Good Morning. As Asia’s tourism markets gradually reopen for business, some are faring better than others in attracting international arrivals. In the first half of this year, Vietnam managed to attract just 12 percent of its target of 5 million tourists this year. For the second half, it plans to step up marketing efforts to India, the U.S., EMEA as it looks to make up for missing Chinese and Russian travelers. Vietnam’s casino industry is viewed as having a bright long-term future, but with locals banned from gambling in all but one property, kick starting its tourism market will be key.
What you need to know
- LVS records $290m loss off the back of Macau pandemic closures, while at the MBS revenues doubled an. EBITDA rose to 18% year-on-year to $319 million USD.
- Staff shortages are hindering the recovery at Genting Malaysia, according to research firm CGS-CIMB, which has cut its core profit forecast for the operator by 52 percent.
- Macau will partially ease its Covid lockdown from July 23rd, allowing some businesses to reopen, with Reuters reporting that casinos are included as of Saturday.
On the radar
- NZ TAB lobbying government to allow novelty betting.
- Resorts World Manila rebrands as Newport World Resorts.
- AGEM Index down 8.1%, Agilysys only positive contributor.
Vietnam is open for business, however international tourism levels are still far below their pre-pandemic peak. Vietnam received 602,000 foreign tourists in the first half of this year. This is 6.8 times the number of arrivals compared to the same period last year when pandemic-related entry restrictions were still in force. However, this is just 12 percent of the five million target set for this year. Soaring prices, coupled with ongoing travel restrictions in some major markets, such as China are dampening demand. Russia was also a major source market for Vietnam and is effectively closed off following the invasion of Ukraine. There has been demand from U.S. travelers, but currently visa-free travel is only available for 15 days and many long-haul travelers want to stay longer. Groups from Singapore and Thailand are also visiting. In the second half of the year, the government plans to step up marketing efforts to bring in tourists from the U.S., Europe, the Middle East and India.