Reports of GGRAsia show that Macau is growing once again with a 4.4% rise in gross gaming revenue (GGR) raising it to MOP 25.37 billion (US$13.4 billion) in one year.
Chinese New Year could be the reason for its rise. This grand celebration attracts a great number of tourists in Macau. According to the analyst for Union Gaming Security Asia Ltd., namely Grant Govertsen, “The timing of Chinese New Year (CNY) should have, in theory, benefited this year.” Adding to it he said, “Based on our on-the-ground observations, and given robust foot traffic trends, it appears that mass market came through for operators and growth of this segment likely remains in the low double digits.”
It shows that Macau is back on track after being getting off track after maintaining 29-month straight GGR growth with losing 5% compared to 2018. Even 4.4% profit in February doesn’t make up completely for loss and is lags GGR by 0.5% compared to where they were at for two months.
There is a continuous growth expected in rest of the 2019. This year a growth of 6% is predicted by the director of Macao Government Tourist Office.
Hong Kong-Zhuhai-Macau bridge will lead to a great rise in GGR. As it led to 15.3% rise of tourists just four months after its opening. Keeping in view this level of rise Macau should have enough rise in GGR at the end of this year.
According to most analysts, the number of tourists doesn’t determine the growth of GGR, but the number of VIPs do. Govertsen sheds light on this by saying, “VIP likely dipped into negative territory on a market-wide basis, although certainly mixed at the operator level. On a GGR/day basis, February was MOP 906 million … or the highest level since the fall of 2014.”