Macau is optimistic despite revenues decline

macau

It is estimated that the full year take will be the smallest since 2010.

The gaming hub is ignoring poor results and betting on improving its position as more brands are investing on the City.

Macau.- Whilst Macau is facing a two-years in a row drop of its incomes, the Special Administrative Region of China –also known as the world’s largest gaming market– announced that three major international brands are opening complexes later this year. Wynn Resorts, Las Vegas Sands and Stephen Hung are investing over US$8 billion on new ventures.

The tourism attraction is expected to boost gaming industry in Macau and return the region into the podium as the major gambling hub globally. Wynn Resorts is opening in August a fancy Wynn Palace Cotai hotel with 1,700 rooms and innovative “SkyCabs” which will transport tourist over an 8-acre lake. Las Vegas Sands is preparing a 3,000 room hotel, with a Paris-themed and a replica of the Eiffer Tower, for US$2.7 billion. Stephen Hung, Asian gaming mogul, is investing on The 13, the world’s highest per-room cost of US$7 million for each baroque-style 200 hotel room.

“With Cotai providing more hotel capacity and a larger mass table footprint, we anticipate this premium begins to expand again post stabilisation,” Wynn Resorts published. Steve Wynn, owner of the company, added that they are thinking of 8/8 as the opening date, “sort of lucky numbers,” he explained. Number 8, according to Chinese culture, means prosperity and wealth as the pronunciation is similar to Chinese word for “becoming rich.”

Meanwhile, Macau is going through a decline phase. Tourism industry lost 2.6 percent of its flow last year. China tourism, majority in Macau, fell 4 percent in 2013 and 15 percent in 2015, according to Statistics and Census Service of Macau. Major explanation has to do with the biggest devaluation of the yuan, Chinese currency, since 1994. The yuan worth dropped 4 percent last year.

However, the gambling hub is betting on more attractions to elevate its status again. By the end of 2016, Macau will count on over 30,000 hotel rooms for international tourists and will add 6,300 more in 2017. The region will surpass Las Vegas and New York City in hotel density per square mile.