Can Manila steal Macau’s Las Vegas dream?

Filipinos’ well known love for entertainment means the country’s casinos may see significant upside from their non-gaming attractions if they get the mix right, giving Macau a run for its money when it comes to creating a diversified entertainment hub in Asia. According to Fitch estimates, non-gaming revenue in the Philippines was just 7 percent of total revenue in 2016 and a fraction of the 66 percent generated by attractions in Las Vegas. Morgan Stanley estimates non-gaming at 8 percent of the total and 16 percent when it comes to the mass market, compared with 12 percent in Macau. However, it expects the Philippine figure to rise significantly. The firm sees non-gaming revenue as being 20 percent of what it projects will be a $5 billion market by 2020. “We estimate that non-gaming can contribute revenue of US$1.25 billion, significantly higher than 1Q17 annualized of US$200 million,” it says. So why the...

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