RWG visitor numbers to fully recover in 2024, analysts say

Analysts at Maybank Securities have forecast that Resorts World Genting will see 20.8 million visitor arrivals in 2023.

Malaysia.- Maybank Securities has issued a report indicating that Resorts World Genting (RWG) won’t reach a complete rebound in visitor numbers to pre-Covid-19 levels until next year. Analysts have adjusted their forecast for full-year 2023 arrivals at the casino resort to 20.8 million, down from the previous estimate of 23.7 million. 

They also revised their earnings estimate for Genting Malaysia, the parent company of RWG, due to the slower-than-expected recovery in arrivals. They now expect the casino operator to achieve earnings before interest, taxation, depreciation and amortisation (EBITDA) of MYR2.78bn (US$603.4m).

Analyst Samuel Yin Shao Yang said domestic and Singaporean visitor arrivals to the venue have largely recovered to full-year 2019 levels. However, he noted that visitors from key markets such as Indonesia, Hong Kong, and mainland China have been slow to return due to limited flight capacity. Based on the fleet strategy of Malaysian carriers, flight capacity is expected to reach pre-pandemic levels by the end of this year.

Yin Shao Yang said concerns related to a landslide in the Titiwangsa Mountains, where RWG is situated, impacted visitor arrivals in the first quarter of 2023, causing a decline of approximately 11 per cent compared to the previous quarter. Although arrivals started to improve from March 2023, data suggests that second-quarter numbers will still be around 15 per cent below full-year 2019 levels.

In the first quarter, Genting Malaysia posted a revenue of MYR2.28bn (US$493.7m). The figure was up 32.7 per cent in year-on-year terms but down 6.2 per cent when compared to the previous quarter.

In Malaysia, revenue from leisure and hospitality operations was up 52.5 per cent year-on-year at MYR1.40bn. However, the figure was down 11.9 per cent when compared to the previous quarter. Quarterly adjusted EBITDA was MYR436.5m, up 66 per cent when compared to last year, but down 6.6 per cent sequentially