Macau Gaming Revenues Fall For Eighteenth Consecutive Month
Macau recorded its eighteenth consecutive month year-on-year revenue declines with November’s figures just released. Revenues fell 32.2% from the same period last year to $2.06 billion. This latest decline puts the global gaming capital‘s revenue drops in the region of 35.3 % for the first 11 months of 2015 from the same period in 2014.
The reasons for Macau’s seemingly endless pattern of falling revenues are well known. The Chinese crackdown on corruption is not just a publicity stunt as some though earlier on but rather a policy of diversifying Macau’s economy away from its dependence on gambling.
The VIP’s from the Chinese government and the high rollers that once packed the casinos have been wary to fall foul of the crackdown. While some like Sheldon Adelson believe that like everything else gambling is cyclical many do not see the light at the end of the tunnel. The situation is baffling market experts as transit visa rules for Chinese visitors have been eased which should have boosted the former Portuguese colony.
Even the grand opening of Melco Crown’s $3.2 billion Studio City in October has not helped the situation. Studio City was aimed at catering for other entertainment needs and not solely gambling in line with the local authorities push to expand non-gaming activities in resorts.