Inside Asian Gaming

INSIDE ASIAN GAMING | October 2011 10 Despite the burgeoning growth we project for the next decade, per-capita gaming spending in China is most likely to remain below that in the USA in 2020 (estimated US$78 versus US$211). Over 2010-13, we expect per-capita gaming spending in Macau to grow faster than per- capita leisure expenditure, driven by the opening of Galaxy Macau and Sands Cotai Central. The growth is then likely to slow to be on par with that in leisure spending from 2013. Sensitivity Table supply growing faster than our expected 5%, at say 10%, over the next decade could drive gaming-revenue growth up to 15% over 2014-15 and 12% over 2015-20 (versus our initial forecast of 11% over 2014-20). In such a case, gaming revenue could grow to US$120 billion Forecast gross gaming revenue Source: DICJ, CLSA Asia-Pacific Markets average gaming spending of US$78 per capita per year, which is reasonable; an average spending of US$197 per Chinese consumer on clothing & footwear and US$422 on food and beverages per year in 2020. Growth forecasts, 11-20CL Source: CLSA Asia-Pacific Markets Growth, 2002-10 Source: DICJ, CLSA Asia-Pacific Markets CLSA Market Outlook