Singapore GGR Could Jump 10% in 2024, Says Ratings Agency
Posted on: December 7, 2023, 05:29h.
Last updated on: December 7, 2023, 05:29h.
After posting what’s likely to be a 15% increase in gross gaming revenue (GGR) this year, Singapore’s two integrated resorts could notch a 10% GGR jump in 2024.
That forecast arrived courtesy of Fitch Ratings, which noted GGR generated this year by Las Vegas Sands’ (NYSE: LVS) Marina Bay Sands and Genting Singapore’s Resorts World Sentosa easily outpaced levels seen prior to the outbreak of the coronavirus pandemic. The ratings agency noted the two casino resorts are doing an admirable job luring international visitors and diversifying their customer bases beyond Chinese bettors.
Singapore continues to perform above expectations as customer growth diversifies outside of China,” noted Fitch. “In particular, arrivals from mainland China are still well below pre-pandemic levels, despite improvements since the reopening.”
Along with Resorts World Sentosa, MBS operates as a duopoly in the city-state. It’s a status that is afforded decades-long protection on the basis that the companies expand non-gaming attractions in an effort to woo travelers to the tourist-heavy region.
New Room Supply Could Boost Singapore GGR
Both Marina Bay Sands and Resorts World Sentosa are expanding to accommodate increased demand following the pandemic.
Sands previously announced major enhancements to its Singapore venue, including the addition of 1,200 guest rooms, convention and meeting space and a 15,000-seat entertainment arena. Such investments are essential because MBS is one of the most profitable casino hotels in the world and competition in the region is fierce in terms of luring tourists.
“Market leader Marina Bay Sands Pte Ltd has opened around 1,200 renovated rooms in the first nine months of 2023 and Genting Singapore Ltd, has extended credit to customers over 2023,” added Fitch.
Rumors recently surfaced that Sands could be in the market for substantial credit to fund expansion at MBS, due to high inflation, but the operator said that’s not the case.
Broader 2024 Outlook
The research firm added that Asia’s other large gaming markets, namely Macau and Malaysia, should experience 2024 GGR increases on par with or in excess of those expected in Singapore. The commentary on Malaysia is pertinent to Resorts World parent Genting Bhd. because it’s the dominant operator in that country.
Likewise, Fitch’s bullish is pertinent to LVS investors because the operator’s Sands China arm runs five casino hotels in the special administrative region (SAR).
“All eyes will be on Macau in 2024, as visitation continues to grow against a backdrop of a weakening China economy. Singapore continues to perform above expectations as customer growth diversifies outside of China,” observed Fitch.
The ratings agency added some US regional casino markets could experience softness next year and Las Vegas GGR could decline modestly as visitors to Sin City direct spending to non-gaming options.
Source: casino.org
