[Click e-Stock] "Lotte Tour Development Maintains Solid Business... Focus on Attracting High-Rollers"

On October 21, NH Investment & Securities analyzed that Lotte Tour Development is maintaining a solid business environment, supported by the recovery in foreign inbound tourism. The number of high-roller (VIP with high bets) visitors is identified as a key variable for both short-term performance and mid- to long-term growth.

Lee Hwajeong, a researcher at NH Investment & Securities, stated in a report released that day, "The industry outlook remains positive," adding, "The expansion of foreign inbound tourism is driving growth in visitor numbers across casino venues."

She explained, "However, due to differences in location and marketing capabilities at each venue, the visitor mix is becoming more differentiated, resulting in a trend where the increase in visitor numbers does not directly translate to proportional sales growth. For the time being, the implementation of visa exemptions for Chinese group tourists is expected to lead to a notable increase in mass-market visitor numbers."

The researcher also noted, "The growth in the number of high-roller visitors will determine both short-term performance and mid- to long-term growth potential. The importance of comp offerings (hotels and ancillary facilities) and marketing capabilities to attract high-rollers is becoming even more significant."

In the case of the Chinese market, inbound visitors in the third quarter reached 1.7 million, a 22% increase year-on-year, recovering to 106% of the pre-COVID-19 level. She commented, "With the visa exemption for Chinese group tourists implemented at the end of September, the trend of expanding inbound tourism is expected to be maximized for some time. In fact, during the early October National Day holiday, the increase in Chinese visitors to foreigner-only casino venues was particularly notable among mass-market and general VIP segments."

She further projected, "As regulations on VIP gaming within China are gradually being eased, operators with strong competitiveness in attracting high-rollers will show especially flexible performance growth."

Regarding the Japanese market, she stated, "In the third quarter, the VIP drop amount and visitor numbers for Japanese customers at foreigner-only casino venues were at 117% and 110% of pre-pandemic levels, respectively. Since inbound tourism from Japan has already surpassed pre-COVID-19 levels, the growth rate of visitor numbers may slow, but there is still potential for an increase in per capita spending."

She emphasized, "The increase in per capita spending by Japanese VIPs will be a key driver of mid- to long-term growth, and the fundamentals of the domestic casino industry, including Lotte Tour Development, remain robust."

This content was produced with the assistance of AI translation services.