Increasing visitation, mass penetration, and a strong local economy will serve as drivers of growth for Manila’s casinos over the next few years, according to Morgan Stanley.
Entertainment City’s newest resort complex, Okada Manila, is already gaining momentum, with its mass floor now fully operational and more junkets set to start operators next quarter (including Suncity), noted the brokerage.
The resort’s ramp up will be further boosted by gaming market growth, supported by a strong economy, consumer confidence, local mass penetration, and strong visitor arrivals.
However, hotel rooms will remain a constraint with only 120 rooms operational – that being said, more rooms are being added, reaching 493 in 18Q1, said the brokerage.
The wider market has also enjoyed strong growth, with gross gaming revenue (ex PAGCOR) growing 27 percent year-on-year in the year to August, driven by a balanced growth of VIP and mass.
Morgan Stanley says that the growing cluster in Entertainment City will further enhance market growth, thanks to Okada’s full opening set for 2018, as well as the opening of Ayala Mall and other residential projects opening in the next few years.