JP Morgan analysts paint a bleak picture for gaming in Macau.
Macau.- Casino gross gaming revenue (GGR) dropped 80 percent in Macau in March and no analysts are predicting it could hit zero in April due to the Coronavirus pandemic.
The bleak situation was outlined in a report by brokerage JP Morgan Securities.
“We wouldn’t be surprised to see Macau printing near-zero GGR until the restrictions at the Guangdong border are lifted,” the JP Morgan report stated.
The neighbouring mainland China province of Guangdong is a major feeder market for Macau tourism.
Guangdong is one of a number of places in the region that have now imposed travel restrictions as part of efforts to contain the spread of Coronavirus.
However, Sanford C. Bernstein Ltd, said in a Thursday memo that all six Macau operators should have at least six months of cash liquidity to survive the business “drought” caused by the crisis.
According to Macau’s Public Security Police, Macau received around 230 visitors on Sunday and approximately 270 on Monday.
In 2019, the statistical daily average was circa 108,000 tourist visitors per day, based on that year’s tally of 39.4 million arrivals as reported previously be the city’s Statistics and Census Service.
JP Morgan analysts DS Kim, Derek Choi and Jeremy An further noted in relation to April GGR: “April could possibly be the worst month since the first Vegas-type casino opened in 2004 (Sands Macao).”