"Occupy Hong Kong" may impact Macau visitor arrivals, says UBS

The Occupy Central pro-democracy movement in Hong Kong may have spillover effects for Macau's gaming industry as visitors decide to cancel trips to Macau and Hong Kong due to the protests, a report by UBS Securities said.

Some 15-20 percent of Macau's mainland tourists arrive through Hong Kong. "Some of these visitors might cancel their trip to Hong Kong/Macau altogether due to the current events," the analysts warned, but added most came on package tours and are unlikely to be "high value" customers to the casinos.

Hong Kong residents are said to account for between 8 to 10 percent of Macau's gross gaming revenue. "The reduction in demand might lead to some reduction in demand from Hong Kong gamblers."

Recent tourism figures for Macau have shown strong growth, despite a decline in gross gambling revenue in the territory. In August, year-on-year arrivals from China to Macau, reached 2.13 million - a record high for the industry.

Also positive was a 19 percent increase in higher spending Individual Visitation Scheme (IVS) arrivals year-on-year to 1.06 million, while the lower spending package tourists were up by 36 percent to 1.05 million over the same period.

 

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