The dispute between China and the Philippines seems to ease following the partial departure on June 5th of military vessels from the contested Scarborough Shoal lagoon. The stand-off between Manila and Beijing could however have consequences for the future development of a gambling and entertainment district in the Filipino capital.
MANILA- According to AFP news agency, both China PRC and the Philippines have repositioned some ships stationed around the disputed Scarborough Shoal (atoll), a disputed rock formation in the midst of South China Sea. Following bilateral consultations, China asked two of its vessels to leave the lagoon surrounding the rock formation. The boats joined back six other vessels stationed outside the lagoon. A Filipino boat also positioned inside the lagoon left the area, joining a second ship stationed outside the contested area. This seems a first signal to ease tensions in the area.
The dispute between China and the Philippines flared since April when Chinese boats blocked Philippines vessels sent to the shoal to arrest Chinese fishermen. Scarborough Shoal is claimed by the Philippines as an integrated part of its economic zone as it lies near Luzon Island. China claims that the rock formation belongs to its territory with nearly all of the other Islands located on the South China Sea. The dispute already strained bilateral relations, especially travellers’ movements. China Tour Operators have been told by the government to stop sending Chinese tourists to the Philippines while air links between both countries have been reduced to a minimum. The dispute is less about the atoll than energy resources (it seems that offshore gas has been discovered in the area).
The decision of China to discourage its citizens to venture into the Philippines for holidays could also jeopardize the Philippines’ position to become the new gambling paradise in the region. The government is turning 85 hectares of land in Manila into “Entertainment City”. The priority development project will see the construction of deluxe hotels, shopping malls, casinos and entertainment venues. “Entertainment City Manila” is due to bring a million additional visitors to the Filipino capital, provides direct employment to 40,000 people (as well as indirect employment to another 150,000 people). The government hopes to see annual gambling revenues reach US$ 10 billion per year, surpassing gambling revenues from Singapore or even Las Vegas once the project completed by 2017. “Entertainment City Manila” could triple the annual income of managing company CASINO FILIPINO from US$500 million to US$1.5 billion.
However, this could still be a distant dream without Chinese gamblers, who are a primary target of promoters of “Entertainment City”. Commenting to Filipino media, some of the project’s promoters openly spoke from “siphoning off Chinese gamblers from Macau”. China stand-off against travel to the Philippines shows that games are still open and the wager very high!
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
