Gaming revenue to grow 12 pct in 2017: Fitch

Fitch Ratings is forecasting Macau gaming revenue to grow 12 percent this year, with near equal contribution from the VIP and mass market.

Fitch made the forecast in its “All In: Global Gaming Handbook”, released on Wednesday.

“VIP growth has been exceeding Fitch’s expectations growing 13 percent year over year in fourth-quarter 2016 and 17 percent in first-quarter 2017,” said Fitch.

“Possible attributes to this outperformance in VIP could be stronger economic indicators on mainland, players getting acclimated to China’s corruption crackdown initiatives and China’s authorities heightened crackdown on casino marketing by foreign companies.”

On the other hand, Fitch sees the mass market to be driven mainly by healthy consumer spending, increasing room capacity, and the underpenentration of the Asia-Pacific region for the mass market segment.

“Despite being delayed, pending infrastructure projects, such as the bridge to Hong Kong, a permanent Taipa ferry terminal, a rail link to Zhuhai airport and intra city light rail, should make Macau more accessible,” the ratings agency added.