• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
02:42 Saturday 16 January 2021
  • 中文中文
  • 日本語日本語
IAG
Advertisement
  • NEWS
    2021: Japan IR – Crunch time

    Meeting of casino opposition party suggests Tokyo IR bid still on the cards

    Yokohama to hold discussions with IR operators to understand impact of COVID-19

    Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

    Reports Yokohama to start RFP in late January

    Reports Yokohama to start RFP in late January

    Hard Rock Japan President declares company still in race for Japan IR

    Hard Rock International acquires London casino license from The Ritz Club

    Going Global

    Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

    Jeju police track down missing Landing International money but suspects on the run

    Trending Tags

    • FEATURES
      2021: Japan IR – Crunch time

      2021: Japan IR – Crunch time

      In safe hands

      In safe hands

      A spirit of social responsibility

      A spirit of social responsibility

      Taxation tremors

      Taxation tremors

      10 years ago

      10 years ago

      Creating an RG culture beyond the boardroom

      Trending Tags

      • PEOPLE
        Dave Smith: Smell of success

        Dave Smith: Smell of success

        Scientific Games insists liquidity position strong after adding US$480 million in debt, cutting costs

        Scientific Games appoints Eileen Moore Johnson as Executive Vice President and Chief Human Resources Officer

        Creation theory

        Creation theory

        Paltronics announces passing of Stephen Cowan, much-admired Managing Director

        Paltronics announces passing of Stephen Cowan, much-admired Managing Director

        Dark days

        POST-COVID2: The most transformative business shock of our lifetimes

        Dominic Laubach: Global explorer

        Dominic Laubach: Global explorer

        Trending Tags

        • COLUMNISTS

          Big money

          A decade of differentiation

          A decade of differentiation

          How to set up for IR success

          How to set up for IR success

          Macau: Taking a sensible approach to responsible gaming

          Macau: Taking a sensible approach to responsible gaming

          Time to realign?

          Time to realign?

          Marketing during COVID-19 and beyond

          Marketing during COVID-19 and beyond

          Trending Tags

          • TECH TALK
            Aruze Gaming launches two new pachinko-inspired slot titles into Asia

            Aruze Gaming launches two new pachinko-inspired slot titles into Asia

            First-class showcase in the virtual space

            First-class showcase in the virtual space

            Badge of honor

            Badge of honor

            Matsui to act as authorized reseller of “Cure Clean” LED space sterilizer

            Matsui to act as authorized reseller of “Cure Clean” LED space sterilizer

            Evolution launches world’s first online live Craps game

            Evolution launches world’s first online live Craps game

            Transcendence

            Transcendence

            Trending Tags

            • iGAMING
              Manila restrictions ease as Duterte implements General Community Quarantine for National Capital Region

              Philippine police arrest eight alleged members of POGO-linked “kidnap for ransom” gang

              PAGCOR reveals substantial POGO revenue rise in 2018 as enforcement role defended

              Philippines court order preventing new 5% franchise tax could halt POGO exodus

              MGM Resorts looking to raise US$750 million via senior notes offering

              MGM Resorts considering US$13 billion takeover offer for Ladbrokes owner Entain

              Evolution launches world’s first online live Craps game

              Evolution launches world’s first online live Craps game

              Duterte extends “modified” quarantine measures across Metro Manila to 31 May

              PAGCOR sees regulatory fees from POGOs halved as Philippines online gaming industry shrinks

              LaLiga signs four-year partnership with M88 in Asia

              LaLiga signs four-year partnership with M88 in Asia

              Trending Tags

              • EVENTS
                Castle in the Sky

                Osaka IR & Inbound Business Seminar canceled due to COVID-19

                SBC launches new SBC Digital 2021 events program

                SBC launches new SBC Digital 2021 events program

                IAG named Lead Media Partner for Phil-Asian Gaming Expo (PAGE)

                Phil-Asian Gaming Expo says Manila’s SMX Convention Centre to be sole venue for PAGE 2021

                IAG spreads Christmas cheer at Macau After Dark 7

                IAG spreads Christmas cheer at Macau After Dark 7

                IAG releases 7-minute long-format post-event highlights video from 2020 Asian Gaming Power 50 Black Tie Gala Dinner

                IAG releases 7-minute long-format post-event highlights video from 2020 Asian Gaming Power 50 Black Tie Gala Dinner

