(Original title: The new entry-exit policy is implemented in Macau, and the passenger flow in Macau hits a new high. Gambling stocks collectively strengthened and Melco International rose nearly 6%)
News from the Financial Associated Press on January 9 (edited by Ma Yijie)Macau gaming stocks collectively rose today. As of press time, Wynn Macau (01128.HK) and Melco International Development (00200.HK) both rose by more than 5%, while Sands China (01928.HK) and Galaxy Entertainment (00027.HK) rose by more than 3% %, MGM China (02282.HK) and SJM Holdings (00880.HK) rose more than 2%.
On the news, starting from January 8, policies such as the cancellation of inbound nucleic acid testing and centralized isolation, and the optimization of personnel exchanges between the Mainland and Hong Kong and Macau have officially come into effect. Benefiting from convenient factors such as geography and transportation and favorable policies, Hong Kong, Macau and other places have become the first choice for the release of domestic tourism demand in the near future, and the recovery of Hong Kong and Macau’s tourism economy has begun to see light.
According to the same journey travel data, among the most popular destinations for mainland residents, air ticket orders to Hong Kong, China and Macau, China accounted for 20% of outbound orders. In addition, since the Macau region does not need to be quarantined, the recent bookings of Macau hotels have risen again after the “New Ten Measures for Epidemic Prevention”. According to the Qunar platform, the number of hotel room nights booked in Macau for December 2022 has exceeded that of the same period in 2019.
It is worth noting that, according to the data from the Australian Tourism Bureau, about 39,000 tourists visited Australia on the first day of customs clearance on January 8, setting a new record high. In the previous New Year’s Day holidays, the number of tourists visiting Macao on December 31, 2022 reached 28,100, an increase of 130% compared with the average daily tourist volume of 12,200 in December. Passenger records.
In addition, the Macau Hotel and Tourism Chamber stated that during the New Year’s Day period, the occupancy rate of Macau hotels has reached 60-80%, and the average room rate is 50-60% of the pre-epidemic level. In the upcoming Spring Festival holiday, the demand for family travel, vacation travel, and festive shopping travel is significant. At present, the confidence of tourists to travel is gradually recovering and showing a continuous increase trend. It is estimated that the occupancy rate of Macau hotels during the Spring Festival is expected to reach the level of 80-90%.
Data from Tianfeng Securities shows that since the third quarter of 2022, Macau’s gross gaming revenue has shown a monthly upward trend with the rebound in the number of tourists entering Macau after the low point in July of that year. Tianfeng Securities believes that with the easing of the epidemic disturbance and the relaxation of entry and exit policies, the number of inbound tourists in Macau is expected to continue to rise, thereby promoting the growth of the mass market business of gaming companies and non-gaming businesses such as hotels, restaurants, and entertainment centers. The Macau gaming industry is expected to usher in performance improvement.
Referring to the previous gaming revenue performance before and after the relaxation of epidemic prevention measures in the United States, after the United States relaxed the epidemic control in the second quarter of 2020, the gaming revenue of each state began to bottom out and rebounded. After about three quarters, it has returned to the pre-epidemic level, and then continued to grow.
Galaxy Securities also released a research report stating that before the epidemic, Hong Kong and Macau received more than 43 million and 28 million mainland tourists each year, respectively. Compared with 60,000 and 7.04 million in 2021, there is huge room for recovery.