Macau to experience increase in foot traffic, casino GGR over holidays

Investment bank UBS AG forecasts a sharp rise in Macau’s foot traffic and casino gross gaming revenue (GGR) as the city gets closer to the Christmas and New Year’s Eve holidays.

The bank’s own checks show that throughout the first 10 days of December, the daily GGR was stable at around MOP520 million (US$64.6 million) each day, although a little less than November’s level.

The decline might be attributed to factors like a lower rate of VIP holds and a decline in EBITDA margins as a result of rising operating expenses. Notwithstanding these challenges, UBS believes that as the city gets ready for the holidays in the second part of December, there will be a rebound.

The bank also observes a positive trend, with a recent narrowing of price reductions for hotel rooms. JP Morgan Securities estimates that Macau’s total casino gross receipts for the month of December would be around MOP17 billion, or more than MOP550 million per day with a mass recovery of at least 100%.

Original story by: GGRAsia