An analyst from Morgan Stanley Asia said capital expenditures are expected to fall while the local mass market is gradually recovering.<\/p>\n\n\n\n\n\n\n\n
Macau.-\u00a0Praveen Choudhary<\/strong>, an analyst from brokerage Morgan Stanley Asia, talked about the outlook for Macau’s gaming industry during a conference session on Asian gaming destinations on the first day of G2E Asia 2022 Special Edition. He said Macau will remain a very profitable market for gaming operators due to lower capital expenditures and a gradual recovery of the mass market.<\/p>\n\n\n\n He said: “Casinos are just going to keep improving the existing facilities and keep adding some non-gaming amenities. That saves you a lot of money.\u201d<\/p>\n\n\n\n He did note that the return on investment <\/strong>for Macau casino operators is expected to be lower in the future, but added that will still be very profitable for the next 10 years “as and when we\u2019re out of the Covid-19 pandemic.”<\/p>\n\n\n\n As for today’s Macau market outlook, the Morgan Stanley analyst said he remains optimistic about the resilience of mass markets, including premium masses, once Covid-19 travel restrictions are lifted.<\/p>\n\n\n\n According to Macau Business, Choudhary said: \u201cThe market continues to remain excited about Macau. The demand is still there, it\u2019s just a matter of bringing more hotel rooms<\/strong>, and of course, removing the travel restrictions.<\/p>\n\n\n\n “At some point, we also need nearby\u00a0Hengqin island<\/a>\u00a0to bring more rooms to drive even higher growth. That\u2019s why we think Macau has just not peaked yet.\u201d<\/p>\n\n\n\n See also: <\/strong>Feature: what\u2019s in store for the future of the gaming industry in Macau?<\/a><\/p>\n\n\n\n As regards the junket business in Macau after the arrests of\u00a0Levo Chan Weng Lin<\/a>, chairman of Tak Chun Group, and\u00a0Alvin Chau Cheok Wa<\/a>, former CEO of Suncity Group Holdings, Choudhary pointed out the VIP gaming revenue in Asia has shrunk in the past two years while ASEAN (Association of Southeast Asian Nations) states have taken a bigger share of the pie.<\/p>\n\n\n\n Though Macau remained the largest contributor to Asian VIP gaming revenue, it only accounted for 35 per cent of the total in 2022, compared with over 70 per cent previously.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" An analyst from Morgan Stanley Asia said capital expenditures are expected to fall while the local mass market is gradually recovering.<\/p>\n","protected":false},"author":176,"featured_media":19390,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Morgan Stanley Asia analyst Praveen Choudhary projects Macau's gaming market will remain highly profitable for operators over the next decade, driven by a recovering mass market and reduced capital expenditures focused on existing facilities and non-gaming amenities. While VIP gaming revenue in Asia has declined significantly, with Macau's share dropping to 35% due to junket crackdowns and increased ASEAN competition, the analyst remains optimistic about Macau's long-term growth potential once travel restrictions are lifted and hotel capacity expands.","focusai_entities":"Morgan Stanley Asia, Praveen Choudhary, Tak Chun Group, Levo Chan Weng Lin, Alvin Chau Cheok Wa, Suncity Group Holdings, ASEAN (Association of Southeast Asian Nations)","focusai_location":"Macau, Hengqin island, Asia, ASEAN states","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), compliance_legal (0.7), operator_casino (1.0), payments_fraud_aml (0.7), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Macau CapEx Strategy","query":"How will the shift from new builds to existing facility improvements and non-gaming amenities impact the long-term competitive differentiation and GGR growth trajectory for Macau operators?"},{"label":"VIP Market Rebalancing","query":"What specific regulatory or operational adjustments are anticipated in Macau to potentially re-attract high-net-worth players, given the significant decline in VIP market share and the rise of ASEAN jurisdictions?"}],"footnotes":""},"categories":[157,16338,158],"tags":[23906],"class_list":["post-32950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=32950"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32950\/revisions"}],"predecessor-version":[{"id":32966,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32950\/revisions\/32966"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/19390"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=32950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=32950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=32950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}