CreditSights Predicts Fast Recovery for Macau GGR as Tourism Grows

Macau’s post-COVID recovery continues as the special administrative region continues to attract an increasing number of visitors. According to credit research specialist CreditSights, the money wagered per visitor has been experiencing a steady recovery, returning to approximately 93% of the pre-pandemic levels.

According to CreditSights analyst David Bussey, the GGR spend per visitor for the January-May period reached $841 (in USD), representing roughly 93% of the figure recorded in the January-May period in 2019.

Bussey also noted that the aforementioned number marks a significant year-on-year growth from the results recorded in 2023. For context, the average spending per customer stood at $805 in the prior year period.

Despite the favorable results, Macau is yet to surpass its pre-pandemic levels. Its results for FY 2019, for example, showed GGR spend per visitor of $920. While the region is not quite there yet, Bussey is convinced that the transport improvements and boost in visitation will result in further short-term growth.

CreditSights Is Optimistic about Macau’s Recovery

CreditSights also pointed out that improvements to the travel framework will allow a steadier flow of tourists from mainland China, providing the SAR with an additional boost. Whereas multiple-entry business visas previously allowed only a 7-day stay, for example, they now allow a 14-day stay. The provision of trips for tour groups between Hengqin and Macau within a seven-day period is also expected to have a positive effect on the industry.

The firm added that despite being a popular destination for overseas tourism, Macau is still largely reliant on visitors from China who make up over two-thirds of all tourists. Because of that, the eased-up travel restrictions for Chinese natonals are expected to be a major gaming economy benefactor.   

Bussey expressed optimism about the market’s post-COVID progress, saying that his group expects the SAR’s annual GGR to exceed the government’s forecasts. For context, Macau expects a GGR of roughly $26.8 billion for 2024 but has already surpassed $14.2 billion in June.

CreditSights rosier predictions say that GGR could possibly reach $29.1 billion or more, marking a 28% YOY increase.

As the gaming industry normalizes, MGM China acknowledged the importance of safer gambling and hosted a first-of-its-kind responsible gambling course. Hosted alongside the Macao Federation of Trade Unions (FAOM) and the Macao Gaming Industry Employees Home Integrated Services Centre, the course welcomed representatives of eight unions, teaching them how to identify and deal with vulnerable players.  

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