                Inside Asian Gaming names Galeria Lisboa at Macau Fisherman’s Wharf as venue for this Friday’s “MAD Santa” Macau After Dark event

                Scientific Games to showcase new slot game “James Bond – Diamonds Are Forever” at this week’s Macau After Dark 7

                Trending Tags

                • MACAU
                  Going Global

                  Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

                  Macau’s hotel room rates fell almost 50% year-on-year in 4Q20

                  Macau’s hotel room rates fell almost 50% year-on-year in 4Q20

                  G2E Asia to forge ahead with July dates for 2020 trade show

                  G2E Asia postponed until August 2021

                  A spirit of social responsibility

                  A spirit of social responsibility

                  Macau MICE industry loses steam in 1Q18

                  Future of Las Vegas Sands “still in Asia” following passing of founder Sheldon Adelson

                  MGM China says no plans to restructure

                  MGM China subsidiary signs consultancy agreement with Pansy Ho-owned PR and marketing firm

                  Trending Tags

                  • JAPAN
                    2021: Japan IR – Crunch time

                    Meeting of casino opposition party suggests Tokyo IR bid still on the cards

                    Yokohama to hold discussions with IR operators to understand impact of COVID-19

                    Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

                    Reports Yokohama to start RFP in late January

                    Reports Yokohama to start RFP in late January

                    2021: Japan IR – Crunch time

                    2021: Japan IR – Crunch time

                    In safe hands

                    In safe hands

                    Taxation tremors

                    Taxation tremors

                    Trending Tags

                    • REGIONAL
                      • All
                      • Africa
                      • Australia
                      • Cambodia
                      • China
                      • CNMI
                      • Europe
                      • Hong Kong
                      • India
                      • Japan
                      • Laos
                      • Latin America
                      • Macau
                      • Malaysia
                      • Nepal
                      • New Zealand
                      • North America
                      • North Korea
                      • Philippines
                      • Russia
                      • Singapore
                      • South Korea
                      • Sri Lanka
                      • Thailand
                      • Vietnam
                      2021: Japan IR – Crunch time

                      Meeting of casino opposition party suggests Tokyo IR bid still on the cards

                      Yokohama to hold discussions with IR operators to understand impact of COVID-19

                      Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

                      Reports Yokohama to start RFP in late January

                      Reports Yokohama to start RFP in late January

                      Hard Rock Japan President declares company still in race for Japan IR

                      Hard Rock International acquires London casino license from The Ritz Club

                      Going Global

                      Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

                      Jeju police track down missing Landing International money but suspects on the run

                      Trending Tags

                      • POWER 50
                        Power restored

                        Power restored

                        2020 Asian Gaming Power 50: Top of the World

                        2020 Asian Gaming Power 50: Top of the World

                        2020 Asian Gaming Power 50: Meet the panel

                        2020 Asian Gaming Power 50: Meet the panel

                        2020 Asian Gaming Power 50: Ones to watch

                        2020 Asian Gaming Power 50 list

                        2020 Asian Gaming Power 50: Number 4 – Lawrence Ho

                        2020 Asian Gaming Power 50: Number 1 – Francis Lui

                        2020 Asian Gaming Power 50: Number 4 – Lawrence Ho

                        2020 Asian Gaming Power 50: Number 2 – Sheldon Adelson

                        Trending Tags

                        • 中文
                        • 日本語
                        No Result
                        View All Result
                        IAG
                        • NEWS
                          2021: Japan IR – Crunch time

                          Meeting of casino opposition party suggests Tokyo IR bid still on the cards

                          Yokohama to hold discussions with IR operators to understand impact of COVID-19

                          Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

                          Reports Yokohama to start RFP in late January

                          Reports Yokohama to start RFP in late January

                          Hard Rock Japan President declares company still in race for Japan IR

                          Hard Rock International acquires London casino license from The Ritz Club

                          Going Global

                          Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

                          Jeju police track down missing Landing International money but suspects on the run

                          Trending Tags

                          • FEATURES
                            2021: Japan IR – Crunch time

                            2021: Japan IR – Crunch time

                            In safe hands

                            In safe hands

                            A spirit of social responsibility

                            A spirit of social responsibility

                            Taxation tremors

                            Taxation tremors

                            10 years ago

                            10 years ago

                            Creating an RG culture beyond the boardroom

                            Trending Tags

                            • PEOPLE
                              Dave Smith: Smell of success

                              Dave Smith: Smell of success

                              Scientific Games insists liquidity position strong after adding US$480 million in debt, cutting costs

