Another casino set to open in Boracay
APART from Macau casino operator Galaxy Entertainment Group Ltd.’s planned integrated resort complex, a new casino will rise on Boracay Island as part of a growing number of new gaming facilities being set up outside the capital that can allow the Philippines to tap the potential of the growing premium Chinese mass market.
Philippine Amusement and Gaming Corp. (PAGCOR) Chairperson Andrea D. Domingo told reporters on Tuesday the new casino owned by Resorts World will open at Savoy Hotel in Boracay, which may be operational in four months.
“They placed all their requirements and application since 2014. That one also has been approved and they have built the hotel,” Ms. Domingo said on the sidelines of the ASEAN Gaming Summit in Pasay City, while noting that a contract has yet to be signed.
Savoy Hotel is owned by Megaworld Corp., which is part of Alliance Global Group, Inc. (AGI). AGI and Genting Hong Kong own Travellers International Hotel Group, Inc., the owner and operator of Resorts World Manila and the upcoming development Westside City Resorts World in Entertainment City, Parañaque.
The new casino is one of two new gaming hubs planned at the world-famous beach destination, the other being Galaxy Entertainment’s casino-resort in partnership with local firm Leisure and Resorts World Corp.
The signing of the provisional license will take place today despite a looming temporary oneyear shutdown of the island to pave the way for its rehabilitation, Ms. Domingo said.
The rise of integrated resorts in tourism destinations can allow the Philippines to capitalize on “experiential travel” and help lure more premium mass Chinese gamblers.
“When we look at what is being done already — the projects in pipeline — they are in the right direction. Being able to include some of the gaming facilities along with resort amenities can help attract younger families and high spending Chinese travelers,” said Margaret Huang, research analyst for gaming and lodging at research firm Bloomberg Intelligence.
Tycoons John L. Gokongwei and Manuel B. Villar, Jr. as well as Davao-based businessman Dennis A. Uy are reportedly building casino resorts outside Entertainment City, where local and foreign investors have invested at least $1 billion for each development.
However, cannibalization risks remain even as excitement grows with the opening of additional gaming sites.
“There’s only so much you can leverage on when it comes to the domestic market, that’s the concern across the board for a domestic-oriented market. In order to diversify, they need international visitors particularly the Chinese because they spend a lot,” Ms. Huang said.
Entertainment City is home to Solaire Resort & Casino of billionaire Enrique K. Razon, City of Dreams Manila of the SM Group and Melco Crown Entertainment Ltd., and Okada Manila of Japanese gaming mogul Kazuo Okada.
“We’re not fearful of any development outside Metro Manila,” Steve Wolstenhome, managing director of Okada Manila, told reporters on the sidelines of the same forum.
“We want to embrace from a non-gaming standpoint our locals and from a gaming standpoint, we want to ensure the Philippines is a destination where people can experience things that are unique to the Philippines,” he said.
More than a year since opening its doors to the public, Okada Manila is averaging 20,000 visitors on weekends and half of that on weekdays, Mr. Wolstenhome said. The resort houses the world’s largest multi-colored dancing water fountain and an indoor beach club.
“Once we are fully established as an entity, you’ll see 50,000 people come to our door on a daily basis,” Mr. Wolstenhome said, noting that the complex is ramping up the opening of retail stores to around 50 by yearend.