Analysts in Macau believe that the region will witness an improved December after GGR for last month stood at MOP$18.4bn ($2.30bn).
Despite November finishing relatively strong compared to a slow start, Macau’s Gaming Inspection and Coordination Bureau declared daily GGR of MOP$615m (US$77m) – a figure on the lower end of monthly GGR for 2024.
According to Vitaly Umansky, a Senior Analyst at Seaport Research Partners, November is typically a weak month and December should see GGR rise by around 5.2% year-on-year and 5.9% month-on-month to around MOP$19.5bn (US$2.43bn).
Carlo Santarelli, a Stock Analyst from Deutsche Bank, expects a weaker December than Umanskey, predicting a smaller 3% YoY increase in GGR to around MOP$191bn (US$2.39 billion).
He wrote: “Our December forecast represents a monthly sequential per day improvement of 0.4%, which, we note, compares to the 0.7% average sequential per day improvement in December, relative to November, over the period from 2013 through 2019.”
However, this growth could be hindered by the expected visit of Chinese President Xi Jinping for the inauguration of incoming Macau Chief Executive Sam Hou Fai on 20 December, as presidential events often lead to declines in visitation from mainland China.
The incoming CEO also had an impact on September’s GGR figures when his appointment was announced for 12 October, slowing the momentum for the region’s gaming sector as it fell by 12.7% from August.
The Chief Executive is the Head of Government in Macau, a special administrative region of China. Prior to becoming Chief Executive, Hou Fai had been critical of the gaming industry, particularly its dominant role in Macau’s economy.
Although Hou Fai may have had a negative impact on the gaming sector’s revenues in recent months, he recently underpinned the sector as Macau’s primary industry.
The incoming CEO stated at a press conference: “The gaming industry is Macau’s primary industry, and if it does not develop healthily, it will have far-reaching consequences. The new government will strictly enforce the new gaming law to protect and supervise the healthy and orderly development of the six concessionaires.
“The new government will require and supervise the concessionaires to monitor their non-gaming investments of MOP$130bn in accordance with the contractual requirements, so as to promote the diversified development of the Macau economy.”
