Macau, a renowned hub for tourism and gaming, has welcomed an impressive total of 17.6 million visitors during the first eight months of this year, as announced by Lei Wai Nong, the Secretary for Economy and Finance. While the government remains cautious about providing a full-year forecast for the casino gross gaming revenue (GGR), the city is hopeful of maintaining this momentum through special events and entertainment activities.
Visitor Arrivals Surge
The Secretary for Economy and Finance, Mr. Lei, shared that Macau’s tourism and gaming sectors have seen a significant influx of visitors. This surge in arrivals paints a positive picture for the region’s economic recovery, which has been significantly impacted by the COVID-19 pandemic.
October Golden Week Anticipation
With the upcoming October Golden Week, Macau’s tourism authority is optimistic about welcoming an average of “80,000 to 90,000” daily visitors. Historically, this period has been a robust trading season for Macau’s tourism and gaming industries. The holiday period, designated by China’s State Council, spans from September 29 to October 6 and includes the Mid-Autumn Festival and China’s National Day.
Caution on Full-Year Casino GGR
Despite the promising figures, Secretary Lei refrained from making any specific forecasts for Macau’s full-year casino gross gaming revenue (GGR) in 2023. He emphasized that several months remain in the year, and a comprehensive assessment of the gaming revenue is not currently underway.
Government’s Estimate and Threshold
The Macau government had officially estimated the city’s casino GGR to reach MOP130 billion (US$16.08 billion) for this year, as outlined in the 2023 fiscal year budget. This figure has not been updated but is under review. In the first eight months of 2023, Macau’s GGR reached MOP114.01 billion, marking a substantial increase of 295.1 percent compared to the same period in 2022.
Impact on Casino Operators
Under the new concession contracts with Macau’s six operators, reaching an annual GGR threshold of MOP180 billion would require these firms to increase their collective non-gaming and overseas-marketing spending pledges by up to 20 percent. This could have significant implications for the gaming industry in the region.
As Macau continues to navigate the complexities of the post-pandemic landscape, the surge in visitor arrivals is undoubtedly a positive sign. However, the cautious approach to forecasting full-year GGR reflects the ongoing uncertainties in the global economic environment.