Morgan Stanley expects weak Labour Day break in Macau
Morgan Stanley has predicted a lower average daily rate compared to last year’s break.
Macau.- Morgan Stanley has predicted that the upcoming Labour Day holiday could see average daily rates (ADRs) in Macau 14 per cent lower than during this year’s Lunar New Year holiday and 2 per cent lower than in last year’s May Golden Week. Occupancy rates are running 5 percentage points lower than during the Lunar New Year but 4 points higher than during last May’s holiday period.
Analysts said that although gross gaming revenue (GGR) increased by 1 per cent in year-on-year terms, the industry’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first quarter is likely to be down by 5 per cent year-on-year.
In 2024, 604,395 visitors arrived in Macau during the Labour Day golden week from May 1 to 5. The five-day figure represented 84 per cent of what was recorded during the holiday in 2019. The Statistics and Census Service (DSEC) reported that the average hotel occupancy rate was 89.2 per cent, a rise of 4.5 percentage points year-on-year. The peak day was on May 2, with 95.1 per cent occupancy.
