Macau has had a solid start to the October Golden Week, with visitor arrivals already surpassing 2019 levels, according to CLSA.
The report indicates that, in the first three days of the week, Macau received 478,713 visitors, averaging 159,600 per day. This figure is 5 percent higher than the same period in 2019 and nearly 50 percent above the government’s initial projections.
According to the latest official data, Macau welcomed 915,696 visitors between October 1st and 6th, surpassing the 897,020 recorded during the same Golden Week period in pre-COVID 2019.
Following an on-site visit on October 2nd, analysts Jeffrey Kiang and Leo Pan noted a ‘heavy presence of visitors in both integrated resorts and casinos, including Wynn Palace, MGM Cotai, City of Dreams, Londoner Macao, Four Seasons, The Venetian, and Galaxy Macau.’
‘Minimum bets remain consistent with past visits, ranging from $62 to $624 (MOP 500 to 5,000), with a notable popularity of the new Lucky Seven baccarat bet (pays 6x100x on a win with seven) at City of Dreams and The Venetian,’ they added.
Furthermore, CLSA projects that gaming revenue for October will rise by 6 percent year-on-year to MOP 20.65 billion ($2.57 billion), aligning with consensus expectations.
Meanwhile, CLSA also points out that, despite heavy foot traffic in malls, the research team noticed only one luxury store with a queue outside during their visit. This may reflect softer retail spending amid China’s economic headwinds.
CLSA notes that hotel bookings also indicate a positive outlook for the tourism sector. Demand for accommodations during the mid-October Golden Week currently exceeds 2023 levels, suggesting that provisional visitation figures may lead to even stronger performance in 2024.
As of September 27, only seven hotels were available for bookings, compared to ten last year. Prominent establishments such as Melco’s City of Dreams Nuwa and the Grand Hyatt have reached full capacity, signaling heightened interest among visitors.
CLSA’s report highlights that ‘across the entire tracked period, there have been fewer hotels with rooms available this year,’ reflecting increased demand in the market.
China’s stimulus
The recent announcement of stimulus packages by the Chinese government has further boosted investor sentiment in the gaming sector. Although the specifics of the fiscal support remain unclear, the improved outlook is encouraging for stakeholders.
Additionally, CLSA has upgraded its target prices for all six gaming companies covered in the report, with Sands and MGM China identified as the top picks moving forward.
