VIP casino sector would be recovering after two years of crisis.
Macau.- Investment bank Sanford Bernstein shared October’s results for Macau casino operations yesterday. According to the reports, the Asian gambling capital’s ADR grow to US$88 million in the last week, representing a 12.2 percent of increment in comparison with activities held the week before.
Sanford Bernstein suggested that the growth on Macau’s economy is partly due to the visit of the Chinese Premier Li Keqiang to the city from October 11–16. The presence of the Premier would boost the VIP sector, which has been through severe decline since 2014. The VIP casino operations recovery could set a path to the entire city development.
“The increased ADR number has also shown that the typhoon hitting Guangdong Province on Friday had minimum impact on the GGR,” stated the bank. “Assuming an ADR of US$ 64-70 million for the remainder of this month, October GGR would be in the range of US$2.5 billion and US$ 2 billion. This would represent a year-on-year increase of 3 to 5 percent,”added the analysts.
“Visitation to Macau edged up in September, with total visitation up 0.5 percent to US$293.000. This was driven by a slight increase in total Chinese visitation, up 0.3 percent, which was driven by a 4.7 percent increase in IVS (Individual Visitor Scheme) visitation,” concluded the analysts at Buckingham Research.