UBS predicts improvement in Macau casino GGR in late December
The Investment bank expects Macau’s gambling revenue to be driven by the holiday season.
Macau.- Investment bank UBS AG anticipates a rise in Macau’s visitor numbers and gross gaming revenue (GGR) as the city enters the festive season. The bank reported that casino GGR was stable in the first ten days of December, maintaining a daily run-rate of approximately MOP520m (US$64.6m). That was a slight dip from November’s MOP535m, but UBS attributes this to a lower VIP hold rate of 2.4 to 2.6 per cent compared to the usual 2.85 per cent.
Hotel room rates were observed to be more affordable in early December compared to the previous month, with UBS tracking an average 4 per cent decrease in rates for December 12 to 18 at 36 hotels. However, the bank highlights a recent narrowing of room rate discounts.
A few days ago, JP Morgan Securities (Asia Pacific) predicted a GGR of MOP17bn (US$2.1bn) for the full month. This would mean a daily run-rate of MOP550m (US$68.4m) and a full recovery of the mass market.
In November, Macau’s casino GGR reached MOP16.04bn (US$1.99bn). Data suggests that mass GGR reached parity with pre-Covid levels. Cumulatively, Macau’s GGR for the first eleven months of 2023 was MOP164.5bn (US$20.4bn), up 325 per cent compared to the same period in 2022.
Macau’s secretary for economy and finance, Lei Wai Nong, expressed confidence in the city’s potential to welcome around 28 million visitors by year-end, following a successful reception of over 25 million tourists in the initial 11 months of 2023.
