{"id":777001214,"date":"2022-12-20T14:10:26","date_gmt":"2022-12-20T17:10:26","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777001214"},"modified":"2026-04-23T01:53:15","modified_gmt":"2026-04-23T04:53:15","slug":"macau-casinos-may-not-start-pledged-investments-until-2024-analysts-say","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/macau-casinos-may-not-start-pledged-investments-until-2024-analysts-say","title":{"rendered":"Macau casinos may not start pledged investments until 2024, analysts say"},"content":{"rendered":"\n

2023 is expected to be a year of recovery for the SAR’s gaming and tourism sectors.<\/p>\n\n\n\n\n\n\n\n

Macau.- Morgan Stanley <\/strong>has reported that Macau casino operators’ pledged investments are likely to begin in 2024 because 2023 will still be a year of recovery for the SAR\u2019s gaming and tourism sectors. <\/p>\n\n\n\n

The six gaming operators<\/a> will be required to increase non-gaming investment by around 20 per cent<\/strong> of their initial pledge if Macau\u2019s annual gross gaming revenue reaches MOP180bn (US$22.45bn) by 2027. Morgan Stanley believes the figure is achievable, as 2019 mass revenue reached US$22bn and China discretionary retail values are up 20 per cent from 2019 levels.<\/p>\n\n\n\n

With e-visas returning, China gradually removing its Zero-Covid policy<\/a> and the HK-Macau-Mainland border<\/a> expected to reopen in the second half of 2023, Morgan Stanley is confident that post-Covid earnings will outperform pre-Covid earnings.<\/p>\n\n\n\n

See also:<\/strong> Macau\u2019s economy could rebound 46% in 2023, according to Fitch Ratings<\/a><\/p>\n\n\n\n

Analysts stated: “Clarity is lacking on how operators are going to spend the required investment on non-gaming. Yet, many investment examples provided by Macau under the 11 non-gaming areas are opex in nature, which tends to have very low returns.”<\/p>\n\n\n\n

The brokerage said: “We expect 2024e GGR and Mass revenue at 70 per cent and 105 per cent of 2019 levels, respectively, which we think is conservative as positive drivers should outweigh the negative ones.”<\/p>\n\n\n\n

Macau to reach 95% of pre-pandemic levels in 2024 \u2013 JP Morgan<\/h2>\n\n\n\n

DS Kim<\/strong>, an analyst with JP Morgan<\/strong>, has predicted that Macau\u2019s gaming industry could reach 95 per cent of pre-pandemic levels in two years\u2019 time. Kim says the recovery will be driven by pent-up demand from an expanding mass market.<\/p>\n\n\n\n

DS Kim cited two reasons for the optimistic outlook: Macau\u2019s policy allowing the government to lower taxes <\/strong>by up to 5 percentage points for operators that attract more foreign tourists and an increase in the market-wide cap on gaming tables<\/strong> to 6,000 from January (around 4,000 tables were directly operated by casinos in 2019).<\/p>\n\n\n\n

Macau\u2019s GGR<\/a> for the first eleven months of 2022 <\/strong>combined stands at MOP38.7bn, down 50.9 per cent year-on-year.<\/p>\n","protected":false},"excerpt":{"rendered":"

2023 is expected to be a year of recovery for the SAR’s gaming and tourism sectors.<\/p>\n","protected":false},"author":176,"featured_media":22027,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Macau's gaming and tourism sectors anticipate a recovery in 2023, with significant GGR growth projected to reach MOP180bn by 2027, driven by mass market demand and policy shifts like e-visas and increased gaming table caps. Operators face increased non-gaming investment requirements, though concerns exist regarding the return on these largely opex-nature expenditures. Analysts from Morgan Stanley and JP Morgan forecast a strong rebound, potentially exceeding pre-COVID earnings by 2024.","focusai_entities":"Morgan Stanley, Fitch Ratings, JP Morgan, DS Kim","focusai_location":"Macau, China, Hong Kong","focusai_target_profile":"ceo_executive (0.95), regulator (0.9), compliance_legal (0.75), operator_casino (1.0), marketing_crm (0.7), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Non-Gaming ROI","query":"What specific governance frameworks will Macau implement to ensure operators' non-gaming investments yield acceptable returns, given the current concerns about their opex-nature and low profitability?"},{"label":"GGR Growth Drivers","query":"Beyond pent-up demand and e-visas, what specific B2C marketing and product strategies are Macau operators deploying to achieve the projected 105% of 2019 mass revenue by 2024, especially with increased table caps?"}],"footnotes":""},"categories":[157,16338],"tags":[23906],"class_list":["post-777001214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777001214"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001214\/revisions"}],"predecessor-version":[{"id":777001236,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001214\/revisions\/777001236"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/22027"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777001214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777001214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777001214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}