Bernstein Research predicts Macau GGR may slow down due to a rise in Covid-19 cases in China, which could lead to a decline in visitor arrivals.<\/p>\n\n\n\n\n\n\n\n
Macau.-\u00a0According to Bernstein Research, Macau\u2019s Gross Gaming Revenue (GGR)\u00a0<\/strong>could reach MOP10.72bn this \u2013 that’s 45 per cent of pre-pandemic levels<\/strong>.<\/p>\n\n\n\n Analysts said\u00a0GGR could be affected by a rise in Covid-19 cases in China<\/strong>, which may lead to a decline in visitation.<\/p>\n\n\n\n The majority of the city\u2019s visitors come from mainland China, which remains the only country to have a largely quarantine-free travel bubble<\/strong> with Macau.<\/p>\n\n\n\n Analysts added\u00a0that Macau’s GGR is usually weak\u00a0in June<\/strong> when compared to other months. They expect a further recovery within July and August during the summer holiday period.<\/p>\n\n\n\n According to JP Morgan analysts,\u00a0Macau GGR could reach between MOP11bn and MOP12bn between July and August<\/strong>.<\/p>\n\n\n\n Sanford Bernstein also expects\u00a0Macau GGR for the year 2020 will be up 205 per cent\u00a0<\/strong>when compared to the previous year to about 64 per cent of 2019 levels<\/strong>.<\/p>\n\n\n\n However,\u00a0Morgan Stanley\u00a0<\/strong>has cut its forecast for\u00a0Macau GGR<\/a>\u00a0this year by 19 per cent to US$16.3bn. That\u00a0would be just 45 per cent of 2019 levels<\/strong> but an improvement of 115.4 per cent when compared to 2020.<\/p>\n\n\n\n Morgan Stanley said it had revised its previous forecast due to the new rise in Covid-19 cases in Asia<\/strong> and the delay in easing travel restrictions<\/a> between Hong Kong and Macau.<\/p>\n\n\n\n As for corporate EBITDA, analysts estimate US$2.89bn<\/strong>, down 37 per cent from its previous prediction of nearly US$4.6bn.<\/p>\n\n\n\n Morgan Stanley said: \u201cInvestors are waiting for Macau revenue\/profit to normalise, which needs the reinstatement of the mainland\u2019s electronic application system for Individual Visit Scheme (IVS) exit visas<\/strong>, the resumption of group visas, and Mainland-Hong Kong-Macau reopening.\u201d<\/p>\n\n\n\n In May, Macau GGR<\/a> was MOP10.45bn (US$1.31bn), up 24.3 per cent when compared with the previous month.<\/p>\n\n\n\n GGR was also up 492.2 per cent year-on-year <\/strong>and was the highest monthly revenue<\/strong> since the Covid-19 pandemic started.<\/p>\n\n\n\n Aggregate casino GGR for the first five months of the year<\/strong> totals MOP42.49bn, up 29 per cent year-on-year.<\/p>\n\n\n\n May\u2019s numbers were fueled by the Labour Day break<\/a>, when Macau\u2019s Public Security Police reported that 165,500 tourists came to Macau<\/strong>.<\/p>\n\n\n\n