Philippine tourism peforming behind expectations, Maybank says
Lower-than-expected Chinese tourist arrivals is a key factor, according to Maybank Investment Bank.
The Philippines.- Analysts at Maybank Investment Bank claim that the performance of the tourism sector in the Philippines has been below expectations due to fewer Chinese tourists than expected. The country actually met its annual target for tourism arrivals already, although the 4.82 million arrivals to November 30 remains a long way short of the pre-pandemic figure of 8.26 million in 2019.
According to Maybank’s Tuesday update, Chinese visitors accounted for 21.2 per cent of all Philippine tourism arrivals in 2019, but only 5 per cent in the first 11 months of this year. This year, the country has only seen 242,107 tourists from China, compared to 1.74 million in 2019.
Maybank’s report predicted that the Philippines’ economy will grow faster in 2024, with an estimated rate of +6.5 per cent, compared to +5.8 per cent in 2023. Analysts expect domestic demand to drive this growth, supported by stable employment, resilient private consumption and continued infrastructure development.
Industry consultancy GCG Gaming Advisory Services has predicted that the Philippine casino sector could achieve GGR ranging from US$5.2bn to US$5.9bn for 2023. This would outpace pre-pandemic figures from 2019 (US$4.84bn). In the third quarter, GGR was PHP56.85bn (US$1.03bn), an increase of 15.1 per cent year-on-year and up from PHP56.61bn in Q2.
The figure excludes revenue from bingo operations and electronic games parlours. Commercial casinos licensed by PAGCOR contributed just under PHP51.91bn, up 16 per cent from the same quarter of the previous year.
Commercial casinos in the Clark Freeport Zone saw a 45.8 per cent gain, reaching just over PHP8.88bn. Entertainment City resorts in Manila, the capital, recorded GGR of PHP42.66bn, a 11.5 per cent increase from last year. PAGCOR-operated gaming, including Casino Filipino venues, contributed PHP4.94bn, a 6.8 per cent rise.
