During the National Day Golden Week, Macau’s casinos saw a remarkable resurgence with daily gross gaming revenues exceeding MOP$1 billion. This performance was nearly on par with 2019 figures, marking a 30% increase from 2023. The total GGR from October 1 to 6 reached MOP$6.5 billion, averaging MOP$1.08 billion per day, which exceeded market expectations and represented the highest revenue rate in five years.
JP Morgan analysts DS Kim, Mufan Shi, and Selina Li noted that the early October GGR not only surpassed the anticipated MOP$850 million to MOP$900 million per day but also showed a significant recovery to almost pre-pandemic levels. Mass market GGR was particularly strong, reaching up to 140% of pre-COVID figures, with VIP sectors achieving up to 35%. The overall spending per capita saw an approximate 25% increase compared to pre-COVID levels, indicating a strong return to form for Macau’s casinos.
Seaport Research Partners’ analyst Vitaly Umansky described this period as a crucial test for Macau’s resilience, which the city seemed to pass with flying colors, reflecting better-than-expected revenue outcomes. However, Umansky has maintained a conservative GGR forecast for October at MOP$21.5 billion, anticipating a normal seasonal trend for the remaining months of the year.
Throughout the eight-day holiday period, Macau welcomed over 932,000 visitors, with an average daily visitation of 116,545, aligning closely with pre-pandemic attendance figures. This influx of tourists significantly contributed to the local economy, with the hotel sector enjoying an occupancy rate of 87.9%, peaking at 94.3% on October 1. The Macao Government Tourism Office noted that this level of visitor traffic represented a recovery to 84% of pre-pandemic visitor numbers.
The increase in visitors not only boosted gaming revenues but also had a positive impact on the broader hospitality and retail sectors. Local small and medium-sized enterprises (SMEs) benefited from the increased foot traffic, although not all reached pre-pandemic transaction volumes. According to The Macau News, the chairman of the Federal General Commercial Association of Macau SMEs, Andy Wu, advised local businesses to adapt to changing consumer patterns, particularly focusing on younger demographics with higher spending power. He emphasized the importance for SMEs to cater to young customers with greater spending power.
Despite the optimistic figures during Golden Week, analysts like Umansky warn of a potential decline in daily GGR post-Golden Week, predicting a drop of about 35% or more. This contrasts with the robust visitation and favorable weather conditions that significantly boosted early October’s revenue figures.
Macau’s Golden Week has set a positive tone for the city’s economic recovery in the gaming and tourism sectors. The substantial increase in visitor numbers and gaming revenues showcases Macau’s enduring appeal as a premier leisure destination in Asia.