The Chinese New Year holiday, according to the lunar calendar in mainland China, spanned from January 28 to February 4. This is a key time for Macau as it welcomes numerous tourists, boosting casino activity. Nonetheless, a report by Linda Huang, the head of consumer research for Asia at Macquarie Capital, mentions a downward trend, notably with a city-wide average daily GGR of MOP743 million recorded from February 10 to February 16– marking a decline of approximately 10 percent week-on-week. Ms. Huang references third-party data which highlights changes in visitor and gaming dynamics during this typically robust period.
Analyzing Weekly Performance and Monthly Figures
January's casino performance in Macau had already shed light on potential decreases, with an official report indicating a 5.6 percent year-on-year drop in GGR to MOP18.25 billion. However, from a sequential perspective, the figures still showed an upturn of 0.3 percent, reflecting some positive momentum despite the broader decline. Macquarie’s analysis benefited from third-party data that pointed out slight improvements in market shares for particular Macau casino operators, such as Sands China Ltd and Melco Resorts & Entertainment Ltd. These operators recorded respective market share gains of 1.5 percent and 2 percent, likely at the expense of Wynn Macau Ltd and MGM China Holdings Ltd, both of which saw similar contractions.
Market Dynamics Post-Chinese New Year
Such downturns in revenue can be attributed to various persistent challenges and changing tourist patterns typical of Macau’s macroeconomic environment. As both local and international markets slowly recover and adapt to recent global economic disruptions, Macau’s casino sector continues to be influenced by these broader conditions. The outlook remains cautious as operators adapt to the dynamic environment.
Source: Macau’s Jan and Feb casino GGR likely to see 1pct to 3pct y-o-y decline: Macquarie, GGRAsia, February 18, 2025.
Posted by Wizard
Feb 19 2025
Feb 19 2025
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