Travellers International Hotel Group, the prominent operator behind Manila’s Newport World Resorts, is setting its sights on a significant new venture. The company is reportedly planning a PHP 16.9 billion (approximately USD 300 million) integrated resort development in Cebu. This ambitious project, named Mactan World Resorts, represents a strategic move to broaden Travellers’ gaming and leisure footprint across the Philippines.
Project Overview
According to a report by local media outlet SunStar Cebu, the proposed Mactan World Resorts will occupy a 30-hectare area within the Mactan Newtown township. This area is currently under development by Megaworld Corp and is located around 20 minutes from Mactan-Cebu International Airport. Megaworld and Travellers are both subsidiaries of Alliance Global Group.
Mactan World Resorts is expected to include a range of facilities, including a hotel and casino. The development is projected to generate approximately PHP 243 million (around USD 4.3 million) in real property and business taxes over the next five years. This substantial economic impact reflects the project’s potential to significantly contribute to the local economy.
Government Approval and Local Impact
The local government has shown support for the development. SunStar Cebu reported that a resolution recommending Mayor Junard “Ahong” Chan to issue a certificate of “no objection” for the project has been approved. This endorsement from local authorities is a crucial step in moving forward with the development.
Strategic Context and Market
The planned expansion into Cebu comes as Travellers International aims to strengthen its position in the gaming and leisure sector. Alfred Benjamin R. Garcia, an analyst at AP Securities, noted that Travellers might be seizing an opportunity to enter the market more aggressively. Despite being perceived as late to the Entertainment City scene in Metro Manila, Travellers’ move to Cebu could provide a fresh avenue for growth.
Garcia highlighted that Cebu attracts 17% of all inbound tourists to the Philippines, making it a significant player in the country’s tourism sector. The proximity of Mactan Newtown to Mactan-Cebu International Airport is also seen as a strategic advantage for attracting high-profile visitors and VIPs.
Expansion Vision
In a recent interview featured on the cover of Inside Asian Gaming’s monthly magazine, AGI CEO and Travellers Chairman Kevin Tan discussed the company’s expansion ambitions. Tan emphasized that Travellers sees substantial growth potential outside of Metro Manila, which he believes is already saturated and highly competitive. He pointed out that areas like Clark are also very competitive, suggesting that new opportunities lie in developing facilities in emerging destinations.
Tan’s vision includes expanding into other prime locations in the Philippines, which boasts numerous beautiful tourist destinations ripe for development. According to Tan, integrated resorts that offer high-quality amenities and contribute to local economic development are highly desirable.
Current Market and Competitors
Cebu’s current gaming and leisure landscape includes NUSTAR Resort & Casino, a prominent player in the region. Additionally, Dennis Uy’s PH Resorts Group is working to secure funding to complete its stalled Emerald Bay project. The introduction of Mactan World Resorts could potentially alter the competitive dynamics within Cebu’s gaming and leisure sector.
Travellers International Hotel Group’s planned investment of PHP 16.9 billion in the Mactan World Resorts marks a significant step in its expansion strategy. By targeting Cebu, the company aims to leverage the region’s growing tourism sector and strategic location to enhance its market presence. The project’s approval and anticipated economic impact underscore its potential to make a substantial contribution to both the local economy and the broader gaming and leisure industry in the Philippines.