• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Bernstein upbeat on Hengqin’s potential to help Macau thrive

Apr 03, 2019 Newsdesk Latest News, Macau, Top of the deck  


Bernstein upbeat on Hengqin’s potential to help Macau thrive

Sanford C. Bernstein LLC says it expects further development of the mainland Chinese island of Hengqin to help build Macau’s long-term potential. In a note issued on Wednesday, the brokerage says Hengqin has developed considerably since it became part of the Guangdong Free Trade Zone in 2015, and its analysts predict further growth and increased visitation.

The idea is that the attractions of Macau, where casino gaming is permitted, and the non-gaming attractions of Hengqin, will complement each other, drawing visitors to both places, to the benefit of the economies of both.

Hengqin is a 100-square kilometre (41.1 sq miles) island that is administratively part of mainland China. Hengqin is next door to Macau. A highway and bridge joins the island to Macau’s Cotai district.

The note said there were 75 major development projects in Hengqin underway last year, which generated CNY28.7 billion (US$4.28 billion) in investments during the year.

The Chinese cabinet, the State Council, urged the authorities in the city of Zhuhai, of which Hengqin forms a part, to get on with developing the island as recently as Monday.

The Sanford Bernstein note said: “We foresee even greater development materialising as part of China’s Greater Bay development initiative. Currently, Hong Kong property developers Shun Tak Holdings Ltd and the Lai Sun Group and Chimelong Group Co Ltd [a major Chinese theme park operator], among others, all have development projects in Hengqin.

“Galaxy [Galaxy Entertainment Group Ltd] has rights to a large swath of land on the southwestern corner of Hengqin to be developed as a non-gaming resort in the future.”

“Future non-gaming expansion in Hengqin will provide more hotel capacity for Macau,” added analysts Vitaly Umansky, Kelsey Zhu and Eunice Lee.

The note said only about 9 percent of mainland Chinese visiting Macau enter by crossing the Lotus Bridge linking Hengqin and Cotai, whereas 50 percent enter by crossing the land border between Zhuhai and the Macau Peninsula.

Growing numbers

“We expect that number to grow significantly after the Guangzhou-Zhuhai intercity railway is opened on Hengqin later this year,” the note suggested. “The Guangzhou-Zhuhai intercity railway will also provide further connectivity between Hengqin and Zhuhai Airport by about 2021, which will allow Zhuhai Airport passengers to arrive in Macau in less than 15 minutes.”

The Sanford Bernstein note said the Hong Kong-Zhuhai-Macau Bridge, a road bridge across the Pearl River estuary, has become the primary and most affordable way into Macau for day trippers since it opened last October.

The stockbroker stated that about 2.1 million visitors had entered Macau by the bridge by February, or 12 percent of all visitors since October.

“A significant number of visitors using the bridge are lower-end tourists (and often not gaming customers), which [sic] do not contribute much to gaming revenues. However, it is also possible to fly into Hong Kong airport and drive through Macau in a private car that has dual licence (albeit at a more expensive price),” the Sanford Bernstein analysts wrote.

The Macau government has said the bridge has increased the number of visitors to the city, but investment analysts have suggested that the increase has not necessarily meant more money for the casinos in the city. That is because many of the visitors that use the bridge belong to tour parties on cheap tours, and tend to gamble less than other visitors.

Arrivals to Macau in February rose by 15.5 percent year-on-year according to data from the Statistics and Census Service. The visitor tally was about 3.55 million, compared to about 3.07 million in February 2018.

With the combination of Hengqin’s development and ease of access provided by the new bridge, the brokerage has forecast 8 percent compound annual growth rate in gross gaming revenue (GGR) from 2018 to 2023. Mass-market GGR is expected to grow by about 11 percent annually in the same period.

For that to eventuate, many industry figures have called for an evolution in how Macau operates in relation to mainland China.

“We encourage the idea that Hengqin implement a borderless entry between Macau and the island, so that all visitors to Macau can also access the amenities that Hengqin has to offer, and then freely return to Macau,” Galaxy Entertainment Group’s deputy chairman Francis Lui Yiu Tung said in 2017.


  • tweet
Related articles
  • Investors see 2H Macau gain, rebound 2022: Bernstein
    Investors see 2H Macau gain, rebound...

    Jan 19, 2021  

  • 2020 tourist tally down 85pct at 5.9mln: Macau police
    2020 tourist tally down 85pct at...

    Jan 14, 2021  

More news
  • Digital yuan eventually for Macau mass bets mulls Bernstein
    Digital yuan eventually for Macau mass...

    Jan 22, 2021  

  • Macau Covid-19 case no bar to mainland travel ties
    Macau Covid-19 case no bar to mainland...

    Jan 22, 2021  


Latest News

Digital yuan eventually for Macau mass bets mulls Bernstein

Digital yuan eventually for Macau mass bets mulls Bernstein

Jan 22, 2021  

Were China’s central government-backed digital yuan (CNY) to be adopted in Macau for casino chip transactions, it could in the long run benefit mass and premium-mass play, as cross-border money...
Read More
Macau Covid-19 case no bar to mainland travel ties

Macau Covid-19 case no bar to mainland travel ties

Jan 22, 2021  

Mohegan seeks govt nod to delay Inspire opening

Mohegan seeks govt nod to delay Inspire opening

Jan 22, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The entire company is eagerly anticipating the launch of our newest themed destination – The Londoner Macao"

Wilfred Wong Ying Wai

President of Macau-based casino operator Sands China



Most Popular

  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
  • Londoner Macao first phase launch Feb 8 says Sands ChinaLondoner Macao first phase launch Feb 8 says Sands China January 21, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Investors see 2H Macau gain, rebound 2022: BernsteinInvestors see 2H Macau gain, rebound 2022: Bernstein January 19, 2021
  • Melco likely to take on more debt for expansion: Moody’sMelco likely to take on more debt for expansion: Moody’s January 20, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us