Macau GGR to fall 95% in May
Sanford C. Bernstein analysts say average daily GGR is just MOP40million (US$5million) in the first ten days of the month.
Macau.- Macau GGR is set to fall again in May as the industry begins its recovery from the Covid-19 crisis.
According to Sanford C. Bernstein analysts, the average daily rate of Macau casino gross gaming revenue in the first 10 days of May was estimated to be MOP40million (US$5million), down 95 per cent YoY.
The numbers follow a decline of 97 per cent year-on-year in April.
“We estimate VIP volume has been stronger than mass, with revenue driven by a very small number of players which, however, drove low hold and high volatility in the VIP segment,” analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu noted.
They also said they expected GGR to decline between 90 and 95 per cent in May, “largely depending on hold volatility and when [tourist] visitation may resume.”
April’s results put Macau’s accumulated 2020 year-on-year decline at 68.7 per cent with combined GGR of MOP31.24 billion.
“We expect GGR to pick up again when travel restrictions begin to be lifted,” analysts added.
Border restrictions between Macau, Hong Kong and China are the main reason for the decline in Macau tourism and the knock-on effect it is having on the SAR’s gaming industry.
However a plan to allow residents of Guandong province, Hong Kong and Macau to travel without undergoing a 14 day quarantine will be put into action soon.
