uring a meeting with Chinese territory’s legislatures this week the chief executive of Macau Chui Sai On says that revenues in 2015 will come in at around $30 billion and that next year expect a fall to $25 billion for the world’s largest gambling hub.
Following ten years of huge growth which peaked at annual revenues of $45 million in 2013 they have fallen ever since following a huge anti-corruption crackdown by mainland China President Xi Jinping which has seen the majority of the VIP large gamblers stay away from Macau.
However more and more mass market Chinese tourists are visiting the island but not helping to stem the declining revenue figures. Over the past year or so many operators in Macau are turning their attention to leisure and entertainment to increase tourism and help stop declining revenues, but this new strategy takes time and expense which is not always offset by the increased spend of Chinese tourism.
Indeed many businesses that supply to the casinos in Macau are feeling the strain also as casinos decide to spend less on the declining VIP business then they buy less locally so the struggle goes down the line to suppliers.
Observers say that over the next couple of years the shift to tourism focused business in Macau will continue as no-one knows when the declining gambler numbers and those VIP players will return.