Macau GGR falls 9% in very first week of Jan., but CNY bookings reportedly potent: Bernstein

Macau gross gambling income in the very first nine times of January is down 9 p.c from the final 12 times of December, while operators are reporting “good” ahead bookings for Chinese New Year, in accordance to Bernstein.

Regular each day revenue in the period of time was MOP266 million ($33.3 million) in contrast with MOP293 million in the getaway-boosted conclude of December.

Thirty day period-to-date GGR is MOP2.4 billion, which is 67 per cent down below pre-pandemic degrees, but is up 4 p.c from the month of December as a full and 3 p.c higher than the exact month of 2021.

Bernstein stated mass current market earnings through the period was strong, getting 10 to 15 p.c from December, nevertheless VIP was weak as the junkets continued to wind down their businesses. VIP quantity month-to-day is down 50 per cent, with December, presently down 40 to 45 per cent. It reported most VIP action was direct.

The interval foremost up to Chinese New Calendar year is ordinarily sluggish in Macau and as a outcome, Bernstein expects January GGR to be down 70 p.c from 2019 degrees. Having said that, it stated some operators are reporting powerful ahead bookings for the holidays, which run from Jan. 31 to Feb. 3rd.

The effects from Chinese New Calendar year will be really contingent on the skill to maintain quarantine-free of charge travel open all through the time period.

Ferry solutions in between Macau and Shenzhen have been suspended from Saturday because of to community outbreaks in the location, though China is also battling Covid clusters in Tianjin and Henan.

New scenarios in Hong Kong have also pushed back again plans for a border reopening with Mainland China, which was noticed as a very first action for a broader reopening with Macau. Hong Kong has historically accounted for about 15 percent of Macau’s GGR.

To guard from the unfold of the Omicron variant, Macau has suspended all global flights for two months setting up from Sunday and has warned in opposition to large-scale banquets for Chinese New Yr.

Bernstein claimed that the border reopening could now be pushed back until finally 2Q22, or at minimum right up until just after the Wintertime Olympics in February.

“Recovery will be pushed by mass and quality mass (along with non-gaming) and in the long run ought to offset the unfavorable profitability impression from junket retrenchment.”