Macau Casinos Win Just $545M in October, as Vacation Golden Week Lays Egg
Posted on: November 1, 2021, 04:17h.
Final updated on: November 1, 2021, 04:17h.
The initial week in October is usually one particular of the busiest occasions in Macau, as tens of thousands of mainland Chinese residents flock to the enclave for the annual Golden Week vacation. But the 2021 rendition of the weeklong festival was a bust.
Gross gaming income (GGR) from the six licensed commercial casino operators totaled four.37 billion patacas (US$545 million). That’s 42 percent reduce than what the casinos kept from gamblers in October 2020.
October’s $545 million win is the worst month of the year to date for Macau’s gaming industry, which is the world’s richest gambling market.
COVID-19 was once again to blame for the poor overall performance. A little outbreak of new coronavirus cases detected in late September, paired with Macau’s stringent response policy, resulted in the area tightening its borders to mainlanders. Though only a handful of good men and women have been identified, and no subsequent additional circumstances have been located throughout the region-wide testing blitz, Macau and neighboring Zhuhai opted to delay their easing of entry and exit protocols.
The number of visitors who traveled to Macau during the October 1-7 Golden Week was down nearly 94 % from an currently modest 2020 vacation performance.
October was scary poor for Macau’s six casino giants, but Wall Street reacted positively. That’s presumably due to the consensus October forecast from gaming analysts focused on Asia and Macau calling for a year-more than-year GGR decline of 42 percent.
The three US-based casino operators invested in Macau all saw their shares make considerable gains on Monday. Las Vegas Sands was up practically six %, MGM Resorts two.eight %, and Wynn Resorts four.three %. Melco Resorts, headquartered in Hong Kong but publicly traded on the Nasdaq, climbed 5.five %.
Along with a slightly much better-than-anticipated October, Monday’s stock gains could also be due to visitors returning to Macau.
Zhuhai ended its 14-day quarantine requirement for individuals returning from Macau efficient October 19. And given that then, Macau’s casino resorts have seen elevated demand.
The everyday average of guests getting into Macau during Golden Week was a dismal 1,166. Rapidly-forward to the last week of October, and the Macau Government Tourism Workplace reveals that visitor counts had been far more than 20,000 individuals per day.
By means of ten months, 2021 Macau GGR totals a small much more than $9 billion, roughly 57 % better than 2020 January by way of October. Nevertheless, by way of ten months in pre-pandemic 2019, Macau casinos won roughly $30.eight billion.
The future of Macau’s casino hub will largely depend on the enclave government. An intensive overview of all elements of the gaming sector is underway, as the six operating licenses are set to expire subsequent June.
COVID-19 continuing to impede that procedure may well outcome in Macau electing to extend the concessions. Macau’s 2002 gaming law allows the government to do so one time for a period lasting up to 5 years — or June 2027.