Inside Asian Gaming speaks with Byron Yip, President of Tiger Resort, Leisure and Entertainment Inc (TRLEI), about the Philippines market recovery and his vision for TRLEI’s integrated resort, Okada Manila.
Ben Blaschke: Byron, it’s been a challenging few years for the industry but the Philippines is open for business again and casino floors are looking increasingly busy. Can you provide some insight into the recovery trajectory at Okada Manila and what the recent numbers are looking like?
Byron Yip: We recently released our Q2 results which can be found on the Universal Entertainment Corporation (UEC) website. The numbers we disclosed include the gross gaming revenue for the second quarter of the fiscal year 2022.
The business really picked up in the second quarter, which coincided with the loosening of operating restrictions and the resumption of tourism. Our 2Q22 gross gaming revenue was approximately Php8.3 billion (US$144 million) compared to 2Q19 revenue of Php8.1 billion (US$141 million), indicating that our gaming revenues in 2Q22 slightly exceeded our pre-pandemic amount for the same period.
BB: Okada Manila itself has seen significant additions since pre-pandemic times with new facilities being completed and opened. What’s new in 2022 compared with 2019?
BY: We’ve added several amenities for our guests. In 2019, we had roughly 680 hotel rooms at the end of the year. That number was roughly 963 at the end of 2Q22, which is a significant increase. Included in the additional rooms are the Villas at the Coral Wing, which cater to our VIP and high-end guests. These villas have stunning views of Manila Bay.
In terms of retail tenants and dining, there are new tenants at our property that have resulted in new brands and dining options for our guests. I would encourage everyone to come visit and explore these new offerings.
From a gaming perspective, we’ve added the Perlas Club, a dedicated premium gaming space for our slot players. We’ve also revamped the Maharlika Club and added the Okada VIP Club, which has dedicated spaces focused on our table players.
BB: Solaire has long been the Philippines market share leader, but Okada Manila has a size advantage, now that all hotel rooms are open. How do you see the property positioning itself among its peers as life returns to normal in the coming year or two?
BY: Personally, I don’t want to comment on specific competitors, but what I can say is that we’ll continue to use our scale and breadth of gaming amenities to differentiate ourselves from our competitors, and I think that our size, the footprint we have, has given us the ability and flexibility to adjust our offerings to the extent that’s required or demanded by the market.
BB: From a gaming perspective, where is the company’s focus – the broader mass market or the more premium gaming space?
BY: I believe there are several challenges facing the VIP/premium gaming space, including the collapse of the Macau junket market. In a way I believe these challenges will continue to impact the regional VIP and premium market at least in the near term, maybe even longer than that, we don’t know.
We believe we’re well positioned despite the challenges in the VIP market given our focus on the mass and premium mass market. We made a conscious effort in the past couple of years to increase our presence in the mass and premium mass market segments.
BB: What is the status of the planned SPAC merger with 26 Capital Acquisition Corp which will see Okada Manila listed on the Nasdaq?
BY: On 30 September 2022, our parent company, UEC, announced a one-year extension of the merger agreement deadline with 26 Capital. The extension was signed because of the delay caused by the illegal takeover [of Okada Manila by a group associated with company founder Kazuo Okada].
BB: What do you see as the main factors that will drive growth in the Philippines gaming market over the coming years?
BY: I think the Philippine market will continue to benefit both from strong economic GDP growth, which was over 6% in 2019, pre-COVID, and from inbound tourism.
BB: The Philippines was once deemed as somewhat unsafe as a travel and gaming destination. Do you think this perception is starting to change?
BY: I personally believe the perception is definitely changing. We believe that our property is comparable to other integrated resorts in Singapore and Macau. We believe that the quality of our property has enabled us to attract a mix of international visitors. Furthermore, we have benefited from the opening of the NAIA Expressway which directly connects NAIA (Ninoy Aquino International Airport) with Entertainment City.
BB: What is your vision for Okada Manila for the next five years?
BY: Okada Manila is on a path to recovery and growth post-pandemic, and we envision the property as one of the leading integrated resorts in the Philippines and in the region.
As the Philippine gaming market continues to grow, we aim to create more opportunities by diversifying the business through our gaming, hotel, retail, MICE and F&B verticals. I believe this would make us a more holistic property with more offerings for our patrons under one roof. This would give us an added global edge.
We’re also beginning ESG programs, so we can engage with and better contribute to the communities we are part of.
All these taken together are meant to make Okada Manila a Philippine integrated resort that Filipinos can be proud of while further establishing it as a viable business entity.
