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Mainland China accounts for 28m of 30m Macau visitors

By Sarah ChenChina
2 min read
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Macau’s total visitor arrivals rose a nominal 0.8% to a new record 30.95m in 2016, with nearly 28m travelling from Greater China markets (+0.1%), a slight increase of 0.1%, whereas the much smaller international visitor arrival total grew by 7.9%.

This will be encouraging news for DFS Macau in particular, plus Duty Free Americas, Dufry and many other standalone retailers currently operating shops in Macau’s hotels and tourist district.

MACAU GAMBLING ON CASINO RECOVERY

The increase also comes at a time when Macau’s casino business appears to be recovering some of its big spenders, with last December’s revenue up an impressive 8%.

Most of these big ’high rollers’ were put off visiting the location, following Beijing’s crack down on irresponsible gambling by some mainlanders three years ago.

Having said that, there was still a 3% fall in Macau’s overall gambling revenue to $28bn last year and this is still the Special Administrative Region of China’s biggest source of revenue by far [three times the gambling revenues generated in Las Vegas-Ed].

Macau also continues to be only territory anywhere in China that is allowed to operate casinos.

MACAU STILL NEEDS A LOT MORE HOTEL ROOMS

The huge new bridge being constructed to link Hong Kong and Macau and the planned expansion of ferry operations to Macau are also expected to greatly increase visitor arrivals – although this expansion will only as good as the number of hotel rooms that are available – around 35,000 at present.

In the meantime, the MGTO says it continue to work towards completing the tourism development goals in the 5- year development plan formulated by the SAR Government aimed at turning Macau into a World Centre of Tourism and Leisure.

Macau welcomed more than 20m Mainland visitors last year, up by 0.2%, with 44% from Guangdong Province. There were also nearly 9.56m ‘independent’ visitors from the Mainland. An increase of 8.8% was recorded for the Taiwan market, whereas the sum of Hong Kong visitors dropped by 1.8%.

HALF A MILLION KOREANS VISITED MACAU LAST YEAR

As for international markets, South Korea still ranked highest, contributing over 660,000 visitors to Macau last year (+20%). Southeast Asian markets also performed well, with visitors from Thailand registering the largest growth of over 30% among the top ten source markets.

Questions & Answers

Q.

What percentage of Macau's total visitor numbers came from international markets, outside of Greater China?

A.

International visitor arrivals grew by 7.9%. Given the total arrivals were 30.95m and nearly 28m were from Greater China, this implies around 2.95m, which is approximately 9.5% of the total, came from international markets.

Q.

What is the current capacity of hotel rooms in Macau, and how might this affect future visitor growth?

A.

There are currently around 35,000 hotel rooms available. The article suggests that planned increases in visitor arrivals, due to new infrastructure like the bridge and expanded ferry operations, will depend on the number of available hotel rooms.

Q.

Which specific international markets showed the most significant growth in visitors to Macau last year?

A.

South Korea contributed over 660,000 visitors, an increase of 20%. Among the top ten source markets, visitors from Thailand registered the largest growth, exceeding 30%.

Q.

Despite a recovery in casino big spenders, what was the overall financial performance of Macau's gambling sector last year?

A.

Even with an 8% revenue increase in December, Macau's overall gambling revenue fell by 3% last year to $28bn. This remains the Special Administrative Region's biggest source of revenue by far.

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