The gaming industry in Macau has witnessed a strong rebound since the pandemic, an industry expert pointed out today at the G2E Asia conference, with the city still managing to adapt to a shift in gaming behavior and consumer preferences.
In a panel discussion on Emerging Market Talks, Angus Chan, Associate Director of Research at UBS AG, highlighted the positive trajectory of Macau’s gaming revenue.
“Macau has reported a pretty strong recovery of gaming revenue last year, and the trend looks pretty happy this year as well,” he noted.
Macau recorded gross gaming revenue of MOP183.1 billion (US$22.7 billion) in 2023, representing a 334 per cent year-on-year increase. However, this amount was also 62.6 per cent of 2019 levels.
Chan also observed a shift in gaming behavior and consumer preferences in Macau and other regional markets. “We see some trade-up,” he said. “The high-end customers, the rich, are traveling to Macau and other places in the region, including Singapore, leading to a higher per capita spend.”
This shift towards a more premium and experience-driven gaming landscape is further corroborated by Chan’s remarks. “The future seems to be more content-driven and experience-driven. Governments around the region have also picked up in terms of marketing efforts,” he explained.
The introduction of new hotel rooms, concerts, and various events, he says, have played a crucial role in enhancing the overall appeal of Macau as a gaming and entertainment destination.
“That’s one structure change person to our team, and that’s been able to have to customers, whether it’s going to Singapore or town. I think that remains a driver in the future in an environment where there’s a fair bit of land left,” Chan said.
Interestingly, the gaming industry’s resilience seems to be defying the broader macroeconomic conditions.
As Chan noted, “It’s quite surprising because we do have a relatively weak macro environment. But I think in terms of the locations and the gaming destinations, in general, I think that is a big push for higher content, new hotel rooms, new content, a lot of concerts, a lot of events.”
The positive outlook extends beyond Macau, with Chan highlighting the strong performance of the gaming industry in Singapore as well. “Singapore is doing very well. That looks like it’s going to continue with visa travel, trying to add in more flights. That should continue to drive revenue,” he stated.
