Gambling In Macau Receives A Shot In The Arm
The gambling industry in Macau received a shot in the arm when Wynn Resorts Chairman and CEO Steve Wynn told that he was considering moving the company from Las Vegas to Macau. The chairman said that the move was a good decision taking into consideration that most of their revenue came from China. While opening the newest resort he said that the company plans to build a new gambling resort in Macau, next year.
The company lost $5.2 million during the fourth quarter of 2009. This was, however, lesser than the loss suffered in the fourth quarter of 2008, when the company lost $1.49 per share or $159.6 million in absolute terms. The net revenue for the fourth quarter of 2009 shot up to $809 million from a lowly $614.3 million for the corresponding period in 2008. According to company sources the increase in revenue was due to contributions from Macau and Las Vegas. Revenues from Macau increased from $392.2 million in the fourth quarter of 2008 to $508.4 million in the fourth quarter of 2009.
Wynn said that the new resort in the Macau’s Cotai area would be spread across 50 acres of lush green gardens. Cotai is a reclaimed strip of land between Taipa and Coloane islands, in Macau. This gambling strip was created because land in Cotai is scarce. According to many experts the Cotai strip is inspired by Las Vegas.
The Portuguese were the first to legalize gambling in Macau in the 1850. Since then Macau has earned the sobriquet, “Monte Carlo of the Orient”. Gambling is a significant part of the economy as it generates over forty percent of the GDP of Macau. Taxes on gambling activities contribute seventy percent to the state exchequer.
It would feature 2000 rooms, 400 tables, restaurants and shopping areas providing the ample opportunity to shop gamble and generally have fun.
Wynn, chief executive of the Las Vegas- based Wynn resorts said that he intends to build a single hotel and keep the surrounding area free. According to him the heart of any good resort is space.
The $600 million project at Wynn Macau has four hundred suites, four 7000-foot villas and over sixty gambling tables. This hotel is known as the ritziest hotel in China and is expected to raise the standard of the local tourism market. Wynn said that the idea for this gambling resort came from tour operators who arrange VIP gambling trips to casinos in Macau.
The new resort is expected to increase the appeal of the city and attract tourists in thousands.
Due to rapid progress in the gambling business, Macau was able to make a quick recovery after the recession. The recovery was so quick that it took many including the newly appointed chief executive, by surprise. Policy changes are already underway to control the growth of the gambling industry. This includes rejecting new projects and reducing the number of tables over the next few years.
Wynn agreed with the recent changes in the policies. However, he is sure that his project would be allowed to go ahead as it has been given the green signal by the authorities.