                              Scientific Games appoints Eileen Moore Johnson as Executive Vice President and Chief Human Resources Officer

                              Creation theory

                              Creation theory

                              Paltronics announces passing of Stephen Cowan, much-admired Managing Director

                              Paltronics announces passing of Stephen Cowan, much-admired Managing Director

                              Dark days

                              POST-COVID2: The most transformative business shock of our lifetimes

                              Dominic Laubach: Global explorer

                              Dominic Laubach: Global explorer

                              Trending Tags

                              • COLUMNISTS

                                Big money

                                A decade of differentiation

                                A decade of differentiation

                                How to set up for IR success

                                How to set up for IR success

                                Macau: Taking a sensible approach to responsible gaming

                                Macau: Taking a sensible approach to responsible gaming

                                Time to realign?

                                Time to realign?

                                Marketing during COVID-19 and beyond

                                Marketing during COVID-19 and beyond

                                Trending Tags

                                • TECH TALK
                                  Aruze Gaming launches two new pachinko-inspired slot titles into Asia

                                  Aruze Gaming launches two new pachinko-inspired slot titles into Asia

                                  First-class showcase in the virtual space

                                  First-class showcase in the virtual space

                                  Badge of honor

                                  Badge of honor

                                  Matsui to act as authorized reseller of “Cure Clean” LED space sterilizer

                                  Matsui to act as authorized reseller of “Cure Clean” LED space sterilizer

                                  Evolution launches world’s first online live Craps game

                                  Evolution launches world’s first online live Craps game

                                  Transcendence

                                  Transcendence

                                  Trending Tags

                                  • iGAMING
                                    Manila restrictions ease as Duterte implements General Community Quarantine for National Capital Region

                                    Philippine police arrest eight alleged members of POGO-linked “kidnap for ransom” gang

                                    PAGCOR reveals substantial POGO revenue rise in 2018 as enforcement role defended

                                    Philippines court order preventing new 5% franchise tax could halt POGO exodus

                                    MGM Resorts looking to raise US$750 million via senior notes offering

                                    MGM Resorts considering US$13 billion takeover offer for Ladbrokes owner Entain

                                    Evolution launches world’s first online live Craps game

                                    Evolution launches world’s first online live Craps game

                                    Duterte extends “modified” quarantine measures across Metro Manila to 31 May

                                    PAGCOR sees regulatory fees from POGOs halved as Philippines online gaming industry shrinks

                                    LaLiga signs four-year partnership with M88 in Asia

                                    LaLiga signs four-year partnership with M88 in Asia

                                    Trending Tags

                                    • EVENTS
                                      Castle in the Sky

                                      Osaka IR & Inbound Business Seminar canceled due to COVID-19

                                      SBC launches new SBC Digital 2021 events program

                                      SBC launches new SBC Digital 2021 events program

                                      IAG named Lead Media Partner for Phil-Asian Gaming Expo (PAGE)

                                      Phil-Asian Gaming Expo says Manila’s SMX Convention Centre to be sole venue for PAGE 2021

                                      IAG spreads Christmas cheer at Macau After Dark 7

                                      IAG spreads Christmas cheer at Macau After Dark 7

                                      IAG releases 7-minute long-format post-event highlights video from 2020 Asian Gaming Power 50 Black Tie Gala Dinner

                                      IAG releases 7-minute long-format post-event highlights video from 2020 Asian Gaming Power 50 Black Tie Gala Dinner

                                      Inside Asian Gaming names Galeria Lisboa at Macau Fisherman’s Wharf as venue for this Friday’s “MAD Santa” Macau After Dark event

                                      Scientific Games to showcase new slot game “James Bond – Diamonds Are Forever” at this week’s Macau After Dark 7

                                      Trending Tags

                                      • MACAU
                                        Going Global

                                        Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

                                        Macau’s hotel room rates fell almost 50% year-on-year in 4Q20

                                        Macau’s hotel room rates fell almost 50% year-on-year in 4Q20

                                        G2E Asia to forge ahead with July dates for 2020 trade show

                                        G2E Asia postponed until August 2021

                                        A spirit of social responsibility

                                        A spirit of social responsibility

                                        Macau MICE industry loses steam in 1Q18

                                        Future of Las Vegas Sands “still in Asia” following passing of founder Sheldon Adelson

