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Macau anticipates arrival of big players, tourists from mainland for October holiday

September 25, 2023 Macau Casino & Hotel Events & Announcements

A recent survey of hotel reserving engines within Macau’s casino resorts reveals limited availability for the upcoming autumn Golden Week, a development that experts believe could positively impact casino gross gaming revenue (GGR).

Unnamed sources from Macau’s gambling industry expressed optimism, citing robust holiday bookings from both general tourists and gamblers. A. Hoffman Ma Ho Man, vice chairman of Success Universe Group Ltd, an investor in the Ponte 16 casino resort, anticipates a surge in mainland Chinese tourists as a result of streamlined visa issuance procedures. The five-star Sofitel hotel on Ponte 16 has approximately fifty percent of its accommodations occupied for the Golden Week, with rates approximating 2019 levels.

In recent months, Macau has introduced a number of luxury hotels, including Raffles at Galaxy Macau and Andaz Macau, which are part of Galaxy Entertainment Group Ltd’s Phase 3 project. Melco Resorts and Entertainment Ltd. additionally introduced the W Macau hotel in Studio City.

Jeffrey Kiang, an analyst at CLSA Ltd, predicts that the October Golden Week’s daily GGR could surpass the May Golden Week’s MOP643 million ($79.8 million) due to an increase in visitation, particularly among premium mass gamblers.

The hotel booking survey conducted by Morgan Stanley Asia Ltd indicates that Macau’s casino hotels will have occupancy rates comparable to the May holiday period and close to the 2019 autumn Golden Week. This, according to analysts at Morgan Stanley, indicates a robust demand that can accommodate the increased hotel supply in the Macau market.

Regarding GGR estimates for the Autumn Golden Week, the consensus among buy-side analysts is approximately MOP800 million per day, or 70% of the October 2019 Golden Week level and 25% higher than the May Golden Week run rate. This level of GGR is considered attainable and corresponds to a VIP recovery of approximately 30% and a bulk recovery of 100%.

Original story by: GGRAsia