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Efraim C. Genuino is making the biggest bet of his life. The
chairman and CEO of the state-owned Philippine Amusement and Gaming
Corp. (Pagcor) is building a $15-billion Bagong Nayong
Pilipino-Entertainment City Manila on 120 hectares of reclaimed on
Manila Bay.
Initially, 90 hectares will be developed in
various stages over a ten-year period beginning this year. The
project will be an integrated complex of luxury hotels, restaurants,
shopping malls, convention centers, theaters, cultural centers,
sports stadia, museums, amusement parks, residential villages, and
an observation tower, which will be among the tallest structures of
its kind in the world.
Initial cost is $7 billion to $8 billion but the
bill could rise to $15 billion once the project is completed. The
venture is expected to rival Macau and Singapore as Asia’s gaming
and entertainment centers with an eye for the booming tourist
market. Some two billion people live within five hours flying time
from Manila. China alone has 100 million tourists going overseas.
The Pagcor chief thinks payback will be big and
immediate. “It will bring in tourists in droves, enabling us to
hit 10 million in arrivals in five years,” he projects. Manila is
strategically located in Asia and can be reached in five hours or
less by over two billion people in the region.
“This will be the biggest development project
in the country,” reckons Genuino. “It will also be the biggest
employer. More than 250,000 jobs will be created.” The tourism
zone itself will employ 30,000 directly. Each direct job creates
seven to eight other jobs indirectly.
The Tourism City project represents Pagcor’s
shift from mere casino gaming into a wholesome, family-oriented
recreation and entertainment business, says Genuino.
The 250,000-expected job creation does not
include its effect on other industries such as construction,
transportation, entertainment, hospitality, communications,
information technology, business and commerce, among others.
Genuino says the new city would be Pagcor’s
“ultimate legacy and contribution to the country’s economic
recovery.”
“Through this project, Pagcor aims to become
the catalyst for economic growth and national development,” he
says.
The project will sustain the momentum of
economic growth, Genuino says. The economy posted its highest growth
rate in 31 years last year with a 7.3 percent.
With the project, Pagcor hopes to triple it
annual income from the present $500 million to $1.5 billion.
Four major groups from four countries have been
selected to undertake the project, each using a design concept
approved by Pagcor. Each will invest $1 billion, says Genuino.
“The beauty of this is that no taxpayers’ money will be
spent,” he assures.
The four are: Aruze Corp. of Japan, the Genting
Berhad Group of Malaysia, Bloombury Investments Limited of
Australia, and SM Investments Corp. (SMIC) of retailing and banking
taipan Henry Sy Sr.
The investors, he says, represent some of the
world’s biggest names in the entertainment and leisure industries.
Each will deposit $100 million as show money. Aruze alone, Genuino
reports, has brought in $350 million. Some of the money will be used
to purchase property. Of the 90 hectares of initial development
zone, 60 hectares are owned by Pagcor.
Aruze has links with Steve Wynn of Las Vegas and
Macau. Aruze plans to build Manila’s version of London’s Eye
Ferris wheel as well as the largest oceanarium in the world, and one
of the largest sports arenas in Asia.
Genting has for its local partners, Alliance
Global, the holding company of Filipino property tycoon Andrew Tan.
Bloombury will reportedly bring in California’s Universal Studios
to put up a theme park on a 30-hectare reclaimed land.
Each of the four proponents, Genuino says,
“will build no less than 1,500 rooms for hotels.” “We expect
7,000 rooms to be built,” the Pagcor chief says.
Bloomburry is owned by James Packer, son of the
late Kerry Packer, Australia’s richest individual. The Packer
empire includes holdings in media, telecommunications,
petrochemicals, heavy engineering, coal and diamond mines, resorts
and casinos in Australia and overseas.
The project broke ground on April 3 at the
project site on Macapagal Avenue in Parañaque City, a day after the
opening of the Gaming, Tourism and Investment Congress of the
Asia’s Gaming and Entertainment plus Leisure Expo 2008 (Asia’s
GEM) at the Hyatt Hotel and Casino in Malate, Manila.
The CEO of Pagcor since 2001, Genuino has
produced record profits for the gaming agency from P17.46 billion in
2001 to P27.76 billion in 2007. In 2000, a year before he took over,
Pagcor had income of just P14.62 billion.
With his record, Genuino should aim for a higher
national position, some people say. “What this country needs is
competence and good governance,” he says.
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