As the government is judiciously examining the presence of Philippine Offshore Gaming Operators, popularly known as POGO, deporting those who have been illegally hired and have illegally entered the country, a property consultant said the collateral damage for their exodus is the real estate industry that has been benefiting by their presence here.

According to David Leechiu, property analyst and CEO of Leechiu Property Consultants, foregoing POGO operations will cost the country around P952 million a day, based on the spending average of P4,000 per person in the industry.

He said closing POGO's doors will not only mean letting billions in tax revenues go to waste but will also cost the economy billions every year in terms of office and residential rentals, and utilities, among other expenses, especially with 347,000 workers' jobs on the line.

"Estimated losses include P18.9 billion for office rentals, P28.6 billion for residential spaces rented by workers, P9.5 billion in utilities, P54.3 billion in income taxes, P52.5 billion in fit-out costs, and P11.4 billion in meals—this is on top of the estimated P5.8 billion in taxes that lawmakers are willing to forego," according to Leechiu's.

Revenue stream

Philippine Chamber of Commerce and Industry president George Barcelon said that amid the controversies hounding POGO, from alleged crimes because of its operations in the country, there should be a balance between some of the social ills that POGOs bring about to the land, especially the crimes that are highlighted.

"We are concerned about that, anything of that nature. I think the government will closely look at this issue and balance out the impact of the downsizing of POGO. One of the sectors that will be really affected is the realty sector as a lot of buildings that were built in the last five years were solely focused on POGO operators. It will also result in a trickle-down effect on residences and services such as hospitality," he said.

He stressed that legitimate POGO operators provide a revenue stream and job opportunities for the Filipino workforce.

But if the Chinese government has indeed encouraged the Philippine government not to support POGO operators because of the crimes related to the gambling operation, Barcelon said that's a separate story.