This photo taken on Jan 18, 2023 shows mainland tourists taking a gondala at the Venetian Casino complex in Macao. (PHOTO / AFP)

HONG KONG – The Macao Special Administrative Region posted an 82.5 percent year-on-year rise in gambling revenue to 11.6 billion patacas ($1.4 billion) in January, after the city had nearly half a million visitor arrivals over the week-long Lunar New Year holiday.

The crowds were the biggest in more than three years, but January's revenue was still less than half of the Lunar New Year period in 2019 prior to the COVID-19 outbreak, according to data released by the Macao's SAR government on Wednesday.

Still investors took cheer, sending shares in casinos in the SAR up between 3 percent to 5 percent, while executives and analysts said it was an encouraging sign of a solid recovery to come.

The Macao SAR has seen a resurgence of tourists from the mainland since Jan 8 after the territory dropped all COVID-19 testing requirements for inbound travelers from the Chinese mainland and the Hong Kong SAR.

January's revenues were the first for Sands China, Wynn Macau, MGM China, Galaxy Entertainment, MGM China and SJM Holdings under new 10-year contracts

Tens of thousands of tourists streamed daily into the casinos and picturesque cobbled streets over the Lunar New Year holiday from Jan 21, a stark contrast to the dearth of visitors into the city since 2020.

ALSO READ: Visitor arrivals in Macao surge threefold during Spring Festival

January's revenues were the first for Sands China, Wynn Macau, MGM China, Galaxy Entertainment, MGM China and SJM Holdings under new 10-year contracts.

The casinos were launched under 20-year contracts in 2002, raking in billions of dollars and turning a fishing village into a glitzy boomtown.

New era

Casinos have committed to investing a total of $15 billion in the coming decade, 90 percent of which must be spent on developing non-gaming plans that include an indoor waterpark, health and wellness centers, art exhibitions and a large garden attraction by Sands, similar to Singapore's Gardens by the Bay.

Stakes are high as to whether they can successfully deliver on a government mandate to increase non-gaming revenues to more than 30 percent versus of the total versus an average of 5 percent pre-COVID.

ALSO READ: Macao CE vows to focus on economic recovery, diversification

Tourists visit the famous Ruins of St. Paul's in Macao on Jan 18, 2023. (PHOTO / XINHUA)

In Las Vegas, around 50 percent of revenues are non-gaming.

Rob Goldstein, chairman and chief executive of Las Vegas Sands, majority owner of Sands China, said the company was seeing a very strong recovery in the Macao SAR since the lifting of COVID-19 restrictions.

"We're just thrilled to be open and making money and seeing demand like we're seeing," he told an analysts call last week.

READ MORE: Tourists swarm Macao at Lunar New Year as virus curbs eased

However, labor shortages are becoming apparent as resorts and retail stores rush to boost staff to keep up with demand, and a Sands executive said it was not operating some hotels at full capacity as a result.