Okada Manila Expected To Boost Philippine Casino GGR In 2018
International brokerage Morgan Stanley predicts that gross gaming revenue (GGR) in the Philippines will continue to grow in 2018 and expects more than fifty percent of this growth to come from the latest casino to open which is Okada Manila.
Developed by a unit of Japan’s Universal Entertainment Corp, Okada Manila soft launched in the Philippine’s Entertainment City in December 2016 and has since been continuing its development.
Analysts Alex Poon and Praveen Choudhary said in a report that since revenue growth from the mass segment is directly correlated to the supply of hotel rooms, the opening of Okada Tower A in the first quarter of 2018 could immensely boost the market this year.
Okada Tower A when completed will add another 500 rooms to the overall accommodation at Okada Manila. By 2019, Okada will be adding another 500 hotel rooms. Because of this, Morgan Stanley believes that Okada Manila will contribute more than fifty percent to the country’s GGR in 2018.
Taking into account revenue from the country’s four integrated resorts — Bloomberry Resorts Corp’s Solaire Resort and Casino, Melco Resorts and Entertainment Ltd’s City of Dreams Manila, Genting Hong Kong Ltd’s Resorts World Manila, and Okada Manila — analysts are confident that the Philippines gaming industry will see a GGR expansion of up to 32 percent this year. But without Okada Manila, Philippine casino GGR will see an increase of only 14 percent according to Morgan Stanley.
Another key contribution that Okada Manila will make to this this growth rate will be its share of mass market GGR. The brokerage predicts that Okada will grow 22 percent in this segment in 2018 while the three other casino resorts will see a decline. The analysts also expect the VIP market in the Philippines to increase this year.
In a statement, Morgan Stanley analysts said
Since VIP revenue in the Philippines of $1.0 billion in 2017 is small compared to regional peers like Macau ($16 billion) and Singapore ($2 billion), we see huge future upside. We expect the rebound in regional VIP strength in 2017, overseas expansion by Macau junkets, and video streaming to continue to drive strong growth in the Philippines
The Philippines’s casino industry has benefitted as the country’s relationship with China has grown stronger and resulted in more visits from Chinese tourists. Neighbouring Southeast Asian countries are also expected to contribute towards the growth of the tourism and gaming industry in the Philippines in 2018.