VIP holding up despite headwinds: Morgan Stanley

Despite the closure of smaller junkets and a ban on phone betting, the VIP segment is holding up in Macau, says Morgan Stanley.

However, while the analysts do not expect a strong recovery, new VIP rooms in Wynn Palace, Parisian and Studio City opening in 2H16 could drive VIP business, said the brokerage in a note over the weekend.

The impact of the phone betting ban has been marginal, the analysts added. 

In regards to mass, the brokerage predicts mass revenue could show positive year-on-year growth as soon as the second half of 2016.

“Mass revenue per Chinese visitor growth was flat YoY in 1Q16, which had been negative since 4Q14. Overnight Chinese visitors grew by 5 percent YoY in 1Q16 and 13 percent YoY in April.

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