October gaming revenues surge as city benefits from Golden Week

In October, the city’s casino revenue surged to another all-time post-pandemic high, as tourists flocked to Macau during the National Day Golden Week.

Data released by the Gaming Inspection and Coordination Bureau yesterday revealed that gross gaming revenue (GGR) exceeded analysts’ estimates of 392% growth, with revenues growing 400% to MOP19.5 billion. This marks a return to 74% of pre-Covid revenue levels.

During the eight-day holiday early last month, the city saw over 931,429 tourists, with the majority coming from mainland China, accounting for about 84% when compared to the same period in 2019.

The rebound comes after the city saw a slowdown in September following a holiday boom in July and August. 

Last month, casino revenues fell to a five-month low to MOP14.9 billion, equivalent to 68% of 2019 levels, as Typhoon Saola disrupted the city. The government ordered a rare shutdown of casinos for nine hours as the city braced for the storm, hoisting its highest storm signal No. 10.

Typhoon Saola disrupted transportation and temporarily closed border entry points and affected travel plans for visitors.

However, analysts were optimistic about a boost in the gaming sector in October from China’s Golden Week holiday.

However, a note from Morgan Stanley pointed out that although there was a strong tourism rebound, revenue per person was only up 7% amid China’s slowing economy, due to weakened global demand for its exports and an ongoing crisis in the property sector.

Meanwhile, official data revealed that gaming revenue from mass tourists had returned to 93% of 2019 levels in the third quarter, while mass gaming income is expected to reach about 110% of 2019 levels next year. These factors are predicted to drive casinos’ profits toward a full recovery by mid-2024, according to JPMorgan Chase & Co.’s estimates.

JPMorgan previously stated that “Macau’s [autumn] Golden Week turned out to be pretty golden – much better than we and the market had feared.”