Macau’s daily gross gaming revenue (GGR) has slowed following the end of the summer holiday season, according to analysts at UBS.
Data from the first eight days of September show that daily GGR has averaged approximately MOP594 million ($73.9 million), down from the MOP637 million ($79.3 million) recorded in August. This roughly 5 percent month-on-month decline aligns with typical seasonal trends observed between 2015 and 2019. However, the slowdown was also impacted by Typhoon Yagi, which struck Macau on September 5th-6th.
Macau’s GGR reached MOP19.75 billion ($2.46 billion) in August, marking a 14.8 percent increase year-on-year. This figure is 6.2 percent higher than the previous month and represents the second-best performance since the post-pandemic reopening in early 2023, only surpassed by the MOP20.18 billion ($2.51 billion) recorded in May.
In August, Macau welcomed approximately 3.66 million visitors, reflecting a robust summer tourism season. Helena de Senna Fernandes, head of the Macau Government Tourism Office (MGTO), highlighted this strong performance and expressed optimism for the upcoming peak period in October.
Breaking down the gaming segments, mass GGR decreased by approximately 5-8 percent month-on-month, while VIP volume dropped by 7-10 percent, with VIP hold rates ranging between 3.2 and 3.5 percent. UBS analysts noted that this performance indicates a significant cooling in the gaming sector following the high-demand summer period.
Mixed expectations for Golden Week
Looking ahead to the highly anticipated October Golden Week, running from October 1st-7th, expectations remain mixed. Hotel prices for Golden Week are trending about 9 percent higher than those during May’s Labor Week in 2024, indicating strong demand.
Out of the 31 hotels tracked, 20 have already sold out or become unavailable, compared to just 14 in the lead-up to May’s Labor Week this year.
UBS indicates that, while the average hotel price for Golden Week 2024 is down 17 percent compared to the same period in 2023, the increased number of sold-out hotels—11 more than last year—suggests that premium customers are driving room reservations.
The brokerage expects that the expansion of the Individual Visit Scheme (IVS), along with a busier event schedule, will support visitor growth during this peak period.
According to UBS, major gaming operators such as Sands China, Galaxy Macau, and Melco are organizing some highly anticipated concerts for September and October. These include Andy Lau’s concert and (G)I-DLE’s performance at Galaxy Arena, and Hins Cheung, Dear Jane, and Hacken Lee at Londoner Arena. Melco will also feature the popular Korean girl groups Aespa and Red Velvet at Studio City Event Center.
October Golden Week, a major holiday in China, is expected to be a key period for visitor arrivals in Macau. This year, the International Fireworks Display will coincide with Golden Week, likely boosting tourist numbers further.
The Macau Government Tourism Office (MGTO) projects daily visitor arrivals to reach around 100,000 during Golden Week, driven by the combination of the holiday and the International Fireworks Display.
