MGM boss bullish on Macau, despite sluggish Chinese economy
Speaking at the Global Gaming Expo trade show in Las Vegas Wednesday, Hornbuckle said
MGM has “great hope” for Macau heading into 2025, despite China’s struggling economy and a stimulus plan that failed to ignite consumer confidence.
He pointed to Golden Week tourism as a sign that the Chinese are actively pursuing leisure and entertainment.
Golden Week stronger than expected
The annual holiday commemorates the 1 October 1949 founding of the People’s Republic of China. Golden Week is a peak travel season among mainlanders. And this year’s volumes didn’t disappoint.
According to the Macau Government Tourism Office (MGTO), nearly 1 million people visited the city 1 October-7 October. That’s a 2% increase over the same period in 2019.
An average of 152,600 tourists arrived each day, far exceeding the government target of 130,000 per day. Mainland visitors made up 83.2% of the total visitor base. The rest came from Hong Kong.
“We’ve all had an amazing week,” Hornbuckle told CNBC’s Contessa Brewer at G2E. “It speaks to the general economy and the activity case in Macau. And we remain pretty excited by it all.”
According to government data, year to date, gross gaming revenue (GGR) in the world’s top casino market has grown 31.3% year-on-year. Through September, casinos generated MOP169.36bn (£16.165bn/€19.3bn/US$21.14bn), 76.9% of pre-Covid levels.
MGM Resorts is the parent of MGM China, which operates MGM Macau and MGM Cotai in the Chinese special administrative region (SAR).
US company expanding in Asia
MGM will open Japan’s first integrated casino resort in Osaka in 2030. It is looking to further grow its presence across Asia.
The US-based company has also expressed interest in Thailand, when and if that market opens to legal gaming. In addition, Hornbuckle said it has applied for a gaming license in the United Arab Emirates.