It seems like the issues related to the Macau gambling industry are here to stay. According to the latest statistics, the weak casino revenues during the last couple of months had a devastating effect on the economy of the administrative region and a shrink of more than 17% was reported.
Market analysts attributed the rapid decrease not only to the lack of high-roller players but also to the fact that the number of tourists has decreased and those who visited Macau were not willing to spend a lot of money.
Mere hours ago, Macau officials released data, according to which the gross domestic product for the full year decreased by 0.4%. The situation during the second half of 2014 became even more pessimistic as in the period in question a decline of 10.2% YOY was reported.
Despite the celebrations for the Chinese New Year that took place last month, February revenue plunged 49%, although some market analysts expected the increased number of tourists to make up for the losses during the previous months.
It is a well-known fact that the anti-corruption campaign of the Chinese President made the majority of high-roller players opt for another gambling destination. In addition, the smoking ban and the visa restrictions are also significant factors for the problematic revenues.
People with knowledge on the matter kept announcing that the situation will be improved during the second half of 2015. Casino owners also commented on the matter and most of them believe that once the “adjustment” period ends, Macau will bring its old glory back.
It looks like things are not that simple and the latest numbers released prove of that statement. Instead of a slight increase, expectations are for an 8% drop in gross gaming revenue during the current year. In comparison, last year’s decline was 2.6% only.
Actually, despite being a gambling hub popular on a global scale, players from Mainland China formed the most part of the revenue.As already reported, they spend less than they used to, which harmed not only the gambling industry but also the revenues of the restaurants, shops and hotels.
However, Macau Cotai strip is still appealing for investors and within a few months two casinos are expected to open doors for players. Galaxy Entertainment Group and Melco Crown Entertainment are to set dates for the grand opening of their properties.
