The success of the gambling industry in Macau is an undisputed fact but the success of the new mega casino complexes is far from certain. Las Vegas may be getting transported to the Special Administrative Region of Macau in all its glittering glory but it could yet prove to be a case of ‘What happens here (in Vegas) stays here (in Vegas).’ The Chinese mainlanders, still by far the largest group attracted to Macau, may be notorious for their propensity to gamble but have yet to adapt to the vacation concept.

Most Macau visitors are day trippers with an urge to gamble and the occasional overnight stay by a few. The new mega casino resorts with conference facilities and entertainment on offer have yet to prove a concept that will attract sufficient numbers of clients. Macau may be awash with new schemes and developments under construction but success for operators and investors is far from guaranteed. Delays in opening and increasing costs have led to recent investor caution but many believe that strong growth potential in China will ensure ultimate success.

In Las Vegas non-gaming activity now generates as much or more revenue than gaming and it has a booming international tourist market, something Macau is eager to emulate. Gaming revenue may be outpacing Las Vegas, up 18.5% in the first four months of this year compared to the same period in 2005, and at least three new casino developments should open before the end of 2006. Wynn Macau, Galaxy StarWorld and Grand Lisboa are all expected to be open for both the gaming and hotel business. The enormously successful Sands Macau opened as a gaming operation with no hotel facility.

Convention business will doubtless grow in Macau and it may yet become a family vacation destination when it finally emerges from its original seedy reputation. Grandiose schemes for the Cotai Strip area are underway and the present success of Macau has led several Asian governments to rethink casino bans. Within a couple of years it should be evident whether the great Macau gamble, for operators and investors alike, is paying off. (E-06.20.06)

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