“Weak” VIP segment will continue to plague the Singapore casino market this year, according to international credit debt watcher Fitch Ratings Inc.

Unlike in other gaming markets, Fitch is less optimistic about Singapore and expects its two casino resorts to be roughly flat at US$4 billion in 2017 compared to last year

“Gaming revenues continued a downward trajectory in 2016 largely due to a steep contraction in the VIP segment, despite a 12.5 percent gain in Chinese visitors (the biggest source of VIP revenue) in first-half 2016,” Fitch said in its note. “Most revenue comes from foreigners, as local residents are required to pay a SGD100 [US$71] entrance fee [for 24-hour access] and marketing to locals is heavily restricted.”

Singapore’s two integrated resorts – Las Vegas Sands Corp.’s Marina Bay Sands (MBS) resort and Genting Singapore’s Resorts World Sentosa (RWS) – will also feel the competitive pressure from other gaming hubs in the Asia-Pacific region.