Macau Revenues Looking Positive During CNY

Macau

According to brokerage CLSA Ltd, Macau’s casino gross gaming revenue (GGR) could exceed MOP19.8 billion (US$2.46 billion) for the month, making it the highest monthly tally since early 2020.

Macau’s strong performance during the Chinese New Year holiday period can be attributed to robust visitations and solid foot traffic. Analysts Jeffrey Kiang and Leo Pan from CLSA Ltd noted in a recent report that average visitations from February 10 to 17 were in line with the Macao Government Tourism Office’s forecast of 120,000 visitors per day. Their observations during a visit on February 12 revealed bustling activity at borders and integrated resorts.

Preliminary data from Macau’s Public Security Police showed that more than 898,000 visitors arrived in the city during the first five days of the Chinese New Year break, with an average of about 179,700 arrivals per day. This influx of mainland Chinese tourists has long been a boon for Macau’s gaming industry, and the holiday period serves as a prime opportunity for them to enjoy the city’s entertainment offerings.

CLSA Ltd predicts that Macau’s February GGR could exceed their initial forecast of MOP19.8 billion, which was already 2% higher than January’s figure. The strong performance during the Chinese New Year period has given rise to this upside risk. If confirmed, this achievement would mark a significant milestone in Macau’s recovery from the impact of the Covid-19 pandemic.

During CLSA’s visit to Macau, they observed the popularity of various casino games among visitors. Baccarat, a beloved card game with a minimum bet of MOP1,000 (US$124), was widely played. Additionally, sic bo, known for its higher house edge and a minimum bet of MOP500, attracted many players. Slot machines and live multi-game terminals also saw substantial usage.

The Chinese New Year holiday period is undoubtedly a key driver for Macau’s tourism industry. The city’s allure as a gambling and entertainment destination draws hundreds of thousands of mainland Chinese tourists each year. Macau welcomed over 898,000 visitors during the first five days of the Chinese New Year break, indicating a strong rebound in tourism. This surge in visitor arrivals is a positive sign for the recovery of Macau’s economy and its gaming sector.

The anticipated February GGR in Macau is expected to surpass pre-pandemic levels, signalling a significant milestone for the city’s gaming industry. The Covid-19 pandemic severely impacted Macau’s gambling revenues in early 2020, leading to a prolonged period of low visitor numbers and revenue. However, the strong performance during the Chinese New Year period indicates that Macau is well on its way to recovery.

Macau’s success as a gambling destination is not limited to its own borders. The city’s thriving gambling industry has a significant impact on the Asian market as a whole. Macau’s gambling revenues far surpass those of other countries in the region, such as Singapore, the Philippines, and Japan. Its ability to attract high rollers and mass-market gamblers alike sets it apart as a premier gambling destination.