The note focuses a big part of its report on Bloomberry Resorts, the company behind Solaire Resort, which is expected to soon release its full-year results for 2022 and the last quarter of the year. According to the note, Bloomberry can expect to see its gross gaming revenue increase by another 9% in 2023, and further improve by 32% in 2024.
Analysts Bullish on Long-Term Casino Recovery
This could be indicative of the good times ahead, but this growth will not be immediately driven by Chinese visitors. In fact, Chinese travel in the region, including the Philippines and neighboring countries, to wit Malaysia, Indonesia, and others, will remain fairly suppressed at levels of 36% of its 2019 numbers.
The note also argues that the “quality” of Chinese VIP visitors has also declined due to the economic background at home, with the property bubble bursting and manufacturing slowing down. In the short-term, there would be a conservative boost to the Philippines, the note further adds.
Even though there won’t be as many Chinese visitors coming in, the note remains fairly confident in the future of Bloomberry and its ability to attract an international clientele elsewhere.
The Philippines will have to weather the slow recovery, as traffic from Guangzhou and Incheon has remained slow, but the country’s long-term prospects are solid, Maybank Securities seems to believe. As to the casino sector in the country – it will continue to improve consistently, the note concludes.
Still Issues to Fix in the Industry at Home
Meanwhile, the casino industry in the Philippines is see-sawing between public and political disapproval. The Philippine Online Gaming Operators are among the most heavily criticized entities in the country – both by local and by Chinese diplomats, and are tied to what is alleged to be illegal gambling activities.
At the same time, some lawmakers have been pushing for the privatization of PAGCOR, the country’s gambling regulator and regulator, arguing that this would boost tax revenue for the state.