The Philippine economy could lose up to ₱200 billion a year if the government decides to shut down operations of Philippine Offshore Gaming Operators (POGO), Leechiu Property Consultants warned.
During a Senate hearing on Monday, Senator Francis Escudero asked Leechiu Property Consultants CEO David Leechiu how much the Philippine economy could lose if POGOs leave the country.
"Our estimates are somewhere around ₱170 to ₱200 billion and that's comprised of different parts. A big chunk of it is the real estate market, both in the office being rented and residential condos (condominiums) being rented. And a big chunk in the service sector because the informal economy is significantly employed by this sector also," he said.
The Senate Ways and Means Committee together with the Public Order and Dangerous Drugs Committee conducted an inquiry into the revenue that the government receives from offshore gaming operators.
This as some government officials expressed differing views on whether POGO operations should continue in the Philippines amid security concerns among industry workers.
Leechiu said the sector currently occupies 1.05 million square meters (sq.m.) of office space, mostly in the Bay Area, Alabang, Cavite, Ortigas and Makati, as well as 2.4 million sq.m. of residential space.
Shutting down these companies would lead to an ₱18.9 billion loss in annual office rent, and ₱28.6 billion loss in annual housing rent, and 347,000 losses in employment, among others, he said.
