Bouncing back… at long last
Macau’s previous post-COVID monthly high for revenue was MOP20.79 billion ($2.57 billion), a total that was just beaten by 1.9 percent.
China’s special administrative region is now up to $12.1 billion in gross gaming revenue (GGR) since the start of the year, 1.7 percent greater than it was at this same time in 2024.
One of the biggest reasons for Macau’s productive period was China’s Labor Day, an annual public holiday on May 1 that grants employees one week of vacation.
May 1-5, which ran from Thursday to Monday, saw Macau welcome more than 850,000 guests. Daily GGR eclipsed $123.9 million at the six local casinos.
Travel for Chinese residents and non-national guests has decreased significantly since COVID and Chinese President Xi Jinping’s implementation of a “zero-COVID” policy near the end of 2022.
The controversial measure resulted in strict lockdown protocols and limited travel in and out of the region if even one COVID case was detected.
Naturally, the harsh restrictions had enormously negative impacts on casinos and many Macau businesses that were dependent on travelers, especially international high-rollers who used Macau as a gambling playground.
Is success sustainable?
Two more reasons could be attributed to Macau’s success in May. The first is natural, in that the way the calendar shaped up meant that there were five Saturdays during the month.
As is the case with many entities in the hospitality industry, the weekends offer much greater opportunities for businesses to drive their bottom line.
Another is that Macau’s Dragon Boat Festival started early and on the final day of the month, spreading the extra revenue across one day in May and two in June.
Seaport Research Partners, which offers investment research, “conservatively” projected 3.4 percent year-over-year growth in revenue in June. However, they also expected revenue to decline 13.7 percent from where it was in May.
The research company also said it expects about a four percent annual increase in GGR.
Macau is still much different than it was before COVID. Jinping eliminated special and promotional trips for high-roller guests that had been used to drive casinos’ final totals. That resulted in the facilities centering their attention more on attracting a large chunk of the public as opposed to a few of the elite.
