Macau

J.P. Morgan is optimistic about the resumption of eVisa and tours to Macau advocating a surge in revenues, which will in-turn help operators build positive EBITDA in the fourth quarter of fiscal 2022.

“The timing or magnitude of easing is earlier than expected, adding conviction to our bullish stance on Macau gaming. Finally, we feel we can talk about a return to normalcy,” the leading brokerage’s report read.

J.P. Morgan expects these developments to have an immediate positive impact on the mass segment, with GGR expected to recover to 25-30 percent of pre-COVID levels in the fourth quarter of fiscal 2022 and then ramp up sequentially to around 85 percent by the end of 2023.

The report further read Chief Executive Seng’s announcement as, “the most significant policy easing since the Macau-China border was reopened more than two years ago.”

Individual Visit Scheme accounted for around 50 percent of all pre-COVID Chinese visitations to Macau, whereas tours also accounted for around 25% of 2019 visitation, despite a lower GGR contribution.