AGI to Invest US$300 Million in Boracay Casino Project
On October 21, 2024, Alliance Global Group Inc. (AGI) announced an ambitious plan to invest USD 300 million in a casino development located in the picturesque resort island of Boracay, Philippines. This project marks a significant move for AGI, which is already known for its involvement in the country’s first large-scale casino complex, Newport World Resorts.
A Closer Look at the Investment
AGI revealed its intention to undertake this initiative through its subsidiary, Boracay Newcoast Resorts Inc. (BNRI). The casino will be situated within the Megaworld Corporation’s Boracay Newcoast township—a prime real estate development aimed at transforming the island into an integrated tourism hub. Although the casino is anticipated to be smaller than Newport World Resorts, its development is part of AGI’s long-term strategy to tap into the booming tourism industry in the Philippines.
In their official statement, AGI emphasized that the financial repercussions of this project would be more modest compared to their Newport World Resorts venture. However, the commitment to invest USD 300 million shows AGI’s confidence in the potential of Boracay as a leading tourist destination.
Background and Rationale
Boracay, known for its stunning beaches and vibrant nightlife, has been a hotspot for both local and international tourists. The addition of a casino aligns with the Philippine government’s push to enhance tourism attractions. This development is seen as a strategic move to bolster Boracay’s appeal, catering not just to sun-seekers but also to those interested in gambling and entertainment.
The Philippine Amusement and Gaming Corporation (PAGCOR), the country’s regulatory body overseeing gaming operations, has provisionally licensed BNRI for this project. This approval indicates local governmental support, which is crucial for proceeding with a large-scale venture like this.
Recent Performance of AGI
In August 2024, AGI reported a noteworthy increase in the revenues of Travellers International Hotel Group, its majority-owned entity managing Newport World Resorts. The report detailed a 17% sequential rise in gross revenues, totaling PHP 10.9 billion (approximately USD 189.5 million) for the second quarter. This positive financial performance may have influenced AGI’s decision to expand its operations into Boracay, positioning itself to capitalize on the growing tourist influx.
Previous Interest in Boracay
Interestingly, Boracay has attracted interest from global casino operators in the past. In previous years, Galaxy Entertainment Group Ltd. was linked with a potential partnership for a casino project on the island. However, in October 2023, the company clarified its stance, stating it was not considering re-entering Boracay, thus paving the way for AGI to establish its footprint in the region without direct competition from the Macau-based giant.
Conclusion
AGI’s commitment to invest USD 300 million in a casino at Boracay represents a notable development in the Philippines’ gaming and tourism industries. As the island continues to recover and thrive post-pandemic, the introduction of a casino could drive even greater attention to Boracay, making it a multifaceted recreational destination. With AGI’s established track record in the hospitality and gaming sectors, this investment not only signals confidence in the local economy but also aims to create a sustained impact that could benefit both the company and the overall tourism landscape of the Philippines.
As the project unfolds, stakeholders from various sectors—including local businesses, government, and tourists—will be keenly observing the developments, hoping for a boost in economic activity and an enriched experience for visitors to this tropical paradise.
