Macau posted a record number of tourists during the seven-day Chinese New Year holiday: 1.08 million, up 3.7 percent from 2019 and the highest figure since 2017, reported the Macao News. The surge in visitation bodes well for gaming revenues for the month.
The Macau Government Tourism Organization (MGTO) said visitation for the Year of the Dragon were “well beyond expectations.” Officials had expected a daily average of 120,000 visitors during the break. The actual figures “mirror the positive trend of tourism recovery” for the city, they said, with average daily visitor arrivals at just under 170,000.
Hotels reported an average room rate of around MOP1,922 (US$240), a year-on-year increase of 23.4 percent, the tourism body stated.
The increase was led by travelers from Mainland China, who made up 77 percent of the total, reported Bloomberg News. Visitors from Hong Kong were the second largest group, comprising 18 percent. Hotel occupancy reached 97 percent on February 12 and 13, reported local media outlet TDM, citing tourism chief Maria Helena de Senna Fernandes.
“Daily visitor arrivals during this holiday are far higher than during the October Golden Week last year,” said Angela Hanlee, senior gaming and hospitality analyst at Bloomberg Intelligence. “Gross gaming revenue in February could surpass our previous expectation of $2.5 billion and also be higher than October last year despite this month having fewer days.” In a leap year, operators will have an extra day’s revenues to add to the month’s tally.
“Despite the macroeconomic headwinds, we believe Chinese citizens are still willing to spend on travel-related experiences,” said HSBC Bank in a research note. “We think travel-related spending could continue to outpace this overall domestic consumption.”
The upturn is significant as the city continues its post-Covid recovery. moves from VIP gaming to mass-market gaming, and pivots from a reliance on gaming as an economic driver to more non-gaming attractions. According to Business Insider, revenue estimates for the month compare favorably with the 25.4 billion patacas (US$3 billion) collected in February 2019. Gaming revenue reached US$2.4 billion in January this year.
