MGM CEO: market potential remains untapped

MGM Resorts International CEO Bill Hornbuckle has expressed confidence in Macau’s tourism market during his remarks at the Global Gaming Expo (G2E) in Las Vegas. Despite recent economic stimulus efforts from China, Hornbuckle believes Macau’s unique appeal to visitors remains largely untapped.

Hornbuckle said Macau attracts approximately 20 million visitors annually, with many returning multiple times each year. However, he said the penetration of Macau’s services on the mainland is still modest, estimated at “less than one percent” of its market potential. This statistic underscores the significant opportunity for growth in attracting more premium mass gambling customers.

His comments, during an interview with CNBC, coincide with China’s recent announcements regarding economic stimulus measures aimed at revitalizing growth in its Special Administrative Regions (SARs). Although there were expectations for specific policies targeting Macau during a recent press conference by China’s National Development and Reform Commission, no details have been provided so far.

“I like to remind everybody that the key focus for all of us is premium mass,” Hornbuckle said. “Macau does more than 20 million visitors a year, but it is really the same people coming into the city three or four times a year, so it’s less than 1% penetration into mainland China.”

He said Golden Week revenue was up 20% compared to 2019, reflecting positively on Macau’s economy. “We remain pretty excited by it all.”

Hornbuckle said that while gaming revenues are still significantly lower than pre-pandemic levels, much of this decline is attributed to the absence of junket-related revenues. He noted these were less profitable compared to the more common premium mass and direct VIP forms currently being generated.

Hornbuckle expressed optimism for 2025, particularly following the recent Golden Week holiday, which saw record gaming revenues for Macau’s resorts. He emphasized that while China’s overall economic activity relies upon stimulus measures, it is Macau’s distinct character that continues to attract visitors and potential investors.

The increase in Golden Week revenues serves as a “great indicator” of what Macau can expect over the next 18 months.

“MGM has enjoyed more than our fair share going into the end of the year – we’ve averaged in the mid-teens of market share,” he said. “I have great hope for 2025.” Nadia Shaw