Most casino companies in the Philippines have suffered from a sharp decline in their share prices. This is considered the largest one-day loss over the last year. In addition, the concerns over the fact that China has become more focused on putting more limits on foreign casinos have recently increased. Such measures taken by the Chinese country could have a devastating effect in the casino industry in the Philippines.
Bloomberry Resort Corp. was reported to have experienced the largest decline of its share price, which fell by 11.64% and reached a closing price of PHP10.32 a share. This is the biggest share price fall of the company over the last three years. Another casino company – Melco Crown Resorts Corp. reported a 10.19% share price decline. Its shares collapsed to PHP9.70 apiece.
As Premium Leisure Corp., which is the Philippines-based arm of Melco Crown Resorts, revealed for reputable media that its share price tumbled by 8.24%. The same decline applies to SM Group, which also reported a closing price of PHP1.56 per share.
Another locally-based casino company – Travellers International Hotel Group Inc., which currently operates Resorts World Manila, shared that its share price went down by 4.23% and reached PHP6.80 per share.
Regardless of the disappointing results, which are believed to be due to the China’s measures towards the casino industry in the Philippines, there are some who still believe that the country will be put under the negative effect of the Chinese Government and regulatory actions.
The Executive Vice President of Casino Operations and Marketing division of Tiger Resorts, Leisure & Entertainment Inc. – Mr. Matt Hurst – said in an interview that “legitimate tourism and travel” to the Philippines from China will not be influenced by these restraints. Mr. Hurst also shared his belief that the casino industry in the country could benefit from the fresh inflow of Chinese tourists.
In addition, Vice President Hurst emphasized on the fact that the Philippines’ gaming market is currently well prepared to accommodate overseas visitors, who come not only from China but from other countries as well.
Some experts, including April Lynn Tan, who is a Financial Vice President in COL, explained that while the restraints might have a short-term effect in bringing high-rollers to the Philippines, the market in China could compensate for that in spite of the increased number of overseas visitors in the country.
Others, such as the President of Summit Securities Mr. Harry Liu consider that reaching an agreement between the Chinese Government and the casino operators is a likely outcome of the situation that is expected to be resolved in a way satisfactory to all parties concerned.
