Gaming revenue in Macau fell 5.6% in January, missing expectations and adding to signs that China’s weak consumer sentiment is dragging down a recovery in the world’s biggest gambling hub.
Gross revenue reached 18.25 billion patacas ($2.3 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Saturday. That compared with the median analysts’ estimate of a 0.9% year-on-year increase, and is 27% lower than the pre-pandemic level in 2019.
January’s figures add to worrying signs that Macau’s gaming industry recovery is losing steam as China’s economic slowdown curbs consumer spending. It weighs on the city’s outlook for the Lunar New Year festival, one of China’s biggest holidays and a time when travel is expected to surge.
The city reported about 3 million visitor arrivals in December, about 99% of the pre-pandemic level. It will release data for January later this month.
Hotels in Macau are almost fully booked for the eight-day Lunar New Year holiday that ends this weekend, indicating robust demand and likely generating a record visit numbers, JPMorgan Chase analysts said.
Such results are not unusual for the holiday season given similarly strong trends during the same period last year, they said.
Macau is expected to continue diversifying its economy this year, including organising more concerts, sports events and conferences to boost mass-market tourism and reduce reliance on gambling.
Regulatory uncertainty remains one of the biggest concerns that casino operators face, as Beijing seeks to discourage gambling activities to curb capital outflow from the mainland.
New Macau Chief Executive Sam Hou Fai has previously warned against the outsized influence of the gambling business.
