Operator News

China – Macau’s December could be the weakest month of the year

By Phil - 17 December 2019

Analysts are predicting that Macau’s December GGR will be the weakest of 2019 with an estimated year-on-year fall of 16 per cent.

JP Morgan’s DS Kim, Derek Choi and Jeremy An said: “December is set to be the weakest month of the year. By segment, we estimate VIP volumes dropped sharply by low-to-mid 30 per cent, and mass GGR fell low-to-mid-single digits year-on-year. The high-end segments (including premium mass) saw a greater deterioration amid the stepped up security measures and visa controls across almost all major properties. We now expect December GGR to drop 14 per cent to 16 per cent year-on-year to about MOP$22.3bn to MOP$22.8bn, which would be the weakest print of 2019 on both growth and absolute terms.”

Bernstein’s Vitaly Umansky, Eunice Lee and Kelsey Zhu, added: “The month (December) may turn out to be weaker than currently estimated if weakness permeates post Xi’s visit as customers hold off visiting Macau until the new year,” they wrote. “Chinese New Year begins earlier in 2020 than last year – in late January, which may further shift demand out of December and early January.”

JP Morgan highlighted that the December dip was ‘likely just a short-term blip.’

Analysts believe that Chinese President Xi Jinping’s attendance for the 20th anniversary celebrations will see heightened security which will put some people off travelling to the SAR.