Macau Casinos Continue Strong Recovery as Jan GGR Hits US$2.4bn

Summary:

• Macau’s January GGR was up 67% year-on-year
• This was the second-highest monthly result post-COVID
• Macau likely to have a good run in Feb with CNY hotel bookings showing positive signs

The casino industry in Macau continues to recover, generating MOP19.34 billion (US$2.40 billion) in gross gaming revenue (GGR) in January 2024.

The figure represents a 67.0% year-on-year increase and the second-highest monthly result post-pandemic, based on data recently released by the city’s gaming regulator, the Gaming Inspection and Coordination Bureau.

Good Start to the Year

Macau casinos have continued to perform well, a year after COVID-19 restrictions were completely lifted. The past year ended on a high note with December’s GGR reaching MOP18.57 billion. January had an even better showing, with revenue up by 4.1% sequentially.

According to JP Morgan Securities (Asia Pacific) Ltd, daily GGR for January showed a robust run-rate even though there was weaker seasonality ahead of the Chinese New Year. Mass revenue for the month was also running above 100% of pre-COVID levels, it added.

Throughout 2023, Macau’s casinos generated a combined GGR of MOP183.06 billion, up 333.8% from the previous year. The massive growth was mainly driven by the resumption of travel and the return of tourists following the lifting of COVID-19 restrictions in January.

The city’s six gaming concessionaires are now expected to increase their non-gaming investment by at least 20% as GGR surpassed the MOP180 billion threshold specified in their current concession contracts.

Macau’s Luxury Hotels Getting Booked Quickly for CNY

With the Chinese New Year (CNY) holiday fast approaching, some of Macau’s premiere hotels are already fully booked for the occasion. Based on data from the official booking websites of the luxury hotels operating in the city, 15 out of 31 such establishments have most if not all of their rooms reserved for the entire duration of the upcoming holiday which runs from February 10-17.

Hotel rooms at MGM Macau and MGM Cotai, operated by MGM China Holdings Ltd, as well as Grand Lisboa, owned by SHM Holdings Ltd are already fully-booked. The Londoner Hotel, The Grand Suites at Four Seasons, and the Four Seasons Hotel Macau, all promoted by Sands China Ltd, also have no rooms left for the upcoming holiday, along with the Raffles at Galaxy Macau and The Ritz-Carlton Macau, both promoted by Galaxy Entertainment Group Ltd.

Other luxury casino hotels such as Wynn Macau, Galaxy Hotel, and JW Marriott Hotel Macau have all their rooms fully booked for seven of the eight nights.