Mactan casino resort project to generate thousands of jobs

CEBU, Philippines - A P65 billion casino resort project in Mactan Island, Cebu is expected to generate thousands of jobs for Filipinos.

In a Philippine Stock Exchange filing, listed agribusiness firm Calata Corp. announced it has partnered with Sino-America Gaming Investment Group and Macau Resources Group Ltd. to establish a real estate and investment trust (REIT) for 14-hectare casino resort, to be named Mactan Leisure City once operational by 2020.

The integrated resort, which will have three hotels, casino and entertainment complex, commercial, retail, and conference facilities, and yacht club, is also forecast to have a gross annual revenue of around P55.7 million.

Calata said Sino-America and the Macau Group will initially invest P836.1 million into the project, P234 million of which will be put into Calata which shall then be investing the said fund into its majority-owned corporate vehicle. The remaining P602.1 million will also be directly infused into the corporate vehicle.

REIT is a stock corporation with a purpose of owning income-generating real estate assets.

Calata said the resort project will be host to Southeast Asia's first 7-star hotel and will be home of celebrity branded themes including Sir Elton John and Shaquille O'Neal. 

"The 'Mactan Leisure City' is poised to become a game-changer in the region's family leisure tourism and gaming offering where tourists from all parts of the world will converge to experience luxurious resort life in a tropical paradise while enjoying a variety of family entertainment experiences," the listed firm said.

Shares of Calata were trading at P3.86 apiece at noon yesterday.

In a previous interview, Lapu-Lapu City Mayor Paz Radaza said the casino is seen to boost the city's economy through taxes and creation of new jobs.

She said this will be the biggest casino investment in Lapu-Lapu City, which will attract more tourists considering that foreigners account for a big portion of the casino market.

It was in April 2015 when gaming regulator Philippine Amusement and Gaming Corp. (PAGCOR) confirmed that the US investment group and the Macau-based gaming operator wanted to build a casino in Mactan Island.

The Philippines has recently emerged as one of the rising gambling hubs in Asia, with PAGCOR saying the country holds a big revenue potential in the casino industry. Macau in China is considered as the world's biggest gaming center.

Moreover, Sino and Calata are also looking into agri-related projects in the country, with Sino seeing the country's agriculture industry as an opportunity not just to increase profitability but also to stabilize regional food supply and reduce door cost while providing fresh locally-grown produce. (FREEMAN)