Macau casino market to grow single-digit in 2020

According to Fitch Ratings Inc, there will be “low single-digit growth” for the Macau casino market in 2020 with a flat VIP performance.

Macau.- The Macanese region is one of the best performing segments in the world, but won’t grow very much next year. According to Fitch Ratings Inc, the Macau casino market will have only “low single-digit growth” in 2020.

Comments by Colin Mansfield, Fitch Ratings’ associate director, corporate ratings North America forecast a regular performance in the near future. 

“(Fitch is) basically expecting the VIP business to remain flat from where we are today. With some potential downside risk if things escalate a little bit further… [in] the U.S.-China trade war,” Mr Mansfield said on Macau casino market.

He also compared the segment’s growth rate with China’s GDP improvement. “Our economists have a 5.7% growth rate for that segment for 2020,” he assured. “So that comes out to be about low single-digit growth for Macau in 2020 in our forecast.”

Recent figures

The Gaming Inspection and Coordination Bureau of Macau has released the financial figures for October operations. During that period, gross gaming revenue (GGR) declined 3.2% to €2.9 billion when compared to the same month in 2018.

Revenue in the region was down because of a decrease in high roller visitation during national holidays. This is due to the US-China trade war and political issues in neighbouring Hong Kong.

Macau collected €2.9 billion in October, which is 3.2% lower than the €2.4 billion that it had reported in September. Last month also marked a negative trend in which Macau only posted growth in one of the last four months, as it recorded a 0.6% increase in September. In August it registered a 9% drop, while July experienced a 4% setback.