June GGR tracking around 20 percent as mass picks up: MS

Macau’s gross gambling revenue is tracking for a 20 percent gain in June, helped the opening of Melco Resorts & Entertainment’s Morpheus Hotel and the Dragon Boat festival, Morgan Stanley said in a note.

The firm said May’s weaker-than-expected figure was due to slower mass market growth, which could be attributed to a high base comparison figure in 2017 and one less weekend in the month.

Total visitor arrivals in the month, were 2.7 million, up 5.2 percent, with Chinese visitation up 8.3 percent. Mass revenue growth in May was just 8.3 percent.

Morgan Stanley said the underlying figures showed some interesting trends, with growth in visitor numbers from lower-tiered Chinese cities growing a much stronger 12.5 percent compared with Tier-1 cities, such as Beijing and Shanghai, where visitor numbers grew 5.5 percent.

The firm expects to see stronger mass market growth through August, as this sector of the market was relatively weak during the comparable period last year.