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MACAU By Luis Pereira, Macau Business
gaming makes up for the total of the market revenues and the VIP tables account for 70% of
the business.
Macau is on the fast track to becoming the world’s new gaming capital. With gaming rev- The US$ 2.2 billion project features 20,000 hotel rooms in total, 3,000 suites, 1.2
enues of US 7.2 billion, surpassing the Las Vegas Strip. In fact, the once sleepy Portuguese million square feet of convention and exhibition space, one million square feet of retail
enclave has been awakened to the power of the betting dollar and the glamour of the top space and a 15,000-seat arena. It embodies the ‘integrated resort’ concept which has done
casino developers in the business. Despite its small size, roughly 11 square miles, and a pop- so much for the Las Vegas model, where revenues are shared by other amenities.
ulation of just over 500,000, Macau features 26 of the world’s most profitable casinos. Analysts argue that the first mega project to open on Macau’s ‘Cotai Strip’ – now sporting
Although the tradition of gambling in Macau goes back centuries, only recently has the a record number of construction cranes per square foot – is expected to help increase
industry spotlight been focused here. visitation length by supplying options to a gambling driven market, such as conventions,
The secrets of Macau’s success can be explained in arguably two major steps. First, the shopping and entertainment, which in turn will help create the synergies seen in Las Vegas.
liberalisation of the gaming industry. The process not only put an end to decades of a gam- However, others believe that the market will not show definite signs of change on the Cotai
bling monopoly held by local magnate Stanley Ho, but brought to the mix some of the most Strip before 2009.
renowned names in the industry, such as Wynn Resorts, Las Vegas Sands and MGM. The One thing is certain of Macau: currently no other gambling market in the world offers
opening of the Las Vegas Sands’ first casino in May 2004, the Sands Macao, culminated the same growth rates across every industry’s sector on the floors here.
that process. The investment on the US$ 240 million project (built in record time of 600
days to become the worlds largest casino in terms of number of tables under one roof, iwth
investment recouped in only eight months) proved that the market could in fact house new
foreign operators.
While the first step was a significant one, the decision by China’s Central Government to
facilitate flux of visitors was what, ultimately, filled the casinos and ensured the coin flowing
in the gaming tables. The introduction of the individual travel scheme allowed for mainlan-
ders in specific Chinese provinces to visit without going through specific travel agencies.
Instead of travelling in groups, individuals were given the freedom to visit by themselves,
and as many times as they wanted, the only place in China where gaming is regulated – the
Macau Special Administrative Region, created after the handover of power of the old
Portuguese colony to China in 1999.
Macau is however not without weakness. Lack of infrastructure to accommodate a grow-
ing flux of visitors necessary to fuel the gaming tables, as well as labour shortages to staff
the mega resorts currently in construction, are major concerns. These issues will be put to
the test with the opening of the Venetian’s mega-resort on Macau’s Cotai Strip at the end of
August 2007.
The sheer size of the project, which is nearly a third larger than its Las Vegas counter-
part, will make it one of the biggest buildings in the world. As such it is set to determine if
Macau can indeed can break free from its current label: a one-day visitor destination, where
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