Macau’s casinos experienced a significant rebound during the National Day Golden Week, recording daily gross gaming revenues (GGR) surpassing MOP$1 billion. This performance was close to the figures of 2019 and marked 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.

Stellar performance in gaming revenues:

JP Morgan analysts DS Kim, Mufan Shi, and Selina Li highlighted that the GGR for the early days of October 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 robust return to form for Macau’s casinos.

Seaport Research Partners’ analyst Vitaly Umansky described the period as a crucial test for Macau’s resilience, which the city appeared to pass with flying colors, reflecting much 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.

During the eight-day holiday period, Macau welcomed over 932,000 visitors, achieving an average daily visitation of 116,545, which closely aligns with pre-pandemic attendance figures. This surge in tourists contributed significantly 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 the visitor numbers seen before the pandemic.

Tourism sector enjoys robust recovery:

The influx of visitors not only boosted the gaming revenues but also positively impacted the broader hospitality and retail sectors. Local small and medium-sized enterprises (SMEs), although not all reaching pre-pandemic transaction volumes, benefited from the increased foot traffic. 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 said: “It’s important for SMEs to figure out how to cater to young customers [who have 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 is in contrast to 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 highlights Macau’s enduring appeal as a premier leisure destination in Asia.