The opening of the French inspired resort, The Parisian, is sending optimistic ripples throughout the hospitality industry, a welcome sentiment after what has been two years of falling revenues. It looks like a recovery is on the way for Macau.
Casino mogul Sheldon Adelson predicts that good days are to come for Macau. He said, “I think we have essentially hit the bottom. I can't predict what the percentage of growth will be but I am optimistic about the future."
The opening of the French inspired resort, The Parisian, is sending optimistic ripples throughout the hospitality industry, a welcome sentiment after what has been two years of falling revenues. It looks like a recovery is on the way for Macau.
“We have fairly high expectations for The Parisian to be the most likely property to grow the market,” said Grant Govertsen, analyst at Union Gaming Group LLC. “Sands China does a better job than its peers in delivering what mass-market consumers want, and The Parisian should hit a sweet spot given the Chinese affinity for Europe in general, and Paris specifically.”
With the shift in focus to non-gaming guests, especially the rising Chinese middle class will be drawn to the Parisian’s 3,000 rooms, convention and exhibition business, Broadway-style show and kiddie attractions.
A 1% growth in the SAR’s monthly gambling revenues in August appeared for the first time in over two years. Macau racks up a third of Las Vegas’ annual revenues.
Head of AM Capital in Hong Kong David Wiliamson says Macau’s strong appeal is likely to continue.
"We estimate this stage to last till 2030,” he said. “After 2030, we expect the industry to enter maturity stage, which will be characterized by a steady but low-growth and high-dividend payout.”