Asian casinos continue to post strong results
March 3, 2011
The revenue and visitor volume beat goes on for Asian casinos.
Macau’s Gaming Inspection and Coordination Bureau reported that the enclave’s casinos generated 19.86 billion patacas (US$2.48 billion) in revenue for February, an increase of 47.7 over the 13.45 billion patacas the resorts produced over the same period last year.
The February results shattered the previous monthly revenue record of 18.8 billion patacas recorded in December of 2010, and was 1.29 billion patacas more than the industry earned in January, reported the Macau Daily Times.
“February looks all the more impressive given the fact that there were three fewer days and one less weekend than in January,” Gary Pinge, regional head of Gaming and Consumer at Macquarie Securities in Hong Kong to Reuters. “If this is a trend for the rest of the year, Macau could continue to see strong growth, month on month.”
Singapore also benefited from increased consumer traffic, a lot of it generated by Sentosa Island and Marina Bay integrated casino resorts, which opened in 2010. The Singapore Tourism Board recently reported that a record 11.6 million people visited the city in 2010, an increase of 20 percent over 2009 figures. The previous record for visitors to Singapore was 10.3 million in 2007.
The visitors primarily came from the Asian region, with arrivals from Hong Kong, Malaysia, Thailand, South Korea, China, The Philippines, Taiwan and Vietnam up anywhere from 20 percent to 30 percent over 2009 results. The Tourism Board also reported that these visitors spent a record 18.8 billion Singapore dollars (US$14.8 billion) in the city, an increase of 49 percent over the previous year.
The Singapore casinos generated US$2.8 billion in 2010 revenues, according to PricewaterhouseCoopers. The company predicted the resorts will post US$5.5 billion in revenue this year.
Malaysia-based Resorts World Genting also posted an increase in 2010 visitor volume. According to a report from ECM Libra Investment Capital, Resort World Genting attracted 19.9 million visitors last year, in increase of 2 percent over 2009. These visitors, primarily day-trippers neighboring counties, spent 5.3 billion ringgits (US$1.7 billion) at the casino in fiscal year 2010.
Not all 2010 Resorts World gaming results were positive however. The Borneo Post, citing a study from HwangDBS Research, reported that the resort’s foreign hotel guests decreased by 21 percent in the fourth quarter of 2010. The decline was blamed on the opening of the Singapore integrated resorts.
Resorts World and Malaysia were not the only entities suffering business loss from the opening of the Singapore casinos. Rowen Craigie, CEO of Crown Limited, reported that the company’s Australian casinos have lost an estimated 8 percent of their high-roller business to Singapore.
“The Singapore casinos are going gang-busters--they’re probably the two most profitable casinos in the world at the moment,’’ Craigie told the Sydney Morning Herald. “The challenge for us is to replace the business we’ve lost to Singapore with new business out of China [and] South-East Asia.”
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