AGI upbeat on gaming business despite challengesBy Doris C. Dumlao
Philippine Daily Inquirer
Tycoon Andrew Tan-led Alliance Global Group Inc. is upbeat on its pioneering gaming complex and all other core businesses, unfazed by the decline in tourist arrivals from China and the recent softening of the Macau gaming industry.
“I think all our (business) segments remained strong. This year, we should be OK especially as we’re going to an election year (2013),” AGI president Kingson Sian said in an interview with Inquirer on Thursday, when asked about how the company fared in the first semester.
Outside of the property businesses, Sian said prospects for AGI’s consumer segments, such as its beverage and food businesses, remained bright.
AGI’s food and beverage arm Emperador Distillers produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar. Golden Arches Development Corp. operates the quick service restaurant business under the McDonald’s brand.
Asked whether the group was worried about the impact on its gaming business of the slowdown in tourist arrivals from China, Sian said: “There will be an impact because it’s a sizable market, although they’re not the largest. We’re hopeful it will be resolved over time.”
Tourist arrivals from China were seen slowing down due to the Chinese government’s advisory on travels to the Philippines.
The advisory, issued by China in May at the height of the Scarborough shoal dispute, discourages group travels to the Philippines.
“There are other markets and the other markets continue to be strong like Korea. We’re developing new markets and the overall direction of the business is good,” Sian said.
Asked whether the group was worried about the reported softening of the gaming market in Macau, Sian said Macau had grown so rapidly such that it was not expected to climb in a perpetual manner. “It has to pause sometimes. Nevertheless, it remains to be the largest in the world. From nothing, Macau is now the largest (gaming market) and Singapore is already the second-largest.”
Short URL: http://business.inquirer.net/?p=74785