We expect gaming revenue in Macau to grow by more than 25% in 2011, provided China's economic growth doesn't slow down more than we expect or visitation levels drop drastically," said Standard & Poor's credit analyst Joe Poon. "While such growth is significantly slower than the 57.8% in 2010, the industry is now growing off a much higher base."
The report says Standard & Poor's remains cautiously positive about the Asia-Pacific gaming industry as a whole. It also suggests that Singapore is now the second largest casino gaming market in Asia-Pacific, just a year after it opened two integrated casino resorts.
"As a region, the industry weathered the global financial crisis well and has shown its cash-generative nature. For the first time since the global crisis, all rated pure casino operators in Asia-Pacific have stable or positive outlooks," said Poon.
The report examines the risk factors and growth potential of the gaming markets in Macau, Singapore, Australia and New Zealand. It also discusses the long-term viability of integrated casino resort business models and comments on individual operators.