Chinese group Shanghai Jucheng Supply Management will invest some $100 million to put up a “Jeju Island-inspired” integrated resort with casino operations in the Cagayan Economic Zone Authority (Ceza).
In a statement on Monday, the state-owned firm said the Chinese group signed last week a memorandum of understanding with Ceza for the project.
According to its website, the Jucheng group has a diverse range of businesses including bulk commodity trade, customs clearance service, quarantine inspection service, manufacturing, logistics and nonperforming assets disposal.
It is not clear if this marks the group’s first foray into tourism development.
However, Ceza said the group was looking for a fresh tourism destination in Asia that has the allure of South Korea’s famous Jeju Island.
The group’s main operations in the Philippines, Ceza said, will be the development of a Jeju-inspired seaside integrated resort with casino operations.
The plan comes despite Malacanang’s ban on new casinos.
However, Ceza’s enabling law, Republic Act No. 7922, allows the state-owned firm to grant a casino license.
The possible entry of the Jucheng group was first talked about in July this year.
Back then, a Ceza top official said a company doing a “Jeju Island type of destination” would invest $500 million.
The company’s name was not disclosed then.
Jucheng group’s project will also include theme and water parks that will be similar to tourism-driven complexes in China and in other major tourist attractions.
Moreover, the group also expressed plans to explore other industries in the country such as retail.
“Over the next few years, the Chinese group will pour in investments estimated at $100 million to develop this rarely explored corner off the Northern Pacific Ocean that is part of the sprawling [Ceza] territory,” Ceza said.
Raul Lambino, Ceza administrator and CEO, said he hoped that things would start moving forward this month once Ceza and the Juncheng Group finalize details of the projected investment.
The Chinese group has also expressed its interest in managing Ceza’s seaports and airport, building townships and engaging in the trade and exchange of financial technology solutions using blockchain technology.
Ceza said that the group’s resort and casino project in the Philippines would also include a chain of Island Pacific supermarkets for imported and local products and a duty free mall for branded products at discounted prices.
Back in May, the group completed the acquisition of Island Pacific Supermarket in the United States, a Filipino chain of supermarkets, according to the Jucheng’s website.
Lambino said the Jucheng Group was also interested in the production of steel and lithium batteries that would make use of local natural resources found in Cagayan and provide local employment and business opportunities.