In the past decade, the Macao strip has surpassed the Las Vegas gaming strip to become the largest gaming strip in the world. The area enjoys huge visitor attention from China and its neighboring countries and is home to key international players such as Las Vegas Sands (LVS), Wynn Resorts (WYNN), MGM Resorts (MGM), as well as local players such as Melco Crown Entertainment (MPEL), Galaxy Entertainment, and SJM Holdings. However, the area has seen a slump in the number of visitor arrivals since the Chinese government’s strict crackdown on corruption.
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The visitor arrivals indicate the demand for the region’s tourism and other services. The numbers of visitors to the city make up for revenue growth in the area. The Macao region saw a total of 17.4 million visitors in the first seven months of this year, which is 3.5% year-over-year below last year’s numbers. The low visitor arrival figure was primarily due to lower number of visitors from Mainland China. This decline comes after a small rise in May 2015. Visitor arrivals had increased by 0.7% year-over-year in May 2015.
For the second quarter of 2015, the region saw a 3.3% year-over-year fall in visitor arrivals, which was primarily driven by a fall in tourist numbers from countries like China, Japan, Indonesia, Thailand, and Singapore. The visitors from Mainland China and Hong Kong make up for about 87% of the total visitors in the region and the 5.6% year-over-year fall in the visitor arrival from Mainland China offset the 3.3% year-over-year growth in Hong Kong visitors to the region.
The region also saw a slump in the number of same-day visitors, which fell by 3.2% year-over-year for the second quarter of 2015. This fall came across all the key visitor markets for the industry such as Mainland China, Japan, Hong Kong, Taiwan, Indonesia, and India. The decline in visitor arrivals spells more doom for Macao casinos.