Inside Asian Gaming

IAG JAPAN MAY 2021 28 Suites into the 370-room residential-style all-suite hotel Londoner Court. All of which bodes well given expectations of increased demand over the next 12 months, according to brokerage Sanford C Bernstein. “In the early stage of recovery, we expect operators who have outsized relative positions in premium mass to fundamentally outperform … as premium customers are less affected by the economic impact related to COVID-19 and fewer numbers of customers are necessary to drive GGR growth,” state Bernstein analysts Vitaly Umansky, Tianjiao Yu and Kelsey Zhu in a recent note. “Sands and Galaxy will also benefit from their expanded focus on premium mass over the next year.” Like Morgan Stanley, the Bernstein analysts are bullish on Macau’s 2022 prospects, estimating GGR will return to 98% of 2019 levels with mass – including premium mass – soaring to 110% of 2019 GGR versus a more subdued “less than 90%” recovery in the VIP segment. VIP, they add, could in fact remain below 2019 levels into 2025 due to scrutiny around money transfers and customer concerns over dealing with junkets. However, “this may have some positive impact on premium direct and premium mass as some customers shift game play.” DEMAND While Macau has taken an exceedingly cautious approach to reopening its borders, China’s domestic travel, leisure and luxury markets are showing clear signs that people have started to move on from the COVID-19 pandemic. In March, the Civil Aviation Administration of China said it expects domestic air traffic to return Headwinds facing the VIP industry could prove beneficial for Macau’s more lucrative premium mass segment. VIP業界に吹き付ける逆風は、マカオのより収益性の高いプレミアムマス部門にとってプラスであることが証明される可能性がある COVER STORY