Macau Gaming Revenues Up 3.1% In January
The world’s largest gambling hub Macau continues its slow but steady recovery. As we have reported over the last few years, the once undisputed playground for China’s rich and powerful elite has had to adapt its focus from solely gambling to a Las Vegas like tourist destination. The Chinese crackdown on corruption has resulted in many VIP players looking elsewhere to spend their money and as a result gambling revenues have plummeted in the last two years. The good news is that from last year August revenues have gradually shown consecutive increases a major resorts have opened up.
The latest figures for January show a 3.1% year-on-year rise in gambling revenues which were $2.4 billion. This was the sixth consecutive month of year-on-year growth however it was below the analysts’ forecasts of an increase of between 7%-10%.
The latest numbers are a positive sign for investors with the long term prospects looking up. Fitch in a note said that,” Macau gaming, now firmly at the bottom of the cycle, has better long-term prospects given investments in new supply, improvements in mass-market indicators and under-penetration of gaming throughout the rest of Asia.”