China economic stimulus policy is “relevant” to Macau, but the city is still “unique” in terms of its appeal, and the penetration rate for the city’s services is still modest on the Chinese mainland, says Bill Hornbuckle (pictured), chief executive and president of casino group MGM Resorts International, the parent of Macau operator MGM China Holdings Ltd.
He stated in an interview: “I want to remind everybody… the key focus for all of us is premium mass [gambling customers] and the actual penetration rate into Macau – it does about 20-odd million visitors a year – is really folks coming three or four times a year.”
“So it’s like less than 1 percent penetration” in terms of market potential, he added.
Mr Hornbuckle was speaking in a Tuesday interview conducted on the sidelines of the Global Gaming Expo (G2E) casino industry trade show and conference in Las Vegas, Nevada, in the United States.
The MGM Resorts boss was asked by business news television channel CNBC about a decline in Hong Kong-listed stocks of Macau casino operators, coinciding with a Tuesday announcement from China’s central authorities that some commentators had anticipated would mention economic policy measures specifically relevant to Macau.
No such specifics were mentioned in the Tuesday press conference of China’s National Development and Reform Commission.
Hong Kong stocks linked to Macau casino operators had ticked higher in late September, after the Chinese government revealed stimulus measures designed to jolt the country’s economy. Investment analysts still expect the Chinese authorities to present a fiscal stimulus package, as the country’s Ministry of Finance is due to hold a briefing on fiscal policy this Saturday (October 12).
Mr Hornbuckle said: “I have great hope for 2025 and while obviously stimulus in the overall activity case of the economy in China is relevant and important, I think Macau is still a bit unique and I think we’ve continued to experience it. I think it demonstrated itself through Golden Week.”
The latter was a reference to October Golden Week, a seven-day holiday on the Chinese mainland, Macau’s main tourism feeder market, which ended on Monday (October 7). The break is a peak business period for Macau’s casino resorts, with some analysts saying daily gross gaming revenue this holiday season had been the best in five years.
