Macau’s Five Month Gain Streak Positions Positive Gains for 2017Published January 6, 2017 by Lee R
New Integrated Resorts appealing to gamblers and tourists alike R’s are likely to sustain Macau growth.
Macau’s transformation seems to be working.
Five Month Streak
December marked the fifth consecutive month of year-on-year casino revenue increases for the Chinese gambling hub seeking to draw more tourists beyond China.
Macau Gaming Inspection and Coordination Bureau Gross data shows gaming revenue GGR for December gaining 8 percent from December of the previous year to 19.8 billion patacas (HK$19.2 billion), after a 14.4 percent year-on-year jump in November.
Total annual figures show a 3.3 percent drop in casino revenue to 223.2 billion patacas, a marked improvement over the 34.3 percent drop showing in 2015. Bloomberg expects the recovery to continue with a positive gain of 7 percent GGR for 2017.
Performance went positive for the first time in two years in Macau in Q3 2016, with a 4% jump in GDP, undoubtedly to the utter delight of government officials in the special protectorate.
Macau’s Reinvents Itself
Macau’s reinvent is a product of increased oversight necessitated by a sweeping anti-corruption campaign which scared off high-stakes VIP bettors and put Macau into a deep spin in mid-2014.
Operators Tourist Outreach
The transformation is exemplified by Macau operations such as Las Vegas Sands Corp. and Wynn Resorts Ltd. offering more tourist-friendly features. The outreach has attracted visitors from South Korea, Japan and the U.S., turning Macau into an international venue.
The IR Revolution
Further boosts are expected from the opening of MGM Cotai, with MGM Resorts International’s second Macau holding drawing mass market and VIP customers equally from the Asia-Pacific region and the rest of the world. MGM Cotai’s Q2 opening will launch a trend of new IR integrated casino resorts appealing equally to gamblers and visitors along Cotai Strip, Macau’s answer to the Las Vegas Strip.
With a new streak of growth in place, Chinese nationals and foreigners, gamblers and tourists, all have a reason to go to Macau now.