(Bloomberg) -- Macau’s casino industry showed resilience in April, with gaming revenue surpassing analyst estimates despite weeks of bad weather in southern China. 

Gross gaming revenue rose 26% from a year earlier to 18.5 billion patacas ($2.3 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Wednesday. That compares with the median analyst estimate of a 23% year-on-year increase. Revenue is now about 79% of the pre-pandemic level in 2019. 

Key Insights

  • The five-day Labor Day holiday starting May 1 will be a key test for the Macau gaming industry’s ability to withstand China’s broader slowdown and weak consumer sentiment.
    • There are already some signs showing the holiday, dubbed the golden week, may be relatively weak. Average hotel daily room rates are more than 20% weaker than during the same period in 2019, while about 40% of hotels have fewer days where rooms are fully booked, according to data from Morgan Stanley.
  • Macau authorities expect to see a daily average of 130,000 visitor arrivals during the holiday, which would be 18% lower than the 2019 level. This compares with a record number of visits for the Lunar New Year holiday in February.
  • Macau reported 2.7 million visitor arrivals in March, which is 80% of the 2019 level. The city will release data for April later this month.
  • Still, Macau may get a boost in tourism later. From May 6, mainland Chinese citizens — who make up for the majority of Macau’s tourists — can apply for travel permits that allow multiple entries into the gambling hub within a period of time, provided they attend exhibitions, seek medical care, participate in arts and entertainment activities or join specific tour groups.

Market Performance

  • The Bloomberg Intelligence index of Macau casino operators remained little changed in April, while the benchmark Hang Seng Index rose 7.4%.

Read More

  • Macau Casino Stocks Jump as China Rolls Out New Travel Permits
  • Macau Expects 130,000 Daily Arrivals During Golden Week: TDM
  • Sands Tumbles After Citing Disruption From Macau Remodeling
  • Macau Casinos’ Profit Recovery to Slow on Weak Chinese Spending
  • Macau March Casino Revenue Beats Estimates, Boosted by Holiday

©2024 Bloomberg L.P.