Macau casino GGR reaches US$2.60bn in October

Macau casino GGR reaches US$2.60bn in October

The month saw the highest gross gaming revenue since January 2020.

Macau.- The Gaming Inspection and Coordination Bureau has reported that Macau’s gross gaming revenue (GGR) for October was MOP20.79bn (US$2.60bn). That’s an increase of 6.6 per cent year-on-year and 20.5 per cent compared to the previous month. It was the city’s best monthly performance since January 2020 at the very beginning of the Covid-19 pandemic (MOP22.13bn).

The rise in revenue was mainly attributed to the October Golden Week holiday, a seven-day public holiday in Mainland China, which brought 916,000 visitors to Macau. The Macau Hoteliers and Innkeepers Association reported at the time that the city’s average hotel occupancy rate had peaked at 95 per cent.

JP Morgan: mass-market GGR up 6.6 per cent.

Analysts at JP Morgan Securities (Asia Pacific) have reported that Macau’s mass-market gross gaming revenue (GGR), including slots, reached MOP18.48bn (US$2.31bn). That’s an increase of 6.6 per cent in year-on-year terms and 112.5 per cent of the October 2019 level (MOP16.42bn).

Analysts DS Kim, Mufan Shi, and Selina Li said October figures looked “pretty impressive to us, considering headwinds from weak macro and consumer sentiment.” They projected that GGR for the fourth quarter would increase despite a potentially weaker-than-usual December due to Chinese president Xi Jinping’s expected to visit Macau to commemorate the 25th anniversary of the city’s return to China.

China International Capital Corporation Hong Kong Securities (CICC) has projected that Macau’s gross gaming revenue (GGR) for the fourth quarter of the year will rise 5 per cent in year-on-year terms and 4 per cent compared to the third quarter. Analysts Shengyong GohJiayu Wang and Liwei Hou said the growth would be driven by the appreciation of the renminbi against the Hong Kong dollar, which is expected to attract more visitors and increase their spending capacity.

Fitch ratings expects Macau GDP to rise 15% this year

Fitch Ratings has forecast that Macau’s gross domestic product (GDP) will grow by 15 per cent this year and 8 per cent in 2025 amid the resurgence of the gaming tourism sector. It said the sector would be boosted by travel policy adjustments that favour tourism between Macau and Hengqin Island allowing mainland residents with a business visa to stay for up to 14 rather than seven days.

Fitch reaffirmed Macau’s long-term foreign-currency issuer default rating at AA, with a stable outlook highlighting the city’s “exceptionally strong public and external finances, and demonstrated fiscal prudence even during periods of economic and gaming revenue shocks.” It noted however that the continued reliance on gaming tourism from mainland China remains a risk, given the potential influence of policy changes affecting tourism.

See also: Tourism in Macau: 25.9m visitors in first nine months of the year

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