Morgan Stanley Director expects Macau to bounce back by 2024

Home » Morgan Stanley Director expects Macau to bounce back by 2024

Praveen Choudhary, Managing Director of Morgan Stanley Asia, stated during Morgan Stanley’s Financial Outlook of Asian Gaming Destinations presentation at G2E Asia that the financial services firm expects Macau’s mass revenue numbers to exceed the highs of 2019 – indicating a full recovery from the Covid-19 pandemic by 2024.
During the event, Choudhary discussed the pandemic’s impact on Macau and Asia as a whole, while predicting that the Chinese gambling mecca will thrive in the coming years: “The mass revenue and EBITDA will be higher than in 2019, at least, that’s what we expect.” We’re expecting it in 2024, but it could arrive in the second half of 2023.”
So, while Macau is still mired in the quagmire of China’s Covid restrictions, it is clear that the financial institution expects the province to rebound strongly in 2023/2024.

However, the VIP market, which has historically driven Macau’s numbers, is not expected to recover as quickly as other regions. Although Chaudhary stated that “having a higher slot business and a lower VIP business could be positive for Macau.”

Macau now accounts for 35% of the Asia VIP market, down from 72% prior to the pandemic in 2019. Meanwhile, Singapore has captured a sizable share of the VIP gambling market, accounting for 24% of the VIP gambling pie in 2022, up from 9% in 2019.

However, the total value of the VIP market in 2022 is $16 billion lower than it was in 2019, falling from $20 billion to $4 billion, with Chaudhary expecting some of the VIP market to return to Macau in the coming months.

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