Fitch Ratings has painted a rosy picture for the Philippine casino industry as it predicts the local market to see a high, single-digit revenue growth this year.

In its report “Eye in the Sky Series: Philippines,” the global debt watcher pointed out that the initial results of the first three casinos operating under the licenses granted by the Philippine Amusement and Gaming Corp. (PAGCOR) are “encouraging” relative to the investments made.

The growth of the Philippine gaming industry, however, will be restrained by a tough competition from other Asia-Pacific gambling hubs, according to Fitch.

“We expect high single-digit gross gaming revenues in 2017 driven by the opening of the $2.4-billion Okada Manila and the continued economic growth in the Philippines,” Fitch Ratings said. “Longer term, competition from Macau and other APAC (Asia-Pacific) countries will restrain growth (junket-sourced VIP business makes up about one-third of the private casinos’ gross gaming revenues),” the debt watcher added.