Macau’s casino operators generated gross gaming revenues of MOP$2.1 billion (US$261 million) for the first eight days of January, representing recovery to 30% of 2019 levels and the highest weekly total since February 2022, according to investment bank JP Morgan.
Resuming its weekly GGR channel checks following the reopening of borders between Macau, mainland China and Hong Kong on Sunday, JP Morgan analyst DS Kim noted that the estimated GGR figure of MOP$260 million (US$32.3 million) per day for 1 to 8 January was more than double the MOP$120 million (US$14.9 million) average for both 4Q22 and FY22. It was also “very encouraging” given it included only one day of full border reopening on 8 January.
“The print implies a mass GGR recovery of 45% to 50% of pre-COVID-19, if we assume that VIP accounted for 10% to 15% of this MOP$260 million print,” he wrote, adding that the signs were increasingly good ahead of the upcoming Chinese New Year holiday period.
“The current trend is already above our modelled 35% to 40% mass recovery for LNY, clearly suggesting upside risk to near-term numbers.
“It seems that Macau hotels will likely be near-sold-out for the holiday (in fact, good/affordable rooms are already not easy to find even for the coming days and weekend, a typical lull period before the long holiday), and we wouldn’t be surprised to see mass demand hitting 50%+ of 2019 [during CNY].
“If this happens, it should comfortably beat both sell-side and buy-side expectations, in our view.”
As reported by Inside Asian Gaming, visitation to Macau reached almost 40,000 on Sunday, including more than 5,600 visitors from Hong Kong following the removal of long-standing border restrictions and the resumption of ferry services.
