South Korea’s casino operators reported solid third-quarter earnings, supported by a sharp increase in Chinese tourists and a recovery in the global gaming industry, according to tourism and brokerage industry data.
Combined operating profit at the country’s three major foreigner-only casino operators — Lotte Tour Development Co., Paradise Co. and Grand Korea Leisure Co. (GKL) — was estimated at 121.2 billion won ($83 million) in the third quarter.
The figure is nearly double the 64.2 billion won a year earlier,
Lotte Tour Development said its operating profit soared 139% on-year to a record 52.9 billion won in the July-September quarter.
Paradise and GKL are estimated to have posted 51.6 billion won and 16.6 billion won in third-quarter earnings, up 42% and 186%, respectively, from a year earlier.
The improvement comes as the number of Chinese visitors has increased.
Ministry of Justice data showed 1.72 million Chinese nationals entered South Korea between July and September, up 23.8% from a year earlier.
A thaw in bilateral relations between Seoul and Beijing significantly has contributed to their earnings growth following the visa waiver for Chinese group tours from late September.
Global casino revenue has nearly recovered to pre-pandemic levels.
Macau’s gross gaming revenue reached 24 billion patacas ($3 billion) in October, up 16% from a year earlier and equivalent to 91% of October 2019 levels.
Buoyed by a rebound in foreign visitors, Lotte Tour plans to relaunch a Korea-China-Japan cruise route from Busan in May, its first since 2019. GKL has commissioned a study to expand or relocate its casino operations.
Analysts expect earnings to remain strong in the fourth quarter as Chinese group tours resume in greater numbers. Lotte Tour’s October casino revenue jumped 108% on-year, while Paradise reported an 18.5% rise.
“The increase in group tourists from October is likely to lift overall revenue further in the fourth quarter,” said an official at a local tourism agency. “A rise in general visitors also creates a more favorable environment for VIP players.”
