Macau Confident in 2023 Recovery, Expects GGR to Reach $16B

Now, Macau’s chief executive Ho Iat Seng has outlined an ambitious goal for the city’s gambling industry, with gross gaming revenue (GGR) expected to hit $16 billion (MOP130 billion) this year according to the official.

Confident about Recovery in 2023 and Beyond

Ho remains defiant in the face of analyses by investment banks which he suggests are not entirely accurate. The official confirmed that the GGR in January surpassed $1.25 billion (MOP10 billion), but this is only a start, with the return of Chinese travelers and visitors giving a further boost to the economy, and the gambling sector it seems.

However, Macau is actively trying to push away from targeting Chinese nationals for gaming and relying on overseas individuals who may be interested in visiting the casinos and leaving their money there. Concessionaires are also investing in tourism, sports, and other aspects of the economy as part of their renewed licenses. Ho simply stated that the target of $16 billion is not far-fetched and that the local government was confident that it can be reached by the year’s end.

Essentially, Macau would need to keep recording at least $1.35 billion a month in GGR to attain the goal. This target now appears feasible with the fear of COVID-19 lockdowns finally gone as the mainland is keen to show the world that it has overcome the pandemic.

Speaking of investment banks, JP Morgan is expecting a lower revenue in February of around $1.17 billion (MOP9.5 billion, which Ho believes is not entirely accurate. Meanwhile, Morgan Stanley did adjust its expectations for the industry upwards recently.

His concerns are that many of these banks drafted their predictions for this year based on last year’s results and he refused to further comment on the accuracy of such forecasts. Borders in Macau were opened on January 8 with the influx of new visitors already felt across the local economy and gaming venues.