During Golden Week this month, gaming operators had their best week since the early days of 2020, indicating that the recovery process in Macau is still underway. Gross gaming sales in the area were about half of what they were before the COVID-19 pandemic. Analysts at JP Morgan offered insight into the rebound, stating that the numbers are “broadly satisfactory.”
Growth during Golden Week
JP Morgan analysts Derek Choi, DS Kim, and Livy Lyu wrote in a recent note that the higher numbers in Macau were due to a rise in the mass market. During Golden Week this year, visitor numbers were just 25 percent of what they were in May of last year. The GGR, on the other hand, was higher, ranging from 40 to 50 percent higher than the same time period.
VIP recovery was 20-25 percent, while mass GGR recovery was 60-70 percent. The totals for luxury retail sales had returned to levels seen prior to the pandemic. Some saw double-digit increases. The regular gross gaming revenue run rate tends to be between MOP$400 million and MOP$500 million ($50 million and $62.5 million) over the last week.
All indications are that Macau’s gross gaming revenue will be higher than anticipated in May.
Strong April totals
The revenue totals for April were released earlier this month, demonstrating how Macau’s economic recovery is progressing. For the month, the area raised MOP$8.4 billion ($1.05 billion), up 1.1 percent from March’s totals.
In April 2019, the numbers were still lower than pre-pandemic levels, but the area is gradually returning to normal. The revenues in April were the highest in Macau since January of 2020.
Macau raised MOP$32.0 billion ($4.0 billion) in GGR from January to March. This represents a 2.6 percent rise over the same period in 2020.
Grand Lisboa Palace about to open its doors
Macau will soon see the Grand Lisboa Palace property open for service, in addition to a boost in sales totals. The company recently announced that the property would open by the end of June.
The casino project began in February 2014, so the venue’s opening is long overdue. There will be a 300-room hotel on the site, as well as boutique hotels in the future. The casino covers an area of 290,000 square feet, which is very large for a gambling establishment. It will have over 1,000 slot machines and over 300 table games. Later, the number of table games will be increased by up to 200 to accommodate the mass and VIP markets.
As the recovery effort in Macau continues, the opening of the venue should help to boost sales.