Total revenue at Macau casinos came to MOP18.25 billion (£1.824 billion/€2.192 billion/$2.27 billion), according to the Gaming Inspection and Coordination Bureau (DICJ). That’s up just 0.3% from December and short of the industry consensus of MOP19.5 billion.
But the outlook could improve this month. JP Morgan analysts cited by Macau Business say GGR for February could reach MOP19 billion.
Despite “flattish” returns so far, the team of DS Kim, Mufan Shi and Selina Li said the results “can still allow the industry to grow GGR by ~5% in FY2025E to meet our forecasts”.
Visitation slightly down
Lunar New Year traffic was brisk, but also short of projections.
Maria Helena Senna de Fernandes, of the Macau Government Tourism Office (MGTO), had expected up to 185,000 visitors per day during the holiday, which started 29 January and ends today.
The first five days saw about 874,000 visitor arrivals – on average, about 10,000 fewer entries per day. Friday was the busiest day, as the Chinese special administrative region (SAR) welcomed 219,000 visitors, mostly from the mainland.
Macau is working to lure more international tourists. But the effort has yet to bear fruit: just 4% of holiday visitors this year were foreign passport holders.
The MGTO is on a global campaign to attract more westerners. Last year, the Brussels-based European Travel Agents and Tour Operators Association named Macau a 2025 “preferred destination” for European travellers.
Emphasising non-gaming, cuisine, culture
Under newly installed chief executive Sam Hou Fai, who succeeded Ho-Iat Seng in December, the SAR is continuing its push for more non-gaming attractions.
It’s a cornerstone of the government’s five-year plan to diversify the economy, introduce new industry and reduce the city’s reliance on gaming. The goal is to have non-gaming industries account for about 60% of GDP by 2028.
The strategy includes an emphasis on local culture, which is on full display during Lunar New Year festivities. In 2005, Macau was added to the UNESCO World Heritage List, a nod to its unique blend of Chinese and Portuguese architecture. And last year, Macau joined UNESCO’s Intangible Cultural Heritage List, which preserves traditional art, dance, food, language, craftsmanship and rites of passage.
The new year celebrations showcase both, with dragon and lion dances and East-West or Macanese food, known as the first “fusion” cuisine.
Chinese New Year just one indicator
In a 2 February note, Seaport analyst Vitaly Umansky called the Chinese New Year holiday “an important sentiment driver for Macau” among investors.
But it’s not a true barometer, he added: “The actual holiday is often mixed in terms of results.” In 2019, for example, Chinese New Year GGR represented only 2% of the total. In 2024, it was only slightly higher, at 2.7%.
Despite the soft start, new secretary for economy and finance Tai Kin Yip has expressed optimism about the full-year outlook, due to the city’s “stable fundamentals”.
Original article: https://igamingbusiness.com/casino/tourism/macau-january-ggr-disappoints-expect-lift-february/
