Philippines can become ‘major’ gaming hub in region
The Philippines has the potential to become a “major” gaming hub in the Asia-Pacific region and grow its gaming market to about $1.2 billion by 2015 as more privately run casinos start operations, a research by global professional services firm PricewaterhouseCoopers (PwC) said.
In a recent report, PwC estimated that casino gaming revenues in the Philippines fell by 5.9 percent in 2010 but were rebounding this 2011 to hit a full-year growth of 10.8 percent.
The report said the Philippines already had a “vibrant” casino gaming market and projected that new casinos would propel spending at a 16.9-percent compounded annual rate to $1.2 billion in 2015, making this country a major gaming area as well.
The casino gaming market in the Philippines last year was estimated by PwC at $558 million, which is ending this year at $618 million.
“The next five years will see Asia-Pacific emerge as the world’s leading region for casino gaming,” the PwC report said.
For Asia-Pacific as a whole, the report noted that casino gaming revenues would expand from $34.3 billion in 2010 to $79.3 billion in 2015 for an 18.3-percent compounded annual increase.
Macau is seen remaining as the largest casino gaming center in Asia-Pacific, growing at a compounded annual growth rate of 21.5 percent through 2015, outpacing Singapore’s growth rate of 20.5 percent compounded annually.
“The jewel in the crown of Asia-Pacific’s casino gaming industry is Macau, the largest single destination market in the world at $23.4 billion in 2010, more than twice the revenue of Nevada in the U.S.,” the report said.
Australia was a distant second with a $3.4-billion market in 2010, followed by Singapore at $2.8 billion and South Korea at $2.6 billion.
The report said Australia was facing increased competition in luring “high rollers” now that Singapore has become an established market.
In the Philippines, PwC noted that Belle Corp.’s planned complex in Manila Bay was expected to open in 2013, although the project has experienced a number of delays.
The research noted that the state-run Philippine Amusement and Gaming Corp. was the monopoly provider with the exception of the Cagayan Special Economic Zone, which issues its own casino licenses. Casinos in the Cagayan region are only open to foreigners, it added.
The Philippines is building an entertainment complex along Manila Bay, called Entertainment City, but has required casino licensees to invest heavily in hotel facilities prior to opening their casinos.
