Macau casino industry continues to grow steadily
Several events have boosted Macau’s casino revenue in November, soaring by 21.3% in comparison to the same month last year. Gambling venues in the former Portuguese colony benefited from an uplift in high-rollers, partly as a result of the 2013 Macau Grand Prix Formula Three and the prestigious Manny Pacquiao vs. Brandon Rios boxing fight.
More than expected
The casino industry is the driving force for economic growth in Macau, with gamblers from neighboring regions contributing vastly to casino profits. Government data showed that gambling revenues rose to 30.18 billion patacas last month, which is 21.3% more than in November 2012. Market watchers had predicted a 20% increase.
Alternative sources of revenue
The Chinese government has demonstrated worries about Macau’s dependence on the casino industry. For that reason, Beijing urges Macau’s government to develop alternative revenue streams. Several gambling companies, including Sands China, Galaxy Entertainment, and Wynn Macau, are tapping into new markets.
Infrastructure investing beneficial
Analysts fear a shortage of hotel rooms in the near future as they don’t expect new establishments to be built before late 2014. However, a bridge connecting Macau with Hong Kong and the city of Zhuhai is likely to boost economic growth in 2016. Additional infrastructure investing, including new railway lines and the development of Macau International Airport and ferries, will spur gambling revenue growth.