An investment of up to $1.2 billion (about P68 billion) is set to add to the skyline of Manila with the announcement of a new integrated resort and casino project. International Entertainment Corporation (IEC), a Hong Kong-based company listed on the Hong Kong Stock Exchange, is at the helm of this venture.
The company says it recently inked a Provisional License Agreement with the Philippine Amusements and Gaming Corporation (PAGCOR), marking a milestone in the development of this project.
IEC, which currently shares management responsibilities for the casino at the New Coast Hotel in Manila, had previously secured a provisional casino license in 2020. However, the recently issued permit sets out the terms of the deal for the first time.
As per IEC’s disclosure on its official website, the company is making financial commitments to ensure the project’s success. It plans to transfer $100 million (about P5.7 billion) to PAGCOR in an escrow account as a deposit, along with an additional P100 million as a performance bond.
This performance bond serves as a safeguard, ensuring the timely completion of the project. It stipulates that the bond will be forfeited “in case of delay in the construction or development which delay exceeds 50 percent of the schedule in the Implementation Plan for each of the key components of the relevant phase.”
The master development plan, already submitted to PAGCOR for approval, outlines the vision for the integrated resort. Encompassing a total gross floor area spanning at least 250,000 square meters, the project includes a five-star hotel with 800 rooms, casino, an array of dining establishments, leisure facilities, and shopping arcades.
Notably, the plan does not specify the exact location of the new casino resort project, except to mention that it falls within the boundaries of the “City of Manila.”
The timing of this investment is seen as advantageous, with the recent relaxation of COVID-19 restrictions in the Philippines leading to an influx of international tourists. During the first quarter of 2023, approximately 1.3 million international tourists visited the Philippines, a number that is expected to surge.
The Philippines Department of Tourism has set a target of attracting 5 million foreign visitors in 2023. This surge in tourism is anticipated to stimulate economic growth and benefit the gaming and entertainment industry significantly.
In a statement, IEC’s directors expressed their belief that the grant of the Provisional License represents an important moment for the company. It opens the doors for IEC to participate independently in the gaming and entertainment sector, in addition to its existing interests in the hotel and hospitality markets in the Philippines.
The integrated resort and casino sector in Metro Manila currently boasts four major players: Solaire Resort and Casino by Bloomberry Resorts, City of Dreams by Melco Resorts and Entertainment, Okada Manila by Tiger Resort Leisure and Entertainment Inc., and Newport World Resorts by billionaire Andrew Tan.
Original article: https://www.yogonet.com/international/noticias/2023/10/02/69011-philippines-hong-kongbased-firm-eyeing-to-invest-12b-on-new-integrated-resort-in-manila
