From Hollywood theme studio, multi-stage magic show, the world’s highest figure-of-eight observation wheel also water slides and scale models of landmarks like the Eiffel Tower – They make Macau as Las Vegas of Asia and soon to be the richest city by 2020
Macau – New landmark of Asia
World class Casino to the best hospitality experience
The city endured a two-year slump from June 2014, during which time it rethought its target audience, adding 8,200 new guest rooms and HK$100 billion of hospitality hardware in Cotai, most of it – like the half-scale Eiffel Tower and theme-park style attractions – aimed squarely at the mass market.
The Venetian, the Parisian reproduces more than a dozen City of Light landmarks. Steve Wynn said Wynn Palace aimed simply to be “the most beautiful hotel in the world”, and tourists would have to come see it. There is also some crossover – Wynn Palace might be tempting the tourists, but it has also proven very popular with VIP gamers.
Mass market or VIP target gamers
Most analysts contend official numbers overstate VIP revenue and rely on other sources including casino operators. But even Union Gaming’s managing director in Macau, Grant Govertsen, long a cheerleader for Macau’s mass-market future, concedes that VIP revenue is now growing faster. Rather than a “mass led” recovery, Govertsen now calls it “mass anchored”.
JP Morgan analysts DS Kim and Sean Zhuang estimate VIP revenue growth overtook mass market in the second quarter (28 per cent vs 17 per cent; 42 per cent vs 14 per cent in June) for the first time since the third quarter of 2011. For the six months through June, JP Morgan estimates VIP revenue has grown 19 per cent, compared with 16 per cent for mass. It upgraded full-year growth forecasts to 17 per cent for VIP and 13 per cent for mass.
Increased overnight stays, up 14 per cent this year according to the latest Macau government figures, but new guests are most likely to come from the high end of the market. Unlike Las Vegas, Macau is still searching for its formula to open mass market wallets outside the casino.