Macau experiences post-Labor Day slowdown: JP Morgan

Macau’s daily gross gaming revenue (GGR) declined from an estimated MOP910 million during the Labor Day Golden Week to MOPD578 million in the seven days following, as reported by investment bank JP Morgan. While JP Morgan described this decrease as slightly weaker than preferred, it still falls within post-holiday expectations.

According to analysts DS Kim, Mufan Shi, and Selina Li in a note on Monday, the combined GGR for the first 12 days is estimated at MOP8.6 billion, averaging MOP716 million per day. The mass GGR has remained at approximately 120% of pre-COVID levels.

JP Morgan’s forecast for May’s GGR remains unchanged at MOP19.5 billion to MOP20 billion, potentially marking it as the best month since the reopening of borders in January 2023.

Additionally, JP Morgan highlighted that Beijing added eight additional cities to the list eligible for Individual Visit Scheme (IVS) visas for travel to Macau and Hong Kong, bringing the total number of eligible cities to 59.

While these cities, including Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi, are not expected to significantly impact Macau visitation, analysts noted the favorable policy support from the central government.

“We believe it is always the thought that counts when it comes to China policy,” the analysts wrote. Howard Tong