Holiday boosts casinos’ revenues to post-Covid high

Macau casinos saw revenues spike to a post-Covid high in May, driven by the Golden Week holiday and the introduction of new travel permits for Chinese tourists, which boosted spending.

Gross gaming revenue (GGR) reached 20.2 billion patacas for the month, matching analyst forecasts of a 30% year-on-year increase, as reported by the Gaming Inspection and Coordination Bureau during the weekend.

During China’s five-day Labor Day holiday, Macau experienced a notable increase in visitors, with daily tourist arrivals up 23.2% year on year, achieving 76% of the 2019 levels, according to a report Saturday by Bloomberg.

The city recorded 2.6 million visitors in April, about 76% of pre-pandemic figures, with May’s data expected to be released later in the month.

New regulations allow Chinese citizens to secure multiple-entry travel permits to Macau for various activities, including attending exhibitions and entertainment events.

This ease of travel, which began in May, is expected to further boost visitor numbers.

Moreover, the extension of eligibility for individual travel permits to residents from more mainland cities indicates significant government support, highlighted by analysts from JPMorgan Chase, according to Bloomberg.

Despite economic uncertainty, Macau’s affluent visitors have continued robust spending. Bloomberg noted the Bloomberg Intelligence index of Macau casino operators rose 4.57% in May, surpassing the Hang Seng Index’s gain of 1.78%.

Diversification remains crucial

Macau Institute of Management (MIM) president Samuel Tong said gambling revenue from January to May this year recovered to about 76% of the same period in 2019. Speaking to TDM, Tong attributed the increase to the introduction of 10 new mainland cities for Individual Visit Scheme to Hong Kong and Macau, as well as other policies.

He expects annual gambling revenue will reach MOP220 billion to MOP230 billion.However, Tong said the current passenger structure is like that before 2019, with 70% coming from the mainland and 20% from Hong Kong.

To diversify the tourist base, Tong suggested Macau should organize activities such as concerts, sports, and conventions and exhibitions, as well as expand its routes at Macau International Airport to make it easier to travel to neighboring regions.

Professor Ip Kuai Peng, vice-rector of City University, also expressed optimism about Macau’s economic recovery, saying May gambling revenue was satisfactory and approaching past levels.

Ip emphasized the importance of balancing the development of gaming and non-gaming elements in Macau’s “1+4” moderately diversified development strategy.

With the continued rollout of policies to support Macau’s tourism and diversification efforts, industry experts are cautiously optimistic about the region’s economic outlook. However, they caution more work is needed to reduce Macau’s reliance on the gaming sector and broaden its appeal to a wider range of visitors. Staff Reporters