Trends In Gross Gaming Revenue
Annual MACAU GGR
Quarterly MACAU GGR
Macau’s GGR has been continuously rising for the last two years, supported by strong growth in VIP and Mass segments.
VIP Baccarat has grown at 27% and 10% in 2017 and 2018, respectively.
Mass Baccarat has grown at 10% and 21% in 2017 and 2018, respectively.
In Q1'19 and Q2'19, VIP Baccarat GGR declined by MOP 5.7 billion and MOP 6.4 billion, respectively.
In Q1'19 and Q2'19, Mass Baccarat GGR increased by MOP 4.8 billion and MOP 5.5 billion, respectively.
Share of VIP Baccarat (Annual)
Share of VIP Baccarat (Quarterly)
Lately, VIP gaming has observed sharp declines due to stricter regulations by the Gaming Inspection and Coordination Bureau (DICJ) of the city’s junket operators.
The sharp declines in VIP gaming have been mitigated by growth in the mass market segment, resulting in a relatively flat GGR for Q1 and Q2 (y-o-y).
The share of VIP Baccarat has significantly reduced over the last two quarters.
Trends In Visitor Statistics
Annual Total Visitor Arrival
Quarterly Total Visitor Arrival
Since 2015, the number of visitors in Macau has grown at a CAGR of 5.2% to 35.8 million in 2018.
The number of visitors from Mainland China has been growing at a faster rate than Hong Kong and other destinations.
The share of visitors from Mainland China has risen from 66% in 2016 to 70% in 2018.
Before the escalation of protests in July 2019, the number of visitors in Macau increased by 21% and 19% in Q1'19 and Q2'19, respectively.
Same Day Visitors (Annual)
Same Day Visitors (Quarterly)
Same-day visitors account for nearly 50% of Macau's tourists.
During the first two quarters, the growth in same-day visitors was higher than overnight-visitors.
As same-day visitors spend just a quarter of overnight visitor's spend, therefore could be a reason for declining GGR.
Share of Same Day Visitors (Annual)
Share of Same Day Visitors (Quarterly)
The higher growth of same-day visitors resulting in the higher share amongst Macau's tourists.
This is contrary to the overall trend in recent years.
Trends In Visitor Spending
Same Day Visitor - Per Capita Spending (Annual)
Same Day Visitor - Per Capita Spending (Quarterly)
Per-capita spend refers to expenditure by a tourist on non-gaming activities such as shopping, accommodation, food & beverage, and transport.
Shopping is the single largest expense category for same-day as well as overnight visitors.
Expenditure by same-day visitors has remained fairly stable over the last few quarters.
However, the expenditure by overnight visitors has fallen sharply in recent quarters.
Overnight Visitor - Per Capita Spending (Annual)
Overnight Visitor - Per Capita Spending (Quarterly)
Overnight visitor spend in Q4'18 = MOP 3064
Shopping = MOP 1159Accommodation = MOP 1025Food & Beverage = MOP 699Transport = MOP 131Other = MOP 50
Overnight visitor spend in Q2'19 = MOP 2584
Shopping = MOP 948Accommodation = MOP 870Food & Beverage = MOP 587Transport = MOP 126Other = MOP 53
Considering the aforementioned figures, we believe that the sharp drop in shopping and accommodation category is due to a decline in VIP gaming tourists in Macau.
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