Singapore – Singapore’s casinos see ten per cent fall in revenueBy Phil - 8 January 2016
Singapore’s casino operators have seen their GGR fall by ten per cent to US$ 4.8bn in 2015 with the anti-austerity crackdown in China and the value of the Singaporean dollar against other Asian currencies both blamed for the decline.
The Singapore casino sector remains the third biggest in the world behind Macau and Las Vegas but both Marina Bay Sands and Resorts World Sentosa were hit hard in 2015. The decline was expected though.
Analysts at Fitch believe the market will stagnate next year. “The anti-corruption crackdown in China, weaker Indonesian rupiah and softer regional economic growth have caused earnings to plateau,” it said.
Marina Bay Sands saw its market share increase to 62 per cent in the third quarter this year, from 49 per cent in the first quarter of last year. Fitch said this was ‘driven by its central location, connection to the mass transit rail system, and a brand synonymous with premium casinos.’
Analysts at Morgan Stanley said that the continued appreciation of the Singaporean dollar against other Southeast Asian currencies had affected the spending power of tourists on the gaming floors.
Thomas Allen and Mark Savino, Morgan Stanley & Co, and Praveen Choudhary, Morgan Stanley Asia, said: “We believe deteriorating fundamentals in Singapore represent an underappreciated risk. We have cut our Singapore estimates to reflect a weaker economy and the meaningful Singapore dollar strengthening affecting foreign demand.”