Macau GGR expected to reach MOP18bn in November

Bank of America Securities expects gross gaming revenue to be up by 12.1 per cent year-on-year.

Macau.- Bank of America Securities has forecast that Macau’s gross gaming revenue (GGR) will reach MOP18bn (US$2.25bn) in November. That would be a decrease of 13.5 per cent month-on-month but a rise of 12.1 per cent compared to November 2023. It would be 78.6 per cent of the GGR recorded in the same month of 2019, before the Covid-19 pandemic.

As reported by Asia Gaming Brief, November’s GGR typically falls more than 10 per cent from October figures. Last November, GGR was down 17.7 per cent month-on-month. However, analysts said the Macau Grand Prix from November 14 to 17, would positively affect GGR figures. They said GGR had performed better than expected in the last month considering the decline in consumer spending in China.  

In October, GGR 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 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.

CICC forecasts 5% growth for GGR in Q4

China International Capital Corporation Hong Kong Securities (CICC) has projected that Macau’s 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 Goh, Jiayu 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. They noted that the final quarter benefited from a strong October Golden Week, the seven-day holiday period which saw 916,000 visitors in the city. Consumer confidence is also projected to strengthen, supported by a series of stimulus policies introduced by the Chinese government.

The analysts mentioned that non-gaming events might have contributed to boosting the number of visitors. Operators are hosting non-gaming events, such as concerts, residency shows, sports events, and art exhibitions, more frequently. In the current quarter, analysts expect concerts from Andy Lau and Dao Lang, as well as UFC Fight Night, to be particularly attractive.