Macau’s casino gross gaming revenue (GGR) faced headwinds in the first 10 days of September, with estimated GGR reaching MOP4.30 billion (US$530.0 million) during this period. While this represents a daily run-rate of MOP430 million, it is notably lower than the previous months, primarily due to adverse weather conditions, including a super typhoon and heavy rainstorms.
Weather Impact
The extreme weather conditions, particularly Typhoon Saola, prompted Macau’s weather bureau to issue a Number 10 storm signal, the highest warning level, on September 2. Consequently, the city’s gaming venues were temporarily closed for approximately nine hours as a precaution, and transportation was disrupted.
Revenue Outlook
The adverse weather’s impact on GGR has led analysts to revise their expectations for September. It is anticipated that GGR for the entire month will experience a month-on-month decline of 15% to 20%, amounting to MOP14.0 billion to MOP14.5 billion, equivalent to MOP465 million to MOP480 million per day. This outlook differs from the consensus estimate of MOP15.8 billion (MOP525 million per day) entering the month.
August Performance
Macau recorded casino GGR of MOP17.21 billion in August, reflecting a 3.3% increase compared to July. This marked the strongest monthly performance since January 2020, during the early stages of the Covid-19 pandemic when GGR reached MOP22.13 billion.
Focus on Golden Week
Investors are expected to closely monitor the Golden Week holiday period, which falls from September 29 to October 6 this year. Historically, Golden Week has been a robust trading period for Macau’s tourism and gaming industries. As mainland China observes this holiday period, Macau anticipates welcoming an average of “80,000 to 90,000” visitors daily.
Macau’s casino industry faces temporary challenges in early September due to adverse weather conditions, impacting its GGR performance. However, with the anticipation of the upcoming Golden Week holiday and the potential for increased tourism, there remains optimism for a rebound in the sector’s fortunes.