PH gaming revenue to double once Pagcor complex opens, Bank of America says
Bloomberry Resorts Corp next week will open its 800-room Solaire Resort and Casino in the Philippines’ first integrated resort — a venture that could boost the country’s growth, tourism and tax receipts, Bank of America – Merrill Lynch (BofA-ML) said.
In a research note, the investment bank said three resorts opening starting March 16 until the second half of next year — Belle Grande (826 rooms) and Manila Bay Resorts (1,050) are the other two — will bring an additional 736 gambling tables to the current 300 found at Resorts World Manila.
Foreign players are just about a quarter of the total traffic but the “VIP nature” of these gamers give a larger revenue contribution, as in the experience of Genting Berhad’s Resorts World.
At present, gaming revenues comprise 0.9 percent of the Philippines’ gross domestic product (GDP) at $2.2 billion. This, however, pertains to direct gaming revenue and discounts the coincidental revenue from hotels, restaurants and domestic transport.
“We expect the official gaming revenue to double to about US$5 billion plus (1.5 percent of GDP) with large multiplier-effects on tourism and retail,” BofA-ML said.
Philippine tourists number at 4.1 million and pales in comparison with Thailand’s 22.3 million and Malaysia’s 25 million.