GGRAsia – Premium China players still aim repeat Macau trips: CLSA

Premium China players still aim repeat Macau trips: CLSA

May 29, 2024 Newsdesk Latest News, Macau, Top of the deck

Chinese “premium mass” gamblers still like to spend in Macau, with 70 percent of such players in a survey sample saying they plan to make a repeat visit before March 2025, according to a “China Reality Research” poll conducted by brokerage CLSA Ltd.

Such consumer demand should help the Macau casino sector develop “healthily” over the next 12 months, said the institution in a 41-page report issued on Tuesday.

CLSA’s survey involved 800 Chinese nationals that had “past experience with Macau gaming”. The respondents – referred to as “panellists’ by CLSA – were divided into three segments using terms typically applied by the industry depending on client gambling budget, namely: premium mass, “base mass”; and “grind mass”.

Around 60 percent, or 481 individuals, were grind mass, with a gaming budget of CNY25,000 (US$3,449) or below. A further 33 percent were base mass with a gaming budget per trip of CNY25,000 to CNY200,000. The remaining 7 percent of participants were premium mass players, with a play budget of CNY200,001 or more.

The survey found that 78 percent of all participants planned to come to Macau by the first quarter of the following year. That was down on the 82 percent of respondents that had indicated such intention in the 2023 survey.

Nonetheless 70 percent of the 2024 premium mass sample planned to visit Macau two or more times within the next 12 months, compared to 57 percent expressing similar intentions in the 2023 survey.

“This aligns with our view that premium mass visitors are generally more immune to any macro slowdown, given Macau is a niche market targeting the wealthier ones [consumers],” wrote analysts Jeffrey Kiang, Lance Noble, and Leo Pan in the published findings.

This time 40 percent of the base mass sample planned to visit Macau at least twice before the end of the first quarter the following year, versus only 15 percent of the grind mass polled wishing to do that.

Over 90 percent of premium mass and base mass wished to stay in Macau for two nights or more per trip.

But among all respondents, the proportion willing to spend more than one night in the city fell to 83 percent, from 91 percent in the 2023 survey. Those aiming for three or more nights fell to 56 percent, from 58 percent.

“The planned length of stay has reverted downwards, which we believe is due to the cooldown of pent-up demand,” said CLSA. That was understood to refer to Chinese consumers’ appetite for travel after Covid-19 restrictions were lifted at the start of last year.

Though CLSA added: “Over 89 percent [of respondents] with monthly income CNY30,000 or above are still willing to stay in Macau for at least two nights.”

In terms of funding Macau play, 48 percent of the sample mentioned either UnionPay debit cards or credit cards; 45 percent mentioned cash as the funding route. Circa 51 percent of premium mass and 62 percent of base mass patrons were inclined toward UnionPay bank cards, but only 40 percent of grind mass mentioned that path.

Circa 45 percent of respondents said they would “expedite” their Macau-trip plans, based either on mainland exit-visa policy easing that took effect from May 6, or the recent expansion in the tally of Chinese cities covered by the Individual Visit Scheme (IVS).

Around 56 percent of the sample intend to visit at least two casino resorts during upcoming trips to Macau. Sands China Ltd’s Cotai property the Venetian Macao was the most popular in terms of both gaming and accommodation. MGM China Holdings Ltd and Wynn Macau Ltd – which each have one property on Macau peninsula and one in Cotai – saw year-on-year increase in popularity for their hotels and casinos, the CLSA research suggested.