Online gaming firm IP E-Game Ventures Inc. has forayed into the tourism business with the acquisition of a 25-percent stake in Cosamera Resorts Corp., a hotel and resort firm in Cagayan Special Economic Zone.
In a disclosure to the Philippine Stock Exchange on Friday, IP E-Games said its board had approved the acquisition of this initial stake in Cosamera.
“This is in line with the company’s change in primary purpose to allow activities of hotel, resorts and gaming,” the company said.
IP E-Games — a unit of IP Ventures Inc., led by technology entrepreneur Enrique Gonzales — sees tourism becoming a major growth driver of the Philippine economy as the government steps up its tourism campaign slogan “It’s more fun in the Philippines.”
“The company hopes to undertake projects in this area as part of its mandate to invest in growth sectors of the economy,” the disclosure said, noting that the Philippine Amusement Gaming Corp.’s Entertainment City along with improvements in airport infrastructure, would boost tourist arrivals in the country.
IP E-Games’ sister company, IP Converge Data Center Inc., also has a joint venture in CEZA operating data centers and communication links.
The company said it expected to “substantially improve its financials from this acquisition.”
“The company’s activities in this sector should translate to accelerated growth in revenues and earnings,” the disclosure said.