Edging out Solaire, City of Dreams
Okada Manila, the newest integrated resort in Manila’s Entertainment City, is expected to become the market leader in a field that also includes Bloomberry Resorts’ Solaire and Melco Resorts’ City of Dreams Manila. That’s the word from investment banking firm Morgan Stanley, which adds that cannibalization of the market is “not a concern” for now.
In a note on the jurisdiction, Morgan Stanley said the Philippine gaming market is the “fastest growing in Asia” with a likely 25 percent compound annual growth rate for gross gaming revenues in 2017 to 2018.
“We expect Okada Manila to add US$1.2 billion of GGR by 2019 to the overall market, capturing 32 percent market share,” wrote analysts Alex Poon and Praveen Choudhary. That puts it ahead of Solaire’s expected 30 percent share and Melco’s 25 percent share.
The resort, operated by Kazuo Okada’s Tiger Resort Leisure and Entertainment, opened in December. The Asia Gaming Brief suggests it has benefited from an influx of Chinese tourists boom driven by warmer relations between China and the Philippines, reported the Macau Daily Times.
Inside Asian Gaming reports that Okada Manila is still far from complete with just 100 hotel rooms operational. But “strong tourist arrivals and NAIA Expressway have brought in more Chinese and Filipino mass customers from cities outside of Manila respectively,” wrote the Morgan Stanley team.
Growth in the market could lead Galaxy Entertainment Group to expand into the Philippines, according to industry sources. A subsidiary of Galaxy Entertainment Group, Galaxy Casino, has reportedly chosen Negros Occidental Rep. Alfredo “Albee” Benitez as its local partner, reports the Philippine Star. Benitez is the founder of Leisure and Resorts World Corp. The joint venture will reportedly build an integrated casino resort with an investment of $300 million to $500 million. “Several high tourist traffic areas are being considered,” a source told the Star, “but negotiations with local authorities are still ongoing.”
Meanwhile, the Philippine GDP growth rate is second only to China so far among major Asian economies, reported CalvinAyre.com. The country’s vigorous economy has given a lift to the casino industry as more local mass players go to the integrated resorts, according to Morgan Stanley.
In other news from the Philippines, Genting Hong Kong says it is targeting a 2020 opening for its new Westside City Resorts World in Entertainment City. In a filing to the Hong Kong Stock Exchange, the Malaysia-based operator said Westside City “will be a 31-hectare (77-acre) property, projected to have at least 1,500 hotel rooms from in-house and international hotel brands.”