                                        MGM China says no plans to restructure

                                        MGM China subsidiary signs consultancy agreement with Pansy Ho-owned PR and marketing firm

                                        Trending Tags

                                        • JAPAN
                                          2021: Japan IR – Crunch time

                                          Meeting of casino opposition party suggests Tokyo IR bid still on the cards

                                          Yokohama to hold discussions with IR operators to understand impact of COVID-19

                                          Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

                                          Reports Yokohama to start RFP in late January

                                          Reports Yokohama to start RFP in late January

                                          2021: Japan IR – Crunch time

                                          2021: Japan IR – Crunch time

                                          In safe hands

                                          In safe hands

                                          Taxation tremors

                                          Taxation tremors

                                          Trending Tags

                                          • REGIONAL
                                            • All
                                            • Africa
                                            • Australia
                                            • Cambodia
                                            • China
                                            • CNMI
                                            • Europe
                                            • Hong Kong
                                            • India
                                            • Japan
                                            • Laos
                                            • Latin America
                                            • Macau
                                            • Malaysia
                                            • Nepal
                                            • New Zealand
                                            • North America
                                            • North Korea
                                            • Philippines
                                            • Russia
                                            • Singapore
                                            • South Korea
                                            • Sri Lanka
                                            • Thailand
                                            • Vietnam
                                            2021: Japan IR – Crunch time

                                            Meeting of casino opposition party suggests Tokyo IR bid still on the cards

                                            Yokohama to hold discussions with IR operators to understand impact of COVID-19

                                            Yokohama city moves its first IR Business Briefing online in response to Japan’s state of emergency

                                            Reports Yokohama to start RFP in late January

                                            Reports Yokohama to start RFP in late January

                                            Hard Rock Japan President declares company still in race for Japan IR

                                            Hard Rock International acquires London casino license from The Ritz Club

                                            Going Global

                                            Melco consolidated debt to reach US$7 billion in 2021 on COVID, capex pressures: Moody’s

                                            Jeju police track down missing Landing International money but suspects on the run

                                            Trending Tags

                                            • POWER 50
                                              Power restored

                                              Power restored

                                              2020 Asian Gaming Power 50: Top of the World

                                              2020 Asian Gaming Power 50: Top of the World

                                              2020 Asian Gaming Power 50: Meet the panel

                                              2020 Asian Gaming Power 50: Meet the panel

                                              2020 Asian Gaming Power 50: Ones to watch

                                              2020 Asian Gaming Power 50 list

                                              2020 Asian Gaming Power 50: Number 4 – Lawrence Ho

                                              2020 Asian Gaming Power 50: Number 1 – Francis Lui

                                              2020 Asian Gaming Power 50: Number 4 – Lawrence Ho

                                              2020 Asian Gaming Power 50: Number 2 – Sheldon Adelson

                                              Trending Tags

                                              • 中文
                                              • 日本語
                                              No Result
                                              View All Result
                                              IAG
                                              No Result
                                              View All Result

                                              Slow ride

                                              Muhammad Cohen by Muhammad Cohen
                                              Monday 5 October 2020 at 00:16
                                              Slow ride
                                              55
                                              SHARES
                                              1.4k
                                              VIEWS

                                              For Macau and other Asian gaming destinations, full revenue recovery from COVID-19 won’t be quick.

                                              Since gaming liberalization in Macau, the mantra has been “If you build it, they will come.” In the brave new world of COVID-19, across Asia the mantra has shifted to “If we open it, will they come?”

                                              RelatedPosts

                                              2021: Japan IR – Crunch time

                                              2021: Japan IR – Crunch time

                                              Thursday 14 January 2021 at 15:41

                                              Big money

                                              Thursday 14 January 2021 at 14:52
                                              In safe hands

                                              In safe hands

                                              Thursday 14 January 2021 at 14:29
                                              A spirit of social responsibility

                                              A spirit of social responsibility

                                              Thursday 14 January 2021 at 13:14
                                              Load More

                                              As border restrictions ease and more casino floors welcome visitors again, early answers will emerge. Whatever the shape of this initial gaming recovery, it can’t mask the long climb ahead to return the industry to pre-coronavirus revenue levels.

                                              “Hopefully, Macau’s GGR can return to 2019 levels by 2022 or 2023,” University of Macau gaming expert Ricardo Siu says. The prognosis around the region is hardly more promising as casinos operate with fewer chairs at gaming tables, alternating machines deactivated and other capacity limits.

