Tourism recovery benefits Genting Malaysia, analysts say

Hong Leong Investment Bank said visitations to RWG could soon surpass pre-pandemic levels.

Malaysia.- Hong Leong Investment Bank (HLIB) Research has reported that it sees Genting Malaysia‘s Resorts World Genting (RWG) as a key beneficiary of the recovery in tourism from the reopening of borders. Analysts note that tourism is also likely to benefit as the new government uses the industry to support the domestic currency and economy.

The brokerage said that visitation to RWG has the potential to surpass pre-pandemic levels given the increased capacity and the addition of theme parks to attract a more diverse audience. Hong Leong Investment Bank expects much better FY23 performance for the group due to the reopening of the remaining 21 per cent of hotel rooms and increased capacity at SkyWorld, which has added two more rides, bringing the total to 20.

For the third quarter of the year, Genting Malaysia posted revenue of MYR2.27bn (US$505.4m). That’s a rise of 4.1 per cent when compared to the previous quarter and 174.9 per cent year-on-year.

Despite the good financial performance, Genting Malaysia warned: “While international tourism is anticipated to continue improving, ongoing global economic headwinds and pandemic management measures in certain countries could impact demand for international travel. Consequently, the regional gaming market recovery could face some setbacks.”