Visitor Arrivals Fall Again after 5 Months of Consecutive Growth
The visitor arrivals metric measures the number of people, both locally and non-locally, that visit the Macao region in a given month.
The metric helps us gain knowledge about the demand for the region’s tourism and other services. It also helps us know what regions contribute the most to Macao’s tourism and to gauge the incomes and expenditures in these regions.
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Visitor arrivals fell
According to the Macao government’s Statistics and Census Service (or DSEC), in February 2017, visitor arrivals rose 5.6% compared to February 2016, but they fell 13.2% month-over-month to 2.5 million visitors. This was the first fall after five months of improvements. In January 2017, visitor arrivals rose 17.6% YoY (year-over-year).
Tourists from mainland China formed the highest contribution to visitor arrivals, as Macao has become a hub for VIP gamers. Despite the drastic fall, tourists from China still formed 67% of Macao’s February visitors. In February 2017, visitors from China fell 7.5% YoY to 1.7 million. Visitors from Korea rose 31.3% to 83,000. Visitors from Taiwan rose 0.6% to 87,000.
However, visitors from the United States, Canada, and the United Kingdom fell to 12,000, 5,520, and 3,967, respectively, while Australia also fell in the month. Overnight visitors’ stays increased by 0.1 of a day to 2.2 days, and same-day visitors’ stays remained unchanged at 0.2 of a day.
In 2016, visitor arrivals rose 0.8% YoY to ~31 million. Improving visitor statistics bode well for major casino operators such as Wynn Resorts (WYNN), Melco Crown Entertainment (MPEL), Las Vegas Sands (LVS), and MGM Resorts (MGM). Investors can gain exposure to LVS by investing in the iShares US Consumer Services ETF (IYC), which invests 0.69% of its portfolio in the stock.
We’ll be tracking these numbers closely for you, so be sure to visit Market Realist’s Casinos and Gaming page.