Macau—The Philippines has the potential to become one of the hottest attractions for the casino industry in the region in the coming years and this, in turn, could generate billions of pesos in additional tax revenues for the government, according to gaming analysts.
For this to be fully realized, however, both the public and private sectors have to work hand in hand to make it easier for tourists and gamers to fly into the country and make it more convenient to get around the various attractions.
“Infrastructure. If I could make a magic wand to make it happen, that’s it,” Union Gaming managing director Grant Govertsen said in an interview during the annual Global Gaming Expo Asia convention.
“As an outsider looking in, infrastructure is such a key driver in my mind of the visitation experience,” said the investment banker. “So the better the infrastructure becomes, the more likely it is you’re going to see, not only Chinese, but also other players from the regions going to the Philippines.”
Govertsen singled out the Philippines as one of the markets he would like to add to his investment portfolio due to the strong growth potential of its gaming industry, due in part to the steadily rising number of casino players flying in from China — including a large number of so-called “high rollers” — but also for casinos’ growing local client base.
“The really exciting part there is the local story. It’s doing so well,” he said, adding that gross gaming revenues of the major casino operations like Solaire Resort and Casino and City of Dreams Manila, along with those operated by the state-run Philippine Amusement and Gaming Corp., are “getting better and better.”
The Union Gaming official pointed out that, unlike other casino markets around the region, the Philippines was less dependent on the inbound Chinese market.
Govertsen said that improving the Philippines’ airport infrastructure should be the top priority if policymakers wanted to get more value, both in terms of tax revenues and job generation, out of the gaming sector.
“Just getting around town is another,” he said. “There are many taxis trying to scam you, for instance. Just improving the tourism experience would be dramatically helpful.”
“The Philippines is definitely a market to look forward to,” echoed Morgan Stanley managing director Praveen Choudhary during the same forum, adding that the concentration of major players in one geographic location like the eight-square kilometer Pagcor Entertainment City was helping build the much needed critical mass for the industry.