IAG June 2015 - page 10

In Focus
that helping the situation. “I’m not sure bigger junkets have any
advantages,’ he says. “At some point, mass will become 70-to-80%
of gaming revenue.”
“The fear factorwithinChina ishere tostay,”SanfordCBernstein
(Hong Kong) Global Gaming Senior Analyst Vitaly Umansky says.
“But at some point it becomes the norm, andpeoplewill come back
to gaming.Whether they come back toMacau is another question.”
He contends, “The challenge is bringing product to the market
“Studio City could drive incremental demand. It’s a potential game
changer”Mr Umansky, who onceworked for the property’sminority
owner New Cotai, says. “That’s the most valuable piece of land in
Macau,” adjacent to the Lotus Bridge border crossing to Hengqin
island and a stop onMacau’s light rail line. Studio City will include
a figure-eight Ferris wheel built into the art deco structure, a family
entertainment area with Warner Brothers and DC Comics themes
featuring theBatmanDarkKnightFlight ride, plusa televisionstudio,
5,000-seat arena and The House of Magic, featuring traditional
mastersof illusionandprestidigitation,plusmultimedia technologies
in threedifferent settings.
Mr Umansky believes Sands China’s Parisian and Wynn Cotai,
both scheduled to open in the first half of next year, could also be
demand drivers. “My base case is fundamentals bottoming late this
year.Mass picks up early next year,” he says.
The only investment banking analysts based in Macau, Union
GamingResearchMacau, upgraded the city’s gaming sector tobuy
in January.“Clearly the turnaroundhasnothappenedyet,”Managing
“The fear factorwithinChina ishere to
stay,”SanfordCBernstein (HongKong)
Umansky says. “Butat somepoint it
becomes thenorm, andpeoplewill come
back togaming.Whether they comeback
toMacau isanotherquestion.”
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