                                              Still, easing travel restrictions promises significant improvement on gaming revenues down 95% from

                                              April through August in Macau, and zero casino revenue during the second quarter in Singapore, the Philippines and Cambodia.

                                              Since a government-mandated 15-day shutdown in February, Macau casinos have remained open throughout the pandemic. Travel restrictions, tightened in March, began loosening in July, first for visitors from neighboring Zhuhai – with a green health code from mainland China’s travel tracing app and negative test for the virus within seven days – then for all of Guangdong province, followed by resumption of Individual Visit Scheme (IVS) visas for Guangdong residents in August and for the rest of mainland China from 23 September. IVS travelers to Macau numbered a record 13.1 million last year, accounting for 47% of 27.9 million mainland visitors, and one-third of the 39.4 million overall arrivals. Visitors of all types from Guangdong represented similar numbers in 2019.

                                              To jumpstart travel, the Macau Government Tourism Office and the six casino concessionaires launched a mainland marketing campaign with special promotions for visitors. Observers expect visa issuance will be back to pre-COVID normal by the middle of October.

                                              GOODBYE LBITDA?

                                              Analysts believe gaming revenue will grow as visitors return. Morgan Stanley Asia Pacific Managing Director Praveen Choudhary forecasts October GGR will be down 70% from last year’s US$3.3 billion, Macau’s highest gaming revenue month of 2019.

                                              JP Morgan Head of Asian Gaming, Leisure and Education DS Kim is more optimistic, forecasting GGR down 55% to 60%.

                                              “This is an important mark, as most operators can print positive EBITDA with break-even points hovering at 35% to 45% of 2019 levels,” Kim writes in a report with analysts Derek Choi and Jeremy An.

                                              Border restrictions between Macau and mainland China have severely impacted Macau’s gross gaming revenues.

                                              For the full fourth quarter, Sanford Bernstein Senior Analyst Vitaly Umansky estimates recovery accelerating to a 40% decline from last year’s US$9 billion. JP Morgan’s Kim sees a fourth quarter decline of 40% to 45%, with 2021 revenue down 15% in the first quarter, 10% in the second quarter and back to 2019 levels in the third quarter.

                                              At the other end of spectrum, The Innovation Group Senior Vice President, International Operations Planning & Analysis Michael Zhu projects fourth quarter GGR down at least two-thirds, “more likely in the 70% to 75% range.”

                                              “I remain less than optimistic about Macau,” Klebanow Consulting Principal Andrew Klebanow says. “Macau GGR levels will not recover to pre-pandemic levels until there is a safe and effective vaccine coursing through the veins of 70% of the population. In all likelihood that will not occur until sometime in 2022, with gaming revenues returning to pre-pandemic levels in 2023.”

                                              Adds Zhu, “It’ll probably take more than a year to see a full recovery, with success in vaccines and/or cure medicines, but then the upcoming retendering of concessions in 2022 may make it more cloudy in other aspects.”

                                              CONSUMER CONFIDENCE

                                              Forecasts “remain largely educated guesses at this time,” a September research note from Bernstein’s Umansky with analysts Tianjiao Yu and Kelsey Zhu cautions. “We believe the drivers of recovery will be confidence levels of customers to travel and spend, opening up Hong Kong to Macau travel and an increase in frequency of air transportation within Greater China to airports in Guangdong/HK/Macau to facilitate long-haul travel. Further, the pace of recovery will be partly driven by the economic environment in China, including any significant monetary easing (with the latter looking less likely at present).”

                                              Despite the pandemic slowdown, Zhu believes Chinese consumers have enough disposable income to support gaming recovery.

                                              “They do in the long run, but unlikely within the next 12 months or so,” he says. “A lot of them are sort of in a wait-and-see mode before they feel sure about which direction to go.”

                                              Says Sui, who also directs the University of Macau’s Center for Tourism and Integrated Resort Studies, “Negative income and wealth effects to Chinese patrons under the trade war and political tensions between the US and China may continue vexing the market in the coming years.”

                                              HONG KONG CONNECTION

                                              There’s still a big piece of Macau’s travel puzzle missing – Hong Kong – which, unlike Macau, has experienced repeated waves of COVID outbreaks. Travelers from Hong Kong to Macau remain subject to 14-day quarantine. Hong Kong accounted for 7.35 million visitors, nearly one-in-five Macau arrivals, in 2019. But its impact goes beyond that.

