Macau sees biggest monthly revenue rise in over two years
Macau, the heart of the world’s casino gaming industry, has reported a 14.4% rise in monthly gross revenue this November.
The growth from MOP $16.4bn In November of 2015 to MOP $18.7bn of November 2016 marks Macau’s strongest growth in nearly three years, despite the figure being a MOP $3bn decline in revenue from the previous month. Macau has now seen four months of growth, following over two years of decline.
Macau’s newest multi-billion dollar casinos Sands China Ltd. and Wynn Macau Ltd., who have attracted gamblers and tourists upon their opening in the third quarter, have been accredited for the rise.
However, VIP clients – seen as high-rollers – continued to stay away amid the Chinese government’s crackdown against displays of wealth by public officials.
According to a credit analyst at market intelligence firm S&P Global Ratings, Sophie Lin, gross gaming revenue in Macau will drop 3-6% this year and will remain flat or rise up to 10% in 2017. In comparison, full-year casino revenue plunged around 34% in 2015.
Lin commented: “The opening and ramping up of new casinos, better infrastructure connecting Macau with mainland China, and stabilising regulations are the major factors that will fuel a rebound in the gaming industry,”
Fernando Chui, chief executive of Macau, has previously commented that the area needs to do more to boost family tourism including building a theme park, in order to rebrand and expand Macau’s tourist appeal.
However, Chui maintained that the government will continue to promote responsible gaming and increase regulations on the operation of VIP rooms.
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