Property Management

THE PHILIPPINES has the potential to become a major gambling hub in Asia Pacific as the country’s gaming revenues are likely to double to $1.2 billion in 2015, according to professional services firm PricewaterhouseCoopers (PwC).

In its latest “Global Gaming Outlook,” PwC said that while revenues dropped by 5.9% to $558 million in 2010, a 10.8% growth to $618 million was expected for 2011.

Double-digit growth was also seen in the succeeding years - 16.3% to $719 million this year, 30.9% to $941 million in 2013, about 17.1% to $1.1 billion in 2014, and 10.4% to $1.2 billion in 2015.

“The Philippines already has a vibrant casino gaming market and new casinos in that country will propel spending at 16.9% compound annual rate to $1.2 billion in 2015, making that country a major gaming area as well,” PwC said.

“Belle Corp.’s planned complex in Manila Bay is expected to open in 2013, although the project has experienced a number of delays,” it noted.

The Philippine government, following Macau’s lead, has realized the country’s gaming potential and extended its development by allowing private companies to enter the market, said analyst Paolo C. Alonzo of AngpingOnline.com.

He said Belle Corp.’s hotel and gaming revenues could reach P17 billion in 2013, while Resorts World Manila is expected to contribute 30% or P20 billion of the 2012 revenues of its ultimate parent company Alliance Global Group, Inc.

“If the government could open more [gaming] areas, the sector will have very good prospects,” Mr. Alonzo said, adding that human resource is one of the country’s key strengths.

He noted, however, that the country’s potential to become a major gambling hub is limited by the beliefs of the predominantly Catholic population, and the need to develop its infrastructure and transportation system.

As for Asia Pacific, PwC said the region is seen to soon overtake the United States, which had the biggest share of the casino market (48.9%) in 2010. PwC estimates that Asia Pacific will post $67 billion in gaming revenues in 2013, versus the US’ $65.5 billion.

“Asia Pacific…will see its share of the total global market increase from 29.2% in 2010 to 43.4% in 2015,” PwC said.

The firm said Macau, which generated $23.4 billion in revenues in 2010, will remain the “jewel in the crown” of Asia Pacific’s casino gaming industry until 2015. — Karen Joyce Q. Ang