May gaming results to remain weak with slight m-to-m improvement

Amid repeated outbreaks in Mainland China, monthly gross gaming revenues reported in the Macau SAR have continued to decrease this year, with April reporting a total of MOP2.6 billion (US$331.2 million), a 68 per cent year-on-year plunge and the lowest monthly tally reported since August, 2020.

According to a Bernstein dispatch, the April total was also only 11 per cent of the results reported in April, 2019 prior to the pandemic, with only MOP89 million in average daily revenue.

However, a recovery had been reported on daily gaming averages from April 25 to 30 to MOP96 million daily helped by Macau’s relaxed border policy with travellers entering from Guangdong now required to present a COVID test up to 72 hours prior to entry, as opposed to the 48 hours since April 20, and 24 hours earlier in April and March.

Bernstein also noted that visitation in Macau during the Labour Day is going ‘better than expected’ by local authorities with at least a 25,000 daily average for tourist arrivals.

Tourism authorities indicated that 41,584 tourists visited Macau on the first day of the Labour Day holiday period on April 30, the highest single-day number of visitors so far this year, but that number then dropped to some 25,000 entries on May 1.

“The Labour Day holiday is usually a three-day break, but this year, the China government has extended it into a five-day holiday. The holiday extension would in normal times be highly positive for Macau visitation and revenues, as more people would travel,” Bernstein indicated.

“However, with the COVID outbreaks in China, and lockdowns across many regions in China, travel will definitely not live up to prior expectations”