Bernstein predicts Macau GGR may fall to 9% of 2019 levels in June

Analysts at Bernstein believe Macau’s GGR could plunge to only 9 per cent of pre-pandemic levels amid a new outbreak of Covid-19 cases.

Macau.- As the number of cases of Covid-19 continues to grow in Macau, the consequences are already being seen. The Public Security Police force reported Macau the arrival of just 20,400 visitors on Sunday – a 53.6 per cent fall from the previous day.

Sanford C. Bernstein now predicts that this month’s gross gaming revenue (GGR) could plummet to only 9 per cent of 2019 levels.

Compared to May, Macau’s GGR would be down by 31 per cent month-on-month. However, according to analysts, it could fall further if restrictions remain in place and new Covid-19 cases continue to appear.

Authorities in Zhuhai, in the neighbouring Chinese province of Guangdong, have announced that people travelling to Macau from Zhuhai must present a certificate issued within 48 hours before departure.

The Ministry of Health reported on Monday afternoon that the number of new covid-19 cases had risen from 31 to 36.

Restaurants have closed for dining in and most stores have closed, while Macau authorities have advised the public not to leave home. It’s terrible news for casino operators since, while casinos remain open for now, the fragile recovery of tourism is likely to disappear with gross gaming revenue (GGR) expected to be close to zero for up to several weeks, probably into July.

As of Monday, Macau had eight “red lockdown zones” with confirmed cases and five “yellow zones”, indicating where precautionary measures were needed.