Macao tourist numbers have shot up in recent weeks, official figures show, but casino sales are sluggish as a typhoon threatens to disrupt transport to the region.
The total number of visitors to Macao since January 1 reached and surpassed the 20 million mark on June 20, per Public Security Police figures, as reported by the Macau Daily.
Police said an average of 116,000 visitors are now arriving in Macao every day, a rise of over 10% on the same period last year.
On May 2, a year-to-date high of 248,000 people entered the special administrative region.
Almost three-quarters of the total came from Mainland China, and 7% came from overseas destinations, police said. The remainder came from Hong Kong and Taiwan, officials added.
20% of overseas tourists were from South Korea, with the remainder mostly from Southeast Asian nations.
Macao Casino Sector Braces for Typhoon Mekkhala
Officials also say the number of Thai visitors to Macao increased by 60% this year. But despite the positive tourism-related news, the casino sector will be concerned by the rapid approach of Typhoon Mekkhala.
Per the latest China Meteorological Administration forecasts, Mekkhala began disrupting coastal areas as of June 23 as it heads north toward Japan.
The typhoon is yet to have a measurable impact on arrivals, which stood at 130,000 inbound tourists on June 21, per official figures.
Historically, typhoons have proved a major source of disruption for Macao casinos, which remain heavily dependent on Mainland Chinese customers.
World Cup Disruption Hitting Tables
The weather is not the only bad news for Macao casinos, however.
The World Cup is also drawing money away from the region’s gambling tables, analysts say.
Experts said recent concerts may have spiked visitor numbers, but noted that all indicators for Macao’s premium mass-market gaming sector declined year-on-year by 38% in June, according to the Hong Kong-based financial data provider AAStocks. The drop marks a new record low in the post-coronavirus pandemic era.
Player turnover also fell by 29% year-on-year, with the size of premium average bets shrinking 13% to HKD 21,775 ($2,777).
Analysts said they expected a “rapid recovery” after the World Cup ends in July. In a note, Citigroup also reported the World Cup was causing disruption at casinos in Macao.
“We attribute the year-on-year weakness to the ongoing World Cup, which might have diverted away some of the gaming focus of some players,” said the bank.
The latest figures appear to confirm a prolonged slide in VIP revenues at Macao tables.
In late February, the casino operator MGM China reported a 10% year-on-year revenue increase for the first quarter. However, VIP markets fell by 5.2% in the same period.
Rival operator SJM Holdings, meanwhile, reported a 21% fall in revenues at the end of Q1, while VIP room sales were up at Galaxy Entertainment-run casinos.
Illegal betting on World Cup games is on the rise in Mainland China. Police have made multiple arrests in raids on clandestine betting rings and online operators in recent days.
