Goldman Sachs research reports indicate that although all Macau gambling enterprises acknowledge the macro challenges brought by slowing consumer spending and the impact on the sales performance of their mall tenants, they also point out that the demand for gambling in all market segments remains resilient, the scale of bets remains stable, and the number of gamblers continues to grow, although some high-rollers have become more cautious with their expenses.
Although Ctrip-S (09961.HK), the management of the mainland travel booking website, previously stated that Hong Kong and Macau's popularity among mainland tourists has declined, Melco International (00027.HK) and MGM China (02282.HK) both revealed that hotel room booking rates during the National Day Golden Week have exceeded 90%. Some gambling industry insiders also believe that Ho Iat Seng, the candidate for the Chief Executive of Macau, will pay more attention to the diversification of non-gambling sectors in Macau and may accelerate the development of Hengqin Island.
Goldman Sachs also quotes various Macau gambling enterprises as saying that combating money laundering is not a new issue for Macau, and considering the resilience of Macau's gambling industry total revenue, the impact on gambling income should be limited. Goldman Sachs also expects that the competition in Macau's gambling industry will tend to stabilize, with operating expenses and profit margins following a similar stable trend.