Philippine casino stocks are among the worst performing so far this year as an expected influx of Chinese visitors has failed to materialise.
Shares of Bloomberry Resorts, which operates the Solaire Resort and Casino, have lost 27 per cent this year and Resorts World Manila operator Travellers International Hotel Group has slumped 35 per cent. Melco Crown (Philippines) Resorts, operator of the newly opened City of Dreams, has tumbled 56 per cent.
The declines in casino shares come despite a 4.4 per cent gain in the Philippine Stock Exchange Index this year, peaking at a record high in April amid official forecasts for two straight years of eight per cent economic growth.
Operators in the Philippines had been expected to reap the benefits of Chinese visitors shunning Macau in favour of destinations further afield to ensure they are not on Beijing’s radar, amid an ongoing crackdown on corruption. However, despite the new resorts opening that hasn’t happened. Arrivals to the Philippines from China, the country’s fourth-biggest tourist market, fell by about 33 per cent to 93,043 in the first quarter. A territorial dispute between the two nations over islands in the South China Sea also deterred travelers.
Source: Asia Gaming Brief
