March revenues to fall 32%: Bernstein
The city will see a downturn of up to 32% in gross gaming revenues (GGR) this month when compared year-on-year, according to brokerage firm Sanford C. Bernstein.
Channel checks of the firm showed that in the first six days of March, casino revenues totaled MOP1.1 billion, with an average income of MOP183 million per day.
The figure shows a 32% decrease compared to last year, and 75% plunge when compared to pre-pandemic figures, as cited in a TDM report.
Bernstein noted that the reason for the drop is due to the lower travel demand motivated by the growing number of Covid-19 cases in Hong Kong, where the fast-spreading Omicron variant is overwhelming the city and prompting mass testing, quarantines, panic-buying at supermarkets and a shortage of hospital beds.
Yesterday alone, Hong Kong saw more than 43,100 new cases, following the launch of an online platform for people to record infections.
Other factors that are considered to be reasons for the GGR decline include the cases in Guangdong province, which led to the mass testing of targeted groups in Macau, as well as the start of the fifth session of the 13th National People’s Congress (NPC) and the fifth session of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) on Monday.
Although it is forecasted that gaming sector will remain under pressure in the short term, the firm expresses optimism for recovery in the long term.
One significant factor for a negative forecast is the uncertainty surrounding the timing of when China will resume group tour visas. Currently, China is championing a zero-Covid strategy which includes strict mitigation measures as opposed to other countries, particularly in the West, which are seeking to normalize living with Covid-19.
Growth in gross gaming revenue has been recorded for February, with casino operators generating MOP7.7 billion in total compared to the MOP6.34 billion amassed in January.
Data from the Gaming Inspection and Coordination Bureau showed that, even if the figures represent a 69% decline from pre-pandemic levels, the 22.3% month-on-month surge is a strong indication of the sector rebounding with the help of Lunar New Year visitors.
