Chris · March 25, 2007
Daryl G,
Hotel Insider
To the un-initiated or ill-informed, it may sound like the name of some funky new Peruvian coffee bean, but Macau is in fact one of two special administrative regions in the Peoples Republic of China. Along with Hong Kong on the southern coast of the PRC, Macau reverted to Chinese control in 1999. Until this time it was administered by Portugal and was the oldest European colony in China, dating back to the 16th century. But enough of the history lesson for now.
Gaming, along with the tourism and hospitality industry, is estimated to contribute more than 50% of Macau’s GDP, and 70% of Macau government revenue.With the opening of the Sands Macau, the largest casino in the world as measured by total number of table games, in 2004 and Wynn Macau in 2006, gambling revenues from Macau’s casinos were, for the first time, greater than those of Las Vegas (each about $6 billion), making Macau one of the highest-volume gambling centres in the world.
Other casinos and hotels slated to be opened through 2009 are: The Venetian Macau (2007), Four Seasons (2007), MGM Grand Macau (2007), Far East Consortium Complex (2007), Grand Hyatt (2007), Galaxy Cotai Megaresort (2008) and Mandarin Oriental (2009). The first Phase of Macao’s Cotai Strip is scheduled to open in 2007 and will include 19,000 guest rooms throughout seven resort hotels, with the $1.8 billion Venetian Macao serving as the anchor. As a result, Macau’s economy is growing rapidly due to gambling related tourism and construction from the new casino entrants. Add to this an announcement from Sir Richard Branson of Virgin fame this last week, that he will be making his first venture in to the Gaming & Lodging market and is in advanced negotiations to acquire a 20-hectare site to build a $3 billion casino project which is slated for 2010.
With ferries arriving every 15 minutes from Hong Kong, it stands to reason that a majority of visitors to the area are Hong Kong locals looking to burn their hard earned cash, but this also allows visitors to Hong Kong easy access to the 2,762 available tables on the island. In 2006 the small peninsula received 12 million tourists from mainland China and 9.2 million from other parts of Asia. One interesting fact is that the number of Western visitors does not seem to be increasing, so it looks like that a lot more work needs to be done by the likes of Sheldon Adelson, James Packer and Steve Wynn to attract them to Macau. How this is going to be achieved remains to be seen, but the Macau Tourism Service said that as part of the foreign promotion of Macau’s potential, specific attention would be paid to the Russian and Middle Eastern markets. In total, 2.2 billion people live within five hours’ flying time of Macau, according to CLSA Asia-Pacific Markets, compared with only 410 million in the same radius of Las Vegas!
Is Macau going to be the next Vegas? The stats seem to be pointing in that direction but who knows. 5 years from now we might even see the likes of Celine Dion securing a permanent gig here, or dare I say it......Siegfried & Roy! What happens in Macau stays in Macau? I don’t know, it just doesn’t roll off the tongue as easily as the same adage for Vegas!
[Image via Flickr]