Macau October GGR Trending Higher, But Motorcycle Grand Prix Probably Canceled

JPMorgan analysts estimate gross gaming revenue (GGR) in Macau averaged $27.8 million on a daily basis through the first 18 days of October. That s a far cry from pre-coronavirus pandemic levels, but still a marked improvement over September s tally.

The Golden Week holiday, which concluded on Oct. 8, was But average daily GGR for that period was $35.1 million. That figure declined to $25.1 million a day last week, according to JPMorgan.

That is (obviously) weaker than Golden Week’s MOP$280 million (US$35.1 million), but well above September’s MOP$74 million. It reflects the IVS resumption for non-Guangdong residents (which kicked-in in earnest after Golden Week given lead-time,” note the bank s analysts.

During the earlier stages of the coronavirus pandemic, a recovery for Macau concessionaires, one supported by pent-up demand, in 2021. However, that was based on the notion the special administrative region s (SAR) gaming-heavy economy would materially spring to life in the current quarter. If that doesn t happen, the rebound time line gets pushed out to 2022.

Hindering concessionaires ability to shake off the effects of the pandemic are still-slack visitation numbers, which appear to be the result of procedural problems.

It s been about two months since Guangdong province resumed issuance of individual visit scheme (IVS) visas, with the rest of mainland China following suit a month later. However, there is no online option, meaning applicants . Compounding the problem is that approval times are as long as two weeks.

Then there s the matter of coronavirus testing. Tourists wishing to travel to Macau must present the results of a nucleic acid test confirming they re negative for the virus. The results cannot be any older than seven days, making spur-of-the-moment trips to the casino center difficult. Authorities are considering extending that time line to 14 days, which could provide a modest boost to gaming revenue.

While the Macau Grand Prix is still slated to run from Nov. 19-22, the president of Macau’s Sports Bureau, Pun Weng Kun, says it s likely the motorcycle portion of the event will be scrapped because of a dearth of foreign drivers.

The SAR allows residents of mainland China to enter without quarantine. But citizens of other countries face a 14-day quarantine, a policy making visits, for whatever reason, impractical for many. Additionally, Europe, which is home to many of the would-be participants in the motorcycle portion of the competition, is experiencing another wave of COVID-19 cases, prompting Macau to reiterate travel bans on many countries in that region.

The Macau Motorcycle Grand Prix was held for 57 previous years, often dominated by drivers from the UK, a region still grappling with the pandemic.

Organizers say that event will be replaced by lower-level auto races, with drivers coming exclusively from Asia.