Gross gaming revenues in Macau are on track to grow between 14 percent and 18 percent year-on-year for the month of September, say investment analysts cited by GGRAsia.
In July, GGR in the jurisdiction rose 29.2 percent year-on-year, a peak for the year to date. In August, it dropped back to 20.4 percent, in part due to the effects of Typhoon Hato, which roared into town on August 23 and forced hotels and casinos to temporarily close. Overall, for the eight months to August 31, GGR in Macau was up 19.1 percent year-on-year.
In a note, Japanese brokerage Nomura predicted year-on-year growth of “around 15 percent” for the month. It noted “a recovery in post-typhoon demand” for gaming services, and added, “We don’t expect GGR growth to slow meaningfully ahead of Golden Week,” the seven-day national holiday that began October 1.
Brokerage Sanford C. Bernstein expects GGR in the range of MOP21.0 billion (US$2.61 billion) and MOP21.2 billion, an increase of between 14 percent and 15 percent.
Telsey Advisory Group was more optimistic, looking for growth in GGR of 16 percent to 18 percent.
Ahead of Golden Week festivities, the new Red Dragon Casino owned by entrepreneur Chan Meng Kam was set to open last week, GGRAsia reported. The city’s Gaming Inspection and Coordination Bureau acknowledged that it has received an application from SJM Holdings to operate a casino at the location.
With all the ebbs and flows, Macau remains still the most accessible destination for Chinese tourists to visit casinos, according to Bernstein analysts. “While reasons for visiting Macau may be varied, gaming is the primary reason for the vast majority of visitors,” the brokerage wrote. “Aside from gaming, other reasons to visit Macau include: dining, sightseeing and shopping—areas which Macau continues to develop and improve.”
New hotel rooms “and both non-gaming and gaming offerings” should keep the momentum growing, said Bernstein. “Infrastructure development is a key long-term driver for Macau to further penetrate the Chinese market, leading to greater visitation.”
Golden Week is typically a time of increased inbound tourism. “Our occupancy rate has always been very high,” Linda Chen, executive director and COO of Wynn Macau Ltd. told Forbes. “And it is definitely fully booked during the Golden Week holiday period.”
