Macau’s July results may be a signal that the Special Administrative Region is experiencing a much-anticipated recovery. The signs for cautious optimism are all there as the July 2022 figures saw a month-over-month improvement in terms of gambling revenue collected by the six concessionaires.
Improvement in Revenue Boost Hopes of Recovery
The properties collected a total of $1.72 billion (MOP13.96 billion), or up 10% on the June 2022 results. A further look into the sector indicates that Macau may finally be on its way to recovery, albeit one that can be just as easily disrupted should more border controls and restrictions be applied.
But while July’s results outstripped June’s, the overall revenue is still down 37% on annual basis. In July 2021, the SAR collected $2.74 billion (MOP22.2) in gross gaming revenue. Still, Macau is confident that it can expect close to $6.15 billion (MOP49.76 billion) collected from revenue on gambling operations in Macau for the 2022 fiscal year.
Whether these results materialize is another matter altogether. So far, Macau has been able to scoop up $4.25 billion (MOP34.36 billion) in tax revenue, so overall, tax collection is on track.
A small reprieve in the otherwise difficult traveling situation is that, despite opposition from Beijing, borders with China, Macau, and Hong Kong remained operational at some capacity, helping the SAR generate trickles of revenue despite all.
Challenges do persist. China has put an emphasis on its zero-COVID-19 policy which is unlikely to go away at a mere whim. Macau also experienced an outbreak of COVID-19 which had many concessionaries shuttered and not accepting guests for several weeks.
Overall, though, the SAR has been able to make a quick and strong recovery, considering the challenges it has faced. Overall, Macau’s recovery is not forecast to take place until late in 2023, provided that the COVID-19 virus can be controlled.