The Chinese stock market volatility and the macroeconomic situation on the Mainland are among the factors influencing the gaming market that have made Global Market Advisors (GMA) consultant Jonathan Galaviz say that Macau is a glass half-empty for the time being. GMA is a consultant firm specialising in the casino gaming, hospitality and airline industries. “We see some volatility coming out because of the recent stock market volatility, the macroeconomic situation in Mainland China and some regulatory issues that are occurring in Macau related to a smoking ban proposal and other elements”, Jonathan Galaviz said in an interview with American Broadcaster CNBC. “If you take all these factors together I think you tend to have a view that the glass is half-empty at this point”, he added. Galaviz also rejects the idea that the decrease in gaming revenue could be associated with the fact that some gamblers may be tired of coming to Macau, as put forward by some gaming analysts. “There are some analysts coming out with analysis around the edges… Some analysts are looking at what I would call minimal factors that contribute to the overall macroeconomic environment in Macau”, he said. “But if we take a look from a very high level, ultimately Macau’s situation is a function of public policy, government relations and activity coming out of Beijing”. Pessimistic Earlier this week, the Gaming Inspection and Co-ordination Bureau of the Macau Government revealed that during July gaming revenues went down 34.5 year-on-year to MOP18.6 billion from MOP28.4 billion. After fourteen months of consecutive decline, some analysts believe that the market can recover with the opening of Melco Crown’s Studio City integrated resort. The date of the opening of this project will be announced today but it is expected to be operational in the third quarter of this year. However, the consultant from Global Market Advisors predicts that recovery will happen with the opening in March 2016 of Wynn Palace. “I’m still pessimistic about the Macau gaming market and I don’t see any real indicators showing that any significant upswing should be expected in the second half of 2015. I could be wrong on that but that is my projection. However, I think that in the first quarter of 2016 the major inflection point is going to be Wynn’s new property opening up in Macau”, he stated.
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