TOURISM, CASINO STOCKS TAKE HIT
The Resorts World Manila incident that left at least 38 dead will not likely affect general investor sentiment but may affect tourism, the head of the government’s economic team said on Friday.
“Maybe there will be some questions about tourism, maybe we’ll have a little dip. But overall, regarding business and investments, I don’t think this recent event will affect it,” said Finance Secretary Carlos Dominguez III.
The Philippine Travel Agencies Association (PTAA) agreed that tourist arrivals would likely take a short-term hit, particularly with the ongoing crisis in Marawi City which had led to the declaration of martial law in Mindanao.
“What happened today... is very unfortunate and will definitely impact our tourism industry,” PTAA president Marlene Jante said in a statement.
But the country has weathered “worse” situations before and had eventually “risen above them over and over again,” Jante added.
“This is not the time to panic,” Jante said. “Our tourism industry’s foundation is now strong enough for it to continue to grow and remain as one of our country’s sunshine industries despite these incidents.”
Facts vs fake news
The PTAA chief said officials “have to be transparent enough to let us know what is really happening around us” so the public will “discern the facts from false news and report suspicious activities within their areas.”
“I think there are lessons to be learned there, particularly in securing public places like hotels, Dominguez said.
“Security is something you have to take seriously not only here—you know what happened in Manchester, what happened in Paris—so things don’t get out of hand,” the finance chief added.
Better crisis management
The Makati Business Club (MBC) further suggested that authorities develop a better crisis management system.
“It is unfortunate that, with tourism as a key driver of our economy, we find ourselves yet again feeling helpless and unprepared to efficiently provide assistance to our visitors, with accurate information being the immediate casualty,” said MBC executive director Peter Perfecto.
Philippine Chamber of Commerce and Industry pres- ident George Barcelon agreed that security should be a continuing concern but stressed the government’s position that it was an “isolated incident.”
“What happened was an isolated case. It reminds us, all the establishments patronized by the public, that we have to be vigilant with security,” Barcelon said.
Business as usual
Key business leaders agreed that while the Resorts World incident was tragic, it was still business as usual for almost everyone.
“Just like in any big city [anywhere in] the world, this can happen. I think it’s a police matter and they should be on top of the situation. I think this will initially unnerve some businesses but it will not deter our growth prospects,” said Management Association of the Philippines official Perry Pe.
John Forbes, senior adviser of the American Chamber of Commerce of the Philippines, also called it an isolated incident, “which is why buildings in many countries have security guards.”
On the other hand, European investors deferred from commenting as they waited for further details to be announced by the authorities.
Isolated incident
Guenter Taus, president of the European Chamber of Commerce of the Philippines, said he was still waiting for “a clearer view of it all.”
Meanwhile, the Philippine Amusement and Gaming Corp., the agency that regulates casino operations, said it had been coordinating with Resorts World Manila and other casinos “to ensure the safety of all guests and employees.”
“The unfortunate incident that happened in Resorts World Manila early Friday is an isolated case of random violence and was caused by a foreign-looking man who ap- peared to be deranged,” the agency said in a statement.
“The suspect had the intention to commit robbery and used fire as a diversion,” it added. “Contrary to some reports, the incident was not an act of terrorism and should not be treated as such.”
Casino stocks take hit
On Friday morning, big casino operators took a hit at the Philippine Stock Exchange as details emerged on the overnight attack in the Resorts World Manila gaming and hotel complex.
Resorts World Manila operator Travellers International Hotel Group Inc. lost 7.9 percent to P3.13 per share.
The effects were also felt by major casino operators in the nearby Entertainment City Complex along Manila Bay.
Melco Resorts and Entertainment (Philippines) Corp., which operates City of Dreams Manila, was down over 4 percent while Bloomberry Resorts Corp., the operator of Solaire Resort & Casino, slipped by 5.6 percent.
“We’re hoping it’s an isolated case,” Eduardo Francisco, president of BDO Capital & Investment Corp., said in an interview on Friday.
Flight disruptions
In the meantime, airlines said there were flight disruptions on Friday due to the attack after Manila’s Ninoy Aquino International Airport was closed from 2:35 a.m. to 4:00 a.m.
“The predawn airport closure was ordered by authorities due to security concerns in connection with the incident at Resorts World which is situated across NAIA T3, Villamor, Pasay City,” Philippine Airlines said in a statement.
Cebu Pacific Air also noted cancellations and flight delays. It offered guests traveling to and from Manila on June 2 to rebook their tickets penaltyfree, get a full refund or credit the full value of their tickets for travel at a later date.