Rising tourist arrivals flopped in boosting Genting’s gaming revenue

Tourists are low-yielding players.

Rising tourist arrivals could have hyped up Genting Singapore’s gross gambling revenue (GGR) amidst a sluggish Chinese economy and a negative effect from O&G industry. Muted impact on gaming revenues, however, suggests tourists are low-yielding players.

UOB Kay Hian revealed that Singapore’s tourist arrivals rose 11% YoY in 2Q16, thanks to tourists from mainland China (+65%). Except for Malaysia, all Southeast Asian countries sent tourists to the city-state, helping Southeast Asian arrivals inch up 4% in the quarter. Analysts, however, believes these figures did not help improve the mass market.

Gentings Singapore’s mass market GGR has been on a steady climb until 2Q16 until when both Resorts World Sentosa and Marina Bay Sands surprisingly shrunk. Consequently, Singapore’s mass market GGR (tables and slots) dropped by an estimated 7.6% yoy, the most severe quantum drop since the opening of the dual casinos in 2010, UOB Kay Hian said.