Macau’s gaming revenue experienced a significant surge during October’s Golden Week holiday. The region reported its highest post-pandemic gross gaming revenue (GGR) figures. For the first eight days of October, daily GGR averaged MOP$843 million ($104.7 million). This marks the strongest daily performance seen since January 2020. It reflects a robust recovery for the world’s largest gambling hub.
These impressive figures were reported by Union Gaming Securities Asia’s managing director and analyst, John DeCree. The total GGR for the initial eight days of the month reached MOP$6.74 billion ($837 million). This performance stands at approximately 60% of pre-pandemic levels from October 2019.
Golden Week Drives Macau Gaming Revenue
The October Golden Week, a major national holiday in China, played a pivotal role in this upturn. The Macau Government Tourism Office noted a substantial influx of visitors. From September 29 to October 6, Macau welcomed nearly 937,000 tourists. This averages out to 117,125 visitors per day. While still below the 137,000 daily visitors during the 2019 Golden Week, it represents 85% of those pre-pandemic numbers. The increased foot traffic directly contributed to the boosted Macau gaming revenue.
The strong visitation figures underscore a broader trend. Confidence in travel to Macau is growing. This is a crucial factor for the region’s tourism-dependent economy. The holiday period historically serves as a benchmark for Macau’s recovery trajectory.
Mass Market Leads Recovery, VIP Trails
The current recovery is primarily fueled by the mass market and premium mass segments. These categories are showing significant strength. In contrast, the VIP segment’s comeback has been slower. This lag is largely due to ongoing regulatory changes. Reforms affecting junket operations and a governmental push for more responsible gambling practices have impacted high-roller activity. Macau’s authorities aim to diversify the economy. They seek to reduce reliance on VIP gambling. Instead, they want to focus on a broader tourism appeal.
John DeCree from Union Gaming Securities Asia projects sustained growth in the mass market. He suggests that the mass segment alone could eventually surpass its 2019 performance. This highlights a strategic shift in Macau’s gaming landscape, moving towards a more stable and diversified revenue stream.
Optimistic Outlook for Macau’s Gaming Sector
Based on the strong Golden Week results, Union Gaming Securities Asia has revised its GGR forecasts upwards. The full-month GGR for October is now predicted to fall between MOP$19.5 billion ($2.42 billion) and MOP$22.5 billion ($2.79 billion). Should these projections hold, October 2023 would emerge as Macau’s most successful month since January 2020. This further solidifies the path to recovery.
Furthermore, the full-year GGR forecast for 2023 has been adjusted. It is now expected to reach 50% of 2019 levels. This is an increase from the previous estimate of 40-45%. This optimistic outlook reflects the industry’s resilience. It also points to the continued appeal of Macau as a premier gaming and tourism destination.
Share This Article
Found this story interesting? Share it with your network!
