Macau’s casinos can be worried. Since 2010, their gaming revenues fell to the lowest level. Moreover, previsions don’t show any signs of recovery soon.
19. That’s the number of straight months the city has announced a year-on-year shortfall, as Calvin Ayre tells us. The gaming revenue for December was US $2,3b, according to the Macau’s Gaming Inspection and Coordination Bureau, which is a 21,1% declines compare to the very same month one year ago.
2015 was the second straight year of annual decline, putting the total revenue at the lowest number since 2010.
Unfortunately, pessimism is the feeling due to some facts that won’t encourage Macau’s casinos to get any better in terms of results. For example, the total smoking ban within the casinos is not appealing for costumers (very strict when you know that 95% of them come from China, a country where people smoke a lot) and those same Chinese tourists are restricted by Beijing to access cash outside the country.
Plus, a wave of new casinos as the Wynn Palace, the Sands China’s Parisian and the MGM Cotai will arrive this year in Macau, increasing the competition between casinos.
Also, the local money pataca has to face a stronger dollar and the price of hotels room continue to decrease, which is not helping to earn any more money.
Let’s hope that 2016 won’t be as bad as 2015…