Macau Gambling Revenues Rise For Fourth Consecutive Month
The recovery in the world’s largest gambling hub Macau continues as November saw a 14.4 percent rise in gambling revenues. This represents a fourth month of growth after a two year decline in revenues due mainly to the Chinese Government crackdown on corruption in the former Portuguese colony.
November saw gambling revenues reach $2.36 billion boosted by the opening of the mega casinos resorts, Sands China and Wynn Macau. VIP clients are still however staying away from Macau as they still fear the crackdown of the authorities. Gross Gaming revenues are expected to be to up 10 percent next year which is in contrast to the 6 percent drop this year and 34 percent drop in 2015 according to S&P credit analyst Sophie Lin.
Good news is that Macau’s GDP grew 4 percent in the third quarter which is the first positive growth recorded in the last two years according to Macau’s Statistics and Census Bureau.
Macau chief executive Fernando Chui insists the territory has to diversify from gambling to tourist and family like destinations. VIP gamblers were the main sources of income of total revenues prior to the crackdown in 2014 and made up as much as 70 percent of total revenues. This has now fallen to around 50 percent.