Macau Casino Revenue Up 20.4% to $2.8BN in AugustSeptember 1, 2017 11:36 am
Despite two typhoons knocking out half of Macau’s electricity and water supply for four days last month, the casino resort still managed to achieve an impressive 20% year-on-year growth in August, resulting in revenue of $2.82 billion for the world’s biggest gambling hub.
Helping to contribute to the positive figure in August was an increase in overnight visitors to the island, who in general tend to spend up to four times as much as day-trippers. The number of high rollers visiting Macau’s casinos were also on the rise, with this lucrative segment still responsible for producing around 57% of the resort’s overall gambling income. The signs look promising going forward, too, with Morgan Stanley analysts stating that they expect the VIP sector to recover faster than the mass market vertical.
The latest monthly result released by Macau’s Gaming Inspection and Coordination Bureau this week means that the resort has now experienced rising revenues for 13 consecutive months, after having previously seen its business contract for around two years. According to gaming analysts at Morgan Stanley, Macau is now expected to achieve a win gaming growth of around 18% by the year’s end, although this figure is down from an earlier forecast of 24% due to the economic impact of the two deadly typhoons which struck Macau in August.
Typhoon Hato and Tropical Storm Pakhar were the worst seen in decades, and tragically resulted in the deaths of 10 people, hundreds of injuries, and numerous properties being destroyed. All told, the meteorological disaster is expected to cost the casino resort up to $216 million, with those gambling venues situated on the Cotai Strip bearing the brunt of the typhoons. In the meantime, relief efforts have been ongoing, with casino companies contributing funds to help with the operation, including Melco which has already pledged $7.4 million.