Macau reported smallest decline in 20 months
Despite analysts expected a fall of 2-10 percent, growth in gambling revenue dropped 0.1 percent to 19.5 billion patacas (US$2.4 billion.)
Macau.- The Chinese gambling hub posted today (Tuesday) its best monthly gambling revenue performance since October last year. The increase in tourists visiting the city over the Lunar New Year holiday, may have done the trick. This report marks the 21st consecutive monthly decline, but the smallest fall in 20 months.
Tourism increased in the first two months of the year, with the number of individual tourists from the mainland up 2.6 per cent in January, and total mainland visitors up 4.5 per cent over the week-long Lunar New Year holiday in February, according to the government’s data. The thing is that even though visitor numbers increased, most of the tourists were not wealthy gamblers.
David Bain, analyst at US-based research and financial services firm Sterne Agee, explained that “Arrival increases bode well for Macau’s longer-term bull thesis which includes an unparalleled geographic gaming location, small mainland penetration and upcoming multi-staged infrastructure improvements.”
Macau’s economy relies on the casino industry for over 80 percent of government revenues, but a prolonged anti-corruption campaign launched by the Beijing government in 2014 curbs conspicuous spending, negatively affecting VIP gamblers. The six casino operators in Macau, Sands China, Wynn Macau, MGM China , Melco Crown, Galaxy Entertainment and SJM Holdings, are now increasingly reliant on ‘mass market’ gamblers as VIP gamblers are harder to find.
