Seaport Research Partners’ recent upward revision of Macau’s Gross Gaming Revenue (GGR) estimates for May reflects a promising trend buoyed by the robust performance during the Golden Week holiday. Analyst Vitaly Umansky’s insights shed light on the factors contributing to this optimistic outlook.
Enhanced Golden Week Performance:
During the five-day Golden Week holiday, Macau experienced a surge in revenue, surpassing initial projections. Estimated revenue of MOP$900 million to MOP$910 million exceeded expectations by 10% to 15%. This exceptional start to May has set a positive tone for the month ahead.
Revised GGR Figures:
Seaport Research Partners now predicts a GGR of MOP$20 billion for May, marking a 3.5% increase over previous estimations. This upward revision signifies the potential for the highest monthly GGR since the region’s reopening in January 2023, demonstrating a notable recovery trajectory.
Comparison with Pre-Pandemic Levels:
Despite the challenges posed by the pandemic, Macau’s gaming industry is showcasing resilience. The projected May GGR figure represents an 8% improvement over April and reaches an impressive 77% of May 2019 levels, indicating substantial progress towards pre-pandemic norms.
Positive Trends and Momentum:
Recent weeks have witnessed overwhelmingly positive trends in Macau’s gaming sector. GGR accelerated notably, culminating in a robust finish towards the end of April and into the May holiday period. Despite adverse weather conditions impacting visitation, the Golden Week results surpassed expectations.
Impact of Weather Conditions:
The impressive performance during Golden Week is particularly noteworthy considering the challenging weather conditions. Despite disruptions caused by adverse weather, Macau’s gaming industry managed to thrive, underscoring its resilience and adaptability.
Future Projections:
Looking ahead, if the current momentum persists, GGR for May could potentially exceed MOP$20.75 billion, reaching 80% of May 2019 levels. This projection reflects a cautiously optimistic outlook, contingent upon sustained positive trends in visitation and spending.
Seaport Research Partners’ revised estimates for Macau’s GGR in May paint a promising picture of the region’s gaming industry. Despite lingering challenges, including weather-related disruptions, Macau’s resilience and adaptability continue to drive recovery and growth. As the month progresses, stakeholders will closely monitor key indicators to gauge the industry’s trajectory and resilience in the face of evolving circumstances.