Macau GGR to fall 6% in September, analysts say
Analysts at Morgan Stanley Asia have forecast that Macau’s GGR will drop due to the impact of Typhoon Saola.
Macau.- Gross gaming revenue (GGR) in Macau could be down by 6 per cent for September, according to Morgan Stanley Asia. Analysts Praveen Choudhary and Gareth Leung estimate that GGR will amount to MOP16.1bn (US$1.99bn), equivalent to approximately MOP537m per day.
The anticipated decline is influenced by the typical weaker performance in September in comparison to the holiday season of August but also the disruption caused by Typhoon Saola on September 1 and 2.
When a typhoon signal of No.8 or higher is issued, public transport within Macau is suspended, ferry services are suspended and the Hong Kong-Zhuhai-Macau Bridge closes, which disrupts the influx of tourists to Macau and impedes casino operations. Analysts expect October to see a rebound due to the October Golden Week from September 29 to October 6. The holiday period includes the lunar-calendar-based Mid-Autumn Festival on September 29 and China’s National Day on October 1.
Macau’s GGR for August was up 686.4 per cent year-on-year and 3.3 per cent month-on-month to MOP17.21bn (US$2.13bn). Casino GGR for the first eight months of the year was MOP114.01bn (US$14.16bn).
A report by Jefferies Equity Research has suggested that GGR in Macau will reach 63 per cent of the 2019 levels this year. In 2019, GGR was MOP292.46bn (US$36.3bn). Based on the current projections, the sector could see nearly US$23bn in 2023. Mass market GGR is expected to reach full recovery by 2024.
