Moalboal is an easy and scenic two hour drive from Cebu City. You pass through the South Road (SRP) and head all the way to Carcar. You take a right at the junction in Carcar and go straight to the beautiful mountains of Barili. Just a side note, I think Barili has a great mountainous rural landscape that can become the next Ubud. After Barili, you pass through 4 other towns, before reaching the popular seaside destination that is Moalboal.
Moalboal is known for one thing: diving. The center of dive universe in Cebu is found here in Panagsama. The laid back community has a lot of dive centers. Moalboal is the Anilao of the Visayas. A lot of foreigners and locals have their dive lessons here.
Panagsama Beach in Moalboal doesn't really have a beach, so don't expect sandy shores. Instead, expect dead corals and rocks. The tide goes really high in this area, so during that time, there's even no beach.
Nearby Pescador Island is the highlight of diving. I don't really dive since I have no license (though I have tried it 3 times already in Malapascua and Camiguin). So I can't give much information on what can be seen underwater.
Because of the influx of tourists, there are a lot of accommodations in the area of Panagsama. It actually feels like Boracay in a way, with its laid back beach vibe.
There are a lot of foreigners. In fact, they outnumber local tourists significantly (probably because it wasn't Summer anymore). Some stay for a month in Moalboal, so cheap lodging is available especially for backpackers. I think Moalboal is a good side trip for backpackers to Cebu along with Malapascua.
There are also a lot of dining options, from roadside grills, beachside cafes, to authentic Italian restaurants, like this Marina which is part of the La Tegola Group found all over Cebu City.
Panagsama may cater more to divers, but the chill out and laid back ambience of the place makes it a perfect spot for one or a group of friends to relax as well. Stay in one of the several beachfront cottages, and spend a day without doing anything.
Panagsama Beach is still Moalboal's top draw, especially for foreigners, as it boasts of natural underwater wonders. And staying here is relatively cheap. So, make your way to Panagsama, and learn to dive for a weekend, or enjoy a soothing sunset scene while reading a book on a hammock in your rustic beachfront cottage.