Macau’s gross gambling revenue is currently on track to be virtually wiped out in April, with no visibility as to when the situation will improve, according to Bernstein Research.
According to the firm’s channel checks, GGR for the period from April 1 to April 5 was about MOP500 million, with an average daily rate (ADR) of MOP100 million ($12.5 million). The ADR is 98 percent below the same period last year.
Bernstein estimates that GGR for the month as a whole may be down 95 percent, but may even be wiped out entirely if travel restrictions remain in place.
“The gaming operators and other Macau based contacts we have spoken with do not see any clarity on timing of recovery,” it said.
VIP has been stronger than mass driven by a small number of players, with normal hold in VIP and significant volatility, it said.
Macau’s casinos are the only properties in Asia to remain open after a 15-day shutdown in February. There were signs of some improvement in visitation in March after Macau appeared to have the outbreak under control, reporting a 40-day stretch with no new cases.
However, a rash of new infections, brought in from travellers overseas, triggered a virtual lockdown of Macau’s borders. There are limited flights into Macau and the Hong Kong, Macau, Zhuhai Bridge has now also been shut down.
“On top of travel restrictions, overall softness in the China economy mitigates any near-term recovery,” Bernstein warns.