The casino industry in Macau is expected to continue its steady growth in 2017. In anticipation of this two beautiful new casinos are scheduled to open in the fourth quarter of 2016. Although gaming industry revenues have had 25 straight months of decline, a government official recently said 2017 would see the beginning of the rebound and growth of Macau’s gambling industry.
Many in Macau are optimistic because as recently as 2013 the gaming industry generated a record $45.2 billion in revenue.
According to a Fernando Chui, Macau’s Chief Executive, it is anticipated both the economy and the gaming industry will continue to be in a period of adjustment. There may even be a little more decline.
However, 2017 would usher in the resumption of the growth trajectory on which the industry was in 2013 and before. Chief Executive Chui made this statement during a meeting of Macau’s legislature.
Chui explained during the televised session that the decline could be as low as 7.2 in 2016, but then both the economy and the gaming industry would begin to rebound from its 25 month swoon.
This is a crucial time for Macau. June saw Macau casinos generate only $2 billion in revenue. September 2010 was the last time the gaming industry brought in that low a total.
The good news is Macau officials have a plan to create sustainable growth. The new casinos being opened in Macau by Wynn Resorts and the Las Vegas Sands are part of that new plan.
Macau’s gaming industry will no longer primarily depend on the spending of a few high rollers. The plan is to fuel and sustain growth by having the casinos attract and cater to the interests of tourists and mass-market customers.
While there are currently about 36 casinos in Macau, the plan is that by 2020 about 10% of the industry’s revenue will be generated by non-gaming activities. In 2014 non-gaming offerings accounted for 6.6% of total revenue.
Last year Galaxy Entertainment Group and Melco Crown Entertainment both opened casinos in Macau.
The Parisian-themed $2.7 billion Sands casino and Wynn Palace, a $4.1billion casino, will open before the end of 2016. Next year MGM will open a $3 billion casino.
Although there has been a downturn recently, major casino operators have poured over $20 billion in investments into Macau. With the proper management the vision Chief Executive Chiu outlined will become reality.