AGI to invest $1.6 billion in tourism projects

MANILA, Philippines - Alliance Global Group Inc. (AGI) is investing around $1.6 billion over the next five years to develop the cities of Pasay and Manila into a world-class tourism and entertainment hub as it aims to be at the forefront of the tourism industry, one of the fastest-growing sectors in the global economy.

On the sidelines of the company’s annual stockholders’ meeting yesterday, AGI president Kingson Sian said the company is heavily investing in tourism which is poised to become a major income/revenue contributor in the next five years alongside the group’s real estate business.

“The move of AGI to diversify into the tourism industry is both wise and timely and could not have come at a more appropriate time. Not only will this move capitalize on the continued influx of tourists to the country, it will also bolster the country’s international image and consequently serve as a catalyst for even more tourist arrivals in the years to come,” said Sian.

Of the total investments, up to $600 million is expected to go to the development of a 25-hectare property in Villamor Airbase into an integrated tourism resort called Resorts World Manila, which will be home to a series of hotels with a total 1,574 rooms and medium-rise residential condominium buildings, a grand mall, gaming and various retail, leisure, gaming and entertainment facilities. Once completed, the entire project dubbed Newport City will generate more than 10,000 direct and indirect jobs by 2012.

Newport City is a joint venture between AGI unit Travellers International Hotel Group Inc. and Star Cruises Ltd., the world’s third largest cruise line operator and part of Malaysia’s Genting Berhad Group, one of the largest conglomerates in Southeast Asia.

“Newport City will be positioned as the gateway to Philippine tourism owing to its proximity to the NAIA 3 International Terminal,” said Sian.

The integrated tourism estate named Resorts World Manila (RWM) will be part of the Resorts World chain of integrated tourism development across Southeast Asia, namely Resorts World Genting (Malaysia) and Resorts World Sentosa (Singapore). It will have three hotels – the recently opened five-star Marriott Hotel and two other hotels under construction – the six-star Maxims Hotel slated to open in the first quarter of 2010 and the budget class Remington Hotel which is expected to open by the first quarter of 2011. 

In addition, there will be a 1,000-seat Newport Performing Arts Theater, four high-end cinemas, luxury shopping arcade and a four-storey retail mall, gaming areas, restaurants, spas, dance clubs and other recreational facilities.

In the next months, Travellers also plans to embark on another major tourism estate development within the 90-hectare Entertainment City situated in the Manila Bay reclamation area.  

Travellers will develop Bayshore City on approximately 40 hectares of Entertainment City Manila. Bayshore City is envisioned as a themed leisure and entertainment destination that will include an iconic structure to symbolize the country’s culture and heritage, residential developments, several hotels with an aggregate room count of about 3,400 as well as leisure, entertainment and gaming facilities.

The project is expected to create over 100,000 jobs both in direct and indirect employment.