MACAU’S casino revenue jumped in October, returning to 74 per cent of its pre-Covid levels, after the world’s largest gambling hub saw a surge in tourists during China’s Golden Week holiday.

Gross gaming revenue grew 400 per cent to 19.5 billion patacas (S$3.3 billion), according to data released by the Gaming Inspection and Coordination Bureau on Wednesday (Nov 1). That’s more than the median analyst estimate of a 392 per cent year-on-year increase.

Chinese tourists flocked to Macau during the eight-day holiday early last month, contributing to the rebound in gaming revenue following a slowdown in September.

Visitor arrivals during the break reached more than 932,000, taking the daily average to about 84 per cent of the same period in 2019, according to official data. About 78 per cent of the travellers were from mainland China, the data show.

Macau has been wooing tourists with a busy slate of events, including concerts by popular Hong Kong singers and a poolside dance party with former NBA star Shaquille O’Neal.

While tourism boomed, there are signs that spending per person slowed as China’s ailing economy weakens consumer sentiment. Macau’s visitation grew 20 per cent in the quarter, but revenue per visitor was only up 7 per cent, Morgan Stanley said in an October note.

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The casino hub has more upcoming events to offer for the remainder of the year, including concerts by Irish pop band Westlife in November. The city is pivoting to non-gaming activities to attract mass-market tourists after China’s crackdown on high-rollers battered its VIP sector, which used to account for half of Macau’s gaming revenue.

For the third quarter, gaming revenue from mass tourists had returned to 93 per cent of 2019 levels, according to official data. The sector has become the biggest driver of Macau casinos’ growth and profitability. Mass gaming income may reach about 110 per cent of the 2019 level next year, driving casinos’ profits to a full recovery by mid-2024, according to a JPMorgan Chase estimate.

VIP revenue for the third quarter was at 38 per cent of the pre-pandemic levels.

A Bloomberg Intelligence index of Macau casino operators dropped 8.5 per cent in October, while the benchmark Hang Seng Index declined 3.9 per cent in the same month. BLOOMBERG