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

MacauMonday, Jul 24, 2017

The Statistics and Census Service (DSEC) reported a small rise in visitor arrivals to Macau in the month of June, up 0.9 percent year-on-year, but down 7.5 percent month-on-month.

MacauMonday, Jul 24, 2017

Macau saw a strong week-on-week increase in ADR for the week ended July 23, due to higher VIP hold and volume, and strong visitation.

MacauMonday, Jul 24, 2017

Secretary for Economy and Finance Lionel Leong Vai Tac has vowed not to become complacent after being given a positive rating by the Asia Pacific Group on Money Laundering (APG) for its efforts in anti-money laundering.

MacauSunday, Jul 23, 2017

Macau’s Judiciary Police raided a fake VIP gaming room in Nape on Wednesday, arresting 19 gang members.

MacauThursday, Jul 20, 2017

Macau has been given a positive rating by the Asia Pacific Group on Money Laundering (APG) for its efforts in anti-money laundering, according to a statement from the Financial Intelligence Office.

MacauThursday, Jul 20, 2017

Macau saw its occupancy rate rise 3.1 percentage points to 88.5 percent year-on-year in the month of June, according to data from the Macau Hotel Association (MHA).

MacauWednesday, Jul 19, 2017

Macau’s authorities received a total of 179 requests for casino exclusions in the first half of 2017, according to data from the Gaming Inspection and Coordination Bureau (DICJ).