Analysts: Macau's VIP market will decrease
After analyzing the VIP-markets of Singapore and Macao, Maybank Kim Eng analyst firm has come to the conclusion that Singapore will become more promising in 2019.
Experts point out that the Singapore VIP segment has the potential for growth in gross game revenue (GGR). With respect to Macao, there are no such bright prospects. The main reasons for the weak Macro GGR analysts called the ban on smoking and the weakening of the economic situation in mainland of China.
Analysts believe that Singapore's GGR of the VIP segment will increase by 5% in 2019 and 2020.
According to a forecast published last week by the exchange agency of the Japanese financial group Nomura, the GGR of the Macau VIP segment will decline by 7.5% in the first half of 2019.
"Given the link between the GGR VIP segments of Macau and Singapore, investors are obviously worried that the Singapore market will also slow down the pace of development in the near future," - says a Maybank report.
Marina Bay Sands and Resorts World Sentosa are two casino resorts owned by Las Vegas Sands Corp and Genting Singapore Ltd. These are the only places where smoking has not been banned.
Maybank also looked at the impact of changes in infrastructure at both sites in Singapore. Both companies have made statements that they want to increase the number of gambling equipment and hotel rooms at casino resorts.
“In the first half of 2019, Genting Singapore is expected to announce its plan to upgrade and expand Resorts World Sentosa. Following this, Las Vegas Sands will announce its intention to expand Marina Bay Sands. At the moment, the details are not enough, but we believe that their plans include an increase in the number of hotel rooms and new tourist attractions in addition to the existing casinos,” - analysts added.
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