JP Morgan gaming analysts say September will be a “month to forget” for Macau’s gaming industry, with severe weather taking a toll on the recovering sector.
The city reopened to travel on January 8, and since then, its leading industry has enjoyed month-on-month improvements in gross gaming revenue (GGR). Macau’s Gaming Inspection and Coordination Bureau reported GGR of $2.12 billion last month, about 70 percent of pre-Covid figures. According to Inside Asian Gaming, thanks to Super Typhoon Saola, which made landfall on September 1, GGR is now projected to drop by 15 percent to 20 percent compared to August, for a total of between $1.73 billion and $1.76 billion for the month.
As reported by GGRAsia, Saola generated the Macau Weather Bureau’s highest tropical storm warning, a 10.
“September GGR isn’t going to wow anyone, not only due to seasonality—a shoulder season between summer holiday and October Golden Week—but also due to Super Typhoon Saola,” wrote analysts DS Kim, Mufan Shi and Selina Li.
Despite being “dragged by extreme weather,” the analysts say, the slump will be temporary, and “all eyes will be on Golden Week anyway by the time the September GGR is out.”
The October holiday has been a historical high point for Macau’s tourism and gaming industries. This year, local authorities expect an average of “80,000 to 90,000” daily visitors during the holiday.
