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Macau Gaming Revenue Beats Expectations Ahead of Golden Week

By Shirley Zhao and Julia Fioretti
Tourists at the St. Paul's Ruins during Golden Week at dusk in Macau, China, on Sunday, April 30, 2023. Shares connected to Chinas tourism sector gain as investors position ahead what's expected to be a strong travel season during the five-day Golden Week holiday starting Saturday. Photographer: Eduardo Leal/Bloomberg (Eduardo Leal/Bloomberg)

(Bloomberg) -- Macau’s gaming revenue rose 15.5% year-on-year in September, exceeding analysts’ forecast as casinos gear up for one of China’s biggest holidays, which usually fuels travel to the gambling hub. 

Gross gaming revenue reached 17.25 billion patacas ($2.2 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Tuesday. The result is compared to the median analyst estimate of a 14.2% increase, and has returned to 78% of the pre-pandemic level seen in 2019.

The reporting was still lower than in the previous month, as September — when children go back to school and there’s a chance of typhoons and heavy rains — is historically a weak season for Macau.  

Key Insights

  • Expectations for the upcoming Golden Week holiday starting Oct. 1 are high. Advanced bookings for hotel rooms are strong, with bigger gamblers making reservations earlier than usual, Citigroup Inc. analyst George Choi wrote in a note.
    • Affluent players remain able and willing to spend, and the trend seems to be accelerating, Choi said, citing a survey of gaming table performances.
  • Still, retail sales in Macau have shown signs of weakness. Lower-spending players appear to be betting less for the first time since China’s reopening from Covid early last year, according to Choi. It’s expected this trend will ease as Beijing’s recent announcement of a series of economic stimulus measures boosts disposable income, he added.
  • China’s stimulus package, which includes cutting interest rates and easing home buying restrictions, may not have an immediate impact on Macau revenue — but could improve the mainland’s economy in the medium term and eventually drive faster recovery in Macau, Seaport Research Partners analyst Vitaly Umansky said.
  • Macau reported 3.7 million tourist arrivals in August, returning to pre-pandemic levels for the first time since Covid emerged. Officials will release figures for September later this month.

Market Performance

  • The Bloomberg Intelligence index of Macau casino operators jumped 31% in September, while the benchmark Hang Seng Index rose 17%.

Read More

  • China Unleashes Stimulus Package to Revive Economy, Markets
  • Chinese Headed to Europe and Far-Flung Hotspots for Golden Week
  • Former HKEX Boss Li Kicks Off Micro Exchange in Macau
  • Macau Says Sam Hou Fai Accepted as Chief Executive Candidate
  • Macau Gaming Revenue Rises as Summer Demand Eases Crackdown Fear

--With assistance from Shinjini Datta.

©2024 Bloomberg L.P.