Latest figures show that visitors to Macau in February rose 11.6% compared to February 2006. Over half of all visitors (52.3%) remain for just one day in China’s gambling haven, with the majority coming from Mainland China and Hong Kong. 2,421,098 tourists visited Macau last month, bringing to 4,792,852 the total for the first two months of 2008. Most arrived by land through the Border Gate. Visitors from Hong Kong and Taiwan decreased marginally.

This year gambling revenues in Macau are expected to reach US$20 million, which is above estimates for Nevada. Macau is beginning to cut into the profits made by operators in Las Vegas as it attracts more and more visitors from Southeast Asia and beyond. In 2007 there was a 46% increase in casino revenue to US$10.4 billion. VIP gamblers account for around 67% of Macau’s gambling revenue.

After a slow start, Crown Macau is believed to have the largest volume of betting at present. A deal with a Hong Kong junkets operator, A-Max, has increased Melco PBL Entertainment’s market share of high rollers. By paying a higher than average commission to the junket operator, Crown Macau has upped its share of the profitable VIP market from 6.6% in November to 24.8% in February. Other companies operating in Macau, such as Las Vegas Sands, are having to rethink their junket commission policies.

The next stage of casino development in Macau, with new casino hotel entertainment complexes on the Cotai Strip, will not be completed this year. Macau’s 27 casinos will look to increase their market share before facing further competition. If China’s economy continues to grow then Macau should continue to benefit from millions of Chinese visitors, many of them happy to bet up to a quarter of a million dollars a time. (E-03.25.08)

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