There has been a lot buzz and press focusing on tiny Macau lately and for good reason. The small piece of land, a part of China still, has surpassed all expectations in terms of its success with it gaming and resort efforts. In fact, it has become one of the top gaming destinations on the globe, according to industry experts. In just the last three years, Macau has seen an increase in its gaming revenues when other areas that offer gaming have seen dramatic losses.
One has to be careful when assessing expert opinions these days. During the last six months or less, many experts suggested that Macau would begin to lose revenues just as other areas offering gambling opportunities were doing. It is true that Macau did see a drop in its revenues during this period, but its drop was far less than what experts assumed would happen. These same experts expected that Macau’s drop in revenues would last at least until fall or into winter, but that simply did not happen. Revenues for gaming establishments in Macau actually went up in August of this year. When compared to the same time period for 2011, revenues are up by 5.5 percent. This represented in real money an increase of some $3.3 billion.
One should be too harsh with the analysts, however. It is true that in 2010 and ’11 Macau revenues were soaring (at times) to 70 percent over the year prior. This, of course, is a rate that is simply unsustainable, which is what the experts based their opinions upon. By the middle of the year, revenues had dropped into the single digits. But in August, those revenues began to soar again.
Many analyst consider Macau’s popularity to be due to the fact that this tiny piece of land is the closest thing to Las Vegas that Asian populations have at their immediate disposal. Macau itself spent considerable time and energy in making sure that it did things right in terms of accommodations, dining, entertainment, etc which brought it into the spotlight of all international travelers, not just those living in Asian countries. They have done such a good job at it that many of those who would be visiting Vegas are actually taking the extended trip to Macau, if for no other reason than to see what all the hoopla is about. Few are disappointed, it seems.
Just a couple of years ago, the government of Macau was rethinking its position on gaming as it was beginning to feel that Macau was becoming too dependent on the gaming industry. Local casino owners at the time agreed, but for other reasons, one suspects. The plan was to attempt to diversify the local economy, and much of that has happened. However, the success of casino and hotels in the area brought any plans for a complete halt to new establishments to a halt itself.
In addition to Macau being a success, other nearby countries are also seeing an increase in casino and hotel construction. Singapore and Malaysia are just two areas that are actively seeking new facilities, and many established casino owners are investing in these areas.