                                              “A lot of people don’t understand: so much of the traffic to Macau is driven through Hong Kong,” Delta State Holdings Managing Partner David Bonnet explains. That includes mainland travelers, often from Shenzhen, that combine visits to Hong Kong and Macau, and those arriving at Hong Kong International Airport bound for Macau, a transfer simplified by the Hong Kong-Zhuhai-Macau bridge.

                                              “They spent 15 years figuring out their infrastructure with no barriers to the airport, with building a US$20 billion bridge, with all the bus contracts,” Bonnet, a former Macau gaming executive, says.

                                              The Innovation Group Senior Vice President, International Operations Planning & Analysis, Michael Zhu.

                                              “They developed a very efficient system to attract a huge number of tourists into a relatively small geographic area. Then they were very efficient at putting roadblocks on that all of a sudden [due to COVID-19], and they’re going to have to figure out a way to get back to where they were, and that includes Hong Kong.”

                                              Most analysts expect premium players to lead Macau’s recovery. Limited capacity suggests operators will market to their biggest spenders. Analysts believe premium players have been less impacted by economic ills accompanying the virus and are more ready to travel. But not everyone believes VIPs will lead Macau’s revival.

                                              “Recovery in Macau has to rely on mass. VIP is such low-quality revenue, a low-margin, high-volatility, commoditized business that’s highly competitive,” Bonnet says.

                                              “Integrated resorts are built on business plans that require 20,000 people or more every day to drive primarily mass market [gaming], mass-market and luxury retail businesses,” Bonnet adds. “IRs can’t sustain on a couple of VIPs coming in and playing.”

                                              HOME COOKING

                                              Beyond Macau, Singapore reopened its IRs on 1 July. In late August, PAGCOR greenlighted Manila casinos to begin “trial run” reopenings at 30% capacity. Korea’s foreigner-only casinos have opened and closed in response to new coronavirus outbreaks, while Kangwon Land has been mainly closed throughout. Self-governing Jeju island’s Casino Policy Division has implemented COVID response protocols and has four of its eight casinos open. Vietnam’s only casino for nationals, Corona Resort on Phu Quoc island, is waiving the entry fee for qualified citizens through 14 October. Those destinations and others around the region have virtually no foreign visitors entering – particularly challenging for foreigner-only casinos.

                                              “The formation of travel bubbles between adjacent nations that have tamed the virus presents the best opportunity for an initial recovery,” Andrew Klebanow says. “Unfortunately, travel bubbles, like most bubbles, are fragile. Any resurgence of the virus in one nation can cause a travel bubble to burst.”

                                              Marina Bay Sands and Resorts World Sentosa gaming floors are open only to their loyalty card holders and players that have paid Singapore’s SG$3,000 (US$2,205) annual entry fee for that casino. Singapore permits “essential” business travel from Malaysia, China, South Korea and Japan (as of 18 September) with sponsorship by companies or government agencies, testing upon departure and upon arrival, plus a “controlled itinerary” for the first 14 days, and from early September allowed visitors from New Zealand and Brunei without quarantine, resulting in a handful of daily arrivals. Sources indicate these exceptions have not had meaningful impact on casino revenue.

                                              Major RWS attractions Universal Studios and S.E.A. Aquarium are open along with hotels and the “majority” of F&B and retail outlets, management tells Inside Asian Gaming. Morgan Stanley’s Choudhary, Gareth Leung and Thomas Allen write that RWS has the “highest revenue exposure to international travelers among regional peers, at 75%,” so it figures to recover more slowly than MBS until international travel is restored.

                                              At MBS, the rooftop SkyPark is open along with the infinity pool, the latter for hotel guests only (as usual) by appointment. MBS plans to resume conventions in October under a Singapore pilot program with a limit of 250 delegates. MBS says its MICE events will have COVID-19 health and safety protocols and be carbon neutral.

                                              TRIAL RUN

                                              In the Philippines, Morgan Stanley estimates 53% gaming revenue at Bloomberry Resorts’ Solaire is derived from local players, making it a good recovery bet. Solaire has been accommodating long-term guests throughout the pandemic.

                                              Regulator PAGCOR’s “trial run” easing enabled Solaire to reopen retail and most restaurants, along with the casino for “invited guests,” according to Bloomberry CFO and Treasurer Estella Tuason-Occeña.

                                              “We are ready to reopen more of our capacity as soon as we are allowed to by PAGCOR and the government,” Tuason-Occeña explains.

