MANILA (2nd UPDATE) — China has blacklisted the Philippines as a tourist destination due to the continued operations of offshore gambling firms, Senate President Juan Miguel Zubiri said on Tuesday.

Zubiri, who met with Chinese Ambassador to the Philippines Huang Xilian, said the envoy informed senators about the blacklist due to POGOs or Philippine offshore gaming operators.

Chinese ambassador to the Philippines Huang Xilian confirmed meeting with senators on Monday afternoon, but did not elaborate beyond the topics discussed.

"We exchanged views on further strengthening the relationship between China and the Philippines and discussed practical cooperation on renewable energy, electrical cars, people-to-people and cultural exchanges, joint development of oil and gas, cracking down on POGO-related crimes among others," he said on Facebook.

The Chinese Embassy later issued another statement.

“Crimes induced by and associated with POGO not only harm China’s interests and China-Philippines relations, but also hurt the interests of the Philippines. It is therefore widely believed that social costs of POGO far outweigh its economic benefits to the Philippines in the long run and POGO should be tackled from the root so as to address the social ills in a sweeping manner,” it said.

They added that they “appreciate” the Philippines’ efforts against some POGO companies.

“The Chinese Embassy has been in close communication with the Philippine law enforcement agencies and stepped up cooperation on cracking down POGO-related criminal activities against Chinese citizens in the Philippines. It is appreciated that relevant Philippine law enforcement agencies rescued a number of Chinese citizens and shut down some POGO companies during their operations,” it said.

POGOs target customers in China, where gambling is illegal. Beijing has previously called on Manila to ban all forms of online gambling.

According to data from the tourism department, Chinese arrivals by air accounted for 1.37 percent or 22,236 passengers out of the total tourist entries from February to September.

In September, talks of banning POGOs reached the Senate, with Sen. Grace Poe citing the "high social costs" brought by the gambling operations.

Noting a string of POGO-related abductions and decreasing tax collections from the industry, she said the Philippines must consider "creative ways" to generate income.

"Hindi naman kasi puwede na porket kumikita tayo sa isang bagay 'yun na lang ang susuportahan natin. Isipin din natin, 'Ano ang kapalit nito?'" she said.

(We cannot support something just because we earn from it. We should also ask, 'What are we exchanging for this?')

Receivables from operators of POGOs reached P2.328 billion as of the end of 2021, according to a government audit on the Philippine Amusement and Gaming Corporation (Pagcor).

Sen. Risa Hontiveros meanwhile recently flagged a rise in the number of sexually transmitted diseases in one POGO office.

"Nakakagalit na parang wala na talagang sinasanto ang mga POGO. Ang ibinigay natin sa kanila ay kaunting espasyo para makapagnegosyo, pero imbes na tulungan ang ating ekonomiya ay binaboy nila ang ating lipunan," Hontiveros said.

Senate Minority Leader Aquilino “Koko” Pimentel III and Majority Leader Joel Villanueva are also pushing for a halt in POGO operations.

Justice Secretary Crispin Remulla recently ordered police to go after 175 operators whose licenses had been revoked but continued to operate illegally.

The country this month will start deporting the estimated 40,000 Chinese workers employed by those businesses, justice department spokesman Dominic Clavano said, after reports of POGOs involved in "murder, kidnapping and prostitution".

China has welcomed the latest crackdown.

"Crimes induced by and associated with online gambling not only harm China's interests and China-Philippines relations, but also hurt the interests of the Philippines," the Chinese embassy in Manila said.

About 34 POGOs are licensed to operate and around 130 support services are registered, according to Pagcor.

Finance Secretary Benjamin Diokno said in September he wanted online gaming operators banned.

"If you ask my personal opinion on this, let's discontinue with the POGO because of the social cost," he told a Senate hearing.

Diokno said revenues from POGOs peaked in 2020 at P7.2 billion but fell sharply last year to P3.9 billion.

Not everyone agrees.

David Leechiu, chief executive of Manila-based Leechiu Property Consultants, estimated the Philippine economy could lose P200 billion in rental revenue and salaries if POGOs were expelled.

"It's one of those drivers of the economy that we should not take for granted," he told AFP.

"Yes, there are problems but what business does not have a problem?"

— With a report from Agence France-Presse

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