Boracay casino seen earning $100M a year
The Boracay integrated resort that will be built by Leisure and Resorts World Corp. (LRWC) and its foreign partner will bring in at least $100 million in annual revenue, a substantial portion of which will be paid to the government in fees and royalties.
The publicly listed LRWC also stands to make a substantial upside from sales or leasing on the real estate component of the firm’s 23-hectare property on the resort island, LRWC corporate secretary Katrina Nepomuceno said.
“Apart from LRWC’s share of the gaming revenue, we will be getting lease income from Macau’s Galaxy Entertainment Group, and revenue on the property side,” she said, explaining that the deal between both firms would be similar to that entered into by the SM conglomerate, through Belle Corp. subsidiary, with the Melco Crown group for the City of Dreams Manila integrated resort in Pagcor Entertainment City. “We own the land in Boracay on which the development will be built and Galaxy will pay us. We will already be earning even during construction period.”
On Wednesday, LRWC welcomed the issuance of a provisional gaming license to Boracay Philippines Resort and Leisure Corp. (BPRL)—the local operating unit of Galaxy Entertainment—by Philippine Amusement and Gaming Corp. (Pagcor) which paved the way for an estimated $500-million resort casino on the island.
“We at LRWC are elated and proud to be Galaxy Entertainment’s local partner in this momentous endeavor. We thank Pagcor chair Andrea Domingo and the entire Pagcor board for giving Galaxy the chance to contribute to the booming Philippine tourism and gaming industry by granting BPRL a provisional gaming license,” LRWC chair Reynaldo Bantug said.
Preparatory work for the 23-hectare, eco-friendly resort project in Boracay has begun, and construction work is expected to start within the next 12 months.
“We’re confident Galaxy Entertainment will positively contribute to the local economy and work market, and adhere to Boracay’s managed and sustainable development envisioned by President Duterte,” he added.
Aware of Boracay’s environmental concerns, Bantug said LRWC would do its best to ensure that the Boracay project would preserve and maintain the natural beauty of the island.
