Authorities in Macau have revealed that they expect GGR to reach MOP130bn for 2022, a figure similar to what is expected for this year.
Macau.- Preparing next year’s fiscal budget plan, the government of Macau has predicted that GGR for 2022 will be MOP130bn (US$16.2bn), half that seen before the Covid-19 pandemic. Authorities forecast that the city will continue run a fiscal deficit and will face “great uncertainty” amid the continuing impact of the pandemic.
In the budget plan, the government estimates that gaming tax income will reach MOP45.5bn in 2022. The government said it will use the city’s accumulated fiscal reserves to support expenditure on social welfare and public infrastructure projects.
In July, Lei Wai Nong, Macau’s secretary for economy and finance, said that the government is sticking to its forecast that casino gross gaming revenue for 2021 will reach MOP130bn (US$16.28bn) – 44.5 per cent of 2019′s MOP292.5bn. That’s despite the fact that GGR for the first half was MOP49bn, nearly 25 per cent less than authorities expected.
The Gaming Inspection and Coordination Bureau (DICJ) has recently reported that Macau’s GGR for Q3 was down 26 per cent quarter-on-quarter, at MOP$18.76bn (US$2.34bn), and analysts predict the current quarter will be worse. Analysts at Bloomberg say the poor numbers during the October Golden Week holiday are likely to continue in Q4.
Macau: November GGR may reach just 30% of 2019 levels
Analysts predict that Macau’s GGR will remain low in November. Morgan Stanley Asia Ltd forecasts that November GGR will be up 57 per cent month-on-month from MOP4.37bn (US$544m) to MOP6.9bn (US$860.9m) but down 30 per cent when compared to November 2019.
Analysts said November’s figure will remain low mainly due to a recent Covid-19 outbreak in mainland China, which could spread to the neighbouring province of Guangdong. Sanford C. Bernstein Ltd also forecasts that November GGR may be down 60 per cent when compared to pre-pandemic levels. It doesn’t believe travel restrictions will be eased until next year.