Global Gaming Industry To Make Quick Recovery As Travel Restrictions Ease
Summary
- Moody predicts recovery of global gaming market
- Ease in Asian travel restrictions to aid market recovery
- China and Macau still have strict restrictions in place
Credit rating agency Moody’s Investors Service Inc. has predicted that the recovery trends in the global gaming market will keep rising. The recovery was attributed to travel normalisation across South and Southeast Asia, despite restrictions in China, Hong Kong and Macau.
Many Asian countries have opened their doors to visitors, with many others are following suit.
Gaming Sector EBITDA to Return to Normal by 2023
The agency predicted that the gaming sector’s earnings before interest, taxation, depreciation, and amortisation (EBITDA) might rise to 35 percent from 30 percent over the next year or a year and a half. While the speculated growth in 2022 would still be less than the pre-pandemic figures in 2019 and the recovery in 2021, it might return to the pre-pandemic levels by 2023 as several Asian countries continue to normalise travel.
The recovery might be a result of the incremental growth in Europe and the United States (U.S.), especially in Las Vegas. The memo mentioned that the recovery in the U.S. regional market would register incremental growth due to the revival of the domestic travel scenario. The U.S. gaming market had copped up massive losses in mid-2020 but has more or less recovered from it.
Las Vegas has achieved most of the pre-pandemic performance levels even without the revival of business travel within the U.S. With the inbound travel scene improving, centres like Vegas show immense potential for incremental growth, Moody’s said.
The agency suggested positive recovery trends in Europe, as parts of it have dropped restrictions for vaccinated visitors. Europe’s brick and mortar gaming operations are expected to improve due to fewer travel restrictions, while the online gaming sector will stay strong. The latter had displayed excellent performance over 2021 as people stayed at home during the pandemic.
South Korea, Singapore Lift Restrictions
Various countries across Asia eased test requirements for inoculated visitors. South Korea waived the mandatory week-long quarantine upon arrival for thrice-vaccinated domestic travellers.
Singapore dropped the quarantine for vaccinated tourists along with suspending test requirements from April 26. The city-state had revoked several restrictions already on April 1. Malaysia’s health minister Khairy Jamaluddin said on April 25, that the government wishes to announce the easing of pandemic containing measures.
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