Hong Kong listed Suncity Group says it has decided to permanently cease its travel and related businesses segment, effective immediately, due to the impact of COVID-19 and the loss of its biggest client – Macau junket operator Sun City Gaming Promotion Company Limited (SCGPCL).
The segment had already been put on hold since December after Alvin Chau, who served as both Chairman of the listed group and CEO of SCGPCL, was arrested and detained by Macau authorities. SCGPCL subsequently announced that it was ceasing junket operations and shutting down its VIP rooms.
In a Friday filing, Suncity Group said it had decided to terminate its travel segment as “SCGPCL has been unable to supply hotel accommodation products to the Group since 1 December 2021. It also cited the recent sale of an aircraft previously used to transport VIP customers as well as “the continual adverse impact on [the] travel business by COVID-19.”
The segment, which accounted for 12.6% of group-wide revenue in 2021, included the sale of travel related products including hotel accommodation products and travel packages, the provision of travel agency services, the provision of aircraft chartering services and more.
As previously reported by IAG, Suncity said during its FY21 results announcement that it planned to pivot its focus away from VIP gaming and instead target “all traditional gaming business segments, including VIP, premium mass, mass, slots and non-gaming businesses in the Group’s integrated resorts.”
The company is a joint venture partner and runs casino operations at Hoiana in central Vietnam, is majority owner of Tigre de Cristal in Vladivostok, Russia, and is developing a US$1 billion hotel and casino in Manila’s Entertainment City precinct.
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