Casino revenues surge 33% as recovery continues
Macau’s gross gaming revenue surged to MOP10.32 billion in February as the sector benefited from the city’s easing of restrictions since early January. The figure is up 33.1% year-on-year, according to data released by the Gaming Inspection and Coordination Bureau.
Although the February figure is still down 59% when compared to pre-pandemic levels, analysts surveyed by Bloomberg predict that annual gambling revenue could jump almost four-fold to MOP158 billion.
Alidad Tash, managing director of consulting firm 2NT8, told Bloomberg that the city’s gaming sector is “recovering far faster than anybody could have projected in November.”
“We’re definitely looking at a much healthier casino revenue picture,” he said.
The city’s GGR was recording a rebound, with an estimated MOP1.9 billion in the first five days of February, as the city has been swarmed by visitors amid the significant easing of restrictions.
Brokerage firm J.P. Morgan remarked that such a figure represents a recovery of 45% of 2019 figures.
In a note yesterday, analysts from the brokerage considered the figure a “robust recovery,” as there was an increase in revenue even without any holidays.
However a challenge for the industry remains despite a robust comeback: will the VIP and premium market ever return?
“One […] that [is] still a question mark is the VIP and premium market in that after three years it’s easy for premium players to request a visa and come over. But is China going to be able to allow these people to come back as frequently as they once did, which was quite often pre-pandemic?” Tash questioned.
In January, Macau recorded an 82.5% jump driven by a surge of visitors to Macau for the Lunar New Year.
The Macao Government and Tourism Office director, Helena de Senna Fernandes, yesterday told the press that the number of tourists visiting Macau in February remained strong with an average of more than 40,000 or even 50,000 people per day, and even more on some days.
She added, however, that the occupancy of hotels has not yet reached 100%, noting “it will take time, but the overall environment is positive.”
Meanwhile, despite a strong recovery driven by pent-up travel demand after Covid, spending could soon drop as other destinations like South Korea and Japan attract Chinese tourists, said Bloomberg Intelligence analyst Angela Hanlee.
Macau has eased its mask wearing mandate, allowing the private sector to decide whether they will require the public to wear masks when inside their properties.
For casinos, the gaming operators are passing on the decision to their workers and guests.
The move is also seen as a driver to boost tourists’ confidence to enter the region.
