent in the lead-up to the 2024 Games. For Cebu, which hosts conventions, festivals, and business events, this pattern suggests that listing growth could accelerate rapidly in response to demand, outpacing any regulatory response.

Regulation can work — but only with the right design

Ontario provides a useful case study. Research found that local short-term rental regulations there are currently saving renters more than CAD$1 billion annually. Extending principal residence requirements — rules that limit short-term rentals to a host’s primary home — to other municipalities in the province would generate at least CAD$566 million in additional annual savings. This suggests that well-designed regulation can protect housing affordability without eliminating the short-term rental market entirely.

What residents, investors, and policymakers can do

Whether you live in a building affected by short-term rentals, own a unit you are considering listing, or are watching from a policy perspective, there are concrete steps worth understanding.

For residents: Know your building’s rules

The first line of defence is your condominium corporation’s master deed and house rules. Many buildings in Cebu, including Horizons 101, have provisions that restrict or prohibit short-term rentals. If your building’s governing documents ban commercial use of units, you have grounds to file a complaint with the building administration. The process typically involves documenting violations — guest turnover, noise complaints, security incidents — and submitting them in writing to the property manager. If the management does not act, homeowners can escalate to the board of directors or, in serious cases, seek mediation through the Housing and Land Use Regulatory Board.

For unit owners: Understand the trade-offs before listing

Listing a unit on Airbnb can generate higher per-night revenue than a long-term lease, but the costs are not always obvious. You will need to account for higher utility usage, more frequent cleaning, furnishing wear and tear, and potential vacancy between bookings. More importantly, operating without proper permits exposes you to legal risk if regulations are eventually enforced retroactively. Reyes of HRRAC has drawn a parallel to ride-hailing apps, which are now governed by the Land Transportation Franchising and Regulatory Board. The implication is clear: regulation is coming, and operating in the grey zone carries risk.

For policymakers: Look at what has worked elsewhere

The most effective regulatory models share common features: a registration or licensing system for short-term rental units, a principal residence requirement that limits rentals to a host’s primary home, and clear tax obligations that put short-term rentals on equal footing with hotels. The Ontario example shows that such measures can save renters significant money without eliminating the platform entirely. The DOT has expressed plans to regulate Airbnb since 2019, but these efforts have yet to materialise. The HRRAC has indicated it will bring the issue to Congress if necessary.

An emerging angle: The role of major events

Cebu’s convention and event calendar is growing. If the city hosts a major international event in the coming years, the pattern seen in Rio and Paris suggests that short-term rental listings could nearly double in a short period. This would intensify pressure on both housing supply and the hospitality sector. Policymakers may want to have regulations in place before that surge, rather than scrambling to respond after the fact. For a look at how another Cebu property navigates these dynamics, our review of West Jones Residences examines the gap between promised rental yields and actual market conditions.

Frequently asked questions about Airbnb and condos in Cebu

Closing thoughts

The tension between short-term rental profitability and residential quality of life is not going to resolve itself. For residents of buildings like Horizons 101, the immediate step is to understand and enforce existing building rules. For unit owners, the smartest move may be to operate transparently and prepare for eventual regulation. For policymakers, the evidence from other markets is clear: regulation can protect housing affordability and fair competition without killing the platform. The question is whether Cebu will act before the problem escalates, or after. If this was useful, you might also want to read our assessment of whether Avida Towers Cebu offers real value.

Sources

The Persimmon Studios: Airbnb hotspot or neighbourhood nuisance? — A closer look at how another Cebu condo building handles the short-term rental debate.

Calyx Residences: Sustainable living dream or greenwashing? — Examines how a Cebu development positions itself in the evolving market.

Hospitality sector slams Airbnb. The Manila Times, 2025.

The threat of short-term rentals to housing. Inside Airbnb, 2024.

HRRAC reiterates call for Airbnb regulation. Philstar.com, 2025.