Influx of high rollers?
The Philippine gaming industry could benefit from a thaw in relations between the governments of Philippine President Rodrigo Duterte and Chinese President Xi Jinping.
Duterte recently visited Mainland China for a four-day state visit. According to the website CalvinAyre.com, his goal was “billions of dollars in investments from the world’s second-largest economy.” For the gaming industry, a relaxing of tensions between the two Asian countries could mean more Chinese tourists coming to the Philippines and patronizing the country’s casinos.
Since Xi cracked down on corruption in Macau’s gaming industry in mid-2014, Chinese VIPs have searched for places to play where they won’t be under so much scrutiny. Improved ties with the Philippines should make them “more comfortable to go to there to play,” said Julius M. Guevara of Colliers Philippines.
Government statistics show that Chinese visitation to the Philippines spiked in the immediate aftermath of Duterte’s inauguration in July. Arrivals from China rose almost 23 percent that month on a year-on-year basis, and total inbound tourism grew 14.53 percent.
“The number of tourist arrivals is expected to grow as the diplomatic relationship between the two countries improves, fueling more demand for the casino developments, especially the high-roller market, which has been lagging behind in growth over the last few years,” Claro dG. Cordero, Jr., head of Jones Lang Lasalle Philippines’ research told CalvinAyre.com.
Bloomberry Resorts Corp. CFO and Treasurer Estella Tuason-Occeña said that company, which operates the Solaire resort casino in Manila’s Entertainment City, has “never wavered in our marketing efforts in China or other parts of Asia.”
