Macao visitor arrival
The visitor arrival metric measures the number of people, both locals and foreign tourists, that visit the Macao region in a given month. The metric offers insight into the demand for the tourism and other services in the region. It also helps us learn about the regions that contribute most to Macao’s tourism.
Visitor arrival keeps falling
According to Macao’s Statistics and Census Service (or DSEC), for November 2016 (the latest available data), visitor arrivals remained unchanged as compared to November 2015 and fell 3.4% month-over-month to 2.6 million visitors. This is the sixth month in 2016 that visitor arrival hasn’t declined. For October 2016, visitor arrival improved 2% YoY.
Tourists from mainland China form the highest contribution to Macao’s tourism, as Macao became a hub for VIP gamers. Despite the drastic decline, tourists from China still formed 67% of Macao’s July visitors. For November 2016, visitors from China fell 1.2% YoY to 1.7 million. Visitors from Korea rose by a strong 34.6% to 62,009. Visitors from Japan rose 25.4% to 34,142.
However, visitors from both Hong Kong and Taiwan also fell 1.4% each to 5 million and 0.8 million, respectively. Visitors from the United Kingdom, the United States, and Canada also rose, while visitors from Australia dropped in the month.
For the first 11 months of 2016, visitor arrivals rose 0.2% YoY to 28.1 million. Overnight visitors rose 9.1% to 14.2 million. The average length of stay also rose 0.1 days on a YoY basis.
Improving visitor statistics bode well for major casino operators like Wynn Resorts (WYNN), Melco Crown Entertainment (MPEL), Las Vegas Sands (LVS), and MGM Resorts (MGM). Investors seeking diversified exposure to casino companies may be interested in ETFs that invest in casino stocks like the VanEck Vectors Gaming ETF (BJK). Investors can also invest in the WisdomTree Dividend ex-Financials Fund (DTN), which holds 1.6% in LVS.
We’ll be tracking these numbers closely for you, so be sure to visit the Market Realist Casinos Page for the latest updates.