The Macau Government Tourism Office (MGTO) anticipates welcoming 1.2 million visitors during the upcoming eight-day Golden Week holiday. This influx is expected to boost hotel occupancy rates, increase gross gaming revenue (GGR), and drive higher non-gaming spending in the region.
Golden Week, which commences with National Day celebrations on Wednesday and includes the Mid-Autumn Festival on Saturday, is projected to draw an average of 150,000 visitors per day. This figure surpasses last year’s average of 140,000 daily arrivals but remains slightly below the 153,000 who visited during the Lunar New Year celebrations earlier this year.
Despite the slight shortfall compared to the Lunar New Year, the anticipated visitor numbers represent “a relatively good figure” that could result in a 90% hotel room occupancy rate. This positive trend has been ongoing since January, and MGTO head Maria Helena de Senna Fernandes expressed optimism about achieving ideal occupancy rates.
The holiday period is set to benefit significantly from relaxed entry permits for visitors from Zhuhai and Hengqin, a policy introduced on January 1st aimed at boosting tourism from neighboring cities and mainland China.
The expected increase in visitors is likely to have a direct impact on Macau’s GGR. Analysts from Citigroup, including George Choi and Timothy Chau, estimate that Macau casinos could generate daily GGR of MOP1.05 billion (approximately US$131 million) during Golden Week. The momentum is likely to carry beyond the holiday, bolstered by entertainment and special events organized by casino operators.
Casino operators have strategically planned major events to maintain gaming volumes post-Golden Week. These include the NBA China Games at the Venetian Arena, which are anticipated to attract significant crowds. The Citi team noted that if events like this succeed in boosting gaming volumes, their October GGR forecast of MOP$23 billion might be conservative.
Additionally, improvements in casino operations are expected to enhance revenue. Smart tables and new side bets are playing a crucial role. Smart tables, which speed up the game of baccarat, Macau’s most popular game, can increase revenue by nearly 6% by reducing round times by just five seconds. Previously, side bets contributed minimally to baccarat revenue, accounting for less than 1% of turnover. Now, they make up 45% to 50% of baccarat turnover, marking a significant shift in gaming strategy.
In related developments, a 2024 report by Deloitte, commissioned by the MGTO, analyzed the results of Macau’s tourism master plan. The city aims to become a global center for tourism and leisure, with non-gaming revenue expected to contribute 60% of GDP by 2028. Casino concessionaires are aligning with this vision, with plans to invest MOP130 billion in non-gaming attractions.
The Deloitte study reviewed the progress from 2021 to 2024 and projected impacts from 2025 to 2030. It recommended strategic actions such as enhancing marketing efforts, increasing airport and entry point capacities, improving visitor experiences through smart technology, fostering international exchanges, and strengthening partnerships with Hengqin and other cities in the Greater Bay Area.
“Macau will actively expand its overseas markets and attract potential visitor segments, including wedding parties, transit travelers, and Generation Z,” the Deloitte report indicated. The primary aim is to encourage visitors to prolong their stays and increase their spending in Macau.
Visitor numbers have been promising, with 26.9 million arrivals recorded through August, marking a 15% increase compared to the previous year. If this trend continues, the visitor volume could reach 40.17 million by the end of this year and climb to 46.43 million by 2030, according to Macau Business.
However, not everyone shares the same optimism about the rapid growth. Some industry experts caution that the reliance on mass tourism might strain local resources and infrastructure. The sheer volume of visitors could lead to congestion and affect the quality of tourist experiences. There’s also a concern that an overemphasis on non-gaming attractions may dilute Macau’s unique identity as a gaming hub.
While the push to diversify Macau’s offerings is seen as a positive step towards economic resilience, balancing this with the city’s renowned gaming industry remains a complex challenge. The debate continues on how best to maintain Macau’s allure and sustain its economic growth in a rapidly changing global tourism landscape.
In summary, as Macau gears up for Golden Week, the city is poised to experience a significant boost in tourism and economic activity. With strategic planning and investments in both gaming and non-gaming sectors, Macau is on track to cement its status as a premier global destination. The coming weeks will test the effectiveness of these strategies and set the stage for Macau’s future growth trajectory.
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