Gambling in Macau is slated to expand, but companies are still arguing by how much exactly. The spread puts the country’s GGR growth between 1.6 and 8%. Despite the discrepancies, this signals an even stronger November for the city.
Macau to Grow in 2019, But by How Much?
Analysts have tried to pinpoint the exact growth of Macau’s gambling expansion in November, 2019. So far, the results have been divisive, with some citing strong growth and expecting GGR to reach new heights whereas others remained more composed about the growth opportunities of the city.
In October, Macau’s GGR reached $3.42 billion or 2.6% growth. According to Deutsche Bank Securities Inc, the posted results were weaker than the expected performance with the financial institution citing a drop in trade following the October Golden Week holidays.
However, Macau is expected to rake in as much as $2.93 billion and boost overall results by 1.6% compared to the same month last year. Gambling results in China and Macau can fluctuate as influenced by government matters.
For instance, Chinese President Xi Jinping was present at the opening of the Hong Kong-Zhuhai-Macau bridge, which bit into the performance results as well. Meanwhile, Union Gaming Securities Asia expects revenue to reach around $10 billion, which is 8% more than what Macau boasted last year.
More analysts were involved with trying to pinpoint the exact numbers, however, including Sanford C. Bernstein Ltd. who outlined another positive trend for Macau, citing that visits from mainland China have jumped by 14% year-on-year in October alone.
Stanford Bernstein were also more moderate in their outlook of the developing Macau gambling industry, citing expected growth between 2% and 4%. The VIP segment has also been occasioning much of the positive growth, multiple reports have indicated.
Macau Improves on the VIP Experience
On October 3, the Meg-Star Group opened its own VIP property in Macau, which made it the city’s fifth such casino. The inauguration of the new casino coincided with the October Golden Week in Macau, the annual festival celebrating the founding of the People’s Republic of China.
Meg-Star has been launching a number of VIP properties, including a club at City of Dreams Macau and another one at Altira Macau. The conglomerate cited the improving economy as the main driver behind its most recent decisions.
Bernstein also attested to the growing influence of the VIP segment on the overall prospects of Macau’s gambling industry.
Other than visitation growth, better-quality players helped drive VIP and mass GGR growth. However, GGR growth softened for the remainder of the month.
Even though the number of tourists in Macau has increased significantly compared to last year, not all people have been exclusively focusing on gambling. Tourism though, has had an underpinning part in the overall betterment of the city’s prospects.
Threats still lurk, including the subtle trade war going between China and the United States and the emergence of new Asian gambling hubs, such as the planned resort casino projects down in Japan.
However, all analysts seem to agree that in November, in the very least, Macau will continue to post strong results. The question remains — by how much?