Fitch bullish on APAC gaming sector growth in 2018
Chinese tourism expenditure and regional market recovery will be key growth drivers.
Credit rating agency Fitch is bullish on sustained growth in Asia Pacific’s gaming sector which is forecast to be buoyed by Chinese tourism expenditure, revenue contributions from Macau’s mass-market gaming sector and overall regional market recovery.
Chinese tourists were the largest segment by nationality in Singapore for the first eight months of 2017 and constituted almost a fifth (19%) of total arrivals.
“We feel VIP tourism across the region will continue to recover and ongoing growth in mass-market gaming tourism will support regional expansion and Australian construction,” Fitch said in a press release.
Regional markets continue to post strong performances with Singapore’s gross gaming revenue (GGR) growing 10% YoY in the first half of the year after a 30% crash in 2015-2016.
Macau’s GGR are also projected to grow in the high-single-digit range in 2018 as it benefits from China’s rising middle class and higher levels of infrastructure spending.
Malaysia’s gaming market continues to be stable, underpinned by a mass-market focus at Resorts World Genting. More attractions will also be rolled out which will likely increase visitor arrivals.
VIP revenue from Australia’s gaming operations are also projected to stabilise in 2018, following this year’s slowdown as a result of regulatory actions from China.