CLSA: Tourism diversification draws more visitors, lowers spending per capita

According to a recent outlook report by brokerage CITIC CLSA, ongoing efforts to diversify Macau’s tourism sector beyond gaming are attracting more leisure tourists, but the average spending per visitor is declining.

The government’s push to broaden Macau’s appeal with entertainment events and non-gaming attractions has successfully boosted visitor numbers.

Yet, the gross gaming revenue (GGR) per visitor fell 9% year-over-year in the first quarter of 2025, dropping from MOP6,459 to MOP5,846.

Notably, this figure is also 21% lower than in 2019, before the pandemic, and is expected to decline further by 6.6% through 2025 before rebounding by 6.3% in 2026, according to analysts Jeffrey Kiang and Leo Pan.

The diversification strategy is credited with increasing total visitor arrivals, which CLSA forecasts will grow by 9% this year to 38.1 million.

The brokerage anticipates further growth, forecasting 39.4 million visitors in 2026 and 41.2 million in 2027, aligning with Macau’s broader tourism master plan, which anticipates up to 40 million visitors by 2025.

The Macau Government Tourism Office’s (MGTO) master plan emphasizes expanding non-gaming offerings, improving service quality, rebranding Macau as a multi-day destination, consolidating the city’s position as a World Centre of Tourism and Leisure.

However, challenges remain. Galaxy Entertainment Group chairman Francis Lui highlighted the city’s limited hotel room supply as a critical issue that could undermine the city’s competitiveness as a leisure destination.

Macau has about 44,000 hotel rooms, far fewer than Las Vegas’ more than 155,000 rooms.

Meanwhile, the government and MGTO actively promote mega-events and festivals to boost repeat tourism and attract diverse demographics, including younger and budget-conscious travelers.

A shortage of budget-friendly accommodations persists, with a recent decrease in available guest rooms despite an increase in accommodation providers.

CLSA projects Macau’s total gross gaming revenue will grow modestly by 1.8% in 2025 to MOP230.8 billion and increase by a further 10.2% in 2026, driven by expected rising visitor numbers.