According to a study by the Gaming Inspection and Coordination Bureau (DICJ), Macau casinos saw an extraordinary turn of events in July, when their gross gaming revenue (GGR) soared by more than 4,000% compared to the same month last year. The total for the month increased by 9.6% from June’s GGR of MOP15.207 billion ($1.88 billion) to MOP16.7 billion ($2.1 billion). To date this year, this remarkable rise has totaled MOP96.79 billion ($12.05 billion), representing an astounding 263% increase over the same time last year.
Tourism Boom Drives Macau’s Casino Industry
Although the monthly GGR, which is now at approximately 68%, has not yet surpassed pre-pandemic levels, the increase is mostly due to a considerable increase in tourism levels over the summer vacation season. According to reports, hotel occupancy rates rose to a high of 89% in early July. According to Maria Helena de Senna Fernandes, director of the city’s tourist agency, this level will be sustained throughout the summer.
Due to the Covid-19 lockdown last year, which resulted in the suspension of casino activities for over two weeks, there was an astounding increase from MOP398 million ($49.5 million) in July 2022 to MOP16.7 billion ($2.1 billion) in July 2023. The significant comeback is an unmistakable sign of the industry’s resiliency and capacity to recover.
Macau Casinos Report Strong Q2 Financial Results
Investors anxiously await the financial reports from Macau’s six casino operators for the second quarter in order to gain more information about the status of the industry. For instance, Las Vegas Sands saw its revenue more than double to $2.5 billion during Q2, above Wall Street expectations, in large part because of the consistent resurgence of tourism in Macau.
A Bright Outlook for Macau’s Gaming Industry
According to a study by Bloomberg of predictions from six brokerages, Macau’s gaming revenue for the entire year is predicted to be around 62% higher than pre-Covid levels. In 2023, it is anticipated that gaming revenue from the mass tourist market would almost certainly approach 90% of pre-Covid levels, making it the most important indication of casino earnings. This optimistic forecast suggests that the industry will have a robust comeback.
The government has a lofty goal of MOP130 billion ($16.19 billion) in GGR for 2023, but some analysts think the territory may exceed this, with projections going as high as MOP168 billion ($20.92 billion). As a result, it is anticipated that gaming taxes will be collected totaling roughly MOP60 billion ($7.47 billion) in 2023, representing the industry’s economic impact.
Macau’s Economy on the Rebound
The Macau Economic Association (MEA) predicted a 70% increase in the city’s GDP year over year for the first half of 2023 as evidence of Macau’s continuous recovery. There is still potential for improvement because, despite this large rise, it still only accounts for around 65% of the average GDP seen from 2017 to 2019. The remarkable growth is primarily attributable to the increasing daily average gross gaming revenue (GGR), which continues to be essential to the city’s economic recovery.
In conclusion, increasing travel throughout the summer vacation time has contributed to a stunning revival of Macau’s casinos. The overall picture is optimistic, with a forecast gradual recovery for the rest of the year, as the industry announces solid financial performance. The government’s lofty goals and upbeat industry predictions indicate that Macau is close to regaining its status as a booming international gambling powerhouse.
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