Okada Manila will increase its market share of the casino sector in the Philippines according to Morgan Stanley Asia.
It is tipping Okada Manila’s share of Manila’s integrated resort GGR to increase from 10 per cent to 22 per cent in 2018 with Resorts World Manila’s falling from 15 per cent to 13 per cent, Solaire’s from 41 per cent to 36 per cent and City of Dreams’ from 34 per cent to 29 per cent.
Morgan Stanley analysts Alex Poon and Praveen Choudhary said: “Mass revenue growth has strong correlation with hotel room supply growth. The opening of Okada Tower A in first quarter 2018 could accelerate growth in 2018. “We expect the rebound in regional VIP strength in 2017, overseas expansion by Macau junkets, and video streaming to continue to drive strong growth in the Philippines. We forecast VIP growth of 36 percent in 2018 (2017: 24 per cent) with existing casinos (excluding Okada Manila) growing at 13 percent (2017: 15 per cent). Since VIP revenue in the Philippines of US$1bn in 2017 is small compared to regional peers like Macau (US$16bn) and Singapore (US$2bn), we see huge future upside.”