Ambrose So, Vice Chairman and Chief Executive Officer of SJM Holdings Limited, expects casino VIP room revenue to continue declining amid the U.S.-China trade dispute and the Hong Kong protests.
On the sidelines of yesterday’s International Forum on Clean Energy opening ceremony, So said that VIP room revenue has fallen sharply in recent months while the mass market is performing well.
“VIP room revenue has fallen sharply, whereas [the] revenue of the mass market increased,” said So.
In So’s opinion, the increase in revenue of the mass market is helpful for the gaming operators in terms of profit, because the cost of operating in the mass market is lower than the cost of VIP room operation.
The decline has already gone on for 11 months this year. So believes that the situation will continue in 2020 because there are still no signs of change in the geopolitical and trade disputes.
Data from the Statistics and Census Bureau shows that visitor spending has fallen for the past four consecutive quarters. However, in So’s opinion, the current drop has not affected mass market income. JZ