Philippines GGR growth driven by local market, Maybank forecasts 15% surge?
Maybank Securities Inc. projects a robust growth of 15 percent in the gross gaming revenue (GGR) of the Philippines’ gaming industry for 2024. In a recent note, the institution expressed optimism, maintaining a positive outlook on the sector.
Analyst Raffy Mendoza highlighted the anticipated growth driven by the domestic mass and slots market, with additional upside potential from the gradual recovery of the VIP segment, notably led by South Korean visitors.
Expansion beyond Entertainment City?
Maybank expects growth to extend beyond Entertainment City, Manila, with the opening of Solaire Resort North and a surge in e-gaming activities contributing to the industry’s expansion.
Significant GGR growth in 2023?
In 2023, the Philippines witnessed a remarkable 33% year-on-year growth in GGR, reaching PHP 285.3 billion (4.6 billion). Land-based venues constituted the bulk of this growth, accounting for approximately 80 percent of the industry’s GGR, marking a substantial increase from the previous year.
Dominance of mass tables and slot machines?
Mass tables and slot machines dominated Entertainment City’s GGR, comprising 64% of the total in the financial year 2023. This underscores the growing demand from the domestic market, a trend expected to persist due to increasing private consumption.
Challenges and recovery in the VIP segment?
While Maybank anticipates challenges due to fewer Chinese visitors affecting the VIP segment, it notes a gradual recovery led by South Korean tourists. Despite Chinese arrivals being at only 24 percent of 2019 levels in the first quarter of 2024, Korean arrivals have reached 88 percent of pre-pandemic levels during the same period.
Positive projections by PAGCOR?
The Philippine Amusement and Gaming Corporation (PAGCOR) expects the gaming industry to generate PHP 336.38 billion (5.5 billion) in GGR in 2024, reflecting a significant 17.9 percent increase compared to 2023.
Overall, Maybank’s positive forecast underscores the resilience and potential of the Philippines’ gaming industry, driven primarily by the domestic market’s sustained growth and gradual recovery in the VIP segment, despite challenges posed by fluctuating visitor arrivals.?
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