Macau (MNA) – Fitch Ratings informed in a release this Wednesday it predicts that Macau’s gross gaming revenues will increase 13 per cent year-on-year in 2018, which would represent a total of MOP300.28 billion (US$37.26 billion).
Last year saw a 19.1 per cent yearly increase in local gross gaming revenues to reach MOP265.74 billion.
‘This assumes some moderation from the January’s 36 per cent increase, but also takes into account the increased table and room inventory largely geared toward premium mass including MGM Cotai opening this month, Morpheus tower in Spring and the conversion of rooms to suites at the Parisian throughout 2018,’ the rating agency stated in its release.
MGM Cotai opened on February 13 with only 550 of its 1,390 rooms available; room should be fully operational by the first quarter of this year. The Macau Government also awarded 125 mass market gaming tables to the property, with 100 tables available upon opening.
Meanwhile Melco Resorts’ Morpheus tower/hotel is expected to open in Spring and offer 800 guestrooms, suites and sky villas, together with gaming facilities.
For its evaluation Fitch Ratings took in consideration the volatile nature of the VIP sector, stating VIP represents only 20 per cent of earnings before interest, taxes, depreciation and amortization (EBITDA) for most gaming operators.
‘Longer term drivers include continued infrastructure enhancements in and around Macau and China’s growing middle class and propensity to travel,’ the note added.
The Hong Kong-Zhuhai-Macau Bridge (HKZM) is said to open in May or June of this year, although the exact date has not yet been confirmed.
