Macau, a special administration province of China, is becoming increasingly popular as a destination for both Chinese high-stakes gamblers and casino tourists. In October, Macau casinos reported a record-high revenue of 36.5 billion patacas ($4.57).
Experts suggest that the boost in revenue occurred because mainland Chinese gamblers spent their Golden Week Holiday in Macau. According to Bloomberg News, the October revenue outpaces Macau’s September numbers by more than 32 percent. Previously, the highest monthly casino revenue was 31.34 patacas, which was recorded in March of 2013.
Macau casino owners have worked diligently to attract more mainland Chinese customers. More specifically, Sands China Ltd. and Galaxy Entertainment Group Ltd. have renovated their hotels and added Chinese-friendly shows and entertainment options. The Macau Government Tourist Office reports that mainland visitors have increased by over 12 percent as a consequence.
In the first ten months of 2013, Macau saw total gambling revenues of $37.2 billion (297.1 billion patacas). The former Portuguese port pulled in $38 billion in revenue during 2012, approximately six times as much as the Las Vegas gambling industry reports in annual revenue.
The amount of annual visitors to Macau casinos increased during China’s Golden Week, too, as over 896, 847 people came to the city for the holiday.
Individual casinos – like Sands China, Wynn Macau Ltd., and MGM China Holdings – show double-digit growth in the third quarter of 2013. Economists believe that the improved economic growth experienced on China’s mainland is responsible for the improved revenues reported in Macau.
Many of these casinos are reinvesting these growing revenues in new projects. A popular area of development in Macau is the Cotai Strip, which is the city’s answer to The Strip in Las Vegas.
For these Macau casinos, this growth in revenue is matched by a growth in company stocks. MGM stock shares, for example, rose 1 percent in October, while Sands China and Galaxy stocks grew by 1.8 percent during the month.