Cr145 digital

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NOVEMBER 2014 • EDITION 145

TWITTER/@ICASINOREVIEW • WWW.CASINOREVIEW-ONLINE.COM

MGS

Venetian Macao ALL EYES ARE ON THE MACAO GAMING SHOW MGS PREVIEW 34

EUROPE NEWS

PEOPLE

New dawn rises for ECA as Cezanne takes charge of Europe’s driving force 4

Jay Chun on hopes and aspirations for the Macau industry 30

THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY

VISITOR ARRIVALS UP

MARKET

Its monthly revenue growth may not be at levels it wants to see, but Macau remains the focal point for development for the world’s leading resort operators. James Walker explains.

A MACAU

I Operators remain bullish on Macau’s longterm performance lthough Macau may be witnessing a slowdown in growth, when it comes to total receipts generated by the sector, the territory continues to fare well. Information from the Statistics and Census Service (DSEC) indicated that total receipts of the gaming sector reached MOP363.07bn (E35.7bn) in 2013, up by 18 per cent year-on-year. Receipts from gaming and related services - which include food, beverages and currency exchange increased by 18 per cent yearon-year to MOP362.75bn (E35.7bn). Gross value added, which equals receipts from gaming and related services in addition to changes to inventories but excludes purchases of goods and commission paid, measures the sector’s contribution to the economy. According to the survey, gross value added totalled

MOP225.9bn (E22.2bn) in 2013, a 21 per cent increase over that of the previous 12 months. Operating expenses and compensation of employees in Macau went up by 21 per cent and 13 per cent to MOP21.17bn (E2bn) and MOP16.18bn (E1.6bn) respectively. Non-operating expenditure such as depreciation and interest paid totalled MOP3.57bn (E350m), up by 15 per cent year-on-year. With an incredible $38bn (E30bn) gross gaming revenue in 2012, Macau’s 32 casinos earns six times more revenue than the whole Las Vegas Strip did in the same year. Indeed, given Macau’s domination of the global gaming industry skyline, the former Portuguese enclave is subject to fervent monthby-month analysis around the world. It has been widely

reported that gambling revenues for the month fell some 23 per cent year-on-year, the sharpest drop since the Special Administrative Region started keeping records. “A two-year campaign on corruption has discouraged China’s high-rollers from ostentatious displays of wealth in Macau,” said Bloomberg analyst, Billy Chan. Meanwhile, the industry could be further affected by Chinese President Xi Jinping’s expected visit to Macau next month, according to Union Gaming Research analyst Grant Govertsen. Despite the dip, however, many operators continue to focus on expansion in Macau - the only place where casino gambling is legal in China. Commenting on October’s revenues Steve Wynn, chief executive of Wynn Macau, which is currently building a $4m

($3.2m) integrated resort in the territory, said: “I don’t know if it is a squall or if we are in the rainy season, or how long it will last, but we are still very bullish on Macau.” Wynn’s sentiments were echoed by Lawrence Ho, cochairman and chief executive officer of Melco Crown Entertainment, which recently posted a drop in third-quarter earnings. “Macau remains the leading and most exciting gaming destination in the world,” Ho stated. “As the only legal casino gaming destination in China, Macau is ideally positioned to cater to one of the fastest growing consumer markets in the world, with a burgeoning middle and upper class which, together with a forwardthinking development and infrastructure blueprint for the region, will ensure Macau’s long term success.”

nformation from the Statistics and Census Service (DSEC) indicated that visitor arrivals increased by three per cent year-on-year to 2.4m people in September 2014. Sameday visitors accounted for 52 per cent of the total, at 1.2m. Analysed by place of residence, visitors to Macau from Mainland China increased by six per cent year-on-year to 1.6m, coming primarily from the nearby eastern provinces of Guangdong Fujian Province. Mainland visitors travelling under the Individual Visit Scheme rose by 11 per cent. This increase was echoed by a growth in visitors from South Korea (up 24 per cent), Japan (seven per cent) and the US (seven per cent). In the first three quarters of 2014, visitor arrivals reached 23.5 million, up by seven per cent year-on-year, with same-day visitors sharing 53 per cent of the total.

gamingsupport.com www.gamingsupport.com


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