Gross gaming revenues for Macau’s casino industry could drop 30 percent from May due to an increase in Covid-19 cases in South China’s Guangdong Province, the region closest to Macau. Since the beginning of June, more than 140 new infections have been confirmed in the province, which accounts for some 45 percent of Macau tourism each year.
According to Bernstein Research, GGR for the first week of June came to MOP1.35 billion (US$169 million) 70 percent less than the same period in June 2019, before the pandemic began.
Guangdong is an important feeder market for Macau, reported GGRAsia, and incoming travelers now must present a negative Covid test. Some also must quarantine for 14 days.
Macau was a topic of much discussion at the recent Bernstein Annual Strategic Decisions Conference. Rob Goldstein, chairman and CEO of the Las Vegas Sands Corp., said he’s “disappointed” by the uncertain pace of recovery in the Macau, while understanding that the local and mainland governments have taken a “zero-tolerance” approach to risk.
“We were hoping for a quicker recovery,” Goldstein said, adding that he has “no concerns about long-term demand” in Macau.
MGM Resorts President and CEO Bill Hornbuckle said he expects the company’s operations in Macau to be right-sided in about a year, despite the wobbly recovery to date.
“It’s more disappointing than other places such as Las Vegas,” said Hornbuckle. “We’ll see ebbing and slowing over the next couple of quarters, but I can’t imagine as they continue to get jabs into their arms, albeit slower than the U.S., that we’re not going to return to a new norm.”
Hornbuckle said mass business is at about 60 percent of pre-pandemic levels, while premium mass is around 12 percent, up from single digits from a few years ago. “While there may or may not be top-line revenue, there will be more bottom-line potentially,” referring to the mass and premium mass segments, he said.
“I think Macau will take a little bit longer than we’d like, but fundamentally it is in great shape.”
When it comes to Singapore, the executives agreed that local demand has helped support revenue levels at Marina Bay Sands, but additional growth will depend on a resumption of travel from traditional feeder markets.
