8 percent growth expected
Analysts at Morgan Stanley say the Philippine casino market will grow 8 percent year-on-year to $1.6 billion in 2016, down from their previous estimate of $1.7 billion. The reduction has been attributed to “lower volume growth in the VIP segment,” the analysts wrote.
“Our GGR expectations for the three casinos in the Philippines are 17 percent to 54 percent lower than consensus for 2016 and 2017,” they added.
According to the Asia Gaming Brief, the figures do not factor in City of Dreams Manila, which opened this year. Otherwise, “same-store sales growth” for Resorts World Manila and Solaire are expected to grow just 3 percent.
Bloomberry Resorts, owner of Solaire, is having the worst year, according to Bloomberg News. Bloomberry is the worst-performing major stock in the Philippines this year, down 61 percent. But CEO Enrique Razon has expressed confidence in the market. “We’re nowhere near the situation in Macau, where revenue is really falling,” he said.
Philippine casino operators expected a tide of Chinese gamblers, high rollers who have been playing less in Macau. But Chinese tourism to the Philippines dropped by one-third in the first quarter. Razon insists mass-market and local gamblers can make up the difference.
