Deutsche Bank estimates that casino gross gaming revenue (GGR) in Macau may record a 316 percent increase this year, reaching $21.95 billion.
The estimated GGR is still 40 percent lower than pre-pandemic levels in 2019. However, the Macau government maintains its 2023 GGR forecast of MOP$130 billion ($16 billion), which means the Deutsche Bank’s forecast is 37 percent higher than the prospective local government.
The research from analyst Carlo Santarelli also forecasts that Macau 2Q23 GGR could reach $5.75 billion, a 441 percent increase yearly. The forecast was shared after Macau’s gaming regulator released the of April GGR results on May 1st.
According to information from the Gaming Inspection and Coordination Bureau (DICJ), Macau’s casinos recorded GGR of MOP14.72 billion ($1.83 billion) in April, the highest monthly GGR figure since January 2020. The April total was 450 percent higher than April 2022 and 15.6 percent higher than March.
Deutsche Bank also sees that the Macau gaming industry will not return to the 2019 levels within 2024, estimating that for next year Macau’s GGR may reach $27.67 billion, a 26 percent increase compared to 2023, but still 24 percent lower than 2019.
According to CBRE Equity Research, May is poised for further recovery. ‘May is starting off strong with upbeat commentary and data about the Labor Day holiday’, note the analysts.
The brokerage mentions that occupancy during the holiday period is expected be around 90 percent, and the ferry is increasing capacity to handle additional visitation in Macau.
CBRE also notes that new facilities launched in Macau are contributing to its ramp up: parts of Studio City Phase 2, SJM’s Palazzo Versace Hotel, Galaxy Macau Phase 3.
Sands China is also looking forward to the official completion and opening of all amenities at The Londoner by this summer.
