Shares of Macau casino operators experienced a surge following the release of official data revealing a notable increase in mainland Chinese tourist arrivals during the Lunar New Year.
MGM China Holdings Ltd. witnessed a 10% surge in Hong Kong, reaching its highest point since June 2021. Concurrently, Galaxy Entertainment Group Ltd. and Wynn Macau both saw gains exceeding 3%, Bloomberg reported.
A Bloomberg Intelligence measure tracking Macau and Chinese gaming stocks was poised for a tenth consecutive day of gains.
Official data from Macau indicated a substantial uptick, with mainland tourists rising by 34% to 364,742 during the first three days of the Lunar New Year, as compared to 2019 levels. This surge is seen as a positive indicator for the tourism-dependent city. The data follows a recent report highlighting a 67% year-on-year increase in Macau’s gaming revenue for January, surpassing analyst predictions.
“Macau is not only catering to big gamblers but also leisure travelers who hit the table casually. Growing non-gaming entertainment events such as concerts are bringing more young new blood to the city,” Angela Hanlee, a senior gaming and hospitality analyst at Bloomberg Intelligence, was quoted in the report.
In terms of visitor demographics, mainland visitors constituted 73% of total arrivals during the initial three days, an increase from the 68% recorded in 2019. Hong Kong tourists accounted for 21%, as reported by Citigroup Inc.
According to JP Morgan Securities (Asia Pacific), Macau’s casino gross gaming revenue (GGR) for the first four days of February is estimated to be MOP 2.5 billion ($310 million), averaging MOP 625 million ($77,650,062) per day.
The firm expects a daily GGR print of over MOP 650 million ($80,756,065) during the 8-day holiday period, representing an approximate recovery of 120% in mass GGR compared to the 2019 Chinese New Year.
Original article: https://www.yogonet.com/international/noticias/2024/02/14/70817-macau-casino-stocks-surge-on-strong-lunar-new-year-tourist-arrivals
