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Macau Sees Nearly 1M Golden Week Visitors, 84% of Pre-Covid Levels
By Jeff Osienya Oct 08, 2023 IndustryMacau, the gambling Mecca of the Far East, posts another resounding post-pandemic victory after seeing almost 1 million visitors during the 8-day Golden Week festival. The Chinese SAR is slowly but surely claiming its former glory.The 2023 Chinese Golden Week concluded on October 6th. As a result, Macau is celebrating a tourism resurgence that saw nearly 1 million (932,365) visitors, exceeding earlier projections by the Macao Government Tourism Office (MGTO). While the figures did not reach the 974,337 recorded in 2019, they surpassed the expected figures by about 16%.
This remarkable achievement marks a significant milestone in the SAR’s recovery efforts from the devastating impact of the COVID-19 pandemic. The eight-day holiday attracted an average of 116,546 visitors daily, hitting 84% of the pre-pandemic highs in 2019. Of the eight days, September 30th saw the highest visitor rates at 158,726. This is a significant rise compared to last year, where daily visitors averaged a paltry 25,000.
Local Tourists Formed the Majority of the Visitors
Most tourists to grace the National Day holiday celebrations came from Mainland China, constituting 76% (or 709,079) of the total visitors. Other groups to visit the region during the Golden Week were 171,672 visitors from Hong Kong, 10,683 from Taiwan, and about 40,931 from other countries.
Additionally, from information on airport arrivals at Macau International Airport (MIA), 56,393 visitors entered the region through the airport. This represents 6.1% of the total visitors, meaning most people came in via other means, most likely by water or land crossings.
The low numbers in airport arrivals are because some tourists prefer to use mainland airports and connect to the SAR, as they consider this more pocket-friendly. An example is tourists who traveled from Shanghai to Shenzen Baoán International Airport instead of traveling straight to MIA to save on costs.
According to the Macau Times, despite being relatively low, there has been a steady growth in the number of foreign visitors spending time in the SAR. There was also a 24% year-on-year increase in hotel occupancy, and due to high demand, room rates were also up, with an average cost of about 1,800 Patacas (~224 USD). With these numbers, Macau casinos reported profits that amounted to approximately 70% of pre-pandemic levels.
Casinos Teeming with Hundreds of Thousands of Visitors
After an uncertain period where Macau casinos have been recording meager figures, the SAR is undoubtedly making a comeback. For hotel employees, the week was marked with 10-hour shifts, which saw them earn some good money through the period.
Moreover, even though most of the tourists came from the mainland (i.e., local), the turnout constituted customers looking to spend close to pre-pandemic amounts. This is a good sign, given the fact that Macau is not only recovering from the pandemic but also from changes in regulations that ended up driving high rollers from the Asian gambling Mecca.
Before the holiday, the Macau government had issued a statement alerting the hospitality industry to prepare for peak occupancy. Some of the proposed measures included more shuttle buses, more staff, and check-in counters to facilitate faster and more effective service delivery. The statement government read:
Quote“The tourism bureau has urged hotel industry venues to optimize measures to cope with peak passenger flow.”
In line with the ‘Tourist +’ agenda, some of the casinos organized lineup events during the Golden Week to ensure a sizeable turnout. This includes Wynn Macau and Wynn Palace, which hosted events featuring celebrity DJs like DJ Diesel (former NBA legend Shaquille O’Neal), DJ SODA, DJ John Culter, and DJ Amber NA.
100% Plus Recovery Expected by Analysts
One of the biggest reasons for the uncertainty in Macau’s recovery from pre-pandemic levels is the gradual decline of revenues that hit a new low in 2022 due to new Covid outbreaks that resulted in Beijing’s zero-Covid strategy. The outcome was the closure of several businesses, leading to the lowest year ever.
Another low point for the SAR came when a crackdown on junkets and VIP rooms was implemented, cutting off millions in revenue that had once been generated from those businesses. J.P. Morgan analyst DS Kim reported to AFP:
Quote“Seventy-five percent of the VIP (revenue) is gone. I don’t think it’s going to change anytime soon.”
Regarding Macau’s low points, J.P. Morgan analyst DS Kim revealed:
Quote“I was never in doubt that Macau would gain that crown back. What was surprising was the pace of that recovery.”
More challenges were encountered by operators when the government set requirements to have them invest in non-gambling ventures geared towards attracting more tourists. Over $14.9 billion has been set aside for entertainment-focused projects like theme parks, exhibition centers, and convention venues.
A Brighter Future Ahead Indeed!
The surge in Golden Week visitors to Macau is undoubtedly a promising sign of post-Covid recovery for the renowned ‘Las Vegas of Asia.’ The SAR is actively working towards attracting more foreign foot traffic through its ‘Tourism +’ strategy, which was recently promoted at the World Conference on Tourism Cooperation and Development 2023 by MGTO. This overwhelming turnout by Mainland Chinese tourists underscores the enduring appeal of Macau and its gaming and entertainment offerings.
As the world continues to put forth efforts to grapple with the effects of the pandemic, it is becoming clear that Macau’s resilience is creating an allure for more potential visitors. This strategy plays a vital role in the ultimate outcome of the tourist landscape, which is slowly returning to its glory days. The future looks promising for Macau, and as the numbers show, a rebound is on the horizon.
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