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Why Macau’s Visitors Are Increasing

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Monthly visitors

According to Macau’s Statistics and Census Service, or DSEC, visitors increased by 11% year-over-year, or YoY, to 2,654,180 in October 2014. It should be noted that same-day visitors accounted for 55% of the total. There were 1,470,484 same-day visitors.

Visitors from Mainland China increased 20% YoY to 1,824,719. Chinese visitors were mainly from Guangdong Province and Fujian Province. Visitors from South Korea and Japan increased by 17% and 2%, respectively. Visitors from Hong Kong and Taiwan decreased by 6% and 11%, respectively. Long-haul visitors from the US, Australia, Canada, and the United Kingdom registered a YoY decline.

The average length of stay for visitors didn’t change from the same period last year. The average length of stay was one day in October 2014. Overnight and same-day visitors stayed an average of two days and 0.2 days, respectively.

Macau had more visitors because of long holidays—National Day and the Chung Yeung Festival. It’s a positive signal for casino companies. Casinos get most of their revenues from Macau. The casinos include Las Vegas Sands (LVS), MGM Resorts (MGM), Wynn Resorts (WYNN), and Melco Crown Entertainment (MPEL).

Investors who want to have diversified exposure to these companies can invest in an ETF—like the VanEck Vectors Gaming ETF (BJK).

2014 YTD visitors

Macau’s visitor arrivals in 2014 year-to-date, or YTD, ending October increased by 8% YoY to 26,183,189. Same-day visitors accounted for 54% of the total. Visitors from Mainland China, South Korea, and Japan increased in 2014 YTD on a YoY basis. However, visitors from Hong Kong and Taiwan decreased in the same period. Long-haul visitors from the US and the United Kingdom recorded a YoY increase. However, long-haul visitors from Australia and Canada registered a decrease.

In 3Q14, ~57% of the visitors came to Macau for a vacation. 24% of the visitors from Hong Kong came to Macau mainly for gaming activities. Hong Kong’s percentage is higher than other countries and regions.

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