After a 26-month slump in gross gaming revenue, Macau has since August 2016 shown growth in gross gaming revenue for 12 consecutive months. Macau gaming revenue for the six months ended 30 June 2017 was MOP126.4 billion, representing an increase of 17.2% over that for the six months ended 30 June 2016. Macau’s total visitor arrivals for the six months ended 30 June 2017 were 15.6 million, representing an increase of 5.4% over that for the six months ended 30 June 2016. Gaming revenue has been steadily recovering after the policy and economy headwind hit Macau’s gaming industry for more than 2 years. In addition, an improving economy and the opening of new gaming and non-gaming facilities have helped bring patrons back to Macau.
We saw a laggard effect from the operation of satellite casinos on market recovery. On the other hand, after a slow performance in terms of gross gaming revenue of the casinos under our management in the first quarter of this year, we were gradually recovering from the second quarter of this year even though same-day visitor arrivals from China and Hong Kong all together registered a 2.4% year-on-year decline in the first half of this year. Nevertheless, we have been seeing trend of improvement of foot traffic and patron quality to our casinos under management this year. This is attributable to management’s stringent focus on driving profitability through improving efficiencies combined with increase in higher margin electronic gaming revenue.
In July 2017, Xinhua News Agency reported that Hong Kong-Zhuhai-Macao Bridge subsea tunnel has been connected. It is the world’s longest sea bridge connecting Hong Kong, Zhuhai and Macau. It will establish a new land transport link between the east and west coasts of the Pearl River region, evolving economic and sustainable development among the areas. Together with the further improvement of border gates capacity on the Macau Peninsula, all these infrastructures will definitely facilitate visitation foot traffic to Macau, and eventually boost gaming demand, especially on the mass segment.