SJM Holdings is expected to only partially open its new Grand Lisboa resort on Cotai in Q1, with rooms and tables dictated by market conditions at the time, Union Gaming says.
The firm said it expects a large portion of hospitality amenities to be delayed until more significant demand returns.
“We are anxiously awaiting the opening of Grand Lisboa Palace (GLP) and see the new hardware as a potential demand driver in helping attract visitors to Macau throughout the recovery,” the firm said. “However, given the current environment, we are expecting a slower ramp throughout 2021 and looking forward to 2022 as the first full year of operations. We are currently forecasting HK$1.86bn (~US$240m) of EBITDA for GLP in 2022.”
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.