SiGMA Foundation: An invitation to shift from privilege to purpose

The Department of Tourism (DOT) has spearheaded several strategic initiatives over the past two years, significantly boosting the Philippines' appeal as a travel destination. These initiatives have been pivotal in attracting more visitors and enhancing their overall experience, underscoring the country's recovery and growth post-pandemic.  

The DOT’s include the construction of Tourist Rest Areas across strategic locations, the launch of the Philippine Experience Program (PEP) to highlight emerging destinations, and the establishment of a Tourist Assistance Call Centre to address travel-related concerns. 

The Philippine Statistics Authority (PSA) released data on June 18 showing that the tourism sector contributed 8.6% to the country's gross domestic product (GDP) in 2023. This substantial contribution highlights tourism's crucial role in the nation's economy.   

The agency has also focused on sustainable and resilient tourism infrastructure through initiatives like the Tourism Champions Challenge. These efforts aim to promote development across the Philippines, enhancing various tourism offerings including gastronomy, diving, film, golf, history, culture, medical tourism, and English as a Second Language (ESL) programs.  

In 2023, the tourism industry generated and sustained 6.21 million jobs for Filipinos, nearing the DOT’s target of 6.3 million tourism-related jobs by 2028. This surge in employment demonstrates the sector's potential to create significant job opportunities for the local population.  

Tourism Secretary attributed the sector's growth to the Marcos administration’s prioritisation of tourism. She emphasised that the PSA report reflects the enthusiasm of Filipinos to explore their own country and support local businesses, thereby increasing the Philippines' attractiveness as a travel destination.  

The Tourism Direct Gross Value Added (TDGVA) reached PHP2.09 trillion (€33.1 billion) in 2023, the highest since the PSA began tracking this data in 2000. This represents a 47.9 percent increase from the PHP1.41 trillion (€22.3 billion) recorded in 2022 when tourism contributed 6.4 percent to GDP.  

Domestic tourism expenditure saw a significant rise of 72.3 percent, growing from PHP1.55 trillion (€24.5 billion) in 2022 to PHP2.67 trillion (€42.3 billion) in 2023. Inbound tourism expenditure, which includes spending by non-resident visitors, surged by 87.7 percent, reaching PHP697.46 billion (€11 billion), surpassing pre-pandemic levels of PHP600.01 billion (€9.5 billion) in 2019.

Meanwhile, outbound tourism expenditure also grew by 10 percent, increasing from PHP189.29 billion (€2.99 billion) in 2022 to PHP208.25 billion (€3.29 billion) in 2023. This indicates a growing trend of Filipinos travelling abroad. Combined internal tourism expenditure, which includes both inbound and domestic spending, increased by 75.3 percent, rising from PHP1.92 trillion (€30.39 billion) in 2022 to PHP3.36 trillion (€53.2 billion) in 2023.  

The DOT has emphasised collaboration with both public and private sectors, particularly local government units, to make tourism in the Philippines more inclusive. This joint effort aims to continue improving tourism infrastructure, visitor experiences, and employment opportunities. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.

Indonesian President Joko Widodo has denied any plans to provide social assistance to online gambling players. The president’s comments come in response to recent discussions about potentially aiding families affected by , a proposal that has sparked significant controversy given that online gambling is illegal in Indonesia. 

According to a local report, the idea of providing social assistance was first floated by Coordinating Minister for Human Development and Cultural Affairs, Muhadjir Effendy, during a meeting on June 13, aimed at establishing the Online Gambling Eradication Task Force. The Deputy Chair of the task force later clarified on June 17 that while gamblers should be prosecuted, the proposed assistance was intended for their families. 

President Widodo’s recent statements come amidst a on online gambling, which has been linked to several alarming criminal cases across Indonesia. In a video shared on his social media platforms, the president emphasised the importance of prudent money management and urged public figures, religious leaders, and citizens to monitor and report any signs of online gambling. 

The proposal has faced sharp criticism from various quarters. The Indonesian Forum for Budget Transparency (FITRA) was quick to condemn the idea, arguing that providing social assistance to the families of online gamblers effectively subsidises the gamblers themselves. Instead, FITRA researcher Gurnadi Ridwan suggested that the government should focus on creating job opportunities to combat poverty. 

Director of the Digital Economy at the Center of Economic and Law Studies (Celios), Nailul Huda, echoed these sentiments, stating that online gamblers do not deserve social assistance as they contribute to state losses.  

Contrary to the prevailing criticisms, Asep Suryana, a sociologist from Jakarta State University, defended the idea of providing social assistance to the families of online gamblers. He argued that online gambling is a psychosocial issue, and those addicted often do not consider the long-term consequences of their actions.  

