Malaysia – Genting SkyWorlds to drive 27m visits a yearBy Phil - 31 January 2022
With the launch of Genting Malaysia’s new theme park, Genting SkyWorlds at Resorts World Genting (RWG), now expected ‘as early as the next few weeks,’ analysts have said that despite expecting it to make a loss it will generate long-term visitation of up to 27m people each year
Maybank’s Samuel Yin Shao Yang said: “Even though we expect GS to be loss-generating due to heavy depreciation, we are confident that it will draw the crowds (whether gaming or non-gaming) and be net positive for Genting Malaysia. Assuming MYR150 (US$36) average mass market gaming revenue/patron and 40 per cent EBITDA margin, the 2 to 3 million extra RWG visitors per annum relative to the pre-COVID-19 high will accrete MYR120 million to MYR180m (US$29m to US$43m) to EBITDA per annum.”
Nomura’s Tushar Mohata and Alpa Aggarwal added: “We believe that the park by itself might not be profitable due to start-up costs such as depreciation and interest on debt, but it is likely to be a highly effective ‘loss-leader’ to attract more family groups to the resort, which can boost other forms of revenue such as hotels, gaming and shopping,” they said.
“Once the borders are reopened, the resort, now complete with the theme park, will also be able to market to international visitors, who previously used to set aside one day in their Malaysia itinerary to visit Genting Highlands, but might have been skipping it during the construction period.”