The Philippines: A Rising Contender in Asia’s Gambling Landscape
Manila’s Ambitious Goals
The Philippines is poised to become Asia’s second-largest gambling destination, potentially surpassing Singapore as early as 2025. This bold prediction comes from Alejandro Tengco, the chairman and CEO of the Philippine Amusement and Gaming Corporation (Pagcor). With the opening of new integrated resorts and a strategic focus on attracting tourists, Manila is gearing up to reclaim its place in the competitive gaming market, currently dominated by Macau.
New Developments on the Horizon
One of the key drivers behind this ambitious goal is the upcoming integrated resort by billionaire Enrique Razon’s Bloombery Resorts Corp, set to open in Manila in late 2024. This project is just one of several in the pipeline, with up to eight additional casino projects being planned across the country. These developments are expected to significantly boost visitor numbers and gaming revenues, particularly as the Philippines aims to recover from the pandemic’s impact on tourism.
Projected Revenue Growth
Pagcor anticipates that gross gaming revenue will reach a record high of 336 billion pesos (approximately S$7.76 billion) in 2024, up from 285 billion pesos in 2023. In contrast, Singapore’s annual gross gaming revenue is estimated at around US$6 billion (S$8.15 billion). Mr. Tengco’s assertion that Singapore could plateau if it does not expand further adds an intriguing layer to the competition between these two nations.
Tourism Recovery Efforts
The Philippines is also focusing on revitalizing its tourism sector, which suffered heavily during the COVID-19 pandemic. The government is targeting 7.7 million foreign tourists in 2024, a significant increase from the 5.45 million visitors recorded in 2023. However, this figure still falls short of the pre-pandemic level of 8.26 million tourists in 2019. The new integrated resorts are seen as a crucial element in attracting more visitors, particularly as the country diversifies its tourist base beyond traditional markets.
Navigating Challenges with Chinese Tourism
While the decline in Chinese tourist arrivals poses a challenge—dropping to just 15% of 2019 levels due to geopolitical tensions—Mr. Tengco remains optimistic. He believes that the local market and tourists from countries like South Korea, Japan, Malaysia, and Singapore will help sustain growth. The Philippine gaming industry has historically attracted a diverse clientele, and the new resorts are expected to draw in even more visitors.
The Online Gaming Frontier
In addition to physical casinos, the Philippines is making strides in the online gaming sector, which accounted for about 20% of the country’s gross gaming revenue in 2023. Mr. Tengco highlighted the Philippines’ advantage over Macau, which does not have online gaming. Pagcor plans to launch its own online gaming platform in 2024, seeking a joint venture partner to enhance its offerings. This move is part of a broader strategy to diversify revenue streams and capitalize on the growing demand for online gaming.
Pagcor’s Future Plans
Pagcor is also preparing for a significant shift in its operational model. The agency plans to sell state-run casinos by early 2026, allowing it to focus solely on its regulatory role. This transition aims to boost investor confidence and streamline operations, as Mr. Tengco noted that Pagcor has been "wearing two hats for too long." The agency’s dual role as both regulator and operator is relatively unique in the global gambling landscape.
Privatization and Investment Opportunities
The planned privatization of Pagcor’s casino assets is expected to generate between 60 billion to 80 billion pesos. By bundling casinos based on location, the agency hopes to attract a wide range of investors. The success of this privatization effort could lead to increased investment in the Philippine gaming sector, further solidifying its position as a key player in Asia.
Conclusion
As the Philippines gears up to challenge Singapore in the gambling arena, the combination of new integrated resorts, a focus on diverse tourist markets, and the expansion of online gaming presents a promising outlook for the nation’s gaming industry. With strategic planning and execution, the Philippines is on track to redefine its role in Asia’s vibrant gambling landscape.