Hopes for Macau’s Golden Week to reignite the casino industry failed miserably with a low turnout of 139,280 visitors
JP Morgan announced that Macau recently posted six consecutive months in which aggregate gross gaming revenue dropped by at least 90 percent year-on-year, with its cumulative tally falling by approximately 82 percent on a comparative basis to just $4.83 billion for the first three quarters of 2010.
The hopes were that Macau’s Golden Week will reignite the casino industry ,but with just 139,280 visitors to the SAR during the usually bustling holiday period, it failed to do so. Seeing the lack of recovery and combining this with the absence of any real gambling action in almost all of 2020, many analysts are predicting a long road to recovery for Macau. As a result of the decline in traffic, Macau casinos are still unable to launch a major rebound following the chaos caused by COVID-19.
JP Morgan analysts DS Kim, Derek Choi and Jeremy An admitted: “Choppy demand and dwindling hope of ‘return to normalcy in 2021’ make us acknowledge the sector’s risk-reward isn’t as attractive as we had envisioned.” and added : “Plus, a broadening clampdown on illegal/overseas gambling in China is creating jitters among agents/players at unprecedented levels, in turn throttling any VIP/high-end demand recovery (which, by the way, was touted and supposed to lead the initial rebound)
According to a report by the Sanford C. Bernstein brokerage the analysts, Vitaly Umansky, Tianjiao Yu and Kelsey Zhu, asserted, “At this stage, we estimate [full] October to see a [GGR] decline of maybe 70 percent. This is largely tied to visa processing and visitation and severity of any liquidity constraints which remain largely uncertain.” They added that things could start to improve over the next couple of months, explaining, “The key will be the simplification of the visa process (currently taking up to two weeks to process), and perhaps elimination of the Covid-19 test requirement.”
About SiGMA Europe Virtual Expo:
SiGMA Group is excited to announce the launch of their November event, SiGMA Europe Virtual Expo. The online event, which runs from the 24th to 25th, will focus on the European gaming and tech marketplace.