LEISURE & RESORTS World Corp. (LRWC) said it remains on track to open its $550-million integrated resort in Boracay by 2021, denying that the project has been delayed due to the island’s six-month closure since April.
LRWC Vice-President and Compliance Officer Katrina L. Nepumoceno explained that the timeline for the project construction remains, given that the company has already secured the property in November 2017, long before the island was closed for rehabilitation three months ago.
“We were able to finish what we needed to do prior to closing. The focus now is to participate in all stakeholders’ forum, the Boracay Task Force, so we can listen in to the plans, and make sure that our plans will be compliant with all environmental requirements,” Ms. Nepumoceno told reporters after the company’s annual shareholders’ meeting in Pasay City last Friday.
Once construction starts, it will take two years to finish the project, she said.
The 23-hectare project has drawn flak over the previous months for its inclusion of a casino. The company is partnering with Macau-based casino giant Galaxy Entertainment Group for the casino component, which it clarified will only cover a total of 7.5% of the project’s total floor area.
Despite opposition from President Rodrigo R. Duterte himself on building a casino on one of the country’s top tourist destinations, Galaxy Entertainment said it had already been issued a provisional license by the Philippine Amusement and Gaming Corp.
Ms. Nepumoceno said she was confident that the project will push through, given that the “president has also said that he wants to maintain Boracay as a primary tourist destination.”
The Department of Environment and Natural Resources has set the official reopening of Boracay island for Oct. 26, noting that a soft opening could be held in September so long as vital requirements — including the improvement of water quality in the island and its surrounding areas — have been addressed.
On the other hand, LRWC said it is investing P200 million to expand its operations this year, citing the improving environment for gaming in the country.
For its electronic Bingo (e-Bingo) operations, LRWC President Eng Hun Chuah said the plan is to expand 30 out of its 145 existing outlets to fast-track its growth, while also constructing 10 new outlets.
“We’re gonna expand our existing outlets, say we have 100 square meters, we’ll expand that to 200 (sq.m.). We have 145 e-Bingo outlets . . . This strategy will help us to expand faster,” Mr. Chuah said, noting that building an outlet from scratch usually takes one to one and a half years. In contrast, expanding their existing one will take four to five months.
The listed firm is also actively on the lookout for more slot machine outlets.
“We have actively been looking for places we can acquire . . . we’re looking for acquisitions of existing operations. We’re talking to some people,” Mr. Chuah said.
Asked on how big the market for slot machine operators is, he said he was counting around 19 to 20 players in Metro Manila.
LRWC’s net profit fell by 70% in the first quarter of 2018 to P82.42 million, with gross revenues also slowing down by 2% to P3.86 billion. — Arra B. Francia
