Philippines GGR to grow 15% per annum, analysts say
Philippine casinos saw a strong first quarter driven by domestic demand and Korean VIPs.
The Philippines.- Maybank Securities has forecast a 15 per cent annual increase in gross gaming revenue (GGR) over the medium term for The Philippine gaming sector. Analysts Miguel Sevidal and Alexa Mae Carvajal cited robust domestic demand as the primary driving force.
The Philippine casino sector’s gross gaming revenue in the first quarter was up 80.9 per cent year-on-year from PHP32.75bn (US$ 626.9m) to PHP59.26bn (US$1.06bn). That’s a rise of 5.8 per cent quarter-on-quarter.
Maybank’s report emphasised the significance of mass-market tables and slot machines, which accounted for 59 per cent of industry GGR in the first quarter. This reinforces the notion that revenue is primarily driven by domestic demand.
The analysts highlighted potential for growth in mass-market and slot machine revenues, supported by the country’s below-average GGR per capita and the rising share of Entertainment City casinos in entertainment spending. They also anticipated a boost to GGR from the re-emergence of the VIP segment, led by Korean high-rollers.
Analysts said Korean tourists had been instrumental in driving the recovery of the segment, with arrivals reaching 552,000 in the first five months of 2023 – approximately 70 per cent of the same period in 2019. This surge has compensated for the relatively slow recovery of Chinese arrivals.
