Macau:-
(1) GGR has remained soft, tracking 10-15% of normal level even though visitation is getting stronger to reach 20% level with IVS visas for Guangdong (used to contribute 20-30% of GGR).
While the IVS will be fully reopened on 23 Sep, the short booking period and COVID testing could drag the demand for national day holidays ahead.
(2) Less player spend: The crackdowns on shadow banking and overseas gambling have hurt the junket system and player sentiments.
Pawnshops also lowered the transaction size for money withdrawals to minimize their regulatory risks.
Premium mass players have their initial buy-ins smaller and their betting size dropping by half compared with normal level.
(3) License renewal is yet to be clear and will remain a risk in 2021. It is likely to have more colour after the policy consultation for Macau's urban master plan 2020-40 finishes in Nov.
(4) Key projects: see no significant delays so far. Grand Lisboa Palace continues to target its opening by end-2020.
(5) Daily opex: would gradually go up along with the recovery but sees room for permanent savings.
Source: CS