NH Investment & Securities Co predicts that the resumption of group tours to South Korea will significantly boost casino revenue.
South Korea.- NH Investment & Securities Co has predicted that the return of Chinese group tours to South Korea will significantly impact the nation’s casino industry, particularly the mass-market segment.
In early August, China allowed group travel for Chinese citizens to more destinations, including South Korea and Japan as part of an easing of post-Covid-19 travel restrictions. South Korean authorities have decided to waive processing fees for group visitors, previously KRW18,000 (US$13.60), until the end of the year.
Analyst Hazell Lee from NH Investment & Securities Co Ltd believes the development will bode well for South Korea’s casino industry but said there remains a degree of “negative sentiment” concerning VIP customers since Chinese VIPs are typically individual tourists. Moreover, China has been clamping down on its citizens travelling abroad for casino gambling. In 2020, the country established a blacklist of destinations to which cross-border transfers are restricted.
NH Investment & Securities Co Ltd favours South Korea’s foreigner-only casino operator, Paradise Co and expects both the gaming and non-gaming sectors of its business to benefit from the revival of Chinese group tours. In August, Paradise Co reported revenue was up 24.5 per cent when compared to the previous month at KRW78.37bn (US$59.5m). In year-on-year terms, revenue was up 55.3 per cent.