One of the biggest stories of the year in the gambling community of the world has been the restrictions that have been placed on travel to Macau from mainland China and Hong Kong, ostensibly attempting to control the flow of people to and from the only area in the entire country where gambling is actually legal. This move has been roundly criticized in the international community and for the longest period of time it was also looked upon with dismay by the industries themselves in Macau with many people proceeding to feel sorry for themselves to the point where industry slowed down and the Chinese government was then forced to step in and give them financial assistance in order to cover up their own policy blunder that had a large part in bringing about the current poor conditions on the ground.
That having been said, it appears as though Macau is now starting to work on ways to circumvent that policy by reaching out to communities that are not their natural player bases from years that have already gone by. The main reason that the Chinese government restrictions were so damaging to the Macau community is that when China and Hong Kong are added together, they collectively represent about two thirds of the total customer number that Macau casinos enjoy. With such a large amount of their business coming from just one place it is perhaps not surprising that Macau could not continue their massive growth in the face of government restrictions, but at the same time it appears as though their appeals to the international community appear to be working in tandem with their appeals to their indigenous populations.
Even though revenue growth appears to have bottomed out, the number of people actually visiting the city of Macau has gone up. It was around 3% in terms of the increase in November and in August, September and October there were also single digit increases from the same time in the previous year. This is due in small part to a larger number of people making the trip from the mainland less frequently, but it is also due in larger part to the fact that more international visitors are starting to come to Macau because the deals are excellent and the gaming is just as good as it would be in the city of Las Vegas.
What Macau casinos lack in terms of gambling choice they make up for in terms of cost efficient service and for that reason many people that used to go to Las Vegas are now being seduced to taking their vacation time and going to Macau instead. Japan in particular has really embraced the gambling scene in Macau, with the Macau Government Tourist Office reporting that they expect the 2009 number of Japanese tourists to be 15% more than the number was in 2008. That is a rather dramatic increase and it is one that will definitely benefit the cash starved tourism and gambling industries within the city limits. |
