After five months of growth, Macau has registered its lowest GGR since November 2020, with a drop of 37 per cent month-on-month.
Macau.- Macau’s Gross Gaming Revenue (GGR) fell in June after months of improvement, registering a decline of 37 per cent to MOP$6.54bn ($817.3m), down from MOP10.45bn (US$1.31bn) in May.
However, the number represents an increase of 813 per cent from June 2020, when the city registered GGR of MOP$716m.
The result was in line with expectations as Bernstein had predicted GGR for June would be down 30 per cent month-on-month. The drop was partly due to an outbreak of Covid-19 cases in the neighbouring province of Guangdong which led Macau to tighten Covid-19 countermeasures at casinos and other tourism venues.
However, the decline can also be explained because of the increase in custom during the Labour Day break in May. Macau’s GGR is usually weaker in June when compared to other months. Analysts expect a further recovery in July and August during the summer holiday period.
Macau’s GGR for the first six months of the year stands at MOP$49.02bn, up 45.4 per cent from the MOP$33.72bn in the first six months of 2020. May saw the highest GGR of the year to date, mainly thanks to the Labour Day break, when Macau’s Public Security Police reported that 165,500 tourists came to Macau.
Macau plan to ease restrictions with Hong Kong
The Macau government is reported to be planning to allow quarantine-free inbound travel to people coming from Hong Kong.
According to JP Morgan Securities, visitors could be allowed to enter casino resorts and hotels but will have to comply with stricter rules limiting their movements.
JP Morgan analysts said: “Our checks with some Macau hotels suggest the government sent out a notice a few days ago on a planned reopening of the border.”
For now, people coming from Hong Kong need to undergo a 14-day quarantine but a reopening scheme seems to be closer than ever although limited to fully vaccinated travellers.
The news would be welcomed by the tourism and gaming sectors as Hong Kong provides 10 to 15 per cent of Macau’s annual casino gross gaming revenue (GGR).