KUALA LUMPUR (Dec 23): Visitor traffic to Genting Malaysia Bhd (GenM)’s Resorts World Genting (RWG) remained subdued followed by the fallout from the Covid-19 pandemic that has put the brakes on travel demand. 

RWG saw its visitor numbers shrank to 4.8 million in the third quarter this year (3Q20), which is only 67% of the 7.2 million visitors recorded a year earlier in 3Q19. 

Similarly, day-trippers stood at four million visitors, which is lower compared to the 5.4 million visitors in 3Q19,  according to GenM’s corporate presentation for Nomura Investment Forum 2020.

Meanwhile, RWG’s hotel occupancy rate was recorded at 89% in 3Q20, which is lower compared to 95% in 3Q19. Average room rate was at RM204, about 92% of RM222 recorded last year.

With the absence of foreign visitors due to the country’s borders remaining closed, GenM saw an uptick of rooms being sold (booked) to its members, at a rate of 89% compared with 75% in 3Q19. 

Looking ahead, GenM Group maintained a "cautious stance on the near-term prospects of the leisure and hospitality industry". 

“Full extent of the impact of Covid-19 on the group's operations remains uncertain,” it noted.

“Recalibrated operating structure will anchor recovery and position the group for greater long-term sustainable growth,” it added. 

In Malaysia, GenM said the government’s implementation of Conditional Movement Control Order (CMCO) in most states in the country will impact the group’s business

Nevertheless, the group said it will “continue to re-engineer itself to adapt to the new operating environment” whilst health and safety of guests, employees and the community in RWG remains a key priority.

It added that the group's focus remains on the completion of Genting SkyWorlds, the outdoor theme park which is targeted to open by the middle of 2021.

For the nine months ended Sept 30, 2020, GenM is in the red registering a net loss of RM2.02 billion versus a net profit of RM1.1 billion a year earlier while revenue more than halved to RM3.48 billion from RM7.96 billion. 

The group’s earnings have been negatively impacted primarily due to the unprecedented disruptions to its leisure and hospitality operations worldwide amid the outbreak of the Covid-19 pandemic.

Aside from Malaysia, GenM also has leisure and hospitality operations in Egypt, the UK, the US and the Bahamas. 

At noon break on Bursa today, GenM's share price rose six sen or 2.3% to RM2.67 after 7.77 million shares were traded. At RM2.67 per share, GenM's market value stood at about RM15.15 billion.

Year to date, the stock is down 19%.