Macau’s gross gaming revenue is predicted to rise 8% in 2020, according to latest research analysis.
The predictions are music to the ears of many casino establishments in Macau amid last year’s concerns of a 13% decline in year on year revenue, which was the second lowest in real money terms in the southern China SAR’s (special administrative region) history.
Among the analysts who have predicted the rise are Vitaly Umansky, who is Senior Research Analyst of Global Gaming at Sanford C. Bernstein since 2014, Kelsey Zhu and Eunice Lee also of Bernstein.
Sanford C. Bernstein is a research and brokerage company on Wall Street, which prides itself in ‘unbiased, in-depth company and industry forecasts’ throughout the US, Asia and Europe.
The analysts said that gross gaming revenue would continue to rise in each quarter of 2020, hitting 15% by October-December.
Predictions are said to include factors such as an increase in hotel room capacity, including expansion and renovation, along with an improvement in the Chinese economy and the stabilisation of the Chinese currency Renminbi.
Among the casino companies who will benefit most if predictions play out as planned is luxury hotel and casino resort Wynn Macau.
Wynn Macau is owned by Wynn Resorts Limited and Wynn Macau Limited and is said to enjoy handsome revenue from VIP gaming in the region, which is also set to see growth of 6%.
An analyst for Sanford C. Bernstein commented:
“VIP recovery coupled with the Wynn Peninsula renovations and the opening of the Light Rapid Transit (along with more critical mass on the west side of Cotai increases foot traffic at Wynn Palace) drives positive 2020 outlook for Wynn.”