Infrastructure and visitor growth boost mass: Nomura

Stable growth in Macau’s visitor numbers, and improving infrastructure will boost casino operators earnings this year, according to a research from Nomura, SCMP reports.

New transportation options, including the Hong Kong-Macau-Zhuhai bridge, the Light Rail Transit, and new long-haul flights will help ferry tourists into the city – which is now starting to rely more on casual gamblers rather than VIPs, says the brokerage.

Earnings from the mass market is expected to make up 71 percent of total operator earnings in 2017, up from 54 percent five years ago, VIPs are expected to drop to 12 percent, while non-gaming contributions will make up the remaining 17 percent.

“New tourism facilities will make Macau more like Las Vegas,” Nomura analyst Richard Huang said. “It can be a holiday resort, and not necessarily just a gaming hub.”

The key will be in the infrastructure, he says.

“It will attract more conference and exhibition clients, too. With the bridge, it takes the same time to travel from Hong Kong airport to Macau as it takes to go to Central,” he said.