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.

MGM China Holdings is contemplating expanding one of its casino resorts in Macau by adding hotel rooms and wellness services, aiming to attract a broader customer base beyond traditional high rollers, according to a Bloomberg report. Sources close to the matter revealed that the company is consulting with designers and planners about potentially adding a wellness-themed building to its Cotai resort, which is Macau's equivalent of the Las Vegas Strip.  

The proposed expansion could include hundreds of additional hotel rooms along with spas and health treatment services. These plans are still in the early stages and may change. Currently, MGM has around 2,000 rooms in Macau, the smallest hotel portfolio among the city's six casino operators.  

According to the report, this initiative is part of MGM's strategy to enhance its non-gaming offerings and draw in mass-market tourists, particularly those with higher spending power, known as the "premium mass" segment. These tourists typically spend thousands of dollars a day. has yet to comment on these developments.  

In line with this strategy, MGM plans to open a new art museum and wellness centre offering traditional Chinese medicine later this year at another Macau resort, located a 15-minute drive from Cotai. Other casino operators, such as Sands China, have also been expanding their non-gaming amenities to attract a broader customer base.  

China's crackdown on junkets, which were agents that helped casinos attract high rollers, has nearly eliminated the VIP segment. As a result, the mass market, which accounted for about 50 percent of Macau's total gaming revenue before the COVID-19 pandemic, made up roughly 75 percent in the first quarter of this year.  

MGM's market share of gaming revenue increased to 17 percent in the first quarter from 10 percent in 2019, thanks to a significant expansion of its gaming tables, an upgrade of resort facilities, and the early adoption of technologies for efficient table management and identifying potential high-value players.  

Under the terms of a 10-year gaming licence extension agreed with the Macau Special Administrative Region (SAR) Government in December 2022, MGM China must invest $1.9 billion (€1.77 billion) in non-gaming projects at its two Macau resorts by 2032. This investment is part of the company's broader strategy to diversify its offerings and attract a wider range of tourists.  

is reportedly focusing its mandated investment on wellness offerings and additional hotel rooms. With around 600 rooms at MGM Macau and about 1,400 at MGM Cotai, the company has the smallest number of hotel rooms among Macau's casino operators. In comparison, Sands China offers approximately 12,400 rooms.  

Macau, under Beijing's direction, has significantly reduced the number of junket operators, who previously kept the high-roller rooms busy. This move aims to curb the outflow of money from the mainland through Macau. As a result, casinos are now targeting the premium mass market, general public consumers who are willing to spend substantial amounts of money on both gaming and non-gaming activities.  

The concept of integrated resorts, which includes casinos, hotels, convention facilities, entertainment venues, luxury shopping, and fine dining, continues to evolve. MGM's focus on wellness is in line with industry trends, as seen with Sands' plan to introduce a Canyon Ranch wellness retreat at its proposed Long Island destination in New York, should it secure a casino licence. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.

In a move that could bring relief to India's online gaming industry, the Union Finance Ministry has proposed an amendment to the Central Goods and Services Tax (CGST) Act, 2017. The proposed amendment involves the introduction of a new Section 11A, which would allow the central government to "not recover the GST not levied or short-levied as a result of general practice." This proposal will be discussed at the upcoming federal GST Council meeting scheduled for June 22nd in New Delhi.  

If accepted, this amendment could lead to the non-recovery of the 28 percent GST on e-gaming, casinos, and horse racing. Industry stakeholders have expressed concerns about the previous tax decision, which they say was implemented without clear guidelines and has led to significant financial challenges.  

The proposed amendment aims to regularize past practices where GST was not fully applied, thereby preventing retrospective tax demands that could financially harm companies. This change could ensure that companies are not held liable for GST that was not levied due to common industry practices.  

The Law Committee's recommendations highlight the importance of legitimising these past practices to avoid financial instability within the sector. However, it is important to note that the proposed changes do not provide for refunds of any excess GST paid due to these practices. This means that while future compliance may become clearer and disputes may be reduced, companies will still bear the burden of any overpaid taxes.  

's GST Council will also address the significant demand notices issued to approximately 80 online gaming companies in India. These demand notices have been a major point of contention, with the industry arguing that the retrospective application of such taxes could lead to severe financial consequences.  

The 52nd GST Council meeting in October 2023 had already set a 28 percent GST on the initial bet amount, with a review pending. Despite industry pushback, sources indicate that the government is likely to maintain its current stance on taxation, citing substantial increases in tax revenue and regulatory benefits since the new regime's implementation. Since October 2023, GST collections from online gaming have surged by 400 percent, reaching an average of Rs. 1,200 crore (€133,889) per month. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.