According to Subic Bay Metropolitan Authority (SBMA) administrator Armand C. Arreza, the SBMA has actually had a number of feelers from interested casino developers and operators who see the potential of Subic as an ideal destination for Chinese players who are looking for alternative gaming sites aside from Macau in Asia.
The huge potential of the Chinese market, Arreza pointed out, has not been lost even on conservative Singapore which has finally allowed the development of a casino on the island nation. It has been estimated that Chinese tourists will reach 100 million by 2015.
Subic already attracts Taiwanese players, but a recent dispute with the Malaysian-controlled Legenda Hotel and Casino has caused a drop in Taiwanese arrivals to the former US naval facility, Arreza admitted.
A new casino has been opened, but unlike the Legenda which used to advertise its casino, it is not attracting enough foreign players yet, Arreza said.
Furthermore, Arreza said, interested casino investors are wary of the franchise life of the Philippine Amusement and Gaming Corp. (PAGCOR) which is the only entity authorized to extend gaming licenses.
The PAGCOR’s 25-year franchise granted in 1983 is set to expire in 2008 and it is not certain if Congress will renew the franchise. With that uncertainty, Arreza said, interested investors are adopting a wait and see attitude before securing a license to operate a casino in Subic.
Arreza computes that an investment in a casino would be a minimum of $100 million.
Subic’s proximity to China, Arreza said, would be more convenient to Chinese players who would otherwise head to Singapore which is farther from China.
Developing a gaming industry in Subic, Arreza said, would also solve the current under-employment problem in Zambales and Bataan particularly for workers aged 30 and above.
Most of the manufacturing activities in Subic, Arreza said, limit their hiring to workers aged from 18 to below 30.
Previously, Trade and Industry Secretary Peter B. Favila had welcomed the entry of foreign investments in the gaming industry.
Favila is even amenable to granting flexibility on the ownership ceiling for such investments.
At present, however, Favila said, Philippine law allows only up to 40 percent foreign equity for all forms of gambling operations.
According to Favila, the gaming industry is a major contributor to job creation, particularly in the services sector.
The gaming industry, likewise, Favila said, could be a catalyst for tourism promotion.
Thus, Favila would encourage the establishment of gaming centers in all resorts such as in the world-famous Boracay.
Government, Favila said, should look into the possibility of opening up the gaming industry to top global players.
According to Favila, "these foreign investors can develop large-scale projects such as world-class resort casinos which offer both gaming and non-gaming leisure facilities."