Macau | Gaming analyst believes VIPs are here to stay – Macau Business

Macau (MNA) – VIPs are definitely an element of gaming in Asia, and gaming in Macau, and are not going to go away, Vitaly Umansky, Senior Research Analyst for Sanford C. Bernstein, said in an interview with Macau Business published in the February issue and written by Kelsey Wilhelm.

However, Mr. Umansky considers forecasting the evolution of the VIP sector is “not a task that can be achieved . . . there are so many moving parts with respect to VIP that it’s very difficult to forecast over a more moderate time period.”

The analyst thinks that VIP gaming in Macau is a “viable business model” and will remain a player in the city.

Regarding competition from other gaming hubs in Asia, Umansky states that the boons of Macau are enough to compensate for a certain leakage.

“Being a Chinese city within China, having the amenities that Chinese customers are looking for – especially the high net worth individual ones – that’s very difficult to replicate elsewhere,” he says.

Mr. Umansky says that the market in Macau is not saturated, with growing supply the key to success.

“You build and they will come. That is really what we’ve seen in Macau,” he opines. “The mass market is largely tied, in my view, to the expansion of Macau – building more hotel rooms, building more high quality product, allowing customers to experience newer and better things. That’s what Macau really needs to continue doing.”

Moreover, he sees enough space for including another operator in the territory. He does say, however, that “the question the government needs to deal with is: Do they need another operator? Do they need more competition? The answer to that is: probably not. From a pure kind of economic competitive environment six very strong, very good developers, very good operators, have done a very good job in Macau.”

The full interview is available in Macau Business.