Macau, after being monopolized by Stanley Ho for more than four decades, finally opened its doors to the world in 2002. Ho now has three of the six existing licenses, while two giant Las Vegas gaming operators took one apiece and the last one went to Hong Kong ’s Galaxy Entertaining Group.
Sands, an icon in Las Vegas and regarded as the biggest casino in the world in terms of tables, started its Macau operations in 2004. Since then it has been nibbling away at the income of Ho’s gaming rooms. Just recently, the 600-room Wynn Hotel , another well-known Las Vegas operator lured to Macau, opened its doors; the opulent hotel was fully occupied on its opening week even with room rates ranging from $3,000 to $21,000.
US-based gaming operators have set their eyes on the more than 200 million Chinese citizens known for their propensity in spending at the gaming tables. The second Sands casino, albeit bigger, is set to open in 2007 with bullish expectations of more brisk business.
Singapore will be integrating tourism with gaming, and therefore will be building resort complexes that will have hotels, restaurants, theme parts and other entertaining facilities. Within the next 10 years, the City of Lions is planning to double its tourist count.
Now, even countries that traditionally spurned the legalization of casinos are rethinking their strategies. The lure of megabucks based on an entertainment and gaming theme is particularly tempting Thailand, Japan and Indonesia to consider its current ban. After all, the potential windfall from additional tax revenues and new jobs is just too attractive.
It was a dream that the quiet and unassuming chairman and CEO of the Philippine Amusement and Gaming Corp., Efraim Genuino, had been presenting to investors who believed that the country could become the tourism mecca of Asia.
Chairman Genuino’s plan aimed at elevating gaming in the Philippines by integrating it with related activities in tourism and entertainment, akin to fusing Disneyland and Las Vegas, in a 300-hectare reclaimed site alongside Manila Bay.
The move, according to Genuino, would further boost the revenue contribution not only of the gaming industry, but also of the tourism sector, for government programs. Pagcor currently contributes already more than P20 billion a year to the national economy.
By moving into the entertainment arena, Genuino rightly foresees Pagcor revenues to increase further. In five years, the amiable Pagcor chairman talks about a 100-million strong tourist market coming mainly from a steadily growing China economy. Considering the concrete steps being taken by Singapore and other countries in the region, Genuino believes that the Philippines must be aggressive if it wants a fair share of this lucrative business.
This uncertainty is holding back many of the interested potential investors of the Entertainment City that Pagcor wants to build. The completed theme park — which will include world-class casinos, convention centers, shopping malls, residential and business centers, a sports stadium and a cultural complex — is already estimated to cost $15 billion, definitely a big boost to our still sluggish economy.
A number of our legislative officials, including Sen. Richard Gordon, have promised to support a House Bill that will extend the lifespan of Pagcor. The bill had already been passed in the Lower House, but still needs the support of the Senate. I understand that there are a number of impediments (or personal agenda?) that is stalling the bill’s passage into law.
It is unfortunate that this bill that promises to revitalize the country’s tourism is not acted upon with urgency. If our solons don’t move fast enough, Genuino’s dream may just fade into oblivion, and with it our chances of carving a substantial share of the $900 billion global gaming industry.
It’s a shame indeed that the Philippines, with its ideal location as a total rest-and-recreation haven for tourists and their families, will again lose out to its neighbors. Wake up, guys. This is no longer funny.
The Collegiate Champions League is honored to be one of the partners of Solar as it pursues its program of promoting collegiate basketball competitions thru the annual search of the Philippine Collegiate Champion.
All the games in the knock out series (losers go home) to determine the best collegiate team of the country will be carried by Basketball TV (BTV) as one of its inaugural presentations starting October. Watch collegiate basketball action at its best on BTV.
Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at reydgamboa@yahoo.com or at reygamboa@linkedge.biz. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz.