Macau gambling revenue finally rises during November. After two years of decline new gambling resorts have attracted more visitors. The informed are getting ready for another boom in Macau.
Macau Gambling Revenue Increase
Gambling revenue increased by 14.4 per cent during November, it was the fourth month of growth after two years of decline. Statistical data showed earnings had increased to 2.36 billion dollars in November.
Macau gained independence from China in 1999 and attracted billions of dollar of investment after legalizing gambling. Things were slow to begin with but then Macau became flooded with high rolling gamblers from China because gambling is illegal in China.
Gambling was booming in Macau and it was earning more revenue than Las Vegas but in May 2014 it all changed. China had intensified a crack down on corruption and it began scaring off high rolling gamblers from China. Many of these Chinese mega gamblers were using the junket system where they would borrow money in Macau to gamble and repay it in China. Many wealthy Chinese public officials stopped visiting Macau during the crack down.
The junket system was very popular. It enabled those who had amassed large amounts of money through corruption to spend it in Macau without being under scrutiny. Some members of the Communist Party employed as public officials were reported to be spending as much as their annual salary in Macau in one night.
2016 saw the opening of two new mega gambling resorts in Macau. The Sands China and Wynne Macau opened their doors and attracted new visitors to Macau.
The forecast for gambling revenue next year is from zero to an increase of 10%. Gambling revenue had plunged by 34% during 2015 and the forecast for 2016 was a loss of 3 to 6%.
So why is it a good time to invest in Macau?
Get ready for another boom in Macau
The huge amount of investment in Macau did pay off. Further investment over the past two years has seen gambling revenue increase again. New visitors have been attracted to the new gambling resorts which opened this year.
Next year will see the new mega MGM resort open in Cotai. 2018 will see the opening of SJM’s Grand Lisboa Palace. Hotel rooms in Macau increased by 4,700 during 2016 when the Wynn Palace and the Parisian hotels opened. There are now more than 35,000 hotels rooms in Macau compared to 20,000 in 2011. Occupancy levels have remained at around 85% so that is real growth.
Next year will see completion of a new ferry terminal. Also during 2017, Macau International Airport is boosting passenger numbers from 6 million to 7.8 million per year.
During 2018 a new railway system will connect Macau with the Chinese mainland at Guangshou, the provincial capital of Guangdong. The number of Chinese visitors to Macau must surely increase. If that does happen gambling revenue will further increase.
During 2019 there will be a new bridge linking Hong Kong to Macau. The travelling time from Hong Kong Airport will then be 30 minutes. Also there will soon be a new railway link between the new ferry terminal and Macau Airport. Hong Kong International Airport is already a hub for many international carriers so the prospect of attracting stopover visits to Macau will be very high.
These new infrastructure and resort hotel projects are a strong sign that gambling revenue will increase in the future. Now might be a good time to invest in Macau before the next boom. Macau Gambling Revenue must surely increase with all these infrastructure improvements.
Macau is an independent country with its own laws and clearly it is on a mission to become the greatest gambling destination in the world.