I'm very positive on Macau and have been following their story for a few years. The gambling revenue of Macau now has exceeded Las Vegas. However, I'm still looking for a long term investment angle. The Macau casinos are now bleeding from intense competition so it's not the time to invest in them. In properties, there's some demand for some mid-end properties but not the higher end ones. In a few years, there will be a bridge linking Macau to Zhuhai to HK. That bridge would be very beneficial to Macau as it will take only 30 mins to drive from HK to Macau.
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Macau to lure HK families in new approachby Timothy Chui
Wednesday, June 04, 2008
Macau is out for more from Hong Kong - not those hoping for a gambling windfall but families seeking fun.
"In the 1990s and 80s, 90 percent of visitors from Hong Kong were made up of short-trips by working class men who came over after work to try their luck," Ricardo Siu, gaming management program coordinator of the University of Macau, said yesterday.
" Today we are seeing more young people and families coming to Macau for fun and looking for non-gaming attractions," Siu explained.
Although VIP-room patronage accounted for 65 percent of gross gaming revenue in 2006, the volatility of the segment means Macau needs to encourage a mass market approach to properly ride its wave of popularity.
"That means entertainment, buffets and sightseeing. Hong Kong visitors have a higher rate of return compared to other visitors, so the key to Macau's shifting business is to make ourselves a more attractive destination," Siu said.
He said the transformation of Macau's Cotai Strip - on reclaimed land linking Taipa and Coloane islands - by 2011 would also bring many of the value-added sights and spectacles that visiting families craved.
According to a recent American Gaming Association survey of 23 Asian gaming industry leaders, non-gaming amenities are seen as a key component in competing with casino resorts in neighboring countries.
While 43 percent thought the proximity to where the customer lives is important, 24 percent believe non-gaming amenities are the best way forward.
Another 24 percent see the quality of gaming experience as key.
"Restaurants, retail and spas are increasingly important in the Asian markets.
"With 90 percent of revenue currently coming from gaming, experts almost unanimously agree that the sector will grow," AGA president and chief executive Frank Kahrenkopf said.
"A decade ago, Las Vegas was in a similar situation with gaming accounting for 70 percent of the bottom line. Today, gaming only accounts for 40 percent of its bottom line," he said.