Once the hub of gambling, Macau is slowly facing the heat of economic slowdown. After a not so great 2019, the experts have now said that 2019 Q4 revenue would be much lesser than expected. Morgan Stanley has estimated that the Gross Gaming Revenue or GGR is likely to fall every month for Macau in Q4. The firm said that the third quarter EBITDA to be 1% down.
As per Thomas Allen, Gareth Leung and Praveen Choudhary, the expert analysts, the GGR for Macau for October are going to be 6% less on a year to year comparison. The situation isn’t going to be very good for November and December either. The analysts believe that the GGR might fall by 9% on year on year on both months. The analysts commented that the growth of the customer base for mass and VIP would be negative during the Q4.
The experts have pointed out different reasons for the slowdown of Macau GGR. The escalations of a trade war between the United States and China is considered as one of the main reasons for the fading magic of Macau. However, Hong Kong Democratic Protests have added fuel to it. There are reports of increasing scrutiny of people for gambling in Mainland China and that could have also played a role in it, believed many. The general global economic slowdown has also let down the GGR of Macau as a whole.