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Macau set to lose revenue during Golden Week

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The Golden Week of Macau may not be as shiny as it used to be in previous years. The Golden Week is going to be from Oct 1 – Oct 7. This was introduced by the Chinese Government in 1999 to promoted Domestic Tourism. In order to increase the domestic standard of living, mostly the Chinese employers let the staff take a week off. This has become a strong wind of Macau’s gambling business. However, the analysts from various organizations have predicted that Macau may lose the business and the overall GGR may decrease. Many comps and incentives are being handed out this Golden Week, and that might be one of the reasons for poor performance. The analysts have also predicted that many visitors may also be very less as compared to the previous years.

Bernstein, an Analyst with Standford C has a thorough report on this. He said that the hotel bookings for Golden Week are strong so far. However, the customers are weaker than the previous year. The weaker customer indicates those customers who are not going to spend a lot of money on gambling in Macau. The Room Comps are also going to be high during this period, believed Bernstein and it would lead to tepid higher-end play during Golden Week and the entire October.

Morgan Stanley has a different viewpoint on this. It believes that the room occupancy would be less during this period. The GGR or Gross Gaming Revenue is going to be very less for the same reason. The company believes that the room compensations going to go downhill to at least 50% for the same.

GGR Asia has another point of view but it leads to the same conclusion. It believes that 13 out of 27 major casino hotels are sold out for five or more days. However, the incentives and the room comps are way higher than the previous year, and that could impact the number of GGR for Macau in this Golden Week.

The numbers were not great even the last year, but there was no difference to the business for Macau. The average revenue for casinos was $162m and which 15% more than the previous year. The total GGR grew by 8%-9%. However, this may not be the case with 2019. The overall GGR may fall by a considerable amount. Even though many dignitaries may visit this year when the passing of Macau from Portugal to China reaches 20 years, but there will be no gambling.

Source: https://calvinayre.com/2019/09/26/casino/macaus-upcoming-golden-week-loses-its-shine/

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About the author

Debopom Sanyal

Debopom Sanyal

Debopom is a web journalist and news enthusiast. He has been writing about world politics, science, health, finance, and technology. An avid sports enthusiast, Debopom has done his Masters in Finance and Bachelors in Engineering.

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