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Investing.com -- Shares of major casino operators with exposure to Macau fell sharply after disappointing Chinese travel data for the first two days of Golden Week, a key holiday period for the gambling hub.
Wynn Resorts (NASDAQ:WYNN) stock dropped 6%, Las Vegas Sands (NYSE:LVS) fell 5.5%, Melco Resorts & Entertainment (NASDAQ:MLCO) declined 6.5%, and MGM Resorts International (NYSE:MGM) slipped 2% following the weaker-than-expected passenger numbers from China’s travel ministry.
Citi analysts Brian Gong and Alicia Yap noted that the overall passenger throughput volume during the first two days of the holiday period fell short of investor expectations. They attributed this partly to travelers beginning their trips earlier this year, which may have spread out the typical Golden Week rush.
The Golden Week holiday, which typically drives significant gambling revenue in Macau, is closely watched by investors as a barometer for Chinese consumer spending and tourism trends. Macau, the only place in China where casino gambling is legal, relies heavily on mainland visitors, especially during holiday periods.
Chinese travel stocks also declined alongside the casino operators, reflecting broader concerns about tourism activity during what is traditionally one of China’s busiest travel periods.