                                              City of Dreams Manila COO Kevin Benning says, “During the lockdown, we focused on building a new digital interface for our clients that will deliver them the highest level of service and support, powered by a number of touchpoints” including an app and Visitor Information Kiosks on site.

                                              “As we are concerned with the safety and security of our team members and guests, we have decided to operate with limited F&B outlets and limited retail options,” Okada Manila Senior Vice President-Premium Marketing Shirley Tam says. Resorts World Manila didn’t respond to inquires from IAG.

                                              The region’s early recovery crown belongs to NagaWorld in Phnom Penh, which also hosted hotel guests throughout the pandemic. Since NagaWorld reopened its gaming floor in July, amid capacity controls and social distancing restrictions, Morgan Stanley estimates VIP rolling at 98% of first quarter numbers, mass table volume at 90% and slot volume at 93%.

                                              “We estimate 40% to 45% of Naga’s 2019 GGR exposure is to domestic gamblers, which is not affected by travel ban/quarantine measures,” the analysts write, referring to the 100,000-plus Chinese and other expatriates resident in Cambodia’s capital.

                                              “As casinos opened up in the United States with limited non-gaming offerings, they experienced dramatically improved operating margins,” Klebanow, a seasoned casino executive, notes. “Unprofitable dining outlets, primarily buffets, were closed and headline entertainment was suspended. With just slot and table game revenue, margins improved. Any non-gaming amenity that violates social distancing guidelines will remain closed until the pandemic is abated.”

                                              And, if it’s up to bean counters, maybe beyond.

                                              Blacklist Shadows

                                              In late August, China’s Ministry of Culture and Tourism declared it would create a “blacklist” of overseas gambling destinations that target mainland Chinese travelers. Beijing threatens travel bans in response, no details given.

                                              “While outbound tourism from China has been nil in the recent six months, we suspect the PRC initiative is at least partially in response to ongoing online gaming, video streaming and proxy betting as well as a further attempt to control capital outflows,” Union Gaming Global Head of Institutional Research John DeCree says. “Markets such as the Philippines, Vietnam, Cambodia, Russia and Korea could all be possible targets of the travel ban.”

                                              Klebanow Consulting Principal Andrew Klebanow adds, “The announcement’s purpose was to deliver a clear message to certain nations, particularly the Philippines, that China will not tolerate seeing US$8 billion a year in online gambling losses flow out of the country.

                                              “Cambodia heeded China’s request and shut down its online gaming operations at the end of 2019. President Duterte rebuffed the PRC’s request and allowed Philippine Offshore Gaming Operations [POGOs] to continue to operate. There will be a price to pay for that.”

                                              CAPITAL CONTROLS

                                              China’s efforts aren’t only about punishment.

                                              “To ensure the effectiveness of fiscal and monetary policies to stimulate internal demand and ensure economic stability in the mainland, the Chinese government’s administrative measures to control capital and fund outflows from the mainland will remain serious in the foreseeable future,” University of Macau Associate Professor of Business Economics Ricardo Siu says.

                                              Macau is not a target of the blacklist, but high-end Chinese gamblers often use shadow banking services that mainland authorities are targeting.

                                              “It’s inevitable we will see some dent in the pace of VIP recovery given potential collateral damage,” JP Morgan analysts DS Kim, Derek Choi and Jeremy An write.

                                              “The junkets/agents who bring players to non-Macau markets are the same ones as those in Macau, and they will most likely keep a low profile for now to avoid any fallout from the clampdown.”

                                              There have also been recent reports of cash withdrawals en masse from Macau’s junkets on concerns over their ability to access funds, and rumors that some, including Suncity Group, may be facing their own financial shortfall due to COVID-19.

                                              Suncity has denied this, with CEO Alvin Chau even going to the extreme of revealing the junket’s financials in July in order to allay investor concerns.

                                              “We have the capability and enough capital to offset any bad debts and chip deposits of all clients,” Chau said. “I would like to reiterate that Suncity is a very stable financial platform.”

                                              Overall, though, Beijing would prefer for Chinese that gamble to do it in Macau, where they can be more carefully monitored, rather than overseas. An executive requesting anonymity likened China’s action to “flood control,” distributing the problem to the least harmful location.

                                              Morgan Stanley analysts Praveen Choudhary, Gareth Leung and Thomas Allen see the blacklist in the longer term “as positive for Macau, which could benefit from onshoring of gaming spending similar to luxury retail sales.”

