In October, Macau's casino revenue made a significant leap, rebounding to 74% of pre-Covid levels, driven by a surge in tourist arrivals during China's Golden Week holiday.
Gross gaming revenue experienced a remarkable 400% growth, reaching 19.5 billion patacas ($2.4 billion), as reported by the Gaming Inspection and Coordination Bureau on Wednesday. This exceeded the median analyst estimate of a 392% year-on-year increase.
Key Highlights:
Chinese tourists flocked to Macau during the eight-day holiday last month, contributing to the rebound in gaming revenue following a slowdown in September.
Visitor arrivals during the holiday exceeded 932,000, averaging around 84% of the same period in 2019, according to official data. Approximately 78% of these travelers originated from mainland China.
Macau's efforts to attract tourists included a busy schedule of events, such as concerts by popular Hong Kong singers and a poolside dance party featuring former NBA star Shaquille O'Neal.
Despite the tourism boom, there are signs that per-person spending slowed due to China's weakened economy affecting consumer sentiment. Macau's visitation increased by 20% in the quarter, but revenue per visitor only rose by 7%, as noted by Morgan Stanley in an October report.
Macau has more upcoming events planned for the remainder of the year, including concerts by the Irish pop band Westlife. The city is shifting towards non-gaming activities to appeal to mass-market tourists, given China's crackdown on high-rollers that used to account for half of Macau's gaming revenue.
Official data indicates that gaming revenue from mass tourists in the third quarter had returned to 93% of 2019 levels, making it the primary driver of growth and profitability for Macau casinos. Mass gaming income is expected to reach about 110% of the 2019 level next year, potentially leading to a full recovery in casino profits by mid-2024, according to JPMorgan Chase & Co.'s estimate.
In contrast, VIP revenue for the third quarter was only at 38% of pre-pandemic levels.
Market Performance:
During October, a Bloomberg Intelligence index of Macau casino operators dropped by 8.5%, while the benchmark Hang Seng Index declined by 3.9% in the same month.
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Yes indeed that the surpassing of expectations in gross gaming revenue growth strongly indicates a pent-up demand for tourism and entertainment. Excellent progress in showcasing the resilience and potential of the sector! Amazing....
Seeing Macau's casino earnings surge during Golden Week is promising. Yet, slower spending due to China's economic challenges casts doubt. Diversifying beyond gaming might be the key amidst market shifts. Adapting strategies feels crucial in these uncertain times. Tough decisions ahead, but hope remains.
Wow! My favorite gambling country 😊 It's uplifting to see Macau's casino revenue making a strong comeback, reaching 74% of pre-Covid levels in October. This is remarkable 400% growth in gross gaming revenue.. So nice to see Macau's success.
Well that's truly impressive! The casino industry's significance as a driving force in Macau's economy is evident, and its ability to adapt and tap into new markets presents opportunities for future growth. Keep up the great work, and may Macau continue to thrive as a premier destination for visitors from around the world!
The surge in Macau's gambling revenue during China's Golden Week holiday is a positive economic indicator for both Macau and the broader region. This rebound to 74% of pre-Covid levels demonstrates the resilience of the casino industry and the potential for a full recovery in the coming years. The growth in gross gaming revenue, which exceeded expectations, is a clear sign of the pent-up demand for tourism and entertainment. Such a good job!!