White label solutions


Subscribe

订阅

Asia Casino News │ ACN东方博彩新闻

Asia Casino News outlet for Online Gaming and Gambling Industry in Asia.

Image Source iag

Chinese tourists boost foreign-only casinos in South Korea

September 11, 2023 ChinaSouth Korea Casino & Hotel

Chinese group tours resuming in South Korea are expected to fuel the recovery of foreigner-only casinos in the country throughout 2023, according to NH Investment & Securities analyst Hazell Lee. Lee predicts a “rapid recovery in indicators” for these casinos, particularly driven by mass market visitors. This resurgence follows the resumption of Chinese group tours in August 2022 and the exemption of e-Visa issuance fees for Chinese group tourists until the end of 2023.

Lee emphasizes that the recovery is centered on Chinese mass visitors, as negative sentiments related to VIP games in China persist. While the recovery in Chinese VIP-related indicators may be slower, Lee highlights the clear direction of recovery.

The correlation between Chinese inbound tourists and casino visitors has reached 0.6, indicating a positive trend for the casino industry. This recovery is significant as it marks the return of a customer segment absent since 2017, when Chinese inbound traffic drastically declined due to government restrictions.

However, the correlation between Chinese inbound tourists and Chinese VIP drop amounts is currently at 0.2. This suggests that the return of mass visitors through group tours is more prominent than the return of VIPs, who are generally individual tourists.

Lee identifies Paradise Co, the operator of Paradise City integrated resort and several casinos in South Korea, as a top pick in the sector. The company’s casino business and non-casino domains are expected to benefit significantly from the resumption of Chinese group tours.

In summary, the revival of Chinese group tours to South Korea is anticipated to boost the recovery of foreigner-only casinos, particularly driven by mass market visitors, with a positive outlook for the casino industry as a whole.

Original story by: IAG

Leave a Reply

Your email address will not be published. Required fields are marked *