The Philippines to compete with Macau and Singapore in 2017
Philippine’s (EPHE) (PIE) gross gaming revenue in 2017 is expected to reach $3 billion and may rise to $3.6 billion by 2018, said Rommel Rodrigo, an analyst at Philippines-based Maybank ATR Kim Eng Capital Partners. This would still be far behind Singapore’s gaming revenue, where just two casino resorts are sufficient to generate a bigger amount, and about one-tenth of what Macau generates in gaming revenues annually.
But, given the fact, that the economy isn’t yet saturated with such leisure and entertainment venues, casino tycoons are increasingly showing interest in Philippines’ leisure and gaming industry’s (BJK) (PEJ) revenue earning capacity, as the country targets reaching about $7 billion in gaming revenues by 2020.
Philippines’ largest casino tycoons to benefit
Philippines’ Entertainment City, which faces the Manila Bay, currently boasts of:
- Solaire Resort and Casino, owned by Philippine billionaire Enrique Razon’s (net worth $3.4 billion) under his Bloomberry Resorts Corp. (PSE: BLOOM)
- City of Dreams Manila, a venture between Melco Crown Entertainment Ltd. (MPEL) and the Philippines’ richest man, Henry T. Sy, Sr. (net worth $12.9 billion).
- Okada Manila, owned by Japanese tycoon Kazuo Okada (net worth $2.4 billion) under the aegis of his Universal Entertainment Corp. (TYO: 6425) opened in December 2016 is expected to be fully operational by 1Q17.
- A fourth property, a project by Philippine billionaire Andrew Tan’s (net worth $2.5 billion) Alliance Global Group (ALGGY) and Malaysian tycoon Lim Kok Thay (net worth $4.5 billion), is in blueprint and is expected to open in the fourth quarter of 2020.
“We expect high single-digit gross gaming revenues in 2017 driven by the opening of the $2.4-billion Okada Manila and the continued economic growth in the Philippines,” Fitch Ratings said.