Philippines poised as next growth market in Asian gambling

The recent announcement that Macau gaming firm Melco Crown Entertainment Ltd will invest as much as US$580 million in a new integrated resort and casino project in The Philippines shows that gaming investors see the country as an emerging part of the Pacific gambling hub.
Melco Crown, the joint venture between Macau' Ho Family and Australian James Packer, has signed a conditional memorandum of agreement with leisure firm Belle Corp. to develop the 100-hectare Belle Grande Manila Bay at Pagcor City - touted as Manila's equivalent of the Las Vegas strip.
The venture looks set to be Melco's first foray in the Philippine gambling market, which is forecast to generate $3 billion in revenues by 2015.
The deal, however, is contingent upon the project site being registered as a tourism economic zone by the Philippine Economic Zone Authority, an agency that grants fiscal and non-fiscal incentives to developers of economic zones.
Melco Crown sees Asia as the fastestgrowing gambling region, with the continent's expected economic growth and further development of its leisure and tourism industries set to provide big opportunities.
Here it sees the Philippines catering to an increasingly affluent and growing Asian middle class who will be eager to check what the gambling and entertainment complex can offer.
Melco noted that the success of the Macau gaming and entertainment industry has to the proliferation of gaming hubs across Asia Pacific. It also noted that the Philippines is a popular tourist destination in Southeast Asia and is an important link to the tourism markets of South Korea, Taiwan, Japan, and China.
In 2011, the Department of Tourism recorded 3.9 million visiting tourists. While South Koreans and Americans are the largest tourist groups, China continues to contribute a greater share of visitors to the Philippines.
With gambling revenues in Asia projected to more than double to US$79.3 billion by 2015,
Asia is set to overtake the United States as the world's biggest gaming market, mainly driven by the increasing popularity of casinos and growing economic prosperity.
In a statement, Melco explained "the company considers its experience in developing world-class integrated resorts such as the City of Dreams in Macau will allow it to take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seeking new travel destinations and experiences."