Bloomberry chairman warns of oversupply

Enrique Razon Jr. has warned of an oversupply of casinos in the Manila Bay area, with two more gaming complexes scheduled to open in the next two years, The Inquirer reports.

“It’s too many, too fast,” said Razon, chairman of Bloomberry Resorts Corp. on the sidelines of the International Container Terminal Services Inc. annual general meeting.

Solaire opened its doors in 2013 in Manila’s Entertainment City gaming complex, followed by City of Dreams Manila in late 2014. Japanese businessman Kazuo Okada is expected to open Manila Bay Resorts by the end of 2016 while Resorts World Bayshore is scheduled for 2018.

“The market is not growing as fast as the industry wants it to,” said Razon. “Supply is growing faster than the market.”

Bloomberry reported an audited consolidated net loss of P3.4 billion (US$73.2 million) in 2015 compared to net profit of P4.1 billion in 2014.

However, Razon was optimistic of the year ahead. In January, Razon said in an interview with Bloomberg that the company’s  prospects appear brighter as investments begin to bear fruit.

Bloomberry owns the Jeju Sun Hotel and Casino in South Korea, and has been short-listed to bid for a casino in Cyprus this July, and also proposed to build an integrated casino in Argentina.

“The outlook is far better this year,” he said. “We have much lower costs. No more bad accounts, bad debt.”