Infrastructure growth in the SAR plays a pivotal role in the city’s gaming industry even if its revenue from the VIP segment continues to be volatile, a leading corporate finance consultant in the field of gaming and hospitality has said.
David Bonnet, managing partner of Delta State Holdings, has told American television channel CNBC that he remains optimistic about the growth opportunities for the region’s gaming industry.
“Infrastructure growth in China and Macau is really going to be a gamechanger [in] the revenue growth in Macau, particularly with the bridge opening,” said the analyst.
“Not to mention also the ramp-up of the expanded Taipa Ferry Terminal, so all these things are just good types of infrastructure and [show a] good economic outlook for Macau,” he added.
Although China’s president Xi Jinping initiated the anti-corruption initiatives in 2014, which scared off many high-rollers from gambling in Macau, Bonnet believes that the campaign was designed to eliminate inappropriate types of gaming from government officials.
“That by and large has kind of been [weeded] out and now you see a much [more] healthy, robust market with a mass gaming [market] representing much more of a significant portion of its overall revenue component,” said Bonnet.
Although the VIP market is slightly more volatile, the analyst said that it will continue to be a part of the gaming industry’s revenue segment.
“It has its ups and downs, but generally speaking, it’s been around for a while now; its robust,” he said.
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