Macau August Revenues Up 1.1 Percent Breaking Two Year Losing Streak
The world’s largest gambling hub Macau has shown positive growth for the first time in more than two years. The month of August saw a modest 1.1 percent rise in gambling revenuse from the same period last year. Revenues were $2.4 billion which was higher than analyst’s predictions of a 3 percent drop. This was mainly due to the opening of the much talk about $4 billion Wynn Macau resort.
Macau’s economy is still largely dependent on gaming revenues with over 80 percent of the government revenues coming from this sector. The change of policy of the Chinese authorities over two years ago has hit the area hard. The idea is to make Macau an entertainment destination like Las Vegas and remove its reliance on gaming revenues only. This has proven very difficult and has got many asking if the former Portuguese territory can recover in the long run.
The general consensus is that the glory days of Macau are over and the notorious days where Macau was the playground of the corrupt and rich Chinese officials is over. Analysts like Praveen Choudhary from Morgan Stanley believe that despite new properties like Wynn Macau an others expected it will be much more difficult to “ramp up a new property in a low growth environment, based on Studio City’s and Galaxy Macau Phase 2’s performances.”