Gaming analysts have already stated that 2020 might not be the turnaround year for Macau, in terms of gaming revenue, that everyone had hoped it would be. That belief is now being supporting by the gambling city’s casino operators, many of whom have now stated that next year’s gross gaming revenue is most likely going to stay flat.
Suncity Group CEO Alvin Chau Cheok Wa told the Macao Daily News that gross gaming revenue (GGR) is going to be “at least level” to what was seen this year, adding that the failure of the industry to pick up will continue to be spurred by China’s money-supply policies and the ongoing trade war between mainland China and the U.S.. One of the few bright sides, he feels, is the anticipated opening of several new casino venues in Cotai.
One of those venues is the Grand Lisboa Palace, a $5-billion resort being put together by SJM Holdings. Unless there are any unexpected hurdles that pop up over the next few months, the property should be ready to launch toward the end of the second half of next year. The venue was to be ready by the end of this year, but met a couple of delays along the way.
The Suncity executive isn’t the only one who is remaining cautiously optimistic about 2020 in Macau. MGM China Holdings CEO Grant Bowie, SJM Holdings Ltd Executive Director Angela Leong On Kei and Sands China Ltd. President Wilfred Wong Ying Wai all foresee a challenging year ahead. Leong might have the most reservations, stating that she would be “happy” if 2020 GGR reached 2019 levels.
For his part, Wong is staying a little more positive and believes the U.S.-China trade war could ease up a little bit. If that were to happen, Macau would start to see more activity again, including a significant amount of participation from its VIP customers. That would be good for Sands China, since the renovations at Four Seasons Macao should be completed before the end of the first half of the year.
2019 has not been the year anyone had hoped it would be. There have been a few months of positive gains, but, generally speaking, gaming revenue has declined. Most recently, November hurt the year’s GGR total, as Macau saw a revenue drop of 8.5%. With this performance, the GGR total since January is about $33.29 billion, 2.4% lower than the same period last year.
