Cambodia Tipped to Lead the Pack in Regional Casino Recovery

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Real estate consultancy Colliers International expects Macau and Cambodia to lead the recovery in Asia-Pacific land-based gaming, trailed by Singapore, the Philippines and Vietnam.

Premium mass gaming could lift gross gaming revenue (GGR) in Macau to 50 per cent to 60 per cent of what it was in 2019.

Cambodia GGR is tipped to hit 60 per cent of the pre-Covid-19 base, while Singapore could achieve 45 per cent of earlier levels.

The bulk of the recovery is expected to come from Q3 2021 onwards.

Still, the report noted that there are “downside risks in a fast-maturing gaming market”, including the supply pipeline of casino facilities.

Govinda Singh, Colliers executive director and head of hotels and leisure, pointed to plans for new or expanded facilities in Singapore, Cambodia and Vietnam, as well as the possibility of a gaming sector launch in Thailand.

“As governments across the region grapple with paying for the Covid-19 fallout, it is no surprise that many are turning to integrated resorts to generate revenue and employment,” his report added.

Meanwhile, Chinese restrictions on outbound gambling tourism and online gaming have hit markets like the Philippines.

As such, the report concluded that gaming investments will come with a longer runway for reaping returns, “with business models focused on the mass market, and indeed marketed to a variety of source markets”.

Citing factors such as pent-up demand and the low cost of travel, Mr Singh said: “The global economic outlook is expected to improve by H2 2021, with travel to rebound over the next three years to at least pre-Covid-19 levels.”

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