Macau’s casino industry showed resilience in April, with gaming revenue surpassing analyst estimates despite weeks of bad weather in southern China. 

Gross gaming revenue rose 26 per cent from a year earlier to 18.5 billion patacas (S$3.1 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Wednesday (May 1). That compares with the median analyst estimate of a 23 per cent year-on-year increase. Revenue is now about 79 per cent of the pre-pandemic level in 2019. 

The five-day Labor Day holiday starting May 1 will be a key test for the Macau gaming industry’s ability to withstand China’s broader slowdown and weak consumer sentiment.

There are already some signs showing the holiday, dubbed the golden week, may be relatively weak. Average hotel daily room rates are more than 20 per cent weaker than during the same period in 2019, while about 40 per cent of hotels have fewer days where rooms are fully booked, according to data from Morgan Stanley.

Macau authorities expect to see a daily average of 130,000 visitor arrivals during the holiday, which would be 18 per cent lower than the 2019 level. This compares with a record number of visits for the Lunar New Year holiday in February.

Macau reported 2.7 million visitor arrivals in March, which is 80 per cent of the 2019 level. The city will release data for April later this month.

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Still, Macau may get a boost in tourism later. From May 6, mainland Chinese citizens – who make up for the majority of Macau’s tourists – can apply for travel permits that allow multiple entries into the gambling hub within a period of time, provided they attend exhibitions, seek medical care, participate in arts and entertainment activities or join specific tour groups. BLOOMBERG