Friday, October 16, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
ANDREW L. TAN-led Alliance Global Group, Inc. is optimistic its newly formed tourism unit Travellers International Hotel Group, Inc. will grow as big as its property business.
Alliance Global pledged to spend around $1.6 billion for the development of tourism-related projects in the next couple of years, saying its goal is to become the biggest player in the industry.
"Overtime [or within the next five years or even shorter], Travellers International will be as big as Megaworld Corp. in terms of its contribution to Alliance Global," Kingson U. Sian, Alliance Global president, told reporters at the sidelines of the company’s stockholders’ meeting yesterday.
The holding firm operates under four units — property firm Megaworld Corp., Emperador Distillers, Inc. (the maker of brandies Emperador and Generoso), quick-service restaurant Golden Archers Development Corp. (which holds the local franchise for McDonald’s) and tourism arm Travellers International.
Megaworld corners around 40% of Alliance Global’s consolidated revenues but Mr. Sian said Travellers should be able to duplicate this. Contributions from the tourism unit, he said, will be reflected starting the fourth quarter.
Last year, Travellers International received the first provisional license issued by the Philippine Amusement and Gaming Corp. to participate in its ambitious Entertainment City Manila project, a fully integrated tourism resort complex at the Manila Bay reclamation area.
The company plans to develop 40 hectares of the land and will put up casinos and hotels, among other projects.
Alliance Global has also entered into a joint venture with Hong Kong-based Star Cruises Ltd. to develop the Resorts World Manila project within the 25-hectare Newport City across the Ninoy Aquino International Airport Terminal 3.
"We want to be the largest player in the tourism industry which means that we have to own the largest number of hotel rooms. The Philippines will be Asia’s next tourism powerhouse because of its proximity to the Asian market," Mr. Sian said.
He said the company plans to open 5,000 hotel rooms and invest as much as $1.55 billion in the next couple of years. The partnership with Star Cruises, Mr. Sian said, will be helpful as this will attract and bring in more tourists through the distribution network of the foreign company.
"The middle-class market is strong and a lot of them are traveling. We want the country to be one of their choice destinations," he said.
Mr. Sian said the recently opened Resort World would serve as the "gateway" for Philippine tourism and would be a "game changer" in Southeast Asia because of its nature as an integrated tourism development boasting of retail, commercial, residential, and entertainment services.
"We are very bullish about the tourism industry in Asia and there is no reason why the country cannot be a major player in the industry," he said.
Alliance Global closed the first half with net income of P3.4 billion, up by 29% year on year.
Mr. Sian said he expects to close the year with better profits than last year despite recent calamities because of their "minimal impact." — Kristine Jane R. Liu
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