Written by analysts Jeffrey Kiang, Naphat Chantaraserekul, and Leo Pan, the report tips Thailand to attract 39 million visitors each year with spend per head of US$386.
“When comparing this data with other markets, Thailand would rank as the third-largest gaming market 2023. We consider Singapore a good proxy for Thailand due to similarities in geography, visitor mix and overall appeal as a travel destination.”
If tax is set at the estimated 17 per cent, EBITDA margin could be around 40 per cent. CLSA believes that four out of Macau’s six casino licence holders “have expressed interest in investing in Thailand.”
“Among Macau gaming concessionaires, we believe Galaxy, Las Vegas Sands, MGM Resorts and Wynn Resorts have expressed interest in investing in Thailand,” the analysts states.
“In contrast, Melco and SJM are less likely to show interest given their balance sheet constraints Macau will likely remain resilient considering its close proximity to China and much shorter length of stay than Thailand (different purposes of travelling). The key issue for Macau is still the lack of new land and hotel supply, rather than insufficient demand.”
The report added: “Burdened by mounting debt from Covid, Thailand is in dire need of an economic revival. In a decisive move, lawmakers have voted to legalise gaming, bringing the opening of land-based casinos closer. Targeting foreign visitors as the primary players, the proposed gaming licences would be valid for 20 years, with a 17 percent tax rate. Prospective licence holders need to invest US$2.7bn at minimum.”
“We expect [the licensing] process to last for one to two years, followed by another three to four years of construction. The first entertainment complex could come online in 2029 at the earliest. With a comparable gaming tax rate to Singapore and the Philippines, Thailand’s entertainment complexes are well positioned to deliver similar property EBITDA margin.”
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Source: G3 Newswire
