Gross Gambling Revenue (GGR) of Macau suffered a great deal of loss in the first half of the year. The slowdown of the Chinese Economy due US-China Trade War and Hong Kong Protests are to be blamed for this overall. However, the experts were hopeful that the situation would improve in the next half of the year and overall GGR would be netted to a decent figure if not handsome. However, the hopes are fading away as the next half of the year is progressing.
Morgan Stanley Analyst has already voiced concern over the GGR of Gambling. As per him, the third quarter was to be crucial for Macau, for stability and growth, however, this isn’t the case. Alvin Chau of Suncity Group further explained the issue regarding the same. He told a newspaper of Hong Kong, that the declining number of VIP in Macau is continuing in the third quarter and looks to decline even further in the next and final quarter. He said that in the third quarter the lost is 15% in the year to year comparison and it could increase to 20% in the next quarter.
Junkets like Suncity have thrived on the credit of the customers in the past. However, this hasn’t been the case this year. Customers are not willing to take the risk of credit. Also, there are lesser numbers of customers taking trips to Macau. Reports say that China has already stepped up the effort to find criminal activities with gambling and this could be an attempt to avoid the investigation. However, the ramifications of these chains of events such as slow economy, Hong Kong Protest, and investigation are far from over.
The sluggish Chinese Economy is fuelling this decline. The devaluation of Yuan has a serious impact on the customers. The rate of repayment of the loans already taken has slowed down by considerable amount, said Chau from Suncity. This has further established the concern of consumption capacity of the customers.
However, the administration has now also come up openly about the decline. Lionel Leong Vai Tac, Secretary for Economy and Finance of Macau told a public event in the city that the GGR of September would not be great and satisfactory.