• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 11 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Shifts and diversifications of Asian gaming markets in a post-COVID era

Michael Zhu by Michael Zhu
Thu 29 Sep 2022 at 19:13
Shifts and diversifications of Asian gaming markets in a post-COVID era
37
SHARES
931
VIEWS
Print Friendly, PDF & Email

The Innovation Group’s Michael Zhu examines some of the key factors that will lead to post-COVID recovery across Asia.

The COVID-19 pandemic has been affecting the integrated resort (IR) industry in the Asia Pacific region (and globally) in a profound manner. Whereas many other gaming markets in the region are still suppressed by impacts of the pandemic, the Philippines and Singapore have been leading the industry’s recovery and growth in a post-COVID era, thanks to their diversified product offerings, well-balanced market segments and forward-looking protective measures against the pandemic.

Singapore’s Changi Airport is playing a key role in the city’s recovery from the COVID-19 pandemic.

Fueled by solid local market segments and gradually increasing international visitation, the Philippine gaming market has been able to achieve substantial progress, welcoming fresh properties in Clark and Cebu that are poised to become popular tourist destinations in the near future. The two renowned IRs in Singapore have followed a similar path and have prepared for the upcoming expansion stage.

The dynamics in these two markets endorsed the importance of diversification in terms of product offerings, source markets and beyond, which had been emphasized by  many before the pandemic and has become even more critical in a post-COVID era.

Improved infrastructure in places like Clark is helping the Philippines’ IR operators enjoy renewed growth.

One of the most remarkable ongoing changes in the Asian gaming landscape is the shift of junket-channeled VIP play to mass-oriented business (including direct in-house premium mass). While the bright side is that mass gaming indeed tends to yield higher operating margin than VIP business, there remains a challenge that often gets overlooked – infrastructure that is capable of handling the required mass visitation that can offset the decrease in premium business and eventually achieve future growth in the long run.

Singapore can play an exemplary role in this aspect. The city state’s champion airport, with superior capacity and connectivity, has further secured its leading position in the region. The government has identified infrastructure as a key pillar of national economic growth and has set up plans to strengthen the roads, rail network and other ecosystem components, making the Lion City ready for the post-COVID chapter of international travel.

Similarly, infrastructure improvements in the Philippines, ranging from enhanced connectivity between Manila and the neighboring regions to newly added terminals at airports in Clark and Cebu, are expected to facilitate rapid recovery and further growth of the country’s gaming industry. Additionally, the Incheon Free Economic Zone in South Korea is widely recognized as a strategic location. Close proximity to the country’s aviation hub provides a significant advantage. With the forthcoming addition of a world-class entertainment resort in the area, the competitive advantage and other synergies are anticipated to be further realized.

Another challenge that surfaced during the pandemic but is expected to linger in post-COVID years is the availability of a quality workforce. Shortages in a skilled workforce have hindered recovery and growth pace across the board, which is especially true for customer-facing service industries including gaming. Mass gaming of a larger scale requires a larger workforce of quality, skill and reliability, which is likely to challenge many operators in the region’s gaming markets.

The Philippines possesses a competitive advantage in this aspect. The local workforce tends to be comprised of fast learners who have the passion to work in most entertainment and hospitality environments. English is used as the primary medium of instruction in the education system, which makes training and development more effective. Additionally, labor costs in the Philippines remain among the most competitive in the ASEAN countries, making it an ideal source of labor for prospective operating needs.

Moreover, other emerging markets, such as Vietnam and Thailand, have consistently gained attention in the global IR community. With a significant domestic economic and demographic base, as well as sizeable international visitation to be resumed, the market potential is poised to attract high-level enthusiasm from prospective IR developers and operators in the near future.

Last but not least, the region’s traditional industry hub, Macau, has been strangled for more than two years by strict pandemic control measures and other factors. While the aforementioned challenges and critical components are all applicable to Macau, it is worth noting that some encouraging signs have recently surfaced, such as the lifting of travel bans on travelers from over 40 countries for the first time since the onset of the pandemic in 2020. Further curbing of restrictions is expected and is likely to propel meaningful recovery of the market. Although considerable uncertainty remains, the pent-up demand (for a long while) from a tremendous marketable base in mainland China just cannot go overlooked.

On balance, we believe that the Asia Pacific gaming markets will continue to evolve in a post-COVID era, with diversification and solutions to other potential challenges remaining critical in the years to come. How the IRs respond to such challenges will contribute to maintaining long-term growth of the industry, to capitalizing on the booming and increasingly wealthy middle class, and to better stimulating tourism and related economic benefits in the region and on a global basis.

Tags: Current IssueMacauManilaPhilippinesSingapore
Share15Share3
Michael Zhu

Michael Zhu

With an extensive background and nearly 20 years of experience in the gaming, leisure, and hospitality industries, Michael Zhu became a valuable asset of The Innovation Group in 2014 and has been applying a comprehensive analytical skill set while exploiting a unique cultural context and leveraging his in-depth development and operational experience in the related sectors.

Current Issue

Editorial – The real reason Philippines casino revenues are down

Editorial – The real reason Philippines casino revenues are down

by Ben Blaschke
Sun 30 Mar 2025 at 23:04

After enjoying a post-COVID surge in gaming revenues at its licensed casinos, the Philippines has hit a rocky patch. In...

Inside Thai IRs

Inside Thai IRs

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:59

No time to read this whole article? Here are the bullet points! With passage of Thailand’s Entertainment Complex Bill through...

Resorts World Las Vegas – Lighting up the north

Resorts World Las Vegas – Lighting up the north

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:52

Inside Asian Gaming recently visited Genting’s American icon Resorts World Las Vegas to take a closer look at a property...

A baccarat perspective

A baccarat perspective

by Ryan Hong-Wai Ho
Sun 30 Mar 2025 at 22:37

In the first of a two-part series, Ryan Ho explores how gaming innovations and market changes have shaped the prominence...

Evolution Asia
Aristocrat
GLI
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Editorial – The real reason Philippines casino revenues are down

Editorial – The real reason Philippines casino revenues are down

by Ben Blaschke
Sun 30 Mar 2025 at 23:04

After enjoying a post-COVID surge in gaming revenues at its licensed casinos, the Philippines has hit a rocky patch. In 2024, while the broader gaming industry enjoyed a significant boost thanks to the growth of the E-Games segment, gross gaming...

A baccarat perspective

A baccarat perspective

by Ryan Hong-Wai Ho
Sun 30 Mar 2025 at 22:37

In the first of a two-part series, Ryan Ho explores how gaming innovations and market changes have shaped the prominence of baccarat in Macau’s gaming industry. Macau casinos have long been synonymous with baccarat. The evolution of Macau’s gaming industry...

Editorial – The waiting game

Editorial – The waiting game

by Ben Blaschke
Wed 26 Feb 2025 at 14:56

Recent rumors suggesting that US private equity giant Blackstone could make a move to acquire Australia’s ailing Star Entertainment Group echo similar talk that has been doing the rounds across the industry over the past few months, particularly since Star...

Macau government said to have reached consensus with bidders for combined US$12.5 billion investment during new 10-year concession period

OPINION: Has Macau hit a GGR ceiling?

by David Bonnet
Tue 11 Feb 2025 at 13:31

Macau casinos’ shrinking gross gaming revenue (GGR) may be a wake-up call, suggesting performance has hit a ceiling, and requiring new catalysts to stimulate growth. Tourism’s comeback from the COVID scourge heralded a potential renaissance for Macau’s economic growth. Improved...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English