Gaming revenue to grow 12 pct in 2017: Fitch

Fitch Ratings is forecasting Macau gaming revenue to grow 12 percent this year, with near equal contribution from the VIP and mass market.

Fitch made the forecast in its “All In: Global Gaming Handbook”, released on Wednesday.

“VIP growth has been exceeding Fitch’s expectations growing 13 percent year over year in fourth-quarter 2016 and 17 percent in first-quarter 2017,” said Fitch.

“Possible attributes to this outperformance in VIP could be stronger economic indicators on mainland, players getting acclimated to China’s corruption crackdown initiatives and China’s authorities heightened crackdown on casino marketing by foreign companies.”

On the other hand, Fitch sees the mass market to be driven mainly by healthy consumer spending, increasing room capacity, and the underpenentration of the Asia-Pacific region for the mass market segment.

“Despite being delayed, pending infrastructure projects, such as the bridge to Hong Kong, a permanent Taipa ferry terminal, a rail link to Zhuhai airport and intra city light rail, should make Macau more accessible,” the ratings agency added.

More news from this jurisdiction

MacauWednesday, Sep 20, 2017

Macau’s gaming regulator is hoping to add more inspectors to its roster by year end.

MacauWednesday, Sep 20, 2017

MGM is making donations and offering volunteer support for the Macau community post Typhoon Hato.

MacauWednesday, Sep 20, 2017

It may take two years before the underground border gate bus terminal is fully restored, according to Macau’s transport and infrastructure officials.

MacauMonday, Sep 18, 2017

Melco Resorts & Entertainment announced today it has garnered the PATA Gold Award in the Hospitality Category for its collaboration with Hunan TV’s number one reality show Up Idol II in 2016.

MacauMonday, Sep 18, 2017

Macau GGR saw a slight uptick last week, with ADR recovering marginally week-on-week as a result of a higher VIP hold rate, said the brokerage.

MacauMonday, Sep 18, 2017

In the aftermath of recent typhoons, Sands China has been contributing toward various disaster relief efforts including transportation, technical and professional support, SME support and long-term assistance.

MacauMonday, Sep 18, 2017

The opening of the 780-room Morpheus, continued ramp up of Studio City, and forecasted GGR growth at City of Dreams Manila is set to drive growth for Melco Resorts and Entertainment.