Reports MACAU MARKET REPORT
Junket Stock
Macau
Macau’s gaming operators haemorrhaged funds to keep casinos afloat during the pandemic, and having endured a market decline,
coupled with a push for non- gaming activities, they are shouldering soaring costs to secure their seat at the table.
In 2006, Macau surged past Las Vegas as the gambling capital of the world, recording seven times the revenues as Sin City, and over the last couple of decades has enjoyed an unstoppable growth in revenues.
But as Macau’s economy revolves around tourism and gambling, it’s been an economically challenging few years with revenues for both these sectors at 85 per cent less in 2022 than in 2019.
In addition, a new law this year saw changes requiring the concessionaires to dig even deeper into their pockets for further investment commitments to renew their operational licences whilst watching the junket business all but disappear.
So, has the Golden Goose given up laying or is the best yet to come? All eyes are on Macau as the barometer for the gambling industry’s recovery.
THE ROAD TO RECOVERY
After a tough few years, tourism is slowly picking up and although it hasn’t yet returned to pre-pandemic levels it is exceeding expectations.
P50 WIRE / PULSE / INSIGHT / REPORTS
Golden Week holiday in October saw 932,365 visitors to Macau during the eight day mid- Autumn holiday which ran between 29 September and 6 October. Pre-pandemic levels for the same week saw 974,337 visitors - so almost back on track. Te 116,546 per day visitor figure is around 84 per cent of the amount in 2019.
Mainland Chinese visitors accounted for the vast majority of visitors whilst hotel occupancy during the week was at nearly 88 per cent, an increase of 24 per cent year-on-year.
Te return to ‘normality’ has been haltingly slow. Covid lockdowns in early 2020 saw connecting flights at the airport cancelled as well as entry by all non-residents. Te Hong Kong-Zhuhai-Macau bridge was also closed to public transport and most other traffic.
Ten as things began to re-open and return to some semblance of normality a big Covid outbreak at the end of 2022 saw further restrictions whilst the impact of measures in China also had an effect on tourism and the economy.
Finally, in January 2023 Macau opened its border to foreign visitors and removed all mandatory quarantine requirements whilst
those coming from China, Hong Kong and Taiwan no longer needed to be tested.
In 2020 the number of tourists visiting Macau had dropped from 39.4 million in 2019 (made up of 20.7 million same-day visitors and 18.6 million overnight visitor stays) to just 5.8 million in 2020. Tis compares to 7.7 million in 2021 and 5.7 million in 2022. Te majority of these visitors came from Mainland China (89 per cent), Hong Kong (nine per cent) and Taiwan.
Tis year has seen some vast improvements. Between January and August 2023 there were 17.6 million visitors – up 363 per cent on the same period the year before (3.8 million visitors). Around 8.5 million were same-day visitors and nine million overnight stay visitors.
Tere are currently (August 2023) around 136 hotels in Macau with 44,600 guest rooms available. Occupancy rate is at 80.9 per cent compared to 38 per cent in 2022. Tere are 520 restaurants and 159 bars.
Macau International Airport handles around 480 flights per week and has recently seen most flight services resumed or expanded over the last couple of years.
Up until 1995 no commercial air services
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