In February 2024, Macau witnessed a remarkable surge in its gaming revenue, driven by the auspicious Chinese New Year Golden Week. The Gaming Control and Adjustment Bureau (DICJ) revealed that the Gross Gaming Revenue (GGR) for the month amounted to MOP$18.5 billion (US$2.3 billion), marking a substantial 79% increase compared to the previous year.
Record Visitor Arrivals:
During the Lunar New Year Golden Week, Macau experienced an influx of 1.36 million visitors, with an average daily arrival of 169,725. The hotels witnessed an exceptional occupancy rate of 95.2%, further bolstering the gaming revenue.
Year-on-Year Growth:
The surge in visitor arrivals translated into a significant boost in gaming revenue, with February 2024 witnessing a staggering 79% year-on-year increase. This surge in revenue marked the fourth-highest for a single month since January 2020.
Comparison with Pre-pandemic Levels:
Despite the impressive performance, February 2024’s revenue still trailed behind February 2019 by 27.1%. This comparison underscores the lingering impact of the pandemic on Macau’s gaming industry.
2023 Performance and Future Investments:
In 2023, Macau’s GGR reached MOP$183 billion (US$22.3 billion), triggering a contractual 20% increase in investment for non-gaming initiatives by the six casino concessionaires from 2024 onwards. This move reflects a strategic shift towards diversification beyond gaming.
Yearly Projection for 2024:
With GGR amounting to MOP$37.8 billion (US$4.7 billion) for the first two months of 2024, analysts project a full-year run rate of MOP$227 billion (US$28.4 billion), excluding seasonal fluctuations. This outlook highlights the industry’s resilience and recovery trajectory.
Chinese New Year Golden Week Performance:
Investment bank JP Morgan estimates that the average daily gross gaming revenue during the eight-day Chinese New Year Golden Week surpassed a four-year high of approximately MOP$1 billion (US$124 million), underscoring the significance of this festive period for Macau’s gaming sector.
Macau’s gaming industry has demonstrated remarkable resilience and growth, propelled by the Chinese New Year Golden Week and a gradual recovery from the pandemic’s impact. While challenges persist, the industry’s adaptability and strategic initiatives signal a promising trajectory for the future, marked by continued growth and diversification.