Macau’s economy witnessed a significant resurgence in the first half of 2024, with its gross domestic product (GDP) reaching MOP204.3 billion (US$25.5 billion), marking a 15.7% year-on-year increase. This growth brings the economic output to 86.2% of its level in the first half of 2019, surpassing the MOP200 billion threshold for the first time since the pandemic began.

Tourism and Gaming Lead Economic Recovery

According to the latest data from Macau’s Statistics and Census Service (DSEC), the robust growth in GDP is largely attributed to the increased number of visitor arrivals and the booming tourism sector. Exports of gaming services surged by 39.9% year-on-year, while other tourism-related services saw a 2.8% increase, with both sectors surpassing their corresponding levels in 2019 by over 20%.

The steady rise in visitor numbers has significantly bolstered Macau’s service exports, which experienced a 17.6% year-on-year growth. However, the imports of services saw a decline of 6.2% during the same period, highlighting a shift towards domestic consumption and investment.

Rise in Private Consumption and Investment

Private consumption expenditure showed a notable increase of 7.8% year-on-year, driven by higher incomes among Macau residents as the local economy and labor market continue to improve. Household final consumption expenditure within the local market grew by 7.0%, while external spending by households saw a more substantial rise of 13.5%.

Investment activities also contributed to the economic growth, with gross fixed capital formation rising by 9.8% year-on-year. This increase reflects the continued investments by enterprises in Macau’s growing business environment. Private equipment investment saw a substantial 29.8% increase, and private construction investment rose by 14.7%, fueled by ongoing residential projects and large-scale construction within integrated resorts.

Quarter-on-Quarter Steady Growth

Analyzing the quarterly data, Macau’s GDP in the second quarter of 2024 grew by 6.9% year-on-year, representing 85.2% of its size in the same quarter of 2019. This growth is attributed to the continued expansion of service exports, particularly gaming services, which increased by 22.6%. However, exports of other tourism services experienced a 9.5% decline due to a high comparison base from the previous year, when travel restrictions were gradually lifted.

On the domestic front, demand rose by 2.2%, supported by a 4.8% increase in private consumption expenditure and a 6.7% rise in gross fixed capital formation. In contrast, government final consumption expenditure decreased by 7.3%, reflecting the cessation of certain public spending initiatives.

Macau’s economic recovery in 2024 highlights the critical role of tourism and gaming in driving growth, with the first half of the year showing significant gains across key sectors. As the city continues to rebound from the pandemic’s impact, sustained investments and rising consumption levels are expected to further solidify Macau’s economic position in the coming quarters.

Source:

GDP soars 15.7% in H1, macaudailytimes.com.mo, August 26, 2024.

The post Macau’s GDP Rises 15.7% in H1 2024 Amid Tourism and Gaming Growth appeared first on Keno Wizard.

The Macau government reported a significant increase in gaming tax revenue for the first seven months of 2024, highlighting the region’s strong economic rebound. The income from gaming taxes surged by nearly 58% year-on-year, reaching MOP51.6 billion ($6.4 billion) as the Special Administrative Region (SAR) continued its post-COVID recovery.

Macau’s Gaming Tax Revenue Boost

The increase in gaming taxes contributed to a 49.7% rise in overall government revenue, totaling MOP61.1 billion ($7.5 billion). This is the highest revenue figure recorded since the onset of the COVID-19 pandemic in 2020, signaling a robust recovery for Macau’s economy.

Gross gaming revenue (GGR) also experienced a significant jump, increasing by 36.7% year-on-year to MOP132.2 billion ($16.4 billion) between January and July 2024. The surge in GGR is attributed to the region’s thriving gaming sector, which continues to play a pivotal role in Macau’s economic resurgence.

Under Macau’s 10-year gaming concession system, which was implemented in January 2023, the effective tax rate on casino gross gaming revenue is set at 40%. This taxation model has proven beneficial for Macau, as it allowed the government to collect 60% of its projected 2024 revenue within the first seven months of the year. The region’s budget anticipates a total revenue of MOP102 billion ($12.7 billion) for 2024.

