ALLIANCE Global Group, Inc.’s tourism business is seen to do better next year as it expects a second surge of revenge-spending coming from Chinese tourists.
“We are in a really good position now and we’re very optimistic for next year and even in 2024,” Alliance Global Chief Executive Officer Kevin Andrew L. Tan said in a chance interview.
“I think next year, it’s going to be very strong. Next year, we are looking forward to the second wave of pent-up demand, which is from the Chinese, as China is now starting to open up,” he added.
On Tuesday, Hong Kong said that it will be scrapping the requirement of a polymerase chain reaction (PCR) coronavirus test for all visitors of mainland China and Macau at its immigration, Reuters reported.
Meanwhile, its health department has also removed the requirement of wearing an electronic tag for locally infected people in isolation.
“Hong Kong is always the starting point. It gives you a signal of where China is going. And I think when that happens, the Philippines — with its very prime location — we are really in the right place to accept that second wave of revenge spending and revenge travel from Chinese tourists,” Mr. Tan said.
According to Mr. Tan, the company had strong sales from South Korea, Taiwan, and some areas in Southeast Asia.
“[However], China is the market that we are really after if you talk about hospitality and gaming [as] they are always the largest source market for quite a number of ASEAN countries,” he added.
China is also considered to be a strong market for Thailand, Singapore, and other Southeast Asian countries, said Mr. Tan.
“China is a very strong market and I think next year, we will eventually see that,” Mr. Tan said.
Meanwhile, Mr. Tan said that the company is planning to take advantage of the momentum currently seen in the market.
The market has been improving slightly but has not shown full momentum yet, said Mr. Tan.
“I think we’re now already more than 100% of our gross gaming revenue from pre-pandemic. I think we are performing better in that sense,” he added. — Justine Irish D. Tabile