The Philippine gambling industry has emerged as one of the more resilient markets in the country, revealing steady growth and the potential for robust future expansion. As per projections made by the illustrious investment bank, Maybank, the sector is poised to amplify by 15% in the coming years, reaching its zenith by 2024. The engine firing this increase is deemed to be the robust local demand, fueled by a rise in private consumption. We delve deeper into understanding the multiple factors that Incite this growth and its repercussions on the country’s gaming sector.
Decoding the Rise of Personal Consumption and Boost in the VIP Segment
The Philippine gambling industry’s consistent profitability is attributed to mounting private consumption, with Filipinos choosing to splurge their increased disposable income on recreational activities, particularly gambling. Furthermore, the sector’s future crystal ball predictions also point towards the revival of the VIP sector, which is known to contribute significantly to the industry’s revenue. Analysts’ forecasts suggest that with the decrease in Chinese traffic due to ongoing political turbulence, South Korean gamblers are expected to lead the surge in the VIP sector.
The testimonials supporting these claims provide substantial evidence, courtesy of Entertainment City in Manila. The statistics reveal that around 64% of the gross gaming revenue (GGR) from the previous year was generated from mass tables and slot machines. This fact is a testament to the powerful local demand that is driving the market and minimises the country’s dependence on foreign tourists and overseas demand.
Deconstructing the Influence of International Tourists on Philippine Gambling Industry’s Flourishing Growth
While indigenous demand and local traffic maintain a stronghold on the sector’s stability, international visitors are essential contributors in the growth saga of the Philippine gambling industry. Tourists from South Korea, Taiwan, and other ASEAN member nations form the crux of the essential VIP segment’s customer base.
The Maybank statements support this assertion, mentioning a noticeable surge in Korean tourist arrivals. The first quartile of 2024 has witnessed over 459,000 Korean arrivals, grazing the 88% mark in comparison to similar timelines in 2019. This data, coupled with Bloomberry Resort Corp.’s input about increased VIP GGR from Korean, Taiwanese, and ASEAN gamblers, elucidates their growing influence on the VIP market.
Gambling Industry’s Expansion Strategies and Diversification Routes
With steady growth in sight, operators are analyzing how to widen their bandwidth and diversify their services portfolio. There have been noticeable shifts in venue preferences for VIP social gatherings, moving away from Entertainment City and exploring options like the to-be-opened Solaire Resort North.
A more regional approach is also being undertaken, with smaller casinos being set up throughout various regions in the country. This strategy aligns with the government’s tourism and development objective for these areas. Apart from geographical expansion, digital platforms for sports betting and e-games have also gained immense popularity, opening up new avenues for the industry.
Entertainment City: A Game-Changer in Philippine Gambling Industry
Since its inception in 2013, Entertainment City has immensely contributed to the country’s gambling sector. Home to the country’s poshest casinos, the arena has seen an upsurge in its visitor tally and financial turnovers. Offering world-class amenities and numerous tourist attractions, it has succeeded in not only driving the gambling industry but also putting the country on the global tourism map.
Scratching the Surface of the COVID-19 Impact on the Philippines Gambling Industry
Like all global sectors, the gambling industry too took a hit from the coronavirus pandemic, suffering a drop in consumers and revenue due to imposed travel restrictions. However, with the gradual ease of restrictions and the resilience of the local demand for leisure and gambling activities, the industry is expected to recover quickly.
One must also note the rise in popularity of online gambling during the pandemic. The transition from conventional to digital platforms is stark and opens multiple opportunities for diversification and expansion in the industry.
The Runway Ahead for the Philippine Gambling Industry
As per Maybank’s forecast, the rapidly growing Philippine gambling industry is expected to contribute significantly to the country’s economy, providing investors with a profitable opportunity. Further evolution of the sector under changing market conditions is expected to generate more revenue and job opportunities, sustaining the livelihoods of many Filipinos.
Summing Up
In conclusion, the strong backbone of the rising local demand, steady recovery of the VIP segment, and the opportunities for localized expansion and diversification together paint a promising future for the Philippine gambling industry. Despite the challenges posed by the pandemic, the industry’s resilience and adaptability signal a swift recovery. With the pioneering Entertainment City at the forefront and the emerging supremacy of digital platforms, the Philippine gambling industry is well on its path to glory.
