By
Phil
4. January 2023
Analysts point out that Macau’s casinos generated the lowest revenue in 20 years in 2022. They also attributed the decrease to the Chinese government’s zero tolerance on COVID and travel restrictions.
The Gaming Inspection and Coordination Bureau of Macau has reported that the gaming revenue for Macau declined 51 percent year-on-year, to 42.2bn Patacas (US5.3bn), and 85.6 percentage from pre-pandemic numbers.
GGR in December fell 56 percent year-over-year to 3.48bn Patacas ($433m), to fall below analysts’ expectations of a 57% drop. With footfall increasing, December’s revenues were up 16% compared to November’s. Also, the December total fell 84.8 percent from 2019, marking ten months of consecutive year-on-year decreases.
Analysts are optimistic that there will be an increase in GGR as Macau has lifted travel restrictions. They also expect to see a decrease in quarantine requirements for foreign arrivals. Visitation from mainland China is expected to rebound.
Joseph Greff, J.P. Morgan Analyst said that there was more potential for recovery in Mass GGR. In 2023 we believe GGR could approximate 60% of 2019, and improve further in 2024 to 90% of 2019.
