It’s a title long held by Las Vegas – the Entertainment Capital of the World – and over the years the scintillating ‘sin’ city has adapted and grown to maintain its dominance in the gambling market. Figures released for the last fiscal year show that Nevada revenue has beaten a record year in 1996, and that the Las Vegas Strip and Downtown together had gross revenue of US$14 billion. An increase in both the number of tourists and local gamblers has brought about the record revenue for Nevada, but for the first time the revenue from casino games (US$10.66 billion) fell to below 50% of the total.

Across the world in Asia analysts are predicting a 20% increase in casino revenue for 2006, and Macau is the engine driving the industry. Just as Las Vegas has evolved, Macau is changing its image from a somewhat shady place to gamble into a tourist destination with more than casinos to offer. As China starts to relax its travel regulations for its citizens, a huge market is opening for Asian resorts – particularly for Macau, which as a semi-autonomous special administrative region of China attracts many of its residents renowned for their love of gambling.

The giant gaming companies of America have not been slow to recognize the lucrative future for casinos in Asia. Wynn Macau is scheduled to open in September, following in the footsteps of the incredibly successful Sands operation. The Grand Emperor Hotel, owned by Hong Kong listed Emperor Entertainment Hotel Limited, opened yesterday, its casino attracting around 20,000 customers. Singapore may have seen some major companies pull out of the tender for its first integrated casino resort, but Harrah’s Entertainment, MGM Mirage and Sands Las Vegas are so far still in the bidding along with Malaysia's Genting, perhaps better placed to look at the long-term investment return.

Macau’s economy grew 29% in 2004 and seems to have expanded a further 7% over 2005. More than 70% of its revenue comes from gambling, which in the past has been largely based on high roller action. However, more casinos in Macau are now looking to the mass and middle markets, and the slot machines that were once barely played in Macau are increasingly emerging on the gambling scene. Alternative forms of entertainment for visitors such as theme parks are also being constructed.

Macau has seen a meteoric rise in tourism, from 7 million in 1999 to an expected 20 million last year, and it aims to become the biggest gambling entertainment city in the world. An expanded airport, a 35 kilometre US$7 billion bridge linking Macau to Hong Kong, a ferry terminal and a bullet train project are all underway to make travel to Macau easier and much faster. Las Vegas may still be the hub of the gaming industry but statistics show that Macau leads the world in gaming revenue growth rate and is rapidly approaching the level of Las Vegas. Could this be the year that Macau takes the title? (E-01.06.05)

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