The anticipated growth in Macau's casino revenue is partially attributed to improving circumstances within the tourism and hospitality sectors. With the completion of various casino renovations and the conversion of hotel rooms, an enhancement in hotel occupancy rates is likely to occur within the current year. This infrastructure development, alongside an increase in tourist numbers, forms a cornerstone in CreditSights’ projection that Macau will achieve more than the MOP240 billion target set by the government for 2025, as analysts noted in the released research paper. They highlight a steady 23.9% year-on-year growth seen in 2024, with GGR figures reaching MOP226.78 billion.
The acceleration of this pace may moderate slightly to an 8% annual increase as projected for the subsequent year, equating the revenue to about 84% of what was witnessed in pre-pandemic levels of 2019. CreditSights also predicts a rise in visitations close to 94% of 2019 benchmarks, further stating that GGR per individual visitor is likely to see a modest increase from MOP6,493 in 2024 to MOP6,606 in 2025.
Challenges and Catalysts for Macau's Economic Outlook
Despite the positive outlook, CreditSights highlights potential challenges that could impede Macau's casino industry's growth. The primary concerns revolve around China's slower GDP growth and sluggish domestic consumption, which could impact Macau's economy. Conversely, the institution points to several positive developments expected to bolster Macau's gaming industry. These include eased travel restrictions with more cities entering the Individual Visit Scheme (IVS), further advances in casino renovations, room conversions, and escalating entertainment provisions.
The improved consumer sentiment due to recent support policies from Chinese authorities suggests a supportive backdrop for growth in 2025. Official data reflects an encouraging trend, showing close to 34.93 million visitors to Macau in 2024, marking a leap of 23.8% year-on-year. Macau's tourism authorities anticipate visitor numbers this year might ascend to a range between 38 million and 39 million, drawing closer to 2019 figures, largely influenced by relaxed exit-visa policies aiding inflows from neighboring Zhuhai. These factors collectively underscore a cautiously optimistic outlook for Macau's casino and tourism economy as 2025 approaches.
Source: Macau 2025 GGR might top US$30Bln, says CreditSights, GGRAsia, January 24, 2025.
Posted by Wizard
Jan 25 2024
Jan 25 2024
Comments
No comments for this article.