Thursday, April 3, 2008 [ philstar.com ]
Alliance Global Group Inc. (AGI) has entered into a memorandum of understanding with Star Cruises Ltd., an affiliate of Malaysian conglomerate Genting Group, to put up a $1-billion integrated leisure and resort as part of the multi-billion dollar Bagong Nayong Pilipino Manila Bay Integrated City Project in the Manila Bay reclamation area.
AGI, the listed holding firm of property tycoon Andrew Tan, will undertake the proposed project through subsidiary Travellers International Hotel Group Inc.
The project will entail the development of leisure and entertainment facilities including a theme park, theaters, amusement and cultural centers, a retail and gaming center and hotels. It forms part of the Philippine Amusement & Gaming Corp.’s vision to build an integrated tourism zone on a 40-hectare property in the Manila Bay reclamation area.
Pagcor said it hopes that the massive development will attract at least $4 billion in investments from both foreign and local investors and expects to generate about 100,000 jobs once the entire development is fully completed.
Under the plan, Travellers International will build hotels with a minimum of 1,000 rooms spread out over several phases of development.
“Our proposal comes at an opportune time when there is increasing awareness of the Philippines as a tourist destination, with the country achieving a milestone in 2007 with a record three million tourist arrivals for the first time in its history,” said AGI Chairman Andrew Tan.
“With the continued surge in tourist arrivals, we expect existing stock of hotel rooms to fall short of demand,” Tan added.
AGI’s joint venture with Star Cruises brings together a partnership of two reputable and respected conglomerates. AGI is focused on property development, food and beverage and quick-service restaurants while the Star Cruises Group is the third largest cruise operator in the world.
Star Cruises, which has total assets of almost $7 billion in 2007, together with its affiliate, the Genting Group, is involved in a diversified range of businesses including, leisure, hospitality, gaming, entertainment, cruise and cruise-related, power and oil and gas exploration. The Genting Group, with total assets of $10 billion, is the largest Asian-based leisure, entertainment and hospitality conglomerate with close to 40 years of experience. Its flagship Genting Highlands Resort is one of Asia’s leading integrated leisure and entertainment resort with the largest stock of hotel rooms numbering 10,000 in a single development.
The Genting Group is also spending $3.6 billion), for a 49-hectare integrated resort at Singapore’s Sentosa Island, called Resorts World at Sentosa. To be opened in 2010, the project is envisioned to be a large-scale iconic development focused on attracting families and holiday vacationers. The project will include the first Universal Studios in Southeast Asia, the world’s largest Oceanarium Marine Life Park, an arts and science museum and a number of hotels with 1,800 rooms, retail and gaming center.
Pagcor is starting 2008 on the back of a landmark year in 2007, having achieved its highest total annual income ever of P27.8 billion.
“Pagcor’s plan to team up with Travellers for the 40-hectare resort project in the Bagong Nayong Pilipino Manila Bay Integrated City will help mak Philippines become a premier tourist destination,” Tan said.
“Star Cruises’ interest in the project is a strong testament of foreign investment interest in the underlying attraction of Philippines as the hub for leisure and entertainment and a vote of confidence in the country’s economy and tourism industry,” he said.
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