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HONG KONG : Gaming revenues in Macau shot up 50 percent year-on-year in the second quarter of this year, as the southern Chinese gambling haven gets ever closer to overtaking the greater Las Vegas region.
Casino revenues in the territory reached a record 19.57 billion patacas (US$2.51 billion) in the period, further solidifying the tiny former Portuguese enclave's position as the world's largest gaming centre.
Revenues from VIP baccarat, a game of choice for high-rollers, continued to pull in most of the money for Macau's 26 casinos - 13.21 billion patacas, up 58 percent from the year before for the three months to June.
Gaming receipts from the territory with a population of only 510,000 people have already overtaken revenues pulled in by the 40 gaming centres along Las Vegas' famous boulevard.
In 2006, gross gaming revenues in Macau were equivalent to US$7.2 billion, compared with the US$6.6 billion made on the Las Vegas strip.
According to current trends, turnover in Macau could overtake output from 189 casinos and slot machine halls in Las Vegas and its surrounds, or the whole of Clark County in Nevada, within less than two years.
Total gaming revenue for Clark County in 2006 was US$10.6 billion. JP Morgan predicted that turnover in Macau will reach US$9.5 billion this year and US$13.4 billion by 2010.
Macau's casino sector has rocketed since a law passed in 2001 ended tycoon Stanley Ho's 40-year monopoly on casino operations in the city.
That boost spurred new mega-casino openings, including Las Vegas giants Sands, the Wynn Macau, owned by American gaming mogul Steve Wynn, and the Hong Kong-owned Galaxy StarWorld.
The latest figures were buoyed by mainland Chinese and Hong Kong visitors who made up 86 percent of a record 22 million visitors who entered the city last year, a figure tourism chiefs expect will exceed 25 million this year.
JP Morgan analyst Billy Ng said with the improving economy on the mainland and across Asia, many wealthy Chinese as well as others in the region have gone to Macau for gambling, boosting revenues.
"Asians love gambling. Macau couldn't provide a good service in the past... now there's a quality product and this is attracting more people," Ng said.
He predicted gaming revenues would reach US$9.5 billion this year and US$13.4 billion by 2010.
However, with more than 58 percent of revenues generated by high-rollers, CSFB analyst Gabriel Chan cautioned such growth may not be sustainable and added Macau should develop other avenues to further its development.
"A lot of mainland Chinese have made money on the booming stock markets which led to a rise in the gaming revenues. If the stock markets aren't so good, this will have an impact, too. There's a risk there," he said.
Chan believes Macau should widen its tourist attractions.
"Macau should be able to provide other entertainment, like shopping, to ensure a sustainable income," he added.
Nevertheless, analysts said Macau's newest hotel, the Venetian Macao which will open next month, will attract even more tourists. Ng predicted the number of tourists will reach at least 35 million by 2010.
The casino-resort, which will be the second largest building in the world and the largest in Asia, will feature 3,000 suites, 1.2 million square feet (111,500 square metre) of convention and exhibition space, one million square-feet of retail space and a 15,000-seat arena. - AFP/de
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