GGRAsia – Macau April GGR improving, but still subdued: brokerage

Macau April GGR improving, but still subdued: brokerage

Apr 25, 2022 Newsdesk Latest News, Macau, Top of the deck

Macau’s daily casino gross gaming revenue (GGR) between April 19 and 24 rose 11 percent week-on-week, to MOP83 million (US$10.3 million), estimates a Monday note from brokerage Sanford C. Bernstein Ltd. That was after Macau’s casino GGR hit in the previous week the “lowest” level since mainland China resumed the individual visit scheme travel to Macau, added the institution.

“Despite the rebound, visitation and revenue remains largely subdued due to [mainland] China Covid-19 outbreaks and restrictive travel and border control,” wrote analysts Vitaly Umansky and Louis Li.

Macau eased this week its travel restrictions for inbound travellers from mainland China. Since Monday, people intending to enter Macau via any boundary checkpoints with neighbouring Zhuhai, in Guangdong province, must hold a nucleic acid test certificate issued within 72 hours proving they are ‘negative’ for Covid-19 infection.

All areas in Guangdong province are now considered “low risk” of Covid-19 outbreak, as per the mainland health authorities.

The Macau authorities had already relaxed on April 20 entry restrictions for inbound travellers from Guangdong.

“The consecutive relaxations are positive signals showing the government’s intention to start improving visitation; however, much will depend on what happens in China with Covid outbreaks, lockdown measures and travel constraints,” said the Sanford Bernstein team.

Mainland China is the only place to have a mostly quarantine-free travel bubble with Macau. Guangdong is the largest-single source of tourists to Macau.

According to the brokerage, Macau’s GGR in the first 24 days of April was MOP2.1 billion, with an average daily rate of MOP88 million, down 69 percent from the prior-year period.

VIP volume from April 1 to 24 was down mid 20s-percent from March, with elevated hold rate, added the institution. Month-to-date daily mass GGR in April was down circa 30 percent from the preceding month.

The analysts said they expected April’s average daily rate of casino GGR in Macau to be down 23 percent month-on-month from March, “assuming no major change in travel.”