Singapore's GGR likely to grow 10% in 2024, ratings agency says
Singapore's two integrated resorts are likely to see gross gaming revenue (GGR) grow by 10% by 2024, following an expected 15% growth in gross gaming revenue (GGR) this year.
The forecast comes from Fitch Ratings, which noted that Las Vegas Sands Corp's (NYSE:LVS) Marina Bay Sands and Genting Singapore's Resorts World Sentosa will generate the most combined revenue this year amid the coronavirus pandemic outbreak previous level. The rating agency noted that the two casino resorts have performed well in attracting international visitors and diversifying their customer base beyond Chinese punters.
"Singapore continues to exceed expectations as customer growth diversifies outside of China," Fitch noted. "In particular, arrivals from mainland China remain well below pre-pandemic levels despite improvements since reopening. .”
Together with Resorts World Sentosa, MBS forms a duopoly in the city-state. That status has been protected for decades as companies expand non-gaming attractions to draw visitors to tourist areas.
New room supply can boost Singapore’s GGR
Marina Bay Sands and Resorts World Sentosa are expanding to meet growing demand post-pandemic.
Sands previously announced a major expansion of its Singapore venue, including the addition of 1,200 guest rooms, conference rooms and a 15,000-seat entertainment venue. Such investments are critical because MBS is one of the world's most profitable casino hotels and competition to attract tourists to the region is fierce.
"Market leader Marina Bay Sands Pte Ltd opened approximately 1,200 refurbished rooms in the first nine months of 2023, and Genting Singapore Pte Ltd extended credit to its customers throughout 2023," Fitch added.
Recent rumors suggested that Sands may be seeking to borrow significantly to fund MBS's expansion due to high inflation, but the operator said this was not the case.
Broader prospects for 2024
The research firm added that Asia's other major gaming markets, namely Macau and Malaysia, expect GGR in 2024 to be at or above Singapore's forecast levels. The comments in Malaysia relate to Resorts World parent company Genting Bhd as it is the main operator in the country.
Similarly, Fitch's bullish stance is also relevant to LVS investors as the operator's Sands China subsidiary operates five casino hotels in the Special Administrative Region (SAR).
"In 2024, all eyes will be on Macau as tourist arrivals continue to increase against the backdrop of a weakening Chinese economy. Singapore continues to exceed expectations as customer growth diversifies outside of China," Fitch noted. "
The ratings agency added that some parts of the U.S. casino market could see weakness next year. Las Vegas' gross gaming revenue may decline slightly as Sin City visitors shift spending toward non-gaming options.
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Source: www.casino.org
