Macau’s gaming market continues to show clear signs of recovery as the region’s industry posted a spectacular year-on-year growth of 686%. With China’s zero-COVID policy finally a thing of the past, the restrictions that weighed down on the industry have finally been lifted.
In August alone, Macau’s gaming industry reached a respectable $2.13 billion (converted to USD, current rates). While this result still lags behind the special administrative region’s pre-pandemic gaming levels, it marks a strong recovery that exceeds the expectations of many analysts.
The August 2023 results, for reference, were 29% lower than those recorded in August 2019.
Year-to-date revenue is up 295% at $14.11 billion, far exceeding the $3.58 billion Macau’s industry recorded for the same period in 2022.
In the meantime, Macau’s percentage growth in August was still lower than the outstanding 4,083% increase recorded in July 2023.
Macau’s Recovery Has Been Fluctuating
In June 2023, for reference, Macau posted revenue of $1.89 billion, with year-to-date reaching 54% of the pre-pandemic levels. While the zero-COVID policy is no more, its lasting impact continues to haunt the region. Despite everything, June was a favorable month, attracting many high-value players back to Macau.
The speed of Macau’s recovery has been fluctuating, making it difficult to make reliable predictions about the future. The overall trend is still overwhelmingly positive as the region continues to exceed the figures it recorded during the height of the pandemic. However, whether Macau will make a complete recovery or even exceed the pre-pandemic levels is yet to be seen.
During the pandemic, many of the Macau concessionaires demonstrated their trust in the recovery of the region, supporting their local arms with much-needed loans.
Macau’s Crackdown on Junkets also Impacts Its Performance
In the meantime, Macau recently curbed the influence of junket operators, resulting in a significant decline in their number. Prompted by the arrest and subsequent sentencing of Alvin Chau, Suncity’s former CEO, the crackdown brought the total number of Junkets from 200+ ten years ago to around 30 in 2023.
The VIP vertical in Macau brings around 15% of all revenues and from that total, junkets contribute 5% or less, MGM China’s president and COO, Hubert Wang, says. He also added that junket operators contribute as little as 3% of the revenues of MGM China’s profits.
In other news, Macau is now trialing iris check border controls. This has raised some eyebrows as experts believe that such controls might put off foreign tourists.