Increased Public Spending and Budget Surplus

Alongside the rise in revenue, public spending in Macau increased by 9.6% to MOP52.2 billion ($6.5 billion). However, infrastructure investment saw only a modest growth of 1.1%, totaling MOP9.69 billion ($1.2 billion). Current expenditure, on the other hand, rose significantly by 10.2% to MOP41.9 billion ($5.2 billion). This increase was driven primarily by an 11.7% rise insocial support and subsidies, as well as a 4.4% increase in civil servant expenses.

Despite the increase in spending, Macau’s 2024 budget predicts a return to surpluses in public accounts, marking a recovery after three years of economic challenges due to the pandemic. Between January and July 2024, Macau recorded a surplus of MOP9.27 billion ($1.2 billion), more than doubling the surplus from the same period in 2023.

The substantial rise in gaming tax revenue and the subsequent budget surplus show Macau’s resilient recovery and the vital role that the gaming industry continues to play in the region’s economy.

Source:

“Macau’s Gaming Tax Income Jumps 58% YoY Between Jan-July.”, agbrief.com, 16 Aug. 2024.

The post Macau’s Gaming Tax Revenue Surges 58% Amid Economic Recovery appeared first on Keno Wizard.

Macau’s casino revenue amounted to MOP17.69 billion (£1.74 billion/€2.04 billion/$2.21 billion) in June 2024, marking the lowest monthly total since November 2023. This figure represents a 16.4% increase from MOP15.21 billion in June 2023, 14.1% lower than the MOP20.19 billion reported in May 2024.

June’s Performance Analysis

June’s revenue drop comes after May 2024 reported the highest monthly total since the pre-pandemic period, buoyed by the Labour Day Golden Week holiday, which typically drives up visitation. Despite analysts predicting a year-on-year increase of at least 17.5%, June traditionally remains the weakest month for gaming in Macau.

Due to strict travel restrictions, COVID-19 significantly impacted Macau’s gaming revenue throughout the pandemic. However, since these measures were lifted in January 2023, the market has been recovering, showing regular double-digit monthly growth.

Year-to-Date Performance

For the first half of 2024, Macau’s total casino revenue reached MOP113.75 billion, a 41.9% increase from the MOP80.14 billion recorded during the same period in 2023. However, this is still 23.9% lower than the MOP149.50 billion reported for the first half of 2019, before the pandemic.

June’s revenue was influenced by several factors and the month included only one public holiday, the Dragon Boat Festival on June 10th. Additionally, investment banks attribute the revenue decline to the Euro 2024 football matches and typical seasonal trends, which likely diverted some attention away from the casinos.

Performance of Major Casino Operators

Later this month, leading casino operators in Macau will report their first half-year results, which are expected to show robust growth based on strong Q1 performances.

• Las Vegas Sands: Reported a 39.6% increase in revenue to $2.96 billion in Q1 2024, with $1.81 billion from Macau operations, up 41.6% year-on-year.
• SJM Holdings: Exclusive to the Macau market, saw a 73.0% rise in Q1 revenue to HK$6.90 billion.
• Melco Resorts & Entertainment: Reported a 55.2% increase in Q1 revenue to $1.11 billion, with City of Dreams being the top performer at $550.9 million.
• MGM Resorts International: Recorded an all-time high in China revenue at $1.06 billion in Q1 2024, contributing to a 13.2% increase in total group revenue to $4.83 billion.
• Wynn Resorts: Posted a 30.8% rise in Q1 revenue to $1.86 billion, driven by $998.6 million from Macau operations, accounting for 53.6% of the group’s total.

Macau’s June gambling revenue highlights the ongoing challenges and volatility in the region’s gaming market despite overall growth and recovery since the lifting of COVID-19 restrictions. As major operators prepare to release their H1 results, the industry remains optimistic about continued recovery and growth in the latter half of the year.

Source:

Macau’s June GGR reaches $2.21B, down 12.4% m-o-m, agbrief.com, July 1, 2024.

The post Macau’s June Gambling Revenue Drops to $2.21 Billion appeared first on Keno Wizard.

Casino gambling, wagering on sports and iGaming activities are prohibited in China. The country has tough laws when it comes to gambling, but an exception is applied to Macau, a popular tourist destination and a special administrative region (SAR) of China.