                                              They write, “Chinese gamers drive the majority of VIP revenue at overseas destinations (Singapore, the Philippines and Cambodia), and that could add up to 30% more VIP revenue for Macau.”

                                              Tags: Andrew KlebanowCenter for Tourism and Integrated Resort StudiesCurrent IssueDerek ChoiDS KimIVSJeremy AnJP MorganKelsey ZhuKlebanow ConsultingMacau Government Tourism OfficeMichael ZhuPraveen ChoudharyRicardo SiuSanford BernsteinThe Innovation GroupTianjiao YuVitaly Umansky
                                              Share22Share4
                                              Muhammad Cohen

                                              Muhammad Cohen

                                              Muhammad Cohen is Editor at Large of Inside Asian Gaming, a contributor to Forbes Asia and wrote Hong Kong On Air, a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie.

                                              Current Issue

                                              2021: Japan IR – Crunch time

                                              2021: Japan IR – Crunch time

                                              by Andrew W Scott
                                              Thursday 14 January 2021 at 15:41

                                              Owning and operating an integrated resort in Japan remains the undisputed holy grail of the global gaming industry. But introducing...

                                              Big money

                                              by Steve Karoul
                                              Thursday 14 January 2021 at 14:52

                                              “Even in the high tech world of today’s casino operations, sometimes it‘s the simplest solutions that work best” says industry...

                                              In safe hands

                                              In safe hands

                                              by Shintaro Kamimura
                                              Thursday 14 January 2021 at 14:29

                                              IAG sits down with Dr Naoyuki Nishimura, chairman of the Recovery Support Network, to discuss his work assisting pachinko players...

                                              A spirit of social responsibility

                                              A spirit of social responsibility

                                              by Wendi Song
                                              Thursday 14 January 2021 at 13:14

                                              Inside Asian Gaming meets the owners of three local SMEs at Broadway Macau to find out how partnering with Galaxy...

                                              Related Posts

                                              2021: Japan IR – Crunch time

                                              2021: Japan IR – Crunch time

                                              by Andrew W Scott
                                              Thursday 14 January 2021 at 15:41

                                              Owning and operating an integrated resort in Japan remains the undisputed holy grail of the global gaming industry. But introducing a totally new IR industry to Japan has been a rocky road with more twists than an Agatha Christie novel...

                                              In safe hands

                                              In safe hands

                                              by Shintaro Kamimura
                                              Thursday 14 January 2021 at 14:29

                                              IAG sits down with Dr Naoyuki Nishimura, chairman of the Recovery Support Network, to discuss his work assisting pachinko players with a gambling problem. Japan is on its way to developing its first IRs. One of the primary demands accompanying...

                                              A spirit of social responsibility

                                              A spirit of social responsibility

                                              by Wendi Song
                                              Thursday 14 January 2021 at 13:14

                                              Inside Asian Gaming meets the owners of three local SMEs at Broadway Macau to find out how partnering with Galaxy Entertainment Group has helped them reach dizzying new heights. According to an old Chinese proverb, “Give a poor man a...

                                              Taxation tremors

                                              Taxation tremors

                                              by Tomo Yamamoto
                                              Thursday 14 January 2021 at 12:16

                                              IAG takes a deeper look at how Japan’s tax system for IRs will work when it comes to taxing local residents, after the government recently revealed foreigners will be exempt from paying tax on winnings. The general framework for taxation...

                                              IAG

                                              © 2005-2021 Inside Asian Gaming. All rights reserved.

                                              • SUBSCRIBE
                                              • NEWS
                                              • FEATURES
                                              • PEOPLE
                                              • COLUMNISTS
                                              • TECH TALK
                                              • iGAMING
                                              • EVENTS
                                              • MACAU
                                              • JAPAN
                                              • REGIONAL
                                              • POWER 50
                                              • 中文
                                              • 日本語

                                              No Result
                                              View All Result
                                              • 中文
                                              • 日本語
                                              • Subscribe
                                              • News
                                              • Features
                                              • People
                                              • Columnists
                                              • Tech Talk
                                              • iGaming
                                              • Events
                                              • Macau
                                              • Japan
                                              • Regional
                                              • Power 50
                                              • Magazines
                                              • Advertise
                                              • Contact
                                              • About
                                              • 中文
                                              • 日本語

                                              © 2005-2021 Inside Asian Gaming. All rights reserved.