Cebu is a great place! we were there last Nov for a week. to stay there on the beach you will pay around $150 for a nice place if you try to get anything under 100 a night you are running the risk of it being very shaddy and dirty. if it is a nice place you will pay for it. there is a great looking place to do snorkling and diving half way to Bohol, just south of Cebu, 15min by boat. it is a large reef with many islands but this particular one is a natural reserve while everything around is not. We forgot the number and could not go to it but took a local boat out and did snorkeling in the area and it is amazing!
(talima marine sanctuary cebu) there are places around it to stay at and I cant seem to find the one in the sanctuary that we looked at. there will be a bit cheaper than on Lapu lapu city/cebu. Although you are then stuck on the island but Diving will be cheap just bring your own drinks and snacks I suggest.

the food there is great and buying chicken or their famous pork from a local stand is very good. Cebu is much cleaner than Manila and the food is safer to eat.
Palawan is great too but I havent been yet. Sun here is very HOT and you burn easy so get and use LOTS of suntan lotion.
PS using a taxi always ask if they are using the meter. its never cheaper if they try to make a deal.