Macau’s loss is Manila’s gain
Plans for four massive casino resorts in Manila’s once-derelict bayside area are behind a “revival” in development there, real estate consultant Julius Guevara recently told the Wall Street Journal. The interest has also stoked the economy in other ways. The February 3 opening of City of Dreams Manila, a Melco Crown property, has already created 5,000 new jobs.
According to the Philippine Amusement and Gaming Corp., the country’s gaming regulator, the new action in Manila could help the Philippines surpass Las Vegas and Singapore to become the world’s second largest gaming destination (behind Macau), the Journal reported.
In fact, the stunning downturn in Macau?which started when the Chinese government started scrutinizing large cash transactions? could hasten that outcome. High rollers who are now hesitant to play in the Chinese territory are patronizing other markets, including Vietnam and the Philippines.
At the grand opening of City of Dreams, Melco Crown Co-Chairman and CEO Lawrence Ho said the target customer for the Manila resort is “first and foremost the domestic market,” followed by VIPs from other Southeast Asian countries and visitors from South Korea.
It’s already working, says Ho. The US$1.3 billion resort integrated resort has already hosted 600,000 visitors since its December 15 soft opening. The property has 930 rooms, 380 gaming tables, 1,700 slot games and 1,700 electronic games. “We are effectively adding one-third more supply (of gaming machines) into the market,” said Ho.
“The goal is to find the best (sites) in Asia… The Philippines is one of the fastest growing economies anywhere in the world. We’ve seen the market really pick up,” Ho told reporters.
Ho also acknowledged the huge cost of building the resort. The Philippine government requires a minimum $1 billion investment for new casinos built in the area.
City of Dreams is the second resort to open in Manila’s Entertainment City. Solaire, operated by Bloomberry Resorts Corp., opened in early 2013 and became profitable within a year. The third and fourth resorts may not open until 2016 or 2017.
Also at the opening, Ho said Melco Crown will not bid on a gaming license in South Korea until the country allows locals to gamble at home, said one of its top executives.
“In our opinion, a foreigners-only gaming market is difficult. South Korea and its policy of not letting locals in, to us, is difficult,” he said. “But one day, if the government changes its policy about locals, we would jump in head first.”
