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 revenues, a substantial portion of which will be paid to the government in fees and royalties.
At the same time, 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, its corporate secretary Katrina Nepomuceno said on Wednesday.
“Apart from LRWC’s share of the gaming revenues, we will be getting lease income from Macau’s Galaxy Entertainment Group, and revenues on the property side,” she said, explaining that the business deal between both firms will be similar to that entered into by the SM conglomerate, through it’s 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,” she added.
Also on Wednesday, LRWC welcomed the issuance of a provisional gaming license to Boracay Philippines Resort and Leisure Corp. (BPRL) — the local operating unit of the Galaxy Entertainment — by the Philippine Amusement and Gaming Corporation (Pagcor) that paves the way for an estimated $500-million resort casino on the world-famous 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 that 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 wouldl do its best to ensure the Boracay project will preserve and maintain the natural beauty of the island.
“Galaxy’s resort will follow a strict master plan and employ global best practices in construction,” he said. “We shall work hand in hand with local and national officials, regulatory agencies and the local community for a managed and sustainable development of Boracay.”
“We’re confident that GEG will raise the bar in both resort quality and service, and generate considerable job opportunities in both construction and resort operations,” Bantug also said. /kga