Tourism on the rise
Mass-market gaming bested live-dealer baccarat in Macau during the third quarter of the year. Gross gaming revenues grew 3.9 percent year-on-year for the period, according to data from the Gaming Inspection and Coordination Bureau.
“The brightest spots were associated with games played by non-premium customers (i.e. ‘grind’ or ‘base’ mass customers),” wrote Union Gaming analyst Grant Govertsen. He said growth in mass-market would have been even better—up to 9 percent growth—if not for “ongoing table reclassifications” related to smoking and non-smoking areas.
DICJ data indicates that VIP casino GGR fell by only 1.2 percent in the third quarter, a substantial improvement considering the 16 percent decline year-on-year in VIP for the second quarter, reported GGRAsia.
“While the lift in VIP was impressive, the continued rebound in mass-market gaming revenues is far more compelling and sustainable,” said Christopher Jones of the Buckingham Research Group Inc.
Including slots, mass-market revenues accounted for MOP26.4 billion (US$3.3 billion), a 3.9 percent year-on-year improvement. Mass-market baccarat totaled just under MOP 19.5 billion up from MOP 18.6 billion in the second quarter. Mass baccarat accounted for about 35.4 percent of all revenues, reported CalvinAyre.com.
For September, the hotel average daily rate (ADR) was up 5.6 percent according to data from the Macau Government Tourism Office. The occupancy rate was 86.6 percent, down from 92.6 percent in August.
As the recovery continues, Maria Helena de Senna Fernandes, director of the Macau Government Tourism Office, says her department will focus on bringing in more international tourists.
“This year we have seen a 7 percent increase,” she noted. “We will try in the future to keep up with this pace and attract tourists from other parts of the world. As of now, we have about 3 million international visitors. Within 10 years, we want to grow to 4 or 5 million.”
While the signs of recovery are certainly welcome to beleaguered casino operators in Macau, including big guns like Wynn China, Sands China, Galaxy Entertainment and Melco Crown which have invested billions in new resorts on the Cotai Strip, MGM China CEO Grant Bowie doubts the boom years will ever return, and most operators are modifying their expectations.
“I think all of us are looking for consistency and stabilization,” Bowie told GGRAsia. “I don’t think any of us expect to see anything like the growth we have seen in the past. It’s about strengthening the customer base and broadening the appeal of the destination.”
