Gaming revenue rebounds following boost in tourist arrivals

Growth in gross gaming revenue has been recorded for the month of February, with casino operators generating a total of MOP7.7 billion compared to the MOP6.34 billion amassed in January.

Data from the Gaming Inspection and Coordination Bureau shows that the 22.3% month-on-month surge, even if the figures represent a 69% decline from pre-pandemic levels, is a strong indication of the sector rebounding with the help of Lunar New Year visitors.  

The figure, however, was slightly lower than the forecast of Bernstein Research, which expected the results to “likely be up 29% from January.”

However, due to the stability of case numbers, Bernstein Research said that the average daily revenue during the Chinese New Year (from February 1 to 6) stood at MOP333 million, compared with MOP205 million in January.

Brokerage J.P Morgan described the Lunar New Year figures as “very respectable” considering there are “no more junket businesses,” which formerly accounted for 75% of the city’s VIP gaming revenue.

Macau has also seen the continuous rise of visitors since the Chinese New Year holidays, which had up to 28,000 arrivals on a single day despite expectations falling short during the week-long holiday. Initially, authorities forecast up to 30,000 visitors per day during the Golden Week.

Gaming operators were positive about the outcome of the Chinese New Year as many of them have said they reached 99% hotel occupancy. 

Analysts are expecting VIP revenue to plunge this year by up to 47% amid the junket turmoil in the city following the arrest of two junket moguls.

The pandemic, particularly the fifth wave of Covid-19 in Hong Kong, also remains a concern as the neighboring region is facing its worst outbreak yet, recording up to 34,466 cases on Monday, a record high.