According to the opinion of gaming analysts, 2020 will bring fewer revenues to Macau than anyone had expected. The opinion is further supported by local operators who believe that the gross gaming revenue rate will stay pretty much the same.
As stated by Suncity Group, CEO Alvin Chau Cheok Wa, gross gaming revenue (GGR) will stand “at least level” to what was seen the year before. Some of the possible causes for such a trend could be China’s money-supply policies and the trade war between mainland China and the U.S. However, one of the positive things would be the opening of several casino venues in Cotai.
Macau waits for completion of Grand Lisboa Palace which costs about $5 billion and has been built by SJM Holdings. It is expected that the property will emerge until the end of 2020. The venue was initially projected for last year, but some delays caused obvious problems.
Not only does the Suncity CEO remain reserved about GGR 2020 figures, but also other executives expect a very challenging year. The same opinion has been expressed by MGM China Holdings CEO Grant Bowie, SJM Holdings Ltd Executive Director Angela Leong On Kei and Sands China Ltd. President Wilfred Wong Ying Wai. All of them would be “happy” if 2020 GGR comes to 2019 levels.
According to the beliefs of Sands China Ltd. President Wilfred Wong, the US-China trade war could facilitate the things a little bit. In case of that, Macau could normalize the gambling industry and attract more VIP customers to its venues. Sands China is close to the reopening of Four Seasons Macau complex after renovations and everything will be finished until the end of June.
Looking back at 2019 results, it was not a great year for gaming operators. Despite some periods with positive figures, the overall amount of revenues has significantly declined. Only this past November, Macau has felt an 8.5% drop in revenues. The total amount of GGR since the beginning of 2019 was $33.29 billion or 2.4% lower result that the same timeframe the year before.
Source:
“Macau business owners not optimistic about 2020 GGR“, Erik Gibbs, calvinayre.com, December 9, 2019.