Macau GGR set for 8% growth in 2020, driven by VIP rebound

Macau gross gaming revenue could grow as much as 8 percent year-on-year in 2020, driven by VIP recovery in 20H2, and continued strength in mass. 

According to analysts from Bernstein, mass is expected to continue to show strength in 2020, growing at 9 percent year-on-year. 

Bernstein noted that a fundamental growth constraint in 2019 was hotel room availability. But with the opening of two new hotel towers by Sands China, as well as the completion of Wynn Encore room renovations, and the opening of the Lisboa Palace - as well as infrastructure improvements - growth is set to pick up once again in this market. 

In terms of VIP, Bernstein expects VIP to recover with six percent growth year-on-year in 2020. Bernstein said a number of macroeconomic factors impacted VIP in 2019, but noted that this softness was cyclical. 

“We believe the economy will improve and liquidity issues will ease along with a more stable (or stronger) RMB over the next six to 12 months, which should lead to a rebound in the VIP segment,” said the brokerage. 

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