Australia faces slow growth amidst bush fires, weak VIP

Australia bushfire
Australia bushfire

Australia’s gaming industry faces an uncertain 2020, as the catastrophic bushfires deter foreign visitation and hit already softening domestic demand. The country’s two main operators reported a slowdown in their 2019 statements due to weakness in the VIP market as a result of China’s economic slowdown. They now have to contend with the likelihood of a further downturn in tourism dollars and a drop in discretionary spending at home. Consumer sentiment had already weakened significantly in Australia before Christmas with the Westpac index of consumer sentiment down 1.9 percent in December from the prior month and down 8.9 percent from the year earlier.  Domestic revenue is the backbone of Australia’s gaming industry and in the year to end-June had been the bright spot, helping to offset falling VIP spending. “In our view, the fallout from the bushfires may further dampen sentiment towards gaming as domestic leisure travel, or general entertainment spending may be...

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