Genting seen benefiting from S.Korea travel curbs

Genting Malaysia may be another beneficiary of China’s decision to restrict travel to South Korea as it rolls out the expansion of its Resorts World Genting resort, local media cited a Credit Suisse report as saying.

China has banned travel groups to South Korea from March 15, allegedly in retaliation for South Korea’s approval to deploy the US Terminal High Altitude Area Defense (THAAD) missile shield.

“We believe Genting Malaysia and Genting Bhd are more geared to the return of Chinese tourism, with the expansion of the casino and the reopening of the theme park in 2017, which may mark the beginning of another leg-up for free cash flows,” Credit Suisse was cited as saying.

Sterne Agee in an earlier report said it expected Macau to also benefit from the ban.

South Korea accounts for 6 percent of outbound Chinese travel, after Hong Kong, Macau and Thailand. About 50 percent of foreign tourists to South Korea are Chinese and 40 percent come by tour package.