AGI subsidiary Travellers International Hotel Group Inc. is applying for a gaming license with the state-run Philippine Amusement and Gaming Corp. (Pagcor), a source with knowledge of the matter told InsiderPH.
Travellers International Hotel Group Inc. (TIHGI) is the developer of Manila’s pioneering integrated casino resort, Newport World Resorts (formerly Resorts World Manila).
AGI also has exposure to the yet-to-be-finished Westside City Resorts in the Entertainment City complex along Manila Bay.
The proposed casino resort was first reported by SunStar Cebu.
Location, location, location
The insider said Travellers’ new casino will rise in the 30-hectare Mactan Newtown township being developed by Megaworld Corp., the flagship property company of AGI.
Mactan Newtown is less than 20 minutes away from the Mactan-Cebu International Airport, providing advantages in attracting international players and high rollers.
Analyst's view
“This could be TIHGI’s chance, since one can say that they were late to the Entertainment City party and it will be tough to grab market share from the existing integrated resorts in Entertainment City,” Alfred Benjamin R. Garcia, head of research at AP Securities, told InsiderPH.
He said data on tourist arrivals show that 17 percent of all inbound tourists visit Cebu, second only to Manila.
“Mactan Newtown’s proximity to the international airport in Mactan could prove to be an advantage in luring in VIPs [high rollers],” Garcia said.
Gaming contributions to Tan’s empire
Gaming is a major contributor for AGI, accounting for 15 percent and 3 percent of total revenue and profitability.
Based on AGI’s latest financial filing, Travellers earned a net income of P400 million during the first half of 2024 while core revenues grew 2 percent to P15.6 billion.
Competition
The planned casino project also brings increased competition to Cebu, as the existing NUSTAR Resort and Casino, owned by the Gokongwei family’s property giant Robinsons Land Corp., continues to ramp up operations.
Another nearby casino project is the unfinished Emerald Bay project of Davao tycoon Dennis A. Uy. Uy’s PH Resorts Group Holdings has prompted the company to suspend construction while it seeks a new investor for the gaming complex.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.