The recovery process continues in Macau as game operators recorded their best week since first days in 2020 during this month's Golden Week. Gross gaming revenue was around 62% levels that the region saw before the COVID-19 pandemic. JP Morgan analysts provided insight into the recovery, noting that the data was "overall satisfactory".
Growth in Golden Week
In a recent memo, analysts JP Morgan Derek Choi, DS Kim and Livy Lyu said the higher figures in Macau were due to an increase in the mass segment. The Golden Week visitor rate this year was only 40% from the same May 2019 figure. However, the GGR was higher, between 40 to 50% for the same period.
The massive GGR recovery was at 60 - 70% while the VIP was at 20 - 25%. For luxury retail, totals have returned to pre-pandemic levels. Some even saw double-digit growth. Over the past week, the daily gross gaming revenue ratio appears to have reached MOP $ 400 million to MOP $ 500 million ($ 50 million to 62.5 million).
All indications are that Macao's total gross gaming revenue in May is higher than expected.
April sums were strong
Earlier this month, total revenues for April were released, showing how Macao's economic recovery is progressing. The region earned MOP 8.4 billion (1.1$. 05 billion) per month, an increase of 1.1% compared to March total.
Figures were still lower than pre-pandemic incomes in April 2019, but the region is slowly returning to normal. In April, the revenues were the largest Macau has recorded from January 2020.
From January to March, Macau earned MOP $ 32.0 billion ($ 4.0 billion) in GGR. This is a slight increase of 2.6% over the same period in 2020.
Grand Lisboa Palace ready for opening
In addition to increasing overall revenues, Macau will soon open Grand Lisboa Palace. The company announced a few days ago that the property will be open by the end of June.
The casino project started in February 2014, so the opening of the facility is long awaited. The facility will house a 300 room hotel with boutique hotels in the future. Casino that's 290,000 square feet which is quite large for a gambling facility. Will be home to over 1,000 slot machine games and more than 300 board games. The number of table games will increase by as much as 200 later to serve the mass and VIP markets.
The opening of the facility should help build revenues in Macau as the rehabilitation effort continues.