Fitch Ratings released a new report where it was revealed that Macau will likely grow 12 percent this year.
Macau.- The credit-debit watcher Fitch Ratings issued a note where they revealed that Macau’s gaming revenue is set to grow 12 percent in 2017. The news were revealed in the middle of a tumultuous relationship with mainland China.
Fitch’s Senior Director Corporate Finance, Analyst Alex Bumazhny, said that the report considered the year-on-year comparisons in the second half of this year and the possibility of mainland implementing a tight monetary control. “VIP growth has been exceeding Fitch’s expectations, growing 17 percent year-on-year in first-quarter 2017. We expect about equal contribution from VIP and mass market revenues toward achieving Fitch’s 12 percent growth forecast,” said the Analyst in a statement.
Fitch believes that all of the problems that mainland China is having regarding the gambling industry is actually beneficial for Macau’s VIP segment, and that 2017 is very similar to 2010, where the city experienced impressive results. “Longer term, we believe mass market gaming remains underpenetrated in the Asia-Pacific region. 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 intracity light rail, should make Macau more accessible,” they added.