SBC News Voice of the Sports Betting Industry
Last week’s unexpected devaluing of the Yuan by the People’s Bank of China’ will likely have negative impacts throughout Asia’s casino and leisure industry, according to numerous Asian business analysts.
Aimed at stabilising the national economy and maintaining growth and employment rates, the devaluing of the Yuan is thought to represent China’s largest depreciation its ¥. currency for twenty years
Business analysts have stated that Chinese tourism will likely be impacted by the weakening of the Yuan. This decrease in travel and spend will likely affect the revenues of casino resort operators in South Korea, Singapore, Vietnam and The Philippines.
Closer to China, a devalued Yuan will likely continue Macau’s leisure and gaming decline. The gambling hub which is suffering an ‘annus horribilis’, continues to record overall revenue declines combined with its lowest number of visitors in eight years.
For gambling enterprises that have invested in Macau, the weakening of Yuan currency will negatively impact the value of high-roller customers, as casinos trade and settle in Hong Kong dollars as their core currency.
The Bank of China’s decision to devalue will be the last news the governance of struggling Asian focused casino operators such as Genting Singapore and Crown Melco would want to hear. 2015 has seen major operators report a decline in commercial assets, as their operations targeting Chinese consumers have struggled amidst a clampdown by the Chinese Ministry of gambling operations. The devaluing of the Yuan will likely continue the negative trends witnessed, as executive teams of operators look to adjust to new market conditions.
