Macau 2023 GGR to reach 45% of pre-pandemic levels, analysts say

Moody’s expects the mass-market segment to drive the increase in GGR.

Macau.- Moody’s Investors Service has predicted that Macau’s GGR will reach 45 per cent of pre-Covid-19 levels this year. In 2019, Macau’s GGR was just below MOP292.46bn (US$36.5bn). In 2022, it was just 14 per cent of that due to Covid-19 lockdowns and travel restrictions.

Moody’s expects the mass-market segment to drive the increase in GGR. It expects mass-market GGR to reach 75 per cent and 100 per cent of 2019 levels in 2023 and 2024 respectively. 

However, Moody’s warned that the earnings of Macau-focused companies such as SJM Holdings and Melco Resorts & Entertainment will not return to pre-pandemic levels until 2024. This is partly due to their shrinking VIP business and the start-up costs of new properties.

Analysts expect Macau casino operators’ revenue to grow “significantly” over the next two to three years “from a very low base” in 2022.

Macau lifted most of its travel restrictions on January 8, including all testing requirements for inbound travellers from mainland China, Hong Kong, and Taiwan. This has already resulted in an increase in visitor arrivals.

In the first two months of 2023, Macau’s GGR stood at just above MOP21.90bn, about 43.5 per cent of that seen in the first two months of 2019. The number of visitor arrivals in the first two months of 2023 rose by 121.6 per cent year-on-year to around 2.99 million – 52.5 per cent of all arrivals in 2022.