LEISURE AND RESORTS World Corp. (LRWC) on Monday defended its $550-million Boracay resort project, saying it is not a mega casino.
In a statement, LRWC said the casino and gaming area will only cover a maximum of 7.5% of the project’s total floor area. The rest will house hotels and amenities such as wellness centers, bars, lounges, and restaurants.
“Thus, the planned Boracay Resort is expected to churn more revenues from the hotel and other ancillary businesses vis-a-vis the gaming segment as it attracts customers all over the region looking for luxury Asian destinations,” LRWC Vice-President and Compliance Officer Katrina L. Nepumoceno was quoted as saying in the statement.
The listed gaming and casino operator recently confirmed that it has purchased a 23-hectare property in Barangay Manoc-Manoc in Boracay, which will be developed into an integrated resort complex.
LRWC has partnered with Macau-based casino giant Galaxy Entertainment Group (GEG) for the project, with the latter already holding a provisional license issued by the Philippine Amusement and Gaming Corp. (PAGCOR).
The issuance of the provisional license last March 21 will allow the group to facilitate the processing of other permits and clearances to begin construction. LRWC said it would take three years finish the project, with operations set to begin as early as 2021.
The project has been met with criticism, after both the Department of Tourism and the Department of Environment and Natural Resources recommended Boracay island’s closure for up to a year to conduct cleaning up operations.
The clean-up followed President Rodrigo R. Duterte’s statement that the popular tourist destination has become a “cesspool.”
For its part, LRWC said it has committed to make its resort project a low-density development.
“The property will be constructed following the contours of the site with lots of open spaces and lush landscaping. In addition, the resort will be designed to provide ample space for all the comforts, luxuries and activities for each family member,” LRWC said.
The company also added that the project will leverage on GEG’s database of clients across Asia. It expects members of GEG’s loyalty program to account for 50% of the resort’s customers.
LRWC generated P362 million in attributable profit in the first nine months of 2017, 59% lower year-on-year, after a 10% drop in revenues to P7.32 billion during the period.
Shares in LRWC shed 10 centavos or 1.45% to close at P6.79 each at the Philippine Stock Exchange on Monday. — Arra B. Francia
