In what appears to be a promising start to the month of May, Macau’s casino gross gaming revenue (GGR) has already reached an impressive US$1.7 billion in just the first 19 days, according to a recent report by Citi analysts.
The figures, released by the global financial services firm on Wednesday, indicate a significant increase in GGR compared to the same period last year. In May 2020, Macau’s GGR stood at just US$223.4 million, marking a staggering 661.4% year-on-year surge in 2021.
The rebound in gaming revenue comes as a welcome relief for Macau’s casino operators, who have been struggling with the impact of the COVID-19 pandemic. With strict travel restrictions in place and visitor numbers dwindling, the city’s gaming industry has been in a state of uncertainty for over a year.
According to Citi analysts, the rapid recovery in Macau’s GGR can be attributed to several key factors. Firstly, the easing of travel restrictions between mainland China and Macau has led to an increase in visitor numbers, particularly from the lucrative VIP segment. Additionally, the ongoing rollout of COVID-19 vaccines in Macau and across the region has helped to boost consumer confidence and stimulate economic activity.
Furthermore, analysts note that the recent Labour Day holiday in China provided a much-needed boost to Macau’s tourism sector, with visitor numbers surging during the long weekend. The holiday period also saw a rise in hotel occupancy rates and an increase in spending at the city’s retail and dining establishments.
Looking ahead, Citi analysts are optimistic about the outlook for Macau’s gaming industry, predicting a continued recovery in GGR over the coming months. The firm expects GGR to reach US$3 billion for the month of May, representing a significant improvement compared to the US$95.2 million recorded in May 2020.
Despite the positive developments, analysts caution that the road to full recovery for Macau’s gaming industry may still be fraught with challenges. Ongoing travel restrictions, geopolitical tensions, and potential outbreaks of COVID-19 remain key risks that could impact the sector in the months ahead.
Overall, the latest data from Citi indicates a strong start to the month of May for Macau’s casino operators, pointing towards a potential turnaround for the city’s gaming industry after a challenging year. With rising GGR figures and a renewed sense of optimism, industry stakeholders will be closely monitoring developments in the coming months to gauge the sustainability of this positive trend.
