Cambodia tipped to lead the pack in regional casino recovery: report
CASINOS in Cambodia could regain three-fifths of the sector's pre-pandemic revenue this year, led by the VIP segment, a recent report has suggested.
Real estate consultancy Colliers International expects Macau and Cambodia to lead the recovery in Asia-Pacific land-based gaming, trailed by Singapore, the Philippines and Vietnam.
Premium mass gaming could lift gross gaming revenue (GGR) in Macau to 50 per cent to 60 per cent of what it was in 2019.
Cambodia GGR is tipped to hit 60 per cent of the pre-Covid-19 base, while Singapore could achieve 45 per cent of earlier levels.
The bulk of the recovery is expected to come from Q3 2021 onwards.
Still, the report noted that there are "downside risks in a fast-maturing gaming market", including the supply pipeline of casino facilities.
A NEWSLETTER FOR YOU
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Govinda Singh, Colliers executive director and head of hotels and leisure, pointed to plans for new or expanded facilities in Singapore, Cambodia and Vietnam, as well as the possibility of a gaming sector launch in Thailand.
"As governments across the region grapple with paying for the Covid-19 fallout, it is no surprise that many are turning to integrated resorts to generate revenue and employment," his report added.
Meanwhile, Chinese restrictions on outbound gambling tourism and online gaming have hit markets like the Philippines.
As such, the report concluded that gaming investments will come with a longer runway for reaping returns, "with business models focused on the mass market, and indeed marketed to a variety of source markets".
Citing factors such as pent-up demand and the low cost of travel, Mr Singh said: "The global economic outlook is expected to improve by H2 2021, with travel to rebound over the next three years to at least pre-Covid-19 levels."
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Asean
Thailand’s 500 billion baht stimulus project gets Cabinet approval
Malaysia to build region’s largest chip design park in bid for top startup-hub status
Pundits divided on Bank Indonesia’s next move as rupiah hovers at multi-year low
Malaysia’s Sapura Energy to sell stake in SapuraOMV to TotalEnergies for US$705 million
Thailand pitches to host Formula One race to bolster tourism
Vietnamese firms face Q1 debt crunch amid sluggish recovery