Inside Asian Gaming

inside asian gaming November 2016 28 Feature In Focus reason than it would be unlikely to pass political muster,” Union Gaming Head of Asia Equity Research Grant Govertsen says. “Clearly there is a mandate from all levels of the government that Macau rely less on VIP going forward and focus on mass market. By mass market we not only mean mass market gaming, but various non- gaming amenities, too.” For the third quarter, Macau’s GGR rose 1.2%, with the DICJ reporting VIP revenue down 1% and mass revenue up 4%. Adjusted for table reclassifications to foil the smoking ban, Union Gaming estimates VIP revenue fell 6 to 7% while mass revenue grew 8 to 9% and represented 54% of total gaming revenue. Digging into the DICJ data, baccarat’s third quarter share of GGR fell to 87%, the lowest level in seven years, according to Union Gaming. Multi-game terminal play, mainly in stadium configurations with dozens of seats, rose 16%, Sic Bo was up 12% and with slots, down 3%, represented nearly 10% of GGR. These numbers plus recent arrival figures indicate a shift in the market. STAY WITH ME Through this year’s first three quarters, Macau’s arrivals are virtually flat at 22.9 million, but the visitor mix appears to be transforming. Overnight visitors are up 8.5% from a year ago to represent 49.9% of total arrivals (54% in September), and their previously stagnant length of stay rose a tenth of a day to 2.2 days. Day-trippers are down 7.2%. Arrivals from top two markets mainland China – 66.2% of the total – and Hong Kong are off marginally, while numbers three and four Taiwan and South Korea, a combined 5.6% of total arrivals, are up double digits. The gaming and arrival numbers suggest additional overnight guests represent a new group of visitors being drawn to Macau, rather than day-trippers, whose average stay is less than five hours. That emerging visitor segment could form the base for a mass market centered recovery in this transitional period for Macau. New openings during the last 18 months, starting with Galaxy Macau’s phase two and Broadway in May 2015, have added 8,269 hotel rooms – 6,700 rooms in the past 12 months – plus lazy rivers, magic shows, local food centers and sky high vistas, real and virtual. Once again, Macau has come a long way in a short time, but it isn’t done yet. There are still another two integrated resorts to come, plus two more phases of Galaxy, investments that will easily top US$5 billion, plus The 13 with its limos delivered but opening date driven into next year, some key land parcels awaiting development and the