Although the city offers casino gambling, the crackdown against the activity extended from China with a request for Macau to implement foreigner-only gambling halls. This came in an effort to track their activities and determine what part of the operators’ revenue comes from foreign tourists.

Details regarding the new requirement first emerged a couple of years ago toward the end of 2022. Despite the requirement, separating foreign casino visitors was significantly unpopular and the gambling operators quickly identified this trend along with the need for an effective way to track the activities of foreign visitors.

Bill Hornbuckle, MGM Resorts’ CEO and president, participated in the J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum, as announced by IAG. During the event on Friday, the executive spoke about the ineffectiveness of the foreigner-only gambling zones, uncovering details regarding an innovative solution the company used to tackle the issue.

Hornbuckle said that with the implementation of the new requirements for foreigner-only visitors, operators faced a challenge as they had to establish private rooms for gamblers from different jurisdictions. This otherwise separated the visitors and turned out to be a significantly unpopular method.

The Chip in Chip Technology Brings Benefits

Addressing the need to track the gambling activities of foreign gamblers in Macau, MGM Resorts implemented a new “chip in chip” program. The company’s CEO and president spoke about the benefits of this technology, outlining that it allows the venue to track every chip and at the same time reduce gaming errors. According to Hornbuckle, the technology also played an important role in the back-end operations, including financing and accounting.

“We put in a ‘chip in chip’ program several years ago where basically every chip is tracked, and the benefit at the time was no errors to the game, you knew exactly where to put your labor, there were a bunch of back-end benefits as well in terms of accounting and financing, and it was meaningful.“

Bill Hornbuckle, CEO and president at MGM Resorts

Calling the technology a huge advantage, the executive said that tracking the activities of foreign players is easy. At the same time, Hornbuckle said that customers from different jurisdictions are not separated from each other, which contributes to the customer experience. Finally, MGM Resorts’ boss said that the gambling regulator in Macau approves the technology considering its effectiveness.

The post MGM Critiques Macau’s Foreigner-Only Zones, Highlights Solution appeared first on Keno Wizard.

Casino and hospitality company Wynn Macau was planning to host a spectacular K-pop festival, promising visitors a lot of musical enjoyment. Unfortunately, the event had to be suddenly called off, prompting disgruntlement among fans.

The so-called HallyuPopFest Macau 2023 was set to take place on October 21 and October 22 and welcome some of the biggest K-pop stars in the world. The program included performances from a variety of K-pop celebrities and groups, including Cherry Bullet, H1-Key, Hyolyn, NCT Dream, NINE to SIX, Omega X, Sam Kim, SHINee KARD and Verivery.

Yesterday, however, Wynn Macau announced that the event had been canceled, triggering an immediate response from the unhappy fans. Adding insult to injury, the casino company is yet to provide an explanation for its decision to call the event off.

In addition to the disappointment, many K-pop fans who had already planned journeys to Macau, booking hotels and air tickets, expressed their concern about the cancelation and possible refund arrangements.

Fans Are Outraged

While Wynn Macau did not disclose why it has called off the event, it promised that fans will receive full refunds for their tickets for the event. Despite that, K-pop fans all over the internet noted that not all of the reservations can be refunded.

Fans who have purchased tickets via our official ticketing platform will receive a full refund through the original mode of payment in line with the ticketing platforms procedures. Please contact [email protected] OR www.damai.cn for further refund enquiries.

Wynn Macau statement

Some who have already booked hotels and airplane tickets, for example, will not be able to get their money back. As a result, angry fans warned that they would try to inform Macau’s tourism authorities about the situation.

Wynn Macau later addressed the backlash, confirming that, unfortunately, it would be unable to issue refunds for hotel reservations and airplane tickets.

The concert was one of the highlights of Macau’s tourism program for 2023 and was expected to help the special administrative region recover from the devastating aftermath of the COVID-19 pandemic. The virus and China’s notorious Zero-COVID policy have caused the region’s tourism and gambling industries to lose billions of dollars.

While Macau is expected to continue its recovery, the cancelation of the HallyuPopFest Macau 2023 will likely be a setback for the region.

The post Wynn Macau’s Cancelation of the HallyuPopFest Causes Online Outrage appeared first on Keno Wizard.