Brokerage firm Sanford C. Bernstein believes Macau’s recovery will be complete by 2025 with predictions it could equal the all-time record of MOP$360.8bn (US$45.2bn) generated in 2013.
The report states that if border restrictions with mainland China are relaxed in the near future, this year’s revenues could increase by 144 per cent year-on-year.
Bernstein analysts Vitaly Umansky, Kelsey Zhu and Louis Li believe 2022 would then see a bounce back to just under 90 per cent of 2019 levels with mass actually surpassing 2019’s figures. VIP though remains a ‘wildcard.’
The analysts said: “Sands China will continue to be the mass market and non-gaming leader in Macau. With the upscaling and expansion of the Macau properties, we believe Sands China will maintain its market leading position in Macau with over 1/3 of Mass GGR and deliver +6% EBITDA CAGR (inclusive of the 20-21E downturn) from 2019 to 2025. While concession uncertainty remains a key perceived risk factor, we firmly expect Sands to be renewed along with the other